The OCR F297 Strategic Management June 2016 case study is on a recycling business called Verdant Ghar Ltd.
Here are some of the key issues students should be focusing on, which we will be covering in our usual comprehensive analyses, to be published this term and can be pre-ordered now.
- VGL’s Objectives – relating to revenues, gaining new business, labour turnover and charitable initiatives – their appropriateness in light of current performance and ways in which they might be achieved.
- The benefits and drawbacks of VGL’s policy of selling most of its products on international spot markets (ie markets where goods are sold for cash and delivered immediately.
- The appropriateness of using Time Series Analysis as a means of forecasting revenues for budgeting purposes.
- The effect of macro-economic variables, most notably economic growth and employment on VGL.
- Other factors affecting the volume of work and, thus, revenues from VGL’s business customers, including environmental legislation and taxes.
- Methods for attracting, motivating and retaining staff, including the quarterly individual punctuality and attendance bonus, the bonus based on a combination of quantity and quality of output paid to all members of a shift, and the emphasis on non-financial methods of motivation (including what these might consist of).
- VGL’s current on-the-job staff training policy, which focuses on ‘what to do’ and ‘how to do it’ in helping to ensure commitment to product quality, and the Production Manager’s proposal to extend this to include ‘why’ the task is important – by reference to VGL’s ‘Four Pillars’.
- How VGL could better communicate with householders to ensure waste is sorted appropriately and, in particular, what function social media might play in this.
- Whether or not VGL should diversify into the textiles recycling market.
- Analysis of VGL’s Profit & Loss and Balance Sheets – Calculation and analysis of relevant financial ratios.
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