Tiêu đề 2. Case 2.pdf ✅

AATIK TASNEEM | O/A-LEVEL | BUSINESS & ECONOMICS | +92 304 1122845 1 P2 - Case 2 | M/J 2023, V2 (Case 1)
AATIK TASNEEM | O/A-LEVEL | BUSINESS & ECONOMICS | +92 304 1122845 2
AATIK TASNEEM | O/A-LEVEL | BUSINESS & ECONOMICS | +92 304 1122845 3 (a) (i) Innovative (a) (ii) (1) It is regarded as the next best alternative foregone. (2) Example: If a business has $1m to invest in new research vs launching a new outlet. (3) If they launch the new outlet the benefits from research becomes the opportunity cost. (b) (i) CB = OB + (CI - CO) = (-81) + (39) - (72) = -114 (b) (ii) One of the factors that Markus needs to consider when deciding on a source of finance would be the level of debt the business is currently in. Since OFD is a new private limited company they lack business credit history and if they already have debt banks would not be willing to finance due to the high risk and then Markus would need to consider other sources of finance like selling share of the private limited company since they already have limited stat-up funds which won't last when they buy inventory.
AATIK TASNEEM | O/A-LEVEL | BUSINESS & ECONOMICS | +92 304 1122845 4 (c) 8 MARKS Outline: Def > Induction Training > Giving skills to new employees + helps them to adapt + reduce induction crises. Improves skills > since they OFD has a goal to retail high quality furniture like chairs, tables etc. trained employees make less mistakes > this increases productivity + reduces wastage > save costs of material (stock does not become out dated) > helps to reduce the cost per unit > these low prices can be passed on in the form of low prices > helps to counter the threat from competitors as the market is competitive > increase cash inflow > help to reduce cash flow crises that OFD is currently facing of 114,000. Motivated labor > with training of two weeks they will have basic understanding of how retail the furniture + how to deal with clients > offer good quality + better customer services which is one of the aims of OFD > this leads to higher sales > more revenue > more profit > reinvest retained profit > be a valuable source for expansion in the future since they started with limited startup funds. Answer: Induction training is regarded as giving skills to new employees which helps them to adapt to the organization and the way of working along with reducing induction crises. The first benefit is that it helps to improve the skills of new employees, ensuring they make fewer mistakes in handling high-quality furniture like chairs, tables, and filing cabinets. This leads to increased productivity and reduced wastage, which in turn saves on material costs by preventing stock from becoming outdated. As a result, the cost per unit is lowered, enabling OFD to offer competitive prices in a highly competitive market. This pricing strategy not only attracts more customers, boosting cash inflow, but also helps alleviate the current cash flow crisis of -$114,000 that Markus is facing. Another benefit of induction training at OFD, which lasts for two weeks, will provide employees with a solid understanding of how to retail office furniture and effectively interact with clients. This foundational knowledge will enable them to deliver high-quality service, aligning with OFD's goal of offering excellent customer service. Motivated and well-trained employees are more likely to drive higher sales, leading to increased revenue and profit. These profits can be reinvested into the business, serving as a valuable source for future expansion, especially since OFD is starting with limited start-up funds.