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Blue Berry Juice manufactures a range of healthy fruit juices - VCE - SSCE Business Management - Question 2 - 2023 - Paper 1
Question 2
Blue Berry Juice manufactures a range of healthy fruit juices. The owners have plans to expand the business into overseas markets. Recently, the business has changed... show full transcript
Worked Solution & Example Answer:Blue Berry Juice manufactures a range of healthy fruit juices - VCE - SSCE Business Management - Question 2 - 2023 - Paper 1
Step 1
Justify the decision by Blue Berry Juice to change to a public listed company.
Answer
The decision for Blue Berry Juice to transition to a public listed company can be justified on several grounds:
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Access to Capital: By becoming a public company, Blue Berry Juice can raise significant funds by issuing shares on the Australian Securities Exchange (ASX). This capital can be crucial for funding the expansion into overseas markets.
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Limited Liability: Shareholders' liability is limited to the amount they have invested in the company, protecting their personal assets. This is a significant advantage over a partnership where owners have unlimited liability.
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Tax Benefits: Public companies often benefit from lower tax rates and more favorable taxation structures, enhancing profitability and enabling reinvestment into the business.
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Increased Credibility and Visibility: Listing on the stock exchange can enhance the company’s visibility and credibility, making it more attractive to potential investors and business partners, which could help in building critical partnerships in overseas markets.
Step 2
Outline one way in which the airline could develop its corporate culture after implementing the change.
Answer
One way the airline could develop its corporate culture is by implementing a staff engagement program. This program could focus on enhancing communication between staff and management, encouraging employees to share ideas and feedback about the work environment. By doing so, the airline can foster a sense of community and shared purpose among employees, which can improve morale, increase job satisfaction, and lead to higher productivity. This approach helps in aligning the workforce with the airline's values and goals post-implementation.