Let us take a look at the way we can use a continuing business example to greatly help develop a spot.
At the recent A2 business studies revision workshops we centered on the need for students to utilize independent research evidence to aid support the lines of analysis their essay points.
One analogy we used was thinking of examples (evidence) since the seasoning in an essay hot-pot or casserole. The seasoning is there to customwritings help make the meal taste great; you also need the ingredients that are raw! An essay point this is certainly developed to a good depth will always score better aided by the examiners than answers which are littered with too many examples.
In March 2012, tour operator and travel agent Thomas Cook announced that its 16,000 UK staff would no longer be able enjoy discounts of up to 75pc their holidays off. The move was section of a cost-cutting strategy because of the tour operator which includes a target to cut operating costs by Ј35m a year in order to improve cash flow and reduce its substantial bank debts.
So, we now have a good example of a piece that is recent of news. It’s this that we call evidence – and it’s really very easy to get hold of by simply reading the continuing business news regularly.
You don’t have to research whatever you are able to about Thomas Cook. You should not memorise Thomas Cook’s recent financial results or have detailed understanding of the cost-reduction plan. You merely need some good examples. It really is how they are used by you that counts.
How could we utilize the evidence about Thomas Cook’s decision to help make savings by restricting the staff discount scheme?
The evidence might be useful in several contexts. As an example, make use of it in an essay on strategic retrenchment, or approaches for profit improvement. You may use it as a example of how board-level decisions built to achieve corporate objectives might have effects at a level that is functional. You could even use it in an essay on culture (new management taking a choice for financial motives without necessarily considering all the HRM & operational implications)
The important thing to remember is the fact that the evidence needs to be used to support the line of analysis in each paragraphpoint. Make the example and explore the implications. Think about the importance of the example and people implications.
An way that is effective repeat this is to use «connectives» – phrases and words that help develop a logical chain of argument.
So, let’s see a typical example of that in action. We will use the Thomas Cook staff discount evidence/example and apply it to a paragraph point which explores the possibility adverse effects of a strategy that is cost-cutting.
Glance at the paragraph below. Observe how the evidence is used by it after which builds upon it. Underline the connectives used – exactly how many could you spot? It’s also advisable to note how the example uses relevant business terminology – this helps build credibility with all the examiner.
Firms that want to improve their profitability and cash flow will inevitably look at reducing operating costs where possible. However, you can find potential dangers with a cost-minimisation strategy. For example, Thomas Cook has set itself a corporate objective of reducing annual operating costs by at the very least Ј35m p.a. since it seeks to boost cash flow within the short-term to help it reduce high gearing levels. It is implementing a variety of measures including shop closures, redundancies as well as decreasing the price of financial benefits (such as for example generous discounted holidays) paid to Thomas Cook staff. When you look at the short-term, reducing staff discounts should result in an important cost saving since TC has tens and thousands of staff, although which will depend regarding the extent to which TC staff use the discount scheme. However, there are lots of potential downsides to your decision, including the probability of reduced morale and motivation of staff who value their holiday discounts, that might indirectly bring about worse customer support or lower productivity, leading to lower revenues and profits which for that reason may actually bring about lower cash flows into the long-term. The choice to limit staff discounts may initially seem quite popular with management, however as described, you can find potential hidden tangible and intangible costs which would decrease the impact associated with decision on TC’s cost-reduction strategy.