OCR Business Studies 2880 - June 2008 - ACC

There is no way OAM would invest heavily they want to sell for a profit nothing else, unless it fails then an asset strip which wont really work as there acid ratio is less than one.

It also doesnt say it in case study but there is nothing wrong with asmuptions as long as you state them and it odes make perfect sence they dont run masses of companies and they havent asset striped.

Reply 82

OP

OK - thank you for the debates on this question. Remember no answer in business studies can be wrong. As long as you argue your case your be fine.

Let's move on to another important question that someone stated -

"discuss how ACC's management can devise and implement a strategy to resolve the issues that are likely to be raised at the meeting with the trade union"

Looking at the last few years papers and the papers already taken in May/June 2008 someone suggest that this is very likely to come up.

Reply 83

ak47kalam

2

By the way guys, I just realised something - energy costs are not 3% - they're 15.6%!

Reply 84

OP

ak47kalam

By the way guys, I just realised something - energy costs are not 3% - they're 15.6%!

They are 3% btw

Reply 85

storminaDcup

i will argue for outsourcing because it brings the greatest return in (potentially) the shortest amount of time. sub contracting is useless because ACC are CR*p at it already, and the workers are already bored senseless and demotivated that they may just drown themselves in the cheese vats in despair

The majority of energy usage come from pasteurisation. NOT PACKAGING. They can't outsource cheese production.

PLUS outsourcing opens up a whole new world of problems:

Why should they close the packaging plant?

- Would reduce costs
- Would remove the negative attitude (i.e. low morale)
- Would avoid the backlash of employing the eastern Europeans

Why shouldn’t they close the packaging plant?

- Figures presented don’t really add up. They wouldn't get 1.9 million, because that's the cost they pay yearly for it now. How would they package their cheese for free?
- Product would have to travel to the new plant (Cheese perishes and needs articulated lorries - new cost)
- New owners of the old ACC plant may not want to package Stilton and so ACC may struggle to find a new packager
- Slight changes elsewhere could solve the business’ financial problems

Reply 86

OP

"discuss how ACC's management can devise and implement a strategy to resolve the issues that are likely to be raised at the meeting with the trade union"

Looking at the last few years papers and the papers already taken in May/June 2008 someone suggest that this is very likely to come up.

Reply 87

Tipitman

There is no way OAM would invest heavily they want to sell for a profit nothing else, unless it fails then an asset strip which wont really work as there acid ratio is less than one.

It also doesnt say it in case study but there is nothing wrong with asmuptions as long as you state them and it odes make perfect sence they dont run masses of companies and they havent asset striped.

I didn't say it didn't make sense.

I just said that in the case study. It says no where that they buy and sell businesses.

Somebody made an assertion that they did, assumptions need to be made instead.

Reply 88

ak47kalam

2

Wait, wait, wait...
Can someone explain where 3% comes from?
Energy total for the year was 1,073,920
Total Costs were 6,904,518

therefore energy accounts for 15.6%, right?

Reply 89

thats simple let them know your in charge and communicate at the moment they cannot have a pay rise until company is better if they dont like it let em strike get in the poles

Reply 90

storminaDcup

frankie_sez_relax

It says that no where in the case study at all.

it's my personal opinion, i didn't say it was in the case!

anyway yeah, totally true what someone said about just arguing your points. no answer is wrong unless it's fully backed up with ACCURATE and APPROPRIATE evidence, that's the beauty of business studies hehe :biggrin:

can someone just remind me what the acid test ratio is? because i got something entirely different to the ATP report... but then again, i think they are working off the old case study (before the ammendments) mm i don't know can someone clarify maybe

Reply 91

ak47kalam

Wait, wait, wait...
Can someone explain where 3% comes from?
Energy total for the year was 1,073,920
Total Costs were 6,904,518

therefore energy accounts for 15.6%, right?

Energy is £199,828...

Reply 92

OP

ak47kalam

Wait, wait, wait...
Can someone explain where 3% comes from?
Energy total for the year was 1,073,920
Total Costs were 6,904,518

therefore energy accounts for 15.6%, right?

Energy is £200k actually...

and can we move onto the next question please!

Reply 93

Its your assest minus stock over liablites

Reply 94

ak47kalam

2

Oh, right thanks, I see it now...

Reply 95

cricketmaestro123

"discuss how ACC's management can devise and implement a strategy to resolve the issues that are likely to be raised at the meeting with the trade union"

Looking at the last few years papers and the papers already taken in May/June 2008 someone suggest that this is very likely to come up.

They won't face industrial action because the Business is in a poor financial state. It wouldn't be allowed.

It does however present the idea of poor communication between the upper and lower hierarchies.

Packaging clearly has no idea regarding the poor financial state of the business or they wouldn't be asking for a wage increase.

It's worth noting in the case study that it says "A 0% wage freeze IN PACKAGING last year"... Im wondering whether the manufacturing staff got a wage increase.... :confused:

Reply 96

OP

frankie_sez_relax

They won't face industrial action because the Business is in a poor financial state. It wouldn't be allowed.

It does however present the idea of poor communication between the upper and lower hierarchies.

Packaging clearly has no idea regarding the poor financial state of the business or they wouldn't be asking for a wage increase.

It's worth noting in the case study that it says "A 0% wage freeze IN PACKAGING last year"... Im wondering whether the manufacturing staff got a wage increase.... :confused:

I think the question is more to do with the poles as oppose to the pay rise

Reply 97

frankie_sez_relax

They won't face industrial action because the Business is in a poor financial state. It wouldn't be allowed.

It does however present the idea of poor communication between the upper and lower hierarchies.

Packaging clearly has no idea regarding the poor financial state of the business or they wouldn't be asking for a wage increase.

It's worth noting in the case study that it says "A 0% wage freeze IN PACKAGING last year"... Im wondering whether the manufacturing staff got a wage increase.... :confused:

There could be a dispute it is the right of the workers to withdraw labour now wether they will once they hear about the companies sitation is one thing but its still allowed and if they do walk out sack em get the poles done - after all lteef wants short term so reputation is next to meaningless.

Reply 98

storminaDcup

energy costs

199,828/6,904,518

x 100 = 2.894..
in other words, 3%.

where did 15% or whatever come from?
sorry it's probbably me, my maths is cr*ptastic :biggrin:

Reply 99