Question
Refer to the Peacewick University case study
a. Outline two steps that Adriana should take if she decides to dismiss the head of the Faculty of History, Jim (lines 89-100).$[4]$
b. Explain strategies, in addition to redundancies, that $P U$ could use to solve its cash-flow problems (lines 56-59).[6]
▶️Answer/Explanation
Ans:
a.Two steps include:
Tell Jim and other faculty members.
Follow PU’s HR procedure for dismissal.
May need to meet with Jim and his trade union representatives. Prepare a case substantiating the reasons in case Jim takes PU to court for unfair dismissal, exactly as Patricia is doing after her own dismissal (line 90) (as ‘dismissal’ is about a fault, as opposed to ‘redundancy’).
Ask HR to advertise for a new post, internally or externally, as Jim needs to be replaced
Review of current staffing in the History department. Assess whether Jim needs to be replaced.
Accept any other relevant step, as long as they apply to what Adriana would need to do if she decides to dismiss Jim. Non-procedural steps can also be rewarded such as the department review.
Mark as a [2] + [2].
Award [1] for each appropriate step and [1] for application of each step. Maximum award, for two steps: [4].
b.
Refer to Paper 1 markbands for 2016 forward, available under the “Your tests” tab > supplemental materials.
Strategies include:
20 % of staff are on part time contracts. More staff could have their hours reduced.
PU has maintained its marketing budget and this could be reduced.
Some facilities are underused so could be let to provide additional income.
Reduce overseas visits for lecturers.
Stop courses that are not economically viable e.g. history, modern languages.
Increase fees but these are competitive and there is a shortage of students.
Make more/other staff redundant.
Other methods which are generic include: delay payments to suppliers, reduce spending.
Short-term sources of finance. These must be appropriate to PU.
Accept any other relevant strategy, or methods mentioned as part of an overall strategy.
Marks should be allocated according to the Paper 1 markbands for 2016 forward section A.
Award a maximum of [3] for a theoretical answer or for limiting answer to only one strategy.
Award a maximum of [5] if the answer is mainly descriptive but in context.
Award a maximum of [6].
Question
Refer to the Megamin Mining case study
a. Describe two differences for $M M$ between marketing its minerals (a product) and marketing its hotels (a service).[4]
b. Explain strategies $M M$ could use to improve cash flow in its palladium mine in South Africa (Table 1).[6]
▶️Answer/Explanation
Ans:
PLEASE NOTE: This content is not included in the syllabus for 2024 exams onward. Related parts of this multi-part question may be used.
Marketing minerals
B2B so advertising may not be necessary
Role of promotion unclear
Based on contracts
Based on market prices
Targeted at other industries
Long-term contracts
Marketing hotels
B2C so essential to promote
Some promotion has not worked (ads in travel mags, price promotion)
Customers are general public
Market competitive but relatively stable. Fierce competition from Homehol/Airbnb
Accept any other reasonable difference.
Award [1] for each difference up to a total of [2].
Award [1] for putting the difference into context up to a total of [2].
b.
Refer to Paper 1 markbands for May 2016 forward, available under the “Your tests” tab > supplemental materials.
Delay spending on major improvements – one month delay will improve Q2 cash flow but will make Q3 worse
Reduce credit terms on sales. These are on 2 months credit which is quite a long time. What is industry norm
Get a short-term loan – however this impacts on the profits/liquidity/gearing and does not solve the problem
Wages are not suitable for change, nor, probably are other costs
Investigate ways to spread out maintenance costs or reduce them. Different credit terms?
Incentivize early invoice payment;
Renegotiate credit options if possible and delay vendor payments as long as possible; (e.g. credit terms are currently 60 days—could be reduced to 30 days)
Consider invoice factoring
Explanation should come from how relevant the strategies are.
Marks should be allocated according to the paper 1 markbands for May 2016 forward section A.
Award maximum 2 marks for only explaining one strategy.
Award maximum 3 marks for a theoretical answer or an answer that describes two (or more) strategies without explaining them.
Award maximum 5 marks if the answer is mainly descriptive but in context.