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Gadget Industries has recently changed its business structure from being a sole trader to a partnership - VCE - SSCE Business Management - Question 1 - 2017 - Paper 1
Question 1
Gadget Industries has recently changed its business structure from being a sole trader to a partnership. The business has also employed a new Human Resource Manager ... show full transcript
Worked Solution & Example Answer:Gadget Industries has recently changed its business structure from being a sole trader to a partnership - VCE - SSCE Business Management - Question 1 - 2017 - Paper 1
Step 1
Define the term ‘sole trader’
Answer
A sole trader is a business structure where one individual owns and operates the business. The primary characteristic of a sole trader is that they have full control over the decision-making process and receive all profits, but they are also personally liable for any debts incurred by the business.
Step 2
Outline one reason why a business may choose to operate as a partnership rather than a sole trader
Answer
One reason a business may choose to operate as a partnership is the ability to pool resources and expertise. In a partnership, multiple individuals can contribute capital, skills, and knowledge, which can lead to better decision-making and a greater capacity for growth compared to a sole trading structure.
Step 3
Describe the impact that this change may have had on one other key performance indicator of Gadget Industries
Answer
The increase in staff turnover may impact customer satisfaction as one key performance indicator. With higher turnover, inconsistency in service delivery can occur, leading to a decline in customer experiences. This may result in lower customer loyalty and subsequently reduced sales figures.
Step 4
Explain how a persuasive management style may assist in reducing the level of staff turnover
Answer
A persuasive management style encourages open communication and employee involvement in decision-making processes. By actively seeking employee input and addressing their concerns, the Human Resource Manager can create a more inclusive workplace. This could lead to increased job satisfaction, commitment, and ultimately a reduction in staff turnover as employees feel valued and part of the organization's success.
Step 5
Step 6
Describe the impact that an area of management responsibility identified in part a. can contribute to the achievement of Shandra’s Dairy Ltd’s objective of becoming more environmentally sustainable
Answer
The finance department can contribute to Shandra’s Dairy Ltd’s objective by allocating budget for sustainable practices, such as investing in renewable energy sources or eco-friendly materials. By ensuring that financial resources are directed towards environmentally sustainable initiatives, the company can improve its ecological footprint while also potentially reducing costs in the long run through energy savings.