Title 7. Case 7.pdf ✅

AATIK TASNEEM | O/A-LEVEL | BUSINESS & ECONOMICS | +92 304 1122845 1 Case 7 | O/N 2023, V1 (Case 2)
AATIK TASNEEM | O/A-LEVEL | BUSINESS & ECONOMICS | +92 304 1122845 2 (a) (i) Planning (a) (ii) Secondary market research is regarded as using information that already exists for other purposes. They are not tailored to a specific business but can establish market trends. Examples include using newspaper, magazine and online reports etc. (b) (i) Total Revenue 2020 = 50 Total Revenue 2022 = 150 % Change = (150 - 50) / 50 = 2 x 100 = 200% (b) (ii) Another piece of useful market research would be approximately how many 18-30 year old have news subscriptions. This will allow them to anticipate the approximate amount of news subscriptions they may get from people in the targeted demographic (c) 8 MARKS Def > Objectives > Goals and targets that are set by the top management + must meet a SMART criteria. (1) The previous objective is achieved > since DN is planning to shift away from newspapers and towards magazines > this requires them to set new guidelines > this would need the DN to set a mission statement that is aimed at a more younger age group from 18-30 > this would allow them to position themselves better > increase subscription + advertisement placements > more revenue > more profits > reinvest to meets its objective of quality products that meets customer expectations. (2) Retain loyal customers > since the sale of online newspapers is decreasing DN needs to ensure that they convert their loyal customers to the new product magazine > by doing so they will be able to increase subscriptions > this will help to offset the drop in revenue that will come from a decline in sale of online newspapers > helps to stay profitable > capture a larger percentage of the $150m market > reinvest to setup effective supply chains and customer experience > necessary to be successful in this market.
AATIK TASNEEM | O/A-LEVEL | BUSINESS & ECONOMICS | +92 304 1122845 3 (d) 12 MARKS (Q) Evaluate the importance to DN of effective supply chain management. [12] Def > Supply chain > It is the process of managing suppliers, workers to ensure that product is delivered to the customers in the most efficient manner. [ADV 1] > Helps to improve the quality of the magazines > as they have to target a new segment from 18-30 they need to ensure that they setup good system to ensure good content + timely delivery to attract customers > this would allow them to build a USP > helps to establish themselves as a dominant player > increase sales > helps to compensate the losses from fall in online newspapers. [EVAL] > Depends on the quality of content creators. Do Shila and Lucy have enough resources and experience regarding magazines that they hire the best workers. Only if they can ensure and train these workers will this part of the supply chain be managed. [DIS 1] High cost > they require large variations in formats + need multiple service provides > this not only adds to complexity but also raises the cost to hire more team members + content writes to manage the supply chain > this would reduce profits > difficult to invest in promotion and branding > difficult to meet the advertisements targets since the industry is earning approx. $60m > failure to do so will only lead to the QLine magazine to fail > result in more losses > making survival difficult with already falling sales of online newspapers [EVAL] Depends on the funds gained vs cost incurred> Will the increase in subscription + advertisement revenue from national businesses > overcome the cost of launching a new product. If the new sales can overcome the cost of supply chain management then it is not a significant drawback. FINAL EVAL (1) Overall for DN the importance of supply chain is limited because this is an information related business. The trends in the market and the way teams will change will be done on regular basis. Building supply chain can only benefit for sometime but again it becomes less effective. (2) However it depends on how complex are the activities in reality > since most of their work is online and not physical > they require less hassle as there are no printers or distributors to deal with which can done without an effective supply chain (3) DN requires more focus on marketing and HR for now. This is purpose is to solve the initial problems of content + advertising as these activities actually help to build the product. (4) Once the magazines are rolled out and start becoming popular only then they should investing in supply chain management as then not only will they have stable demand + money > but it will become a requirement.