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Aileen O’Rourke established her ladies fashion business and label, ‘AORA’ almost three years ago - Leaving Cert Business - Question A - 2001
Question A
Aileen O’Rourke established her ladies fashion business and label, ‘AORA’ almost three years ago. Aileen had studied design at college and had graduated with distinc... show full transcript
Worked Solution & Example Answer:Aileen O’Rourke established her ladies fashion business and label, ‘AORA’ almost three years ago - Leaving Cert Business - Question A - 2001
Step 1
Illustrate two areas of control that you would recommend to be put in place immediately in the business.
Answer
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Financial Control: Implementing robust financial controls is essential for AORA, especially with the need for injection of capital to expand the business. This may involve budgeting, forecasting, and monitoring cash flow to ensure that the business can sustain its operations and invest in technology for high-quality products. Aileen should establish a comprehensive financial management system to keep track of income and expenses, which would illustrate her commitment to financial health and preparedness in executing her business plan.
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Operational Control: AORA needs to strengthen its operational controls by instituting quality control measures. As Aileen has identified, the quality of products is crucial for success in the niche market. This may include setting up standards to evaluate product quality and consistency, as well as regular reviews to ensure operations meet these standards. By establishing clear operational procedures, Aileen can effectively manage her resources and ensure that her products meet the expectations of her target market.
Step 2
Outline one reason in each case and refer to the above text in your response.
Answer
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Financial Control Reason: Implementing financial controls will help AORA manage its cash flow more effectively. As noted in the text, Aileen’s business requires an injection of capital to expand and acquire technology. Proper financial control ensures that the financial resources are utilized efficiently to achieve these goals.
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Operational Control Reason: Enhancing operational control through quality assurance will directly impact AORA's ability to deliver high-quality products. Aileen acknowledges the need for high standards to attract and maintain customer loyalty. Effective quality control measures will ensure that the products produced meet the expectations set forth in the business aims.
Step 3
Strategies for Change.
Answer
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Engage Stakeholders: Aileen should involve her employees in the change process by obtaining their feedback and suggestions on the proposed changes. This will not only alleviate her doubts regarding the changes needed but also promote a sense of ownership and commitment among her team, facilitating smoother implementation.
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Training and Development: Aileen should invest in training programs for her staff to ensure they are equipped with the necessary skills and knowledge regarding the changes. This will enhance their confidence in the modified management style and promote adherence to new procedures, ultimately leading to greater success.
Step 4
Future of the enterprise.
Answer
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Market Positioning: AORA has the potential to establish itself as a leader in the ladies' fashion market by leveraging high-quality products and effective branding. To ensure a bright future, Aileen must continue to refine her product offerings and communicate her brand value effectively to her target audience.
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Sustainable Growth: Aileen must focus on sustainable growth by exploring opportunities for diversification and innovation in her product lines. By remaining agile and adaptive to market demands and customer preferences, AORA can maintain relevance and resilience in the competitive fashion industry.