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In the chocolate industry, four large-scale organisations dominate the market, collectively accounting for 92% of all chocolate sales - VCE - SSCE Business Management - Question 1 - 2012 - Paper 1

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Question 1

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In the chocolate industry, four large-scale organisations dominate the market, collectively accounting for 92% of all chocolate sales. Currently, these four organisa... show full transcript

Worked Solution & Example Answer:In the chocolate industry, four large-scale organisations dominate the market, collectively accounting for 92% of all chocolate sales - VCE - SSCE Business Management - Question 1 - 2012 - Paper 1

Step 1

a. Define 'market share'.

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Answer

Market share is the percentage of total users of a good or service held by a business. It measures the sales volume of a company relative to the total sales volume of the industry.

Step 2

d. Describe and justify one management practice or process from each of the three phases of the employment cycle that could apply to Websters as it changes its focus to compete on quality.

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Answer

  1. Recruitment Phase: Websters could implement a rigorous recruitment process that specifically targets candidates with experience in quality assurance. This ensures that new hires possess the required skills to uphold the company's commitment to quality.

    1. Development Phase: It should provide ongoing training programs focusing on quality management and innovative production techniques. This will equip existing employees with the tools necessary for improving product quality, aligning their skills with the company's new focus.

    2. Separation Phase: In instances where employees are not meeting quality standards, Websters should adopt a transparent performance review process. This allows for constructive feedback and the opportunity for improvement before considering termination, ensuring a focus on development rather than dismissal.

Step 3

e. Describe one difference between the operations management of a manufacturing organisation, such as Websters, and a service organisation.

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One key difference is that manufacturing organisations like Websters deal with tangible products that can be stored, whereas service organisations provide intangibles that cannot be stored. For example, chocolate produced can be stored in inventory, while a haircut cannot.

Step 4

f. Analyse the ethical and social responsibility issues associated with the two options (as stated on page 2) that Mr Webster is considering to develop the capabilities of the staff.

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Answer

In developing the capabilities of the staff, Mr Webster faces ethical issues related to the investment in training versus equipment. Investing in staff training may promote lifelong learning and loyalty, enhancing employee morale and commitment. However, purchasing equipment may lead to job redundancies, which raises social responsibility concerns about the company's impact on the community. Balancing these considerations is crucial for fostering an ethical workplace that values both productivity and employee welfare.

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