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AUS Swimsuit Ltd manufactures swimwear products at its Australian production facility - VCE - SSCE Business Management - Question 5 - 2018 - Paper 1
Question 5
AUS Swimsuit Ltd manufactures swimwear products at its Australian production facility. It sells to the public through retail outlets in major shopping centres around... show full transcript
Worked Solution & Example Answer:AUS Swimsuit Ltd manufactures swimwear products at its Australian production facility - VCE - SSCE Business Management - Question 5 - 2018 - Paper 1
Step 1
Forecasting
Answer
Forecasting involves analyzing past business trends and data to predict future consumer demands and market conditions. For AUS Swimsuit Ltd, accurate forecasting can help the company prepare for peak sales periods leading up to the Australian summer by taking into account seasonal trends, stock levels, and production capabilities.
By using statistical models and market research, AUS Swimsuit Ltd can anticipate demand fluctuations, enabling the company to optimize inventory levels and reduce overproduction. This strategic approach helps in allocating resources more efficiently, ensuring that the company can meet consumer needs without incurring unnecessary costs. Additionally, it mitigates risks associated with unsold stock, thereby enhancing profitability.
Step 2
Website development
Answer
Website development enables AUS Swimsuit Ltd to create an online platform that enhances brand visibility and facilitates direct sales. By developing an e-commerce website, the company can reach a global audience beyond physical retail outlets, extending the selling season throughout the year.
A well-designed website can showcase product offerings, provide detailed information about swimwear features, and enable easy online purchasing. Moreover, incorporating features such as customer reviews and personalized recommendations can enhance customer engagement and satisfaction. By improving accessibility and convenience for customers, AUS Swimsuit Ltd can increase sales opportunities and strengthen its market presence.
Step 3
Outline the interests of two relevant stakeholders of Ocean Skate Hub.
Answer
One relevant stakeholder of Ocean Skate Hub is the employees. Their interest lies in job security and opportunities for career advancement. Employees seek stability in their jobs and the chance to develop their skills which contribute to their overall job satisfaction and motivation.
Another stakeholder is the management team. Their interests typically involve achieving business objectives, increasing profitability, and ensuring the stability of the company. While management may focus on the bottom line and operational efficiency, employees may feel that initiatives aimed at cutting costs could jeopardize their roles or limit advancement opportunities.
The potential conflict arises when the management prioritizes cost-cutting measures, such as automating certain tasks which might lead to workforce reductions. Employees may perceive this as a threat to their job security, while management sees it as a necessary step for operational efficiency and profit maximization.