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Way Out Ltd designs and manufactures casual clothing and accessories - HSC - SSCE Business Studies - Question 26 - 2007 - Paper 1
Question 26
Way Out Ltd designs and manufactures casual clothing and accessories. In 2007 the business ran an expensive marketing campaign advertising in teen magazines. Market... show full transcript
Worked Solution & Example Answer:Way Out Ltd designs and manufactures casual clothing and accessories - HSC - SSCE Business Studies - Question 26 - 2007 - Paper 1
Step 1
Describe ONE appropriate marketing promotion strategy for Way Out Ltd.
Answer
An effective marketing promotion strategy for Way Out Ltd could involve leveraging social media platforms to reach a broader audience and engage more directly with potential customers. This strategy would include creating appealing content such as fashion lookbooks, user-generated content contests, and influencer partnerships. By targeting age groups that align with their target market through platforms like Instagram and TikTok, Way Out Ltd can increase brand visibility and drive sales more effectively.
Step 2
Recommend ONE strategy to improve employment relations.
Answer
To improve employment relations, Way Out Ltd could implement a transparent communication system that encourages feedback from employees. Establishing regular check-in meetings, using anonymous surveys, and creating an open-door policy can enhance dialogue between management and staff. This will not only boost morale but will also help management to understand and address employee concerns more effectively.
Step 3
Recommend ONE way to measure the effectiveness of employment relations.
Answer
One way to measure the effectiveness of employment relations is by using employee satisfaction surveys. These surveys can assess various aspects of workplace satisfaction, including communication, work-life balance, and management support. By analyzing the results from these surveys over time, Way Out Ltd can identify areas for improvement and measure the impact of changes made in their employment relations strategy.
Step 4
Analyse cash flow management and profitability management for effective financial planning.
Answer
Effective cash flow management involves keeping track of the inflow and outflow of cash to ensure that the business can meet its short-term obligations. For Way Out Ltd, this could mean closely monitoring expenses and payment terms with suppliers to optimize working capital. Additionally, analyzing the sales cycle and adjusting inventory levels can prevent overstocking and enhance liquidity.
Profitability management, on the other hand, focuses on ensuring that the revenues exceed expenses over a given period. This includes setting realistic sales targets, regularly reviewing pricing strategies, and managing production costs. By conducting break-even analyses and profitability audits, Way Out Ltd can make informed decisions to enhance overall financial health.