01) C

02) C
03)C
04) WE HAVE NOT COVERED THIS DO NOT COUNT THIS MARK
05)WE HAVE NOT COVERED THIS DO NOT COUNT THIS MARK
06)B
07)C
08)A
09)B
10)D
11) Recruitment costs likely increased due to the higher rate in labour turnover as more
people are coming into the company.

12) A new innovative product is a product where it's not possible to accurately predict the
outcome as it's not a tested and previously sold product as it's both new and innovative. This
means the outcome is hard to determine which makes decision trees inaccurate for this use
case.

13) 30x500 = 15000

14) 3200 for total output for 2017

15) an ageing population is likely to drive profits up for a private hospital business. This is
because with age comes sickness and more frequent hospital visits and medical procedures.
This leads to more people visiting and paying for the hospital which leads to higher profits
than if the population was younger and in prime health and didn't need frequent hospital
visits or procedures.

16.1) Maslow’s hierarchy of needs is a hierarchy which defines levels of fulfillment and
motivation within employees. One way Colbeck’s can motivate warehouse employees is
through hiring the employees on a full time basis rather than a zero hour contract. Currently
the employees are on a zero hour contract. The second level of Maslow's hierarchy is safety
and security. A zero hour contract does not provide this level as employees are never
guaranteed work. This can result in reduced motivation which leads to low labour
productivity as is described. Hiring these employees full time means this security level of
Maslow’s Hierarchy of needs will be fulfilled which allows employees to level up the pyramid
and makes them feel more motivated and will result in higher labour productivity.

One way Colbeck’s can motivate head office employees is through allowing them to make
more decisions on their own. Colbeck is described as being ”fiercely protective of the
business”. This can lead to the head office employees feeling as if their decisions do not
matter as much as Colbeck’s which can lead to demotivated employees exactly as described
due to not fitting to the love and belonging and esteem levels on the Maslow hierarchy of
needs. These levels of hierarchy state that employees feel like friends, they feel valued and
respected. Currently they do not feel this way despite being payed highly due to Colbeck’s
high level of authority and the employees lack of freedom. Addressing this by being less
authoritarian will allow employees to fulfill this need which will make them more motivated.

16.2)
I believe that choosing the bank loan would be the best option for Colbeck due to retaining
the majority share in his company and the fact that he is able to pay the monthly expense.

Choosing the bank loan would result in Chris keeping control in the company which would
lead to better expansion of the company for Chris how he sees fit. This is because the
venture capitalist is demanding 51% of the company for the 20 million. This would give the
majority of the company to the venture capitalist. This could lead to clashes between Chris
and his vision of expanding the company and the venture capitalist who ultimately has more
control over the decision making of the company than Chris does. Furthermore, Chris
keeping control over the company is worth a lot more than the expense in interest that
comes with taking the loan despite increasing interest rates. This is because if Chris
expands the company and valuation/ profits increase, Chrises investment of the interest cost
of the bank loan would be vastly exceeded by the positives that come with the company
being bigger and the profits that come with that. Even if Chris expanded the company how
he wanted to, if he gave 51% of it away he would have lost what he would have gained
simply due to not being the full owner anymore.

On the other hand, the venture capitalist could be a good option due to the fact that there is
no interest to pay. Not paying interest or having to pay monthly payments can be good for
Chris because his company is low on cash and interest rates are predicted to rise. This can
lead to a risky situation in which Chris could potentially run out of cash and have to give up
assets instead or pay with higher interest rates on top of the rising interest rates already.
Accepting the venture capital deal would mean that Chris doesn't have to worry about paying
interest and the monthly payments. Furthermore, Mark has a record of increasing short term
profits which could be beneficial to the company’s cash problem.

Overall, I believe that the bank loan is the better option due to the retained share in the
company as well as the fact that if the expansion of the company should go smoothly, the
interest rates that he would have to pay for the 20 million would pale in comparison to the
profits that would come from the expanded company.

17.1) Centralised decision making means that all employees or sectors of ​the company must
report and confirm with the highest lead office of the company to approve or disapprove and
make certain decisions. One impact of this on Doyles is that employees/ managers or other
sectors may feel demotivated due to not having as much authority or initiative. This is
because according to Maslow’s hierarchy of needs, employees need respect, love and
belonging to feel motivated. If employees or branches of the company feel that their
decisions are valued less than the head centralised decision making authority, it can lead to
demotivated employees due to them not feeling trusted. Furthermore, this can lead to
decreased labour productivity as a result of demotivated employees which can further lead
to reduced profits and other reduced metrics of success of Doyles.
Another impact that centralised decision making has on Doyles is a safer decision making
process for the company which can lead to less risky decisions that can ultimately be bad for
the company. This is because one centralised decision making process that has been in
place since the beginning of the company can mean that this process is reliable and
trustworthy due to the solid track record and large size of the company. This reliability leads
to more robust and safe decision making which are predicted to end up well simply due to
the experience that this centralised decision making process has. Furthermore, this means
that bad decisions can be avoided which means a steady and smooth growth to the
company due to no ups and downs. However, some decisions can be risky but sometimes
risks can pay of very big which could mean that Doyles is missing out on some large ROI
decisions as a result of their centralised decision making.

17.2)
I believe that Charlotte should renew her contract with Doyles due to the safety and security
that comes with it. Firstly, profit per week is expected to be 800 from the doyles contract and
1152 for selling online. While the obvious option might seem to be selling online, the
jewellery business that Charlotte talked to said that their first year profits were optimistic
despite the owner having a degree in marketing and assistance from friends. Furthermore,
online advertising costs are rising rapidly. This rising costs of advertising along with the fact
that the jewellery owner’s predictions for first year profits were overly optimistic all while
having a degree in marketing and external help shows that Charlotte’s predictions are likely
to be very optimistic and are likely to be far lower in practice. In addition, Charlotte already
has to work long hours to meet order demands. Adding in marketing and running a whole
online business by herself along with fulfilling orders will result in burnout and ultimately the
inability to do all the work required herself.

On the other hand, four years later the jeweller’s sales are higher than they were under the
Doyles contract. This could be the case also for Charlotte if she chose to pursue selling
online rather than the contract. In addition to this, the jeweller had a campaign backed by a
celebrity which boosted sales in one year by 300%. If Charlotte did the same this could
result in a similar outcome which would be beneficial for her. Selling online also means that
she gets more freedom in what she sells and a higher profit margin and most importantly, a
higher ceiling for profits and growth which means that the future can be bright if she decides
to be selling online.

Despite the positives that come with selling online for Charlotte rather than renewing the
contract, I believe that she should renew the contract due to safety and guarantee of sales
along with the fact that she doesn't have to manage a whole business while producing and
fulfilling orders. She also doesn't have to deal with advertising costs, running social media
pages and all other extensive work that would come with choosing to sell online. For these
reasons she should continue the contract with Doyles..