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Business and Commercial Awareness – Referred/Deferred Coursework

ANSWER ALL 5 QUESTIONS – the marks for each question are indicated.

This case is based on which is an internet company which sells physical DVD/BlueRay films, downloads of films over the internet and e-books. The company operates out of the Channel Islands, Great Britain where the tax rates are lower. It exports to anywhere in the world, though its principal market is the UK and the USA. The company has experienced a drop in sales in its physical DVD/BlueRay area though the sales of other products seem to be holding up in a period of increasing competition. You have been asked by the managing director of (William Stillspike) to discuss the problem with himself and the head of the DVD/BlueRay department (Tina Tarot), with a view to developing a new business venture to supplement the falling income.

Q1. (8 marks) Do a stakeholder analysis for your investigative study. Restrict your analysis to no more than 10 of the most important stakeholders.

William and Tina have identified that there are a number of causes for the decline in sales….competitors are cheaper, there is a restricted range of DVDs and BlueRay discs compared to other on-line DVD/BlueRay businesses, long delivery times, high postage rates, limited stock levels for popular items etc. These causes may be useful to you as you identify a range of new opportunities to supplement the falling income.

Q2. (7 marks) Brainstorm at least 20 wide-ranging investment opportunities.

Draw a fishbone (solution-effect) diagram to categorise your possible investments.

Explain how you would use this diagram to direct your investment investigations further.

Tina Tarot has obtained customer data about her DVD/BlueRay department which is reproduced below.

Month Jan
‘15 Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan
‘16 Feb Mar Apr
Sales £k 360 356 345 340 335 350 340 335 350 370 380 370 355 320 310 315
Costs £k 300 290 295 280 280 305 300 280 300 305 325 310 305 275 270 280

Q3. (9 marks) Use the above data in whatever way you feel suitable to draw conclusions about the scale of the decline in trade for the DVD/BlueRay department of and the level of income which the new investment must replace. Note: the new venture must exceed the average profit margin that is currently being achieved and Tina would like to know what that level needs to be.

Q4. (16 marks) Generate three possible investment opportunities and draw up a Solution Matrix. Justify your allocation of scores.

Q5. (60 marks) Write a 1500 word essay with the title shown below. The purpose of the essay is to demonstrate your knowledge of the theory of business, and to show that you have reflected on this theory, with particular reference to the link between theory and practice.

You should include an essay plan at the start of your essay. This is a separate piece of work from your essay. It can be a brainstorm, mind-map, spider diagram – whatever you feel is appropriate.

In your essay you must reference the sources from which you have drawn your views using full Harvard referencing

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