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Way Out Ltd designs and manufactures casual clothing and accessories - HSC - SSCE Business Studies - Question 26 - 2007 - Paper 1
Question 26
Way Out Ltd designs and manufactures casual clothing and accessories. In 2007 the business ran an expensive marketing campaign advertising in teen magazines. Market... show full transcript
Worked Solution & Example Answer:Way Out Ltd designs and manufactures casual clothing and accessories - HSC - SSCE Business Studies - Question 26 - 2007 - Paper 1
Step 1
Describe ONE appropriate marketing promotion strategy for Way Out Ltd.
Answer
An effective marketing promotion strategy for Way Out Ltd could be to utilize social media marketing. This includes targeting platforms like Instagram and Facebook, where potential customers, especially younger demographics, actively engage. The strategy would involve advertising campaigns showcasing the casual clothing line with direct links to purchase. Furthermore, engaging with customers via social media contests and influencer partnerships could enhance brand visibility and drive sales.
Step 2
Recommend ONE strategy to improve employment relations.
Answer
To improve employment relations, Way Out Ltd should implement a regular feedback system. This could involve quarterly surveys to gauge employee satisfaction and areas needing improvement. By actively soliciting employee input and acting on feedback, the company can foster a more inclusive workplace culture, ultimately leading to higher motivation and reduced absenteeism.
Step 3
ONE way to measure the effectiveness of employment relations.
Answer
One way to measure the effectiveness of employment relations is through monitoring employee turnover rates. A high turnover rate may indicate underlying issues, while a lower rate can demonstrate improved employee satisfaction. Additionally, exit interviews can provide qualitative data on employee experiences, further informing improvement strategies.
Step 4
Analyse cash flow management and profitability management for effective financial planning.
Answer
Effective cash flow management for Way Out Ltd involves regularly monitoring receivables and payables, ensuring adequate liquidity to meet operational demands. Implementing stricter credit policies could reduce cash flow issues caused by excessive credit sales. Additionally, forecasting cash flow based on sales trends and adjusting production schedules can prevent resource shortages.
For profitability management, the company should analyze gross margins on its clothing lines to identify the most profitable products. Regular financial reviews and benchmarking against industry standards will help Way Out Ltd adjust strategies for enhancing profit margins, ultimately leading to better financial health.