B&M Case Study 2011

[vids]

? Define Marketing Objectives.

Marketing objectives goals that the business tries to achieve through marketing. In the case of Reach their objectives are to expand regionally and to increase their consumer base through the sale of PECS cards and the provision of affordable therapy services. Other objectives include to increase market share, revenue and competitiveness.

? Describe potential pricing strategies that Reach Out could use to break into the PECs cards market? (4)

Penetration Pricing, Psychological Pricing, Loss leader, Discounts and sales:

Penetration Pricing: It is a useful pricing strategy; Reach Out could use in order to gain a foothold in the PECs Cards market. Penetration Pricing puts the price of a product at a low level in order to encourage consumer to pay. Low priced PECs Cards will encourage Autism hit families to buy them.

Discounts and Sales: It is also a valuable pricing strategy that can be used by an enterprise. Discounts and Sales often mean a reduction in the standard price for particular groups of consumer. Reach Out can extend the Discounts and Sales strategy to include all possible consumers in its target market. This will also aid families with Autism in buying PECs Cards.

? Examine the advantages and disadvantages of firms like Reach Out to operate as a single brand in their market?

Advantages:

Messages can be communicated more easily and accurately to Reach Out’s consumers in its target market. This can help establish the firm’s brand image and the goodwill it requires from potential customers to expand. Therefore, this can have the effect of raising sales in the future.

A single brand might also have the effect of increasing the brand’s quality image. This can give the impression of a more prestigious charity organization amongst its customers. This can augment/increase the levels of donations given to Reach Out.

Single, unified brands also allow Reach Out to better differentiate its services from other charitable organization and gives it a unique selling point that which would increase sales.

[yeaah]

hello people

my exams are coming near

I really need help in financial analysis especially for this case study..!!!

Can someone let me know regarding the same...

It's hard to know because if you look at past paper ones the IBO can basically just include whatever random financial information in the exam questions and ask you to work with that in any way they like, so you really need to be open minded about what will appear on the final. My guess is it will probably involve something to do with the PECs cards; which is an issue that is very important to the business but left unresolved in the CS.

My mock is tomorrow so I'll let you know the nature of the questions.

[vids]

Hey thanx a ton..!

How was your paper..!?

What were the non-financial questions too..??

Could you please guide me for the same!!

I really need guidance for the financial notes "sources of finance"

For this case!

I always score good marks in non_financial question!

But the ration analysis and the PnL sheet

I just screw it up :'(

[strawberrydrops]

I just gave my mocks and I can tell you that non-financial questions could include analyzing Neil's options or advantages and disadvantages of flexible

working patterns. While financial questions can include calculating the Pay-back period, ARR and the Net present Value (basically Investment appraisal)

for Machines brought from Company A and Company B for manufacturing PECS cards. They'll give all the necessary data, the calculations are pretty simple.

[pumkinns]

my mock paper 2 was the May 2010 paper 2!! the only paper i revised to hep my studies.!! wow am i happy! hopefully i get a 7!

paper 1 financial question included a cashflow for the years after august, PBP - ARR - investment appraisal.

i was also asked to do a decision tree for the three machines.

evaluate both options 1 and 3,

comment on laura's leadership style.

9 mark question on Andrews affect on the business.

[jayrobsah]

mocks are tomorrow i will put up the questions that came in my mock. i think this is what we should be doing

putting up the mock questions

and discussing the paper extensively like the ITGS blogs such as this one (google search) ITGS WETPAINT

we should discuss like the options for laura to do and stuff like that

good luck to everyone

[vids]

Hey..

Can anyone give examples

And solve the financial questions

Please!

I don't know ARR and payback

Pleasee..

And even how to construct a decision tree for this case!

Please.. Need help!

I score super marks in non_financial part

My section B goes fab! But my grade deteriorates due

To section A and how to approach a financial question...!

[Zoe Alyce]

Has anyone else noticed how Option 1 doesn't mke sense?

It says that Neil is considering raising the prices from $25 to $30. Neil believes that this would help increase motivation of the students, while doubling the revenue for Reach Out. HOW??

If the revenue for Reach Out doubles, it means that they are taking $10, and therefore the students still get paid $20. This will not increase their motivation because they are still getiing the same amount of pay.

There is likely to be a question on this "mistake".

In class we were discussing how it's possible that the transportation costs of the therapists would be covered by Reach Out if they decide to go for option 1. Andrew mentions that the therapists have to pay the transportation costs themselves and that's one of the reasons why they're unhappy. So it's possible that even though they'd get the same pay, they wouldn't have to pay for transportation themselves anymore.

[Zoe Alyce]

Probably most likely gonna ask to evaluate the 3 options given and choose the best one and why. Personally, I think Laura is retarded for going on vacation during problems, hiring an autistic guy and then disagreeing with Neil for option 3 (which imo is the best one). Her reasons are invalid as she says she doesn't want to associate with a company who are simply doing it for CSR as it's unethical, yet she hired Andrew for those same reasons. Neil should take over and fire her. it's unethical to use people has PR...

Physics HL

Chemistry HL

Business and Management HL

Mathematics SL

English A1 SL

French Ab initio SL

the more and more i read this stupid case study the more and more frustrated i get with it. i totally agree with you. what was laura thinking! she's a mother to an autistic child, the first thing that she should know is that a person with autism can't communicate properly with others. and then she goes ahead and hires andrew, who has asperger's which is a form of autism where people have difficulties with BASIC elements of social interaction..... laura has no idea how andrew is working, she's not even around to see what he's doing. he can't even make proper schedules for the trainee teachers so they can also attend their own univeristy lectures. i say FIRE andrew. it's not unethical. it was unethical to hire andrew in the first place. laura and neil should've had formal communication with andrew when they were considering hiring him. also there is no way that further training and support will help andrew's performance because his performance has to do with his condition. if laura really thinks that she can overcome those difficulties by training and support that's like saying that she can cure autism....

i hate the IBO for giving us this pos case study, this case study is wrong on so many levels.

another thing i forgot to mention, might be useful to all of you kiddos out there looking at option 2.

if the ibo does not give us any additional information on the taxes of reach out, i think it's safe enough to assume that reach out does not have to pay taxes. a nonprofit organization is exempted from paying taxes as long as they engage in activities that relate to their purpose.

so that brings me to my next point. if you're asked to evaluate option 2, you could mention that if they start selling clothes and accessories they'd have to start paying taxes on the revenue generated by that activity seeing as it has absolutely nothing to do with 'providing online support for families of children with autism and offering them communication resources at a greatly reduced price'.

[natalie van nunen]

can anyone tell me how to upload files?

[jayrobsah]

What is the structure of a charity under NPO and NGO?

DRAW an organizational structure for reach out

Explain chain of command and span of control

Evaluate use of taller structures usig motivational theories

Why would prp be suitable for neil.

Prepare swot analyusis and use to evaluate the 3 options

Comment on laura’s leadership style.

Why isit important for reach out to set ethical objectives?

Explain a mission and vision statement with reference to reach out?

[dessskris]

can anyone tell me how to upload files?

in here? click Use Full Editor. then click Attach This File

[Noora E AlNassr]

HELLO IBers,

I thought of posting a new topic where the focus is mostly on HL type questions..sorry SLers

anyway i got some links for you business and management students preparing for the case study paper 1 that might widen your knowledge and grasp of the topic. This is by Paul Hoang, the writer of the official IB diploma business and management book:

In preparing for the P1 pre-seen case study, I watched a brilliant 45-minutes BBC Four video with my students in class called ”My Family and Autism”…

http://www.tutor2u.net/blog/index.php/ib-diploma/comments/reach-out-case-study-bbc-four-documentary/#extended

[axlbep]

One of the way my school did was to compile any possible questions and answers that can come out in the exam. But of course, since we have like 196 something taking Business, so it's kind of easy to do that. It's helpful in terms of giving the idea only as the questions are attempted by the students themselves, and then we compiled it, so it's not a mark scheme answers. Just ideas on how to tackle the issue. So try to do the same thing if you can. Other way that can help to prepare for p1 is to do a lot of discussions. Like a lot. Very the lot. A lot lot lot. Make a study group, that's what we do and it's very helpful as well. So find people in your school and do the study group. Just sharing.

[Noora E AlNassr]

One of the way my school did was to compile any possible questions and answers that can come out in the exam. But of course, since we have like 196 something taking Business, so it's kind of easy to do that. It's helpful in terms of giving the idea only as the questions are attempted by the students themselves, and then we compiled it, so it's not a mark scheme answers. Just ideas on how to tackle the issue. So try to do the same thing if you can. Other way that can help to prepare for p1 is to do a lot of discussions. Like a lot. Very the lot. A lot lot lot. Make a study group, that's what we do and it's very helpful as well. So find people in your school and do the study group. Just sharing.

heey can you post some of the ideas and questions gathered from students in your school because we're only 4 students who take business and management in our school and it's kind of hard to get a lot from only four..your help will be greatly appreciated.

[axlbep]

Sure, but we are all taking SL, so I can't really help for the HL people with their additional topics.

I'll post some of our compilation as soon as I get one of the copy. Right now the original copy is sent to be photocopied to all of us.

[axlbep]

Has anyone else noticed how Option 1 doesn't mke sense?

It says that Neil is considering raising the prices from $25 to $30. Neil believes that this would help increase motivation of the students, while doubling the revenue for Reach Out. HOW??

If the revenue for Reach Out doubles, it means that they are taking $10, and therefore the students still get paid $20. This will not increase their motivation because they are still getiing the same amount of pay.

There is likely to be a question on this "mistake".

In class we were discussing how it's possible that the transportation costs of the therapists would be covered by Reach Out if they decide to go for option 1. Andrew mentions that the therapists have to pay the transportation costs themselves and that's one of the reasons why they're unhappy. So it's possible that even though they'd get the same pay, they wouldn't have to pay for transportation themselves anymore.

Likewise, we discussed on this issue too. The revenue that Reach Out will obtained can be used for whatever they want, and this include increasing the salary for the therapists. And yep, they could help the students on the transportation cost, thus increasing motivation. But the drawback is that, not all are motivated my money.

Therefore, to further argue, with the increase of price, it usually associated with an increase in the quality of the service. The students may have driven to work better because the move would somehow valued their service all this while and thus making it a form of non-financial motivation too.

So everyone can be motivated, be it financially or non-financially. This is of course in the aspect of motivation only.

[axlbep]

Hey..

Can anyone give examples

And solve the financial questions

Please!

I don't know ARR and payback

Pleasee..

And even how to construct a decision tree for this case!

Please.. Need help!

I score super marks in non_financial part

My section B goes fab! But my grade deteriorates due

To section A and how to approach a financial question...!

Ok so on finance.

Let see, first thing first, we should know Reach Out's source of finance first. Then by knowing their source of finance, see what are the pros and cons of using that source of finance. This is the basic first thing in finance before going to investment appraisal, accounts and ratio analysis.

Source of finance in Reach Out could be:

external = donation ------ pros and cons

internal = surplus made ------- pros and cons

Then evaluate the appropriateness of using these source of finance.

As for the investment appraisal, I calculated the payback period and ARR for the investment on PECS card. But I need to double check it first, then when I confirmed of it, I'll share it here.

[Mustafa Farhan]

Since RO is a newly start-up business, its better if we consider the problems faced by this kind of business. Among problems that they may have:

i) Not enough experience: Laura hired andrew

ii)Difficult to raise finance

iii)Small customer base

For financial question i think cashflow may come out. Because the details are there in the case study, and Cashflow given was only until august. Can be expanded until october i guess.

[axlbep]

Hmm, small customer base? From what I think, Reach Out actually have s pretty wide customer base and expanding some more. Well, I'm not sure, because the fact that the number of families are increasing each months, and this benefits their cashflow too, I would say that it have an expanding customer base. Maybe not the term small or wide. I don't know, correct me if I'm wrong.

Cashflow DEFINITELY need to be analysed, I made different cashflow using the original one first and expand it until December. Then another one by considering the PECS card production and selling, then for option 1, 2 and 3. Besides, Statement of Financial Activity (SOFA) and Balance sheet can be prepared too from the info given in the case study. The surplus made in the SOFA must be the same with the closing balance in the cashflow depending on what month it is, but use August because that is the last one in the cashflow. From that, the strentgh of Reach Out financial aspect can be further evaluate. With the fact that they are independent of liabilities as can be seen from balance sheet and what not, so yeah it's really good if you can prepare it.

Other than that OPTION 1 do make sense and have you guys noticed there are some important information are not included like what country they are in. This could be very helpful in terms of legislation on charity and all the government help on autism people, but it's not there! Then about Laura, where is her husband anyway???