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Ozzi Baby Food Pty Ltd have developed a trusted reputation in domestic and global markets due to their safe and sustainably-sourced product range - HSC - SSCE Business Studies - Question 25 - 2021 - Paper 1
Question 25
Ozzi Baby Food Pty Ltd have developed a trusted reputation in domestic and global markets due to their safe and sustainably-sourced product range. This has led to a ... show full transcript
Worked Solution & Example Answer:Ozzi Baby Food Pty Ltd have developed a trusted reputation in domestic and global markets due to their safe and sustainably-sourced product range - HSC - SSCE Business Studies - Question 25 - 2021 - Paper 1
Step 1
Outline TWO operations influences affecting this business
Answer
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Globalization: The expansion of the business into international markets has increased the need for efficient production processes and capacity to meet diverse market demands.
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Technological Advancements: The integration of advanced technologies in production can enhance efficiency, improve product quality, and reduce overall operational costs.
Step 2
Discuss the use of retraining and redundancy payments to help overcome employee resistance to these changes
Answer
Retraining programs can help employees adapt to new technologies and processes, alleviating fears and promoting job security. By providing redundancy payments, the company can create a more supportive environment for those who may lose their jobs, thus reducing resistance to transformation and improving overall morale among staff.
Step 3
Compare the use of a mortgage to a new issue of shares to fund the factory purchase
Answer
A mortgage allows for long-term borrowing against an asset, providing immediate capital while maintaining ownership. However, it comes with the burden of interest payments and the risk of asset foreclosure. In contrast, issuing new shares can raise capital without increasing debt obligations, but it dilutes existing ownership and can impact the company's control structure. Careful consideration of both options is required based on the company’s financial health and strategic goals.