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SECTIONA

1. (a) Define the following terms:(i) charity (line 30) [2 marks]Charity

Mark as 2+2.

Award [1 mark]for a basic definition that conveys partial knowledge and understanding.Award [2 marks]for a full, clear definition that is similar to the model answer above.

(ii) public-private partnership [2 marks]b) With reference to Reach Out, distinguish between a missionstatement (line45) and a vision statement (line 44) [4 marks]Section AQuestion 1.a. Define the terms charity (line 30) andpublic-private partnerships (line 22).(4 marks)CharityCharities are non-for-profit organizations that are established to support good causes, from societys pointof view. Their key function is often to collect donations from individuals and organizations in order tosupport their cause. One important point to note is that although charities are not profit-seekingorganizations, this does not mean that they do not strive to make a surplus. The surplus is not classed asprofit because it does not get distributed to the workers or owners of the organization. Reach Out is acharity for children with autism.Public-private partnershipsPublic-private partnerships take place when governments create partnerships with the private sector in theprovision of certain services. It is argued that a public-private sector partnership can benefit from thedynamics of efficiency of the private sector alongside the benefits of the public sector funding and support.Private sector firms are hired for their expertise for projects that are funded by both private investors andthe government. Neil Johnson previously worked for public-private partnerships, such as schools anduniversities.Mark as 2+2.

Award [1 mark]for a basic definition that conveys partial knowledge and understanding.Award [2 marks]for a full, clear definition that is similar to the model answer above.

b. With reference to Reach Out, distinguish between a mission statement (line 45) and avisionstatement (line 44).(4 marks)

A mission statement tends to be a simple declaration that broadly states the underlying purpose of anorganizations existence. It explains in general terms what the business is trying to achieve and outlines theorganizations values in the medium to long term. The mission statement does not have a distinct timeframe and tends to be qualitative rather than quantitative statements. A vision statement, on the otherhand,outlines a business aspirations (its ideal situation ) in the distant future very long term. Visionstatements also tend to relate to the attainment of success, i.e., a visualization of what success would looklike. Hence, a mission statement outlines how a vision statement will be achieved. The mission statementshould serve to unify all people and corporate cultures within the workforce in their attempt to achieve theorganizations vision.

The vision statement for Reach Out is no child with autism will be left behind. This defines success forReach Out and represents the ideal situation for Reach Out in the distant future. Reach Outs missionSection AQuestion 1.a. Define the terms charity (line 30) andpublic-private partnerships (line 22).(4 marks)CharityCharities are non-for-profit organizations that are established to support good causes, from societys pointof view. Their key function is often to collect donations from individuals and organizations in order tosupport their cause. One important point to note is although charities are not profit-seekingorganizations, this does not mean that they do not strive to make a surplus. The surplus is not classed asprofit because it does not get distributed to the workers or owners of the organization. Reach Out is a

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! Existence of social networks and advanced communication technology to serve as useful andcheap marketing mediums! Presence of a local university offering special education courses provides cheap labor in terms ofstudents who need internships to gain experience!any other relevant identified external opportunityThreats:! Health and Safety/child protection legislation could prevent the company using unqualifiedtherapists (line 66)!Competitors who already sell the PECS cards will already have market share and experienceinthis market.! Other private sector companies provide qualified therapists to their customers (line 5)! Less people will be able to give donations due to the recession! Pressure groups may want Reach Out to stop employing unqualif ied therapists to families withautistic children due to ethical concerns!any other relevant identified external threat(6-7 marks)

A balanced analysis/examination with accurate, specific, well-detailed knowledge and understanding ofrelevantissues, concepts and theories. An analysis/examination that uses appropriate terminology throughout theresponse. Explicit references are made to the information in the case study.! Recession might lead to opportunities for Reach Out to hire more specialized therapists forcheaper wages due to higher unemployment. Also, a possibility that more qualified specialistsmight volunteer to assist Reach Out in order to keep their skills updated while finding newpositions.! Existence of social networks and advanced communication technology to serve as useful andcheap marketing mediums! Presence of a local university offering special education courses provides cheap labor in terms ofstudents who need internships to gain experience!any other relevant identified external opportunityThreats:! Health and Safety/child protection legislation could prevent the company using unqualifiedtherapists (line 66)!Competitors who already sell the PECS cards will already have market share and experience inthis market.! Other private sector companies provide qualified therapists to their customers (line 5)! Less people will be able to give donations due to the recession! Pressure groups may want Reach Out to stop employing unqualified therapists to families with

autistic children due to ethical concerns!any other relevant identified external threat(6-7 marks)

A balanced analysis/examination with accurate, specific, well-detailed knowledge and understanding ofrelevantissues, concepts and theories. An analysis/examination that usesappropriate terminology throughout theresponse. Explicit references are made to the information in the case study.

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2. (a) Define the following terms:(i) unique selling point (line 52) [2 marks](ii) brand development (line 129)

[2 marks]

(b) Describe two methods of promotion that Reach Outuses atpresent

[4 marks]! "!

! Other private sector companies provide qualified therapists to their customers (line 5)! Less people will be able to give donations due to the recession! Pressure groups may want Reach Out to stop employing unqualified therapists to families withautistic children due to ethical concerns!any other relevant identified external threat(6-7 marks)

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A balanced analysis/examination with accurate, specific, well-detailed knowledge and understanding of relevantissues, concepts and theories. An analysis/examination that uses appropriate terminology throughout theresponse. Explicit references are made to the information in the case study.(3-5 marks)

A description or partial analysis/examination with relevant knowledge and/or understanding of relevant issues,concepts and theories. Some use of appropriate terminology. Some reference is made to the information in thecase study, not just to the name of the organization. At the lower end of the markband responses are mainlytheoretical.

(1-2 marks)Little knowledge and understanding of relevant issues, concepts and theories. Little use of appropriateterminology. No reference is made to the information in the case study.(0 marks)No knowledge or understanding of relevant issues, concepts and theories. No use of appropriate terminology.Marks should be allocated according to the markbands on p.1Question 2.a. Define the terms unique selling point (line 52) and family brand (line 126).(4 marks)

Unique Selling PointUnique selling point (USP) is a technique or characteristic used by a business that makes one! "!

A balanced analysis/examination with accurate, specific, well-detailed knowledge and understanding ofrelevantissues, concepts and theories. An analysis/examination that uses appropriate terminology throughout the

response. Explicit references are made to the information in the case study.(3-5 marks)

A description or partial analysis/examination with relevant knowledge and/or understanding of relevantissues,concepts and theories. Some use of appropriate terminology. Some reference is made to the information inthecase study, not just to the name of the organization. At the lower end of the markband responses aremainlytheoretical.(1-2 marks)Little knowledge and understanding of relevant issues, concepts and theories. Little use of appropriateterminology. No reference is made to the information in the case study.(0 marks)No knowledge or understanding of relevant issues, concepts and theories. No use of appropriateterminology.

Marks should be allocated according to the markbands on p.1Question 2.a. Define the terms unique selling point (line 52) and family brand (line 126).(4 marks)

Unique Selling Point

Unique selling point (USP) is a technique or characteristic used by a business that makesoneproduct/service stand out from other products/services that are available in the market. TheUSP explains why customers buy the product over rival brands. A USP c an be a majorsource of competitive advantage and therefore firms will want to emphasize their productsUSP in order to attract customers. Reach Outs unique selling point for its therapist schemeas well as the intended PECS cards initiative would be low prices compared to thecompetition.

Family BrandA family brand is when a company chooses to market their range of products/services undera single brand name. A new product launched by established family brands has a higherchance of success and continued existence. A further benefit of family branding is that it canhelp you to build consumer trust and loyalty. One of Neils suggestions for increasing ReachOuts revenue includes offering additional products other than the therapist scheme includingclothes and accessories. All of these products would be sold under the same brand name;thus, it would be a family brand.Mark as 2+2.

Award [1 mark]for a basic definition that conveys partial knowledge and understanding.

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Award [2 marks]for a full, clear def inition that is similar to the model answer above.b. Describe two methods of promotion currently used by Reach Out.(4 marks)

Methods of promotion:! Social networking sites such as Facebook/Twitter these sites allowed Laura tocreate an informal network of families that have autistic children. These sites can bevery powerful as visitors to these sites can multiply very quickly. This is because

users can invite other users thus exponentially growing in terms of site visitors.! The use of a blog enabled Laura to document her daily successes and difficulties withher autistic son. Blogs are posted on the internet so that anyone can read them andproduct/service stand out from other products/services that are available in the market. TheUSP explains why customers buy the product over rival brands. A USP can be a majorsource of competitive advantage and therefore firms will want to emphasize their productsUSP in order to attract customers. Reach Outs unique selling point for its therapist schemeas well as the intended PECS cards initiative would be low prices compared to thecompetition.Family BrandA family brand is when a company chooses to market their range of products/services undera single brand name. A new product launched by established family brands has a higherchance of success and continued existence. A further benefit of family branding is that it canhelp you to build consumer trust and loyalty. One of Neils suggestions for increasing ReachOuts revenue includes offering additional products other than the therapist scheme includingclothes and accessories. All of these products would be sold under the same brand name;thus, it would be a family brand.Mark as 2+2.

Award [1 mark]for a basic definition that conveys partial knowledge and understanding.Award [2 marks]for a full, clear definition that is similar to the model answer above.b. Describe two methods of promotion currently used by Reach Out.(4 marks)

Methods of promotion:! Social networking sites such as Facebook/Twitter these sites allowed Laura tocreate an informal network of families that have autistic children. These sites can bevery powerful as visitors to these sites can multiply very quickly. This is becauseusers can invite other users thus exp onentially growing in terms of site visitors.! The use of a blog enabled Laura to document her daily successes and difficulties withher autistic son. Blogs are posted on the internet so that anyone can read them andprovide their own comments.

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(c) Assess the effectiveness of the methods of promotion ReachOutuses at themoment for achieving the organizational objectives. [7 marks]! "!

Award [2 marks]for a full, clear definition that is similar to the model answer above.b. Describe two methods of promotion currently used by Reach Out.

(4 marks)Methods of promotion:! Social networking sites such as Facebook/Twitter these sites allowed Laura tocreate an informal network of families that have autistic children. These sites can bevery powerful as visitors to these sites can multiply very quickly. This is becauseusers can invite other users thus exponentially growing in terms of site visitors.! The use of a blog enabled Laura to document her daily successes and difficulties withher autistic son. Blogs are posted on the internet so that anyone can read them andprovide their own comments.! Laura sent personalized e-mails to the families that became regular readers of her

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blog. E-mail communication facilitates one on one communication; however,additional recipients can be ccd on an e-mail. Not everyone can read an e-mail; onlythose who Laura specifically writes to will receive her e-mail.!Celebrity endorsement Neil and Laura recruited Andrew Grandin who is anOlympic silver medalists that was diagnosed with Aspergers Syndrome, a wellknownform of autism. Laura hopes that his appointment will generate publicrelations opportunities (getting positive free publicity from the media).

Candidates should not just quote the sentences from the case study: they are expected todescribe (see command term) the different methods of promotion. They may rephrasethem.Mark as 2+2.

Award [1 mark]for each relevant and correct method of promotion identified and [1mark]for each clear description up to a maximum of [2 marks].c. Assess the effectiveness of the methods of promotion currently used by Reach Outinachieving the organizational objectives.(7 marks)Most of the methods of promotion that are currently being used by Reach Out involve e-commerce.Ecommerceis the trading of goods and services via the Internet. The Internet has become an increasingly

important method of business activity. E-commerce is not only about selling, it also serves to pass oninformation/support as Reach Out has done about autism which is one of its main organizationobjectives.Use of internet-based tools such as social networking sites and blogs as the primary basis of theirmarketingstrategy has proven to be fairly effective for Reach Out during its start-up phase. It has enabledReach Outto form networks of families that can share information with each other. Moreover, it has providedLauraan outlet to share her own experiences as a parent of an autistic child. This promotional medium hasgarnered thousands of visits per day in a short period of time four months. Thus, one can say thatReachOuts promotional strategy based on internet-based platforms (social networking sites, blogs and e-mails)

has enabled them to effectively achieve their organizational objectives: to raise awareness aboutautism andto provide support for families of children with autism.In addition, social networking sites and blogs are cost effective which is especially useful for a start-uporganization such as Reach Out that is dependent on donations. This also allows them to funnel moredonations towards their organizational objectives rather than administrative expenses such asmarketing.Furthermore, through e-marketing, Laura is able to manage her outreach on her own time as theInternet isnot time specific. The allows her to use her time as efficiently as possible in achieving Reach Outsobjectives.On the other hand, due to the extremely rapid growth of visitors generated by Reach Outs e-marketingstrategies, we can see how time intensive these Internet tools can be. Laura soon found thatmoderating herblog forum and answering e-mails became extremely time consuming. Responding to her currentvisitorsmay have prevented her from generated new interest in Reach Out; thus, failing to pursue theorganizational objective of continuing to raise awareness about autism.Moreover, having an Internet-based promotional strategy may be preventing Reach Out from gettingtofamilies that need assistance with their autistic children and do not have access to the Internet.Therefore,Reach Out is falling short of their organizational objective of spreading awareness about autism to

these 6

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information in the case study, not just to the name of the organization. At the lower end of the markbandresponses are mainly theoretical.(1-2 marks)Little knowledge and understanding of relevant issues, concepts and theories. Little use of appropriateterminology. No reference is made to the information in the case study.(0 marks)No knowledge or understanding of relevant issues, concepts and theories. No use of appropriateterminology.Marks should be allocated according to the markbands on past P1 exam papers.! "!

mark]for each clear description up to a maximum of[2 marks].c. Assess the effectiveness of the methods of promotion currently used by Reach Outinachieving the organizational objectives.(7 marks)Most of the methods of promotion that are currently being used by Reach Out involve e-commerce. Ecommerceis the trading of goods and services via the Internet. The Internet has become an increasinglyimportant method of business activity. E-commerce is not only about selling, it also serves to pass oninformation/support as Reach Out has done about autism which is one of its main organization objectives.Use of internet-based tools such as social networking sites and blogs as the primary basis of their marketingstrategy has proven to be fairly effective for Reach Out during its start-up phase. It has enabled Reach Outto form networks of families that can share information with each other. Moreover, it has provided Lauraan outlet to share her own experiences as a parent of an autistic child. This promotional medium hasgarnered thousands of visits per day in a short period of time four months. Thus, one can say that Reach

Outs promotional strategy based on internet-based platforms (social networking sites, blogs and e-mails)has enabled them to effectively achieve their organizational objectives: to raise awareness about autism andto provide support for families of children with autism.In addition, social networking sites and blogs are cost effective which is especially useful for a start-uporganization such as Reach Out that is dependent on donations. This also allows them to funnel moredonations towards their organizational objectives rather than administrative expenses such as marketing.Furthermore, through e-marketing, Laura is able to manage her outreach on her own time as the Internet isnot time specific. The allows her to use her time as efficiently as possible in achieving Reach Outsobjectives.On the other hand, due to the extremely rapid growth of visitors generated by Reach Outs e-marketingstrategies, we can see how time intensive these Internet tools can be. Laura soon found that moderating herblog forum and answering e-mails became extremely time consuming. Responding to her current visitorsmay have prevented her from generated new interest in Reach Out; thus, failing to pursue theorganizational objective of continuing to raise awareness about autism.Moreover, having an Internet-based promotional strategy may be preventing Reach Out from getting tofamilies that need assistance with their autistic children and do not have access to the Internet. Therefore,Reach Out is falling short of their organizational objective of spreading awareness about autism to thesepeople.The potential media coverage generated by Andrews appointment is not mentioned in the case study.However, we do see that hiring him based on his celebrity status rather than his office skills has causedcomplaints with current customers of the therapist scheme. Therefore, his appointment is preventing ReachOut from achieving their organizational objective of providing support for families of children with autism.(6-7 marks)

A balanced analysis/examination with accurate, specific, well-detailed knowledge and understanding ofrelevant issues, concepts and theories. An analysis/examination that uses appropriate terminologythroughout the response. Explicit references are made to the information in the case study.(3-5 marks)

A description or partial analysis/examination with relevant knowledge and/or understanding of relevantissues, concepts and theories. Some use of appropriate terminology. Some reference is made to the

! "!

c. Assess the effectiveness of the methods of promotion currently used by Reach Outin

achieving the organizational objectives.(7 marks)Most of the methods of promotion that are currently being used by Reach Out involve e-commerce.Ecommerceis the trading of goods and services via the Internet. The Internet has become an increasinglyimportant method of business activity. E-commerce is not only about selling, it also serves to pass oninformation/support as Reach Out has done about autism which is one of its main organization objectives.Use of internet-based tools such as social networking sites and blogs as the primary basis of theirmarketingstrategy has proven to be fairly effective for Reach Out during its start-up phase. It has enabled Reach Outto form networks of families that can share information with each other. Moreover, it has provided Laura

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an outlet to share her own experiences as a parent of an autistic child. This promotional medium hasgarnered thousands of visits per day in a short period of time four months. Thus, one can say that ReachOuts promotional strategy based on internet-based platforms (social networking sites, blogs and e-mails)has enabled them to effectively achieve their organizational objectives: to raise awareness about autismandto provide support for families of children with autism.In addition, social networking sites and blogs are cost effective whichis especially useful for a start-uporganization such as Reach Out that is dependent on donations. This also allows them to funnel moredonations towards their organizational objectives rather than administrative expenses such as marketing.Furthermore, through e-marketing, Laura is able to manage her outreach on her own time as the Internet isnot time specific. The allows her to use her time as efficiently as possible in achieving Reach Outsobjectives.On the other hand, due to the extremely rapid growth of visitors generated by Reach Outs e-marketingstrategies, we can see how time intensive these Internet tools can be. Laura soon found that moderatingherblog forum and answering e-mails became extremely time consuming. Responding to her current visitorsmay have prevented her from generated new interest in Reach Out; thus, failing to pursue theorganizational objective of continuing to raise awareness about autism.Moreover, having an Internet-based promotional strategy may be preventing Reach Out from getting tofamilies that need assistance with their autistic children and do not have access to the Internet. Therefore,Reach Out is falling short of their organizational objective of spreading awareness about autism to thesepeople.The potential media coverage generated by Andrews appointment is not mentioned in the case study.However, we do see that hiring him based on his celebrity status rather than his office skills has causedcomplaints with current customers of the therapist scheme. Therefore, his appointment is preventing ReachOut from achieving their organizational objective of providing support for families of children with autism.(6-7 marks)



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3. Laura is against using the surplus of the charity for investment in

the brandand product development (Option 2).(a)Identify two possible sources of finance that Neil can use if hedecides to

go ahead with this option [2 marks](b) Explain one advantage and one disadvantage of each source offinanceidentified in (a) [4 marks]! "#!

Marks should be allocated according to the markbands on page 1Question 3.

Laura is against using the surplus of the charity for investment in brand and productdevelopment (Option 2).a. Identify two possible alternative sources of finance that Neil could use if he decides to goahead withthis option.(4 marks)Possible sources of finance may include:! overdraft! personal funds from Neil! family and friends! government grants

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! government subsidies! sponsorships! loan capital!accept any other relevant source of finance identified

Award [1 mark]for each relevant source of finance identified up to a maximum of [2marks]. Candidates are not asked to define sources of finance:: they will not receive any extra

marks just to provide definition. Do not accept answers that are not relevant to the case study ( e.g. share capital ordebentures: these are theoretical answers that are not applied here). Candidates may come up with other original and precise ideas; these may be credited ifrelevant to the case study and acceptable; examiners may need to use their professionaljudgment here.b. one advantage and one disadvantage of each source of finance identified in (a)above.(4 marks)a

!Overdraft -Although overdrafts can demand a relatively high rate of interest, they! "#!

Marks should be allocated according to the markbands on page 1

Question 3.Laura is against using the surplus of the charity for investment in brand and productdevelopment (Option 2).a. Identify two possible alternative sources of finance that Neil could use if he decides to go aheadwiththis option.(4 marks)Possible sources of finance may include:! overdraft! personal funds from Neil! family and friends! government grants! government subsidies! sponsorships! loan capital

!accept any other relevant source of finance identifiedAward [1 mark]for each relevant source of finance identified up to a maximum of [2marks]. Candidates are not asked to define sources of finance:: they will not receive any extramarks just to provide definition. Do not accept answers that are not relevant to the case study ( e.g. share capital ordebentures: these are theoretical answers that are not applied here). Candidates may come up with other original and precise id eas; these may be credited ifrelevant to the case study and acceptable; examiners may need to use their professionaljudgment here.b. Explain one advantage and one disadvantage of each source of finance identified in (a)above.(4 marks)

a!Overdraft -Although overdrafts can demand a relatively high rate of interest, they

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(c)Neil prefers to be more analytical and scientific in decision-making.

Outline the formal decision-making framework, which Neil prefersto use.

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[3 marks]! ""!

are usually more cost effective than bank loans. An overdraft provides flexibility fora business that may face cash flow problems from time to time; therefore, it may notbe appropriate for Neils brand and product development plan.!Loan Capital This is a medium to long term source of finance that would be able

to generate enough capital to support the brand and product development plan.However, a loan will require interest payments and this may cause Reach Out to be ahighly geared company; thus, lowering prospects for future sources of finance.!Personal funds from Neil - This would be an easy way to get additional capital thatwould avoid interest payments. However, Neil already supplied the start -up capitalfor Reach Out and he may not want to expose himself to additional risk nor may haveadditional capital to give.!Family and Friends This is also an easy way to get additional capital and bothNeil and Laura could ask their friends and family thus spreading the liability.However, this source of finance may not be sufficient to fund Neils product andbrand development scheme and borrowing from family and friends often provokesarguments and fallouts!Government Grants Grants do not have to be paid back; however, they are oftenhard to obtain. However, given the societal benefit of Reach Outs organizational

objectives, a grant could be a viable source of finance.!Government Subsidies These are often given to organizations that provideessential products/services in order to keep prices down for the con sumer. Reach Outmay be able to obtain a subsidy for their therapist scheme and use the cost savings tofund the brand and product development plan.!Sponsorships The pharmaceutical company, N-Pharma, has already offered tosponsor Reach Out. This could amount to a sizable amount of money. However,Reach Out may not want to be affiliated with N -Pharma if they have engaged inunethical business practices in the past.Mark as 2+2.

Award [1 mark]for each relevant and appropriate advantage/disadvantage identified upto amaximum of[2 marks]for each source of finance stated.c. Neil prefers to be more analytical and scientific in decision -making (Line 118).Outline theformal decision-making framework, which Neil prefers to use.(3 marks)The stages of a scientific decision-making process:! Identify objectives!Collect information and ideas! Analyse information and ideas!Choose a course of action!Communicate and carry out! Measure outcome

! Evaluate the result and report! Revise objectives/information

Award [1 mark]for each stage correctly identified up to a maximum of [3 marks]. Thestages identified do not necessarily have to be in the correct order.! ""!

are usually more cost effective than bank loans. An overdraft provides f lexibility fora business that may face cash flow problems from time to time; therefore, it may notbe appropriate for Neils brand and product development plan.!Loan Capital This is a medium to long term source of finance that would be ableto generate enough capital to support the brand and product development plan.

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However, a loan will require interest payments and this may cause Reach Out to be ahighly geared company; thus, lowering prospects for future sources of finance.!Personal funds from Neil - This would be an easy way to get additional capital thatwould avoid interest payments. However, Neil already supplied the start -up capitalfor Reach Out and he may not want to expose himself to additional risk nor may haveadditional capital to give.!Family and Friends This is also an easy way to get additional capital and bothNeil and Laura could ask their friends and family thus spreading the liability.However, this source of finance may not be sufficient to fund Neils product andbrand development scheme and borrowing from family and friends often provokesarguments and fallouts!Government Grants Grants do not have to be paid back; however, they are oftenhard to obtain. However, given the societal benefit of Reach Outs organizatio nalobjectives, a grant could be a viable source of finance.!Government Subsidies These are often given to organizations that provideessential products/services in order to keep prices down for the consumer. Reach Outmay be able to obtain a subsidy f or their therapist scheme and use the cost savings tofund the brand and product development plan.!Sponsorships The pharmaceutical company, N -Pharma, has already offered to

sponsor Reach Out. This could amount to a sizable amount of money. However,Reach Out may not want to be affiliated with N -Pharma if they have engaged inunethical business practices in the past.Mark as 2+2.Award [1 mark]for each relevant and appropriate advantage/disadvantage identified up to amaximum of[2 marks]for each source of finance stated.c. Neil prefers to be more analytical and scientific in decision-making (Line 118). Outlinetheformal decision-making framework, which Neil prefers to use.(3 marks)The stages of a scientific decision-making process:! Identify objectives!Collect information and ideas! Analyse information and ideas

!Choose a course of action!Communicate and carry out! Measure outcome! Evaluate the result and report! Revise objectives/information

Award [1 mark]for each stage correctly identified up to a maximum of [3 marks]. Thestages identified do not necessarily have to be in the correct order.! ""!

are usually more cost effective than bank loans. An overdraft provides flexibility fora business that may face cash flow problems from time to time; therefore, it may notbe appropriate for Neils brand and product development plan.!Loan Capital This is a medium to long term source of finance that would be ableto generate enough capital to support the brand and product development plan.

However, a loan will require interest payments and this may cause Reach Out to be ahighly geared company; thus, lowering prospects for future sources of finance.!Personal funds from Neil - This would be an easy way to get additional capital thatwould avoid interest payments. However, Neil already supplied the start -up capitalfor Reach Out and he may not want to expose himself to additional risk nor may haveadditional capital to give.!Family and Friends This is also an easy way to get additional capital and bothNeil and Laura could ask their friends and family thus spreading the liability.However, this source of finance may not be sufficient to fund Neils product and

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brand development scheme and borrowing from family and friends often provokesarguments and fallouts!Government Grants Grants do not have to be paid back; however, they are oftenhard to obtain. However, given the societal benefit of Reach Outs organizationalobjectives, a grant could be a viable sou rce of finance.!Government Subsidies These are often given to organizations that provide

essential products/services in order to keep prices down for the consumer. Reach Outmay be able to obtain a subsidy for their therapist scheme and use the cost sa vings tofund the brand and product development plan.!Sponsorships The pharmaceutical company, N-Pharma, has already offered tosponsor Reach Out. This could amount to a sizable amount of money. However,Reach Out may not want to be affiliated with N -Pharma if they have engaged inunethical business practices in the past.Mark as 2+2.

Award [1 mark]for each relevant and appropriate advantage/disadvantage identified upto amaximum of[2 marks]for each source of finance stated.c. Neil prefers to be more analytical and scientific in decision -making (Line 118).Outline the

formal decision-making framework, which Neil prefers to use.(3 marks)The stages of a scientific decision-making process:! Identify objectives!Collect information and ideas! Analyse information and ideas!Choose a course of action!Communicate and carry out! Measure outcome! Evaluate the result and report! Revise objectives/information

Award [1 mark]for each stage correctly identified up to a maximum of [3 marks]. Thestages identified do not necessarily have to be in the correct order.

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(d) What other financial and non-financial factors should Neilconsiderbefore making a decision whether to go ahead with this option?

[6 marks]! "#!

d. What other financial and non-financial factors should Neil consider before making adecision whether to go ahead with this option?(6 marks)Financial factors to be considered:! The total cost of the plan is $100,000. What sources of finance can be used/needed?! The break-even quantity of the clothes and the accessories!Forecasted revenue generated from the sale of the new portfolio of products! Impact on cash flow/liquidity of the business! Pricing strategies for the this new portfolio of products!any other relevant responseNon-financial factors to be considered:! opportunity cost of the subsidized PECS cards program (that will now have to be delayed)! probability of success/failure of this option market research! will the brand design be done in-house or will it be outsourced! need to identify reliable, cost-effective suppliers for the clothes and accessories! need to identify optimal distribution channel for the clothes and accessories! impact on image/reputation of Reach Out

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! does this option align with the organizational objectives of Reach Out?!any other relevant response(5-6 marks)


A description or partial analysis/examination with relevant knowledge and/or understanding of relevantissues, concepts and theories. Some use of appropriate terminology. Some reference is made to theinformation in the case study, not just to the name of the organization. At the lower end of the markbandresponses are mainly theoretical.(1-2 marks)Little knowledge and understanding of relevant issues, concepts and theories. Little use of appropriateterminology. No reference is made to the information in the case study.(0 marks)No knowledge or understanding of relevant issues, concepts and theories. No use of appropriateterminology.

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SECTION B

Answer the compulsory question from this section

4. (a) Describe two financial methods of motivation used by ReachOut.[4 marks](b) Andrew argued that the students need more flexible workingpatternsin order to attend lectures at their university (line 105).

With reference to Reach Out, discuss one advantage and onedisadvantagefor the charity of introducing flexible working patterns to thestudent

therapists.[4 marks]! "#!

Section B

Question 4.a. Describe two financial methods of motivation used by Reach Out.(4 marks)Possible financial methods of motivation:

!Salaries are set at a fixed annual rate but paid monthly. Laura is paid a fixed salaryof $2000/month. Salaries are often used where outpu t or productivity is not easy tomeasure. However, there is often little incentive to work hard since people are paidthe same amount for their time.!Performance related pay rewards those employees who meet certain goals. Neil is

paid a commission of 10% of Reach Outs total cash receipts. This creates incentivesfor Neil to work and perform better. However, this may also cause him to focus onmaximizing cash receipts as opposed to the overall organizational objectives ofReach Out which is to provide quality support to families with autistic children.!Wages are usually expressed as the hourly rate of labour. The therapists are paid anhourly wage of $20 for their one -to-one therapy sessions. Wages is a straightforwardpayment system that it easily understood by employees. However, workers are notrewarded for their efforts but their time. This may encourage slack and poorproductivity.Mark as 2+2.

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Award [1 mark]for each relevant and correct financial method of motivation identifiedand [1 mark]for each clear description up to a maximum of [2 marks].b. Andrew argued that the students need more flexible working patterns in order to attendlectures at their university (line 104).With reference to Reach Out, discuss one advantage and one disadvantage for Reach Outofintroducing flexible working patterns to the student therapists.

(4 marks)Possible advantages of introducing flexible working patterns to the student therapists:! Student therapists will be more punctual to their therapy sessions because they canschedule them around their university lectures! Student therapists will be more motivated because they will have control over their workschedule and; thus, will provide better service at the therapy sessions!Flexible working patterns may make it easier to hire more student therapists!Any other relevant advantage identifiedPossible disadvantages of introducing flexible working patterns to the student therapists:! "#!

Section B


!Salaries are set at a fixed annual rate but paid monthly. Laura is paid a fixed salaryof $2000/month. Salaries are often used where output or productivity is not easy tomeasure. However, there is often little incentive to work hard since people are paidthe same amount for their time.!Performance related pay rewards those employees who meet certain goals. Neil ispaid a commission of 10% of Reach Outs total cash receipts. This creates incentivesfor Neil to work and perform better. However, this may also cause him to focus onmaximizing cash receipts as opposed to the overall organizational objectives ofReach Out which is to provi de quality support to families with autistic children.!Wages are usually expressed as the hourly rate of labour. The therapists are paid anhourly wage of $20 for their one -to-one therapy sessions. Wages is a straightforwardpayment system that it easily understood by employees. However, workers are notrewarded for their efforts but their time. This may encourage slack and poorproductivity.Mark as 2+2.

Award [1 mark]for each relevant and correct financial method of motivation identifiedand [1 mark]for each clear description up to a maximum of [2 marks].b. Andrew argued that the students need more flexible working patterns in order to attendlectures at their university (line 104).With reference to Reach Out, discuss one advantage and one disadvantage for Reach Outofintroducing flexible working patterns to the student therapists.(4 marks)

Possible advantages of introducing flexible working patterns to the student therapists:! Student therapists will be more punctual to their therapy sessions because they can

schedule them around their university lectures! Student therapists be more motivated because they will have control over their workschedule and; thus, will provide better service at the therapy sessions!Flexible working patterns may make it easier to hire more student therapists!Any other relevant advantage identifiedPossible disadvantages of introducing flexible working patterns to the student therapists:! "#!

Section B

Question 4.a. Describe two financial methods of motivation used by Reach Out.

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(4 marks)Possible financial methods of motivation:

!Salaries are set at a fixed annual rate but paid monthly. Laura is paid a fixed salaryof $2000/month. Salaries are often used where outpu t or productivity is not easy tomeasure. However, there is often little incentive to work hard since people are paidthe same amount for their time.!Performance related pay rewards those employees who meet certain goals. Neil is

paid a commission of 10% of Reach Outs total cash receipts. This creates incentivesfor Neil to work and perform better. However, this may also cause him to focus onmaximizing cash receipts as opposed to the overall organizational objectives ofReach Out which is to provide qu ality support to families with autistic children.!Wages are usually expressed as the hourly rate of labour. The therapists are paid anhourly wage of $20 for their one -to-one therapy sessions. Wages is a straightforwardpayment system that it easily understood by employees. However, workers are notrewarded for their efforts but their time. This may encourage slack and poorproductivity.Mark as 2+2.

Award [1 mark]for each relevant and correct financial method of motivation identifiedand [1 mark]for each clear description up to a maximum of [2 marks].b. Andrew argued that the students need more flexible working patterns in order to attend

lectures at their university (line 104).With reference to Reach Out, discuss one advantage and one disadvantage for Reach Outofintroducing flexible working patterns to the student therapists.(4 marks)

Possible advantages of introducing flexible working patterns to the student therapists:! Student therapists will be more punctual to their therapy sessions because they canschedule them around their university lectures! Student therapists will be more motivated because they will have control over their workschedule and; thus, will provide better service at the therapy sessions!Flexible working patterns may make it easier to hire more student therapists!Any other relevant advantage identifiedPossible disadvantages of introducing flexible working patterns to the student therapists:

! "#!Section B


!Salaries are set at a fixed annual rate but paid monthly. Laura is paid a fixed salaryof $2000/month. Salaries are often used where outpu t or productivity is not easy tomeasure. However, there is often little incentive to work hard since people are paidthe same amount for their time.!Performance related pay rewards those employees who meet certain goals. Neil ispaid a commission of 10% of Reach Outs total cash receipts. This creates incentivesfor Neil to work and perform better. However, this may also cause him to focus onmaximizing cash receipts as opposed to the overall organizational objectives ofReach Out which is to provide qu ality support to families with autistic children.!Wages are usually expressed as the hourly rate of labour. The therapists are paid anhourly wage of $20 for their one -to-one therapy sessions. Wages is a straightforwardpayment system that it easily understood by employees. However, workers are notrewarded for their efforts but their time. This may encourage slack and poorproductivity.Mark as 2+2.

Award [1 mark]for each relevant and correct financial method of motivation identifiedand [1 mark]for each clear description up to a maximum of [2 marks].

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b. Andrew argued that the students need more flexible working patterns in order to attendlectures at their university (line 104).With reference to Reach Out, discuss one advantage and one disadvantage for Reach Outofintroducing flexible working patterns to the student therapists.(4 marks)

Possible advantages of introducing flexible working patterns to the student therapists:

! Student therapists will be more punctual to their therapy sessions because they canschedule them around their university lectures! Student therapists will be more motivated because they will have control over their workschedule and; thus, will provide better service at the therapy sessions!Flexible working patterns may make it easier to hire more student therapists!Any other relevant advantage identifiedPossible disadvantages of introducing flexible working patterns to the student therapists:

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(c) Comment on two possible causes of communication problemsbetweenNeil and Andrew. [4 marks]

(d) To what extent would a change in Lauras laissez-fair leadershipstyleimprove the productivity and motivation of the employees of ReachOut. [8 marks]! "#!

!may create inconveniences for the families because the therapy se ssions may not be heldduring the most convenient time for them; thus, families may leave the therapist scheme!without a set working pattern, students may forget about their therapy appointments!management and control of the student therapists may become more difficult to therandom timing of the therapy sessions!Any other relevant disadvantage identifiedMark as 2+2

Award [1 mark]for each relevant and appropriate advantage/disadvantage identified,and [1mark]for each relevant and appropriate explanation up to a maximum of [2 marks].c. Neil was worried that complaints from families would lead to families withdrawingfrom thescheme, which would mean a drop in revenue (line 99-101). He confronted Andrew butthere were barriers to effective communication (line 101).Comment on two possible causes of communication problems between Neil andAndrew.(4 marks)Communication refers to the transfer of information from one party to another. Effectivecommunication isvital to the success of any business so that staff is aware of their roles and expectations and

managers cangather and act upon feedback from employees, customers and other stakeholders.Possible causes of communication problems between Neil and Andrew may include:! Andrews unfamiliarity with ICT! Use of informal communication which may create misunderstandings! Lack of training provided to Andrew! Andrews disability, Aspergers Syndrome!Any other acceptable responseStudents should comment on the relative importance of each cause and how each cause should beaddressed by Reach Outs management.It may be helpful for examiners to think of this question as [2 marks]for theory and [2 marks]for

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application to Reach Out.[1 to 2 marks]

For[2 marks], the answer refers to at least one cause of the communication problems betweenAndrew andNeil, yet in descriptive way without explanation nor making reference to the case study. For[1 mark],theanswer is limited or generic.

[3 to 4 marks]For[4 marks], the explanation is clear discussion of the causes of the communicationproblemsbetween Andrew and Neil with reference to the case study. For [3 marks], the explanation isclear, yet without mentioning the case study.! "#!

!may create inconveniences for the families because the therapy sessions may not be heldduring the most convenient time for them; thus, families may leave the therapist scheme!without a set working pattern, students may forget about their therapy appointments!management and control of the student therapists may become more difficult to therandom timing of the therapy sessions!Any other relevant disadvantage identified

Mark as 2+2Award [1 mark]for each relevant and appropriate advantage/disadvantage identified, and [1

mark]for each relevant and appropriate explanation up to a maximum of[2 marks].c. Neil was worried that complaints from families would lead to families withdrawing from thescheme, which would mean a drop in revenue (line 99-101). He confronted Andrew butthere were barriers to effective communication (line 101).Comment on two possible causes of communication problems between Neil Andrew.(4 marks)Communication refers to the transfer of information from one party to another. Effective communication isvital to the success of any business so that staff is aware of their roles and expectations and managers cangather and act upon feedback from employees, customers and other stakeholders.Possible causes of communication problems between Neil and Andrew may include:! Andrews unfamiliarity with ICT! Use of informal communication which may create misunderstandings! Lack of training provided to Andrew! Andrews disability, Aspergers Syndrome!Any other acceptable response

Students should comment on the relative importance of each cause and how each cause should beaddressed by Reach Outs management.It may be helpful for examiners to think of this question as [2 marks]for theory and [2 marks]forapplication to Reach Out.[1 to 2 marks]For[2 marks], the answer refers to at least one cause of the communication problems between Andrew andNeil, yet in descriptive way without explanation nor making reference to the case study. For[1 mark], theanswer is limited or generic.[3 to 4 marks]

For[4 marks], the explanation is clear discussion of the causes of the communication problemsbetween Andrew and Neil with reference to the case study. For[3 marks], the explanation isclear, yet without mentioning the case study.

! "#!

!may create inconveniences for the families because the therapy sessions may not be heldduring the most convenient time for them; thus, families may leave the therapist scheme!without a set working pattern, students may forget about their therapy appointments!management and control of the student therapists may become more difficult to therandom timing of the therapy sessions!Any other relevant disadvantage identifiedMark as 2+2Award [1 mark]for each relevant and appropriate advantage/disadvantage identified, and [1mark]for each relevant and appropriate explanation up to a maximum of [2 marks].c. Neil was worried that complaints from families would lead to families withdrawing fromthescheme, which would mean a drop in revenue (line 99-101). He confronted Andrew but

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there were barriers to effective communication (line 101).Comment on two possible causes of communication problems between Neil and Andrew.(4 marks)Communication refers to the transfer of information from one party to another. Effective communication isvital to the success of any business so that staff is aware of their roles and expectations and managers cangather and act upon feedback from employees, customers and other stakeholders.Possible causes of communication problems between Neil and Andrew may include:! Andrews unfamiliarity with ICT! Use of informal communication which may create misunderstandings! Lack of training provided to Andrew! Andrews disability, Aspergers Syndrome!Any other acceptable responseStudents should comment on the relative importance of each cause and how each cause should beaddressed by Reach Outs management.It may be helpful for examiners to think of this question as [2 marks]for theory and [2 marks]forapplication to Reach Out.[1 to 2 marks]For[2 marks], the answer refers to at least one cause of the communication problems between AndrewandNeil, yet in descriptive way without explanation nor making reference to the case study. For[1 mark], theanswer is limited or generic.[3 to 4 marks]

For[4 marks], the explanation is clear discussion of the causes of the communication problemsbetween Andrew and Neil with reference to the case study. For[3 marks], the explanation isclear, yet without mentioning the case study.! "#!

during the most convenient time for them; thus, families may leave the therapist scheme!without a set working pattern, students may forget about their therapy appointments!management and control of the student therapists may become more difficult to therandom timing of the therapy sessions!Any other relevant disadvantage identifiedMark as 2+2

Award [1 mark]for each relevant and appropriate advantage/disadvantage identified, and [1mark]for each relevant and appropriate explanation up to a maximum of [2 marks].c. Neil was worried that complaints from families would lead to families withdrawing fromthescheme, which would mean a drop in revenue (line 99-101). He confronted Andrew butthere were barriers to effective communication (line 101).Comment on two possible causes of communication problems between Neil and Andrew.(4 marks)Communication refers the transfer of information from one party to another. Effective communication isvital to the success of any business so that staff is aware of their roles and expectations and managers cangather and act upon feedback from employees, customers and other stakeholders.Possible causes of communication problems between Neil and Andrew may include:! Andrews unfamiliarity with ICT! Use of informal communication which may create misunderstandings! Lack of training provided to Andrew! Andrews disability, Aspergers Syndrome!Any other acceptable responseStudents should comment on the relative importance of each cause and how each cause should be

addressed by Reach Outs management.It may be helpful for examiners to think of this question as [2 marks]for theory and [2 marks]forapplication to Reach Out.[1 to 2 marks]For[2 marks], the answer refers to at least one cause of the communication problems between AndrewandNeil, yet in descriptive way without explanation nor making reference to the case study. For[1 mark], theanswer is limited or generic.[3 to 4 marks]

For[4 marks], the explanation is clear discussion of the causes of the communication problemsbetween Andrew and Neil with reference to the case study. For[3 marks], the explanation is

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clear, yet without mentioning the case study.

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Additional informationThere is no additional information in this paper for Sections A andB.! "#!

d) To what extent would a change in Lauras laissez-faire leadership style (line 115)improve the productivity and motivation of the employees of Reach Out?(8 marks)Leadership style refers to the way in which managers and leaders behave or reveal their behavior indifferent ways. According to the case study, Lauras leadership style can be categorized as laissez-faire.Laissez-faire leaders prefer to have minimal direct input into the work of their employees. The advantagesof this leadership style is that it can lead to high levels of motivation in staff because they feel trusted andhighly valued by their employer. However, problems can occur when there is a lack of supervision ordirection. For example, this style may encourage slack whereby workers tend to be less proactive as theyknow they are not being directly monitored.From the case study, we can see that Laura has very little involvement in the work that Andrew or thetherapists do. This has resulted in problems whereby Andrew is not carrying out his dutiesof confirmingappointment or replying to messages. In addition, the therapists are turning up late or not at all for family

visits.Laura still may be able to maintain her mostly laissez-faire style by just providing additional training andsupport to Andrew and the therapists. This is because as of now, Reach Out is a relative small organizationwith a flat organization structure. However, if Reach Out were to expand their therapist scheme or evendifferentiate into offering additional products/services, they may have to hire more people. With a largerworkforce, Laura will most likely need to provide more supervision in order to prevent miscommunicationand operational problems (which they are already starting to experience). Generally, as organizationsbecome larger, managers need to adopt a more democratic or autocratic leadership style.(7-8 marks)



information in the case study, not just to the name of the organization. At the lower end of the markbandresponses are mainly theoretical.(1-3 marks)Little knowledge and understanding of relevant issues, concepts and theories. Little use of appropriateterminology. No reference is made to the information in the case study.(0 marks)No knowledge or understanding of relevant issues, concepts and theories. No use of appropriateterminology.Marks should be allocated according to the markbands on page 3, Section B

! "#!

d) To what extent would a change in Lauras laissez-faire leadership style (line 115)improve the productivity and motivation of the employees of Reach Out?(8 marks)Leadership style refers to the way in which managers and leaders behave or reveal their behavior indifferent ways. According to the case study, Lauras leadership style can be categorized as laissez-faire.Laissez-faire leaders prefer to have minimal direct input into the work of their employees. The advantagesof this leadership style is that it can lead to high levels of motivation in staff because they feel trusted andhighly valued by their employer. However, problems can occur when there is a lack of supervision ordirection. For example, this style may encourage slack whereby workers tend to be less proactive as theyknow they are not being directly monitored.From the case study, we can see that Laura has very little involvement in the work that Andrew or thetherapists do. This has resulted in problems whereby Andrew is not carrying out his duties of confirmingappointment or replying to messages. In addition, the therapists are turning up late or not at all for familyvisits.Laura still may be able to maintain her mostly laissez-faire style by just providing additional training andsupport to Andrew and the therapists. This is because as of now, Reach Out is a relative small organization

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!Communication problems due to Andrews inability to be organized and lack of skills with computerstrategy for developing human resources involves:!Recruiting full-time administrator: will help in improving the scheduling and communicating in atimely manner with the therapists. Therapists will have a clearer idea what their duties andresponsibilities are and who they are accountable to. It will be easier to communicate in case a member

! "#!

Section Ca. Identify two driving forces for and two restraining forces on, the proposal of adopting a more

formalorganizational structure for the charity.[4 marks]Possible driving forces:! Neils work experience in private and public sector organizations! Lauras need for stable income and devotion to the cause of helping families with autistic children! The growing demand for the cheaper treatment that Reach Out offers to families! The need to manage the charity in a more professional manner as it grows! The rise in the number of autistic children reportsPossible restraining forces:! The relatively small size of the charity at present! The commitment of the charitys funds to subsidize treatment for families to make it affordable.! The nature of Reach Out- as it is a charity, adopting more formal organizational structure may make itlook more like a business! The lack of commercial operations and thus lack of funding for administrative expensesMark as 2+2[1 mark] for each relevant and appropriate driving force identified up to a maximum of2 marks, and 1mark for each relevant and appropriate restraining force identified up to a maximum of2 marks.b. With the use of a suitable motivation theory, explain how the proposed strategy (Item 2) fordeveloping human resources ofReach Outmay affect employees motivation and performance.[8 marks]Reach Out has problem with their staffing which relates to:! Inflexible working hours for the trainee teachers used as therapists! Lack of specialized training! Low payment! Therapists have to pay their own transport expenses!Communication problems due to Andrews inability to be organized and lack of skills with computerThe proposed strategy for developing human resources involves:full-time administrator: will help in improving the scheduling and communicating in amanner with the therapists. Therapists will have a clearer idea what their duties andare and who they are accountable to. It will be easier to communicate in case a member

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! "#!

b. With the use of a suitable motivation theory, explain how the proposed strategy (Item 2) fordeveloping human resources ofReach Outmay affect employees motivation and performance.[8 marks]Reach Out has problem with their staffing which relates to:! Inflexible working hours for the trainee teachers used as therapists! Lack of specialized training! Low payment! Therapists have to pay their own transport expenses!Communication problems due to Andrews inability to be organized and lack of skills with computerThe proposed strategy for developing human resources involves:!Recruiting full-time administrator: will help in improving the scheduling and communicating in atimely manner with the therapists. Therapists will have a clearer idea what their duties andresponsibilities are and who they are accountable to. It will be easier to communicate in case a memberof the staff experiences difficulties in attending an appointment- both in finding another availabletherapist or postponing/ rescheduling appointment.!Training: This can be very motivational for the trainee teachers as they will have the opportunity togain further specialization and qualification for their future career. Those of them who feel motivatedby non-financial rewards would be willing to continue working with Reach Out as they can gainqualification in SEN, and experience while working for the charity. If Reach Out offers sponsorshipfor further specialization in SEN, some trainee teachers will be willing to stay with Reach Out longerto take advantage of this opportunity. Their performance will increase as they will gain specialistknowledge and this will also help the charity as there will be less complaints from families about

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absences of staff.!Bonuses: Those therapists working with Reach Out just earn some additional money to supportthemselves during their studies in University, will be willing to continueworking with the charity asthey will be able to cut some of the expenses they are incurring at the moment. Also the opportunity toearn a bonus may motivate them further and they may be more consistent with their work to earn thisbonus. On the other hand, as it will be difficult to measure performance in this line of work, sometherapists may find this demotivating as they may see it as a subjective approach to their performance.Reach Out has to be very clear and transparent with the criteria on the basis of which they will offer

the extra bonus. Overall, as performance bonuses link rewards to efficiency and performance, it shouldmotivate the therapists to see the charity attract more families and grow and thus increase their surpluswhich can be shared in the form of bonuses. This may also motivate some therapists to stay with thecharity longer and thus Reach out will be able to retain stuff.!Involving the therapists in the decision-making process of Reach out may be very motivational forthose of them who are willing to share their ideas and expertise, also implement their learning intopractice. This will make them feel respected and important for the charity as their opinions for thefuture direction of the charity are considered. Not only their motivation will increase, but also theirloyalty to the charity and its mission.

Andrew also may improve his performance as a result of getting more training in his specific duties.This will help with his motivation as he will feel that he is a valued member of the charity and alsomay improve his ability to overcome some difficulties in communication he might be experiencing. Hewill be more clear of the expectations of him and his performance may improve.Suitable motivation theory has been applied: Herzberg, Maslow, McGregor[1 to 2 marks]

A limited response. Some understanding of the effects of the proposed strategy on motivation and

performance of the therapists and their willingness to stay longer with the charity.[3 to 5 marks]The explanation is relevant and shows understanding of the concepts of motivation, performance.

Attempt to identify and apply suitable motivation theory and to illustrate how the proposed strategy fordeveloping the human resources may affect the therapists Reach Out is working with. At the top of theband there is more detail and development of concepts. A maximum of [4 marks] should be rewardedof the answer is generic.

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c) Analyse the marketing strategies proposed by John and theextentto which they might help Reach Outraise funds for their activities.[8 marks]! "#!

Andrew also may improve his performance as a result of getting more training in his specific duties.This will help with his motivation as he will feel that he is a valued member of the charity and alsomay improve his ability to overcome some difficulties in communication he might be experiencing. Hewill be more clear of the expectations of him and his performance may improve.Suitable motivation theory has been applied: Herzberg, Maslow, McGregor[1 to 2 marks]A limited response. Some understanding of the effects of the proposed strategy on motivation andperformance of the therapists and their willingness to stay longer with the charity.[3 to 5 marks]The explanation is relevant and shows understanding of the concepts of motivation, performance.Attempt to identify and apply suitable motivation theory and to illustrate how the proposed strategy fordeveloping the human resources may affect the therapists Reach Out is working with. At the top ofthe

band there is more detail and development of concepts. A maximum of [4 marks] should be rewardedof the answer is generic.[6 to 8 marks]

A clear, relevant and well developed explanation of how the proposed strategy for developing humanresources of Reach Out may affect employee motivation, performance and retention. The concepts arewell explained and linked to issues in the case study and supplementary materials. Suitable motivationtheory has been used appropriately to distinguish between financial and non-financial motivationaltools that Reach Out intends to implement. The specifics of the organization has been taken intoaccountc. Analyse the marketing strategies proposed by John and the extent to which they might helpReach

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Outraise funds for their activities.[8 marks]The strategies proposed by John are related to more business-oriented approach to ensure the futuregrowthof Reach Out. He specifically recommended that Reach Out develops strong marketing strategy to raisefunds for the charitys growth :Through clear marketing strategy Reach Out needs to establish their name in the ocean of existingcharitiesand promote its vision and ideals. Donors are more likely to choose to donate their money for the cause ofacharity with an established name.John proposes two ways to promote the charity:Seeking affiliation with small businesses:Reach Out Small Businesses[6 to 8 marks]

A clear, relevant and well developed explanation of how the proposed strategy for developing humanresources of Reach Out may affect employee motivation, performance and retention. The concepts arewell explained and linked to issues in the case study and supplementary materials. Suitable motivationtheory has been used appropriately to distinguish between financial and non-financial motivationaltools that Reach Out intends to implement. The specifics of the organization has been taken intoaccountc. Analyse the marketing strategies proposed by John and the extent to which they might help ReachOutraise funds for their activities.

[8 marks]The strategies proposed by John are related to more business-oriented approach to ensure the future growthof Reach Out. He specifically recommended that Reach Out develops strong marketing strategy to raisefunds for the charitys growth :Through clear marketing strategy Reach Out needs to establish their name in the ocean of existing charitiesand promote its vision and ideals. Donors are more likely to choose to donate their money for the cause of acharity with an established name.John proposes two ways to promote the charity:Seeking affiliation with small businesses:Reach Out Small Businesses[6 to 8 marks]

A clear, relevant and well developed explanation of how the proposed strategy for developing humanresources of Reach Out may affect employee motivation, performance and retention. The concepts arewell explained and linked to issues in the case study and supplementary materials. Suitable motivationtheory has been used appropriately to distinguish between financial and non-financial motivationaltools that Reach Out intends to implement. The specifics of the organization has been taken intoaccountc. Analyse the marketing strategies proposed by John and the extent to which they might help ReachOutraise funds for their activities.[8 marks]The strategies proposed by John are related to more business-oriented approach to ensure the future growthof Reach Out. He specifically recommended that Reach Out develops strong marketing strategy to raisefunds for the charitys growth :Through clear marketing strategy Reach Out needs to establish their name in the ocean of existing charitiesand promote its vision and ideals. Donors are more likely to choose to donate their money for the cause of acharity with an established name.John proposes two ways to promote the charity:Seeking affiliation with small businesses:Reach Out Small Businesses

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! "#!

Advantages1. small businesses are seeking to gain market andvisibility on the market and thus tend to supportcharities, especially local charities- this willbenefit Reach Out in raising funds as smallbusinesses can not only donate themselves butcan also use their channels of distribution topromote the name of Reach Out.2. maximize exposure by publicizing events ordonations through media attention, newslettersand advertisements.

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3. The two organizations can work together inpromoting awareness of the problems of autism,especially if the small businesses that Reach Outpartners with are involved in the production ofchildrens educational materials. Various charityevents can be organized to raise funds for ReachOut, such as reading evenings and othereducational activities for children.4. Products can be developed and sold to benefitReach Out, also stable donations by smallbusinesses can make a more consistent source offunding for the charity ( % of monthly sales, etc.)5. Special events for raising funds for Reach Out

other businesses might be encourages toparticipate by helping with the organization ofthe event or by volunteering services inexchange of their names being included in thelist of sponsors. More funds and exposure forReach Out.1. All of this goodwill reflects positively on smallbusinesses in local communities and does not gounnoticed. As the economy shrinks and the publicbecomes more aware of the struggles that localcharities are experiencing, raising funds to help

these organizations increases a businessesvisibility and may even bring in new revenue.People feel better to associate themselves withbusinesses that are helping the community.2. Very often small businesses share similarvalues with charities and believe that theirbusiness activities should improve the welfare oftheir customers.3. People will hear about the small business andawareness of their partnership with Reach Outwill be created. People are especially responsivewhen it comes to children (families) and they willbecome loyal customers of the small business thatsupports and donates funds to the charity.4. Volunteers of the charity will be willing topromote the small business among the communitythrought the charity newsletters and fliers, and

social networking sites- the increased exposurewill benefit the business and they will earn muchneededfunds for the charity through increasedsales.5. Saving on costs organizing the event andopportunity to find business partners for futurestrategic projects.Disadvantages1. Small businesses that Reach Out partnerswith might experience difficulties andbankrupt of they face strong competitionfrom big companies. This will result inlack of funding for Reach Out and theywill not be able to meet their expenses,thus threat for their own survival.2. Small businesses can not donate hugeamount of funding for the charity whichwill affect the growth of the charity andresult in slow growth.1. Reduction of the business ownersprofits might threaten the growth of thebusiness and its survival in times ofrecession.2. Organizing charity events to raise fundsfor the charity involves costs- businesscosts will increase, and the fundraisingmight be unsuccessful.

Using a professional online marketing company to promote Reach Out through direct mail and the socialnetworking sites:

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Advantages:- huge amount of funds may be raised (Item 5: mentions 26 times return on the initial investment in such acampaign)- The name of the charity will get to be known, as well as their mission to offer affordable treatment forchildren with autism- Reach Out may gain new customers as a result of professional marketing campaign, thus the charity might

17

Marks should be allocated according to the markbands on past paper 1 for section C.

d) Using information in the case study and Items 1 to 5, and withreference to Johns proposals, to what extent can Reach Outachieve their strategic goal to market and achieve growth in asustainable way. [10 marks]Given time constraints, answers are likely to be limited for this question.There is no correct answer for this section.The answer should be considered in a strategic framework of:- Where is Reach Out at present (strategic analysis)- The intended staff development and marketing strategy open to Reach

Out and its use to achieve sustainable long-term growth (strategicchoice)- Will Reach Out be able to achieve its objectives (strategicimplementation)It is expected that the answer will include relevant information from thecasestudy, extension material and Items 1 to 5 and employ a range ofbusinessconcepts, tools and terminology.Better answers will consider:

- the nature of the organization and its mission- the aims and ambitions of Neil to run Reach Out in a morebusinessorientedmanner and to diversify its operations! "#!

Using a professional online marketing company to promote Reach Out through direct mail and the socialnetworking sites:

Advantages:- huge amount of funds may be raised (Item 5: mentions 26 times return on the initial investment in such acampaign)- The name of the charity will get to be known, as well as their mission to offer affordable treatment forchildren with autism- Reach Out may gain new customers as a result of professional marketing campaign, thus the charity mightgrow and expand its operations quite fast

- Attention of businesses and government might be attracted and thus some new sources of funding theiractivities may become accessible- such as local government support, sponsorship and charity eventsorganized by businesses to raise funds for Reach Out.Disadvantages:- initial cost involved ($3000- Item 5) might be too high for Reach Out and may cause some short -run cashflowproblems for the charity, resulting in dissatisfaction among their therapists and customers.- The name of Reach Out may get linked to the name of other companies that use the same professionalmarketing company and approach for promoting their activities- this may endanger the image of Reach Out- People may not like the spamming of their inbox with mails and may feel irritated by such e-mails- therespondent rate may be low and insufficient to raise funds for Reach Out.Marks should be allocated according to the markbands on page 1.d. Using information in the case study and Items 1 to 5, and with reference to Johns proposals, to what

extent can Reach Outachieve their strategic goal to market and achieve growth in a sustainable way.

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[10 marks]Given time constraints, answers are likely to be limited for this question.There is no correct answer for this section.The answer should be considered in a strategic framework of:- Where is Reach Out at present (strategic analysis)- The intended staff development and marketing strategy open to Reach Out and its use to achievesustainable long-term growth (strategic choice)- Will Reach Out be able to achieve its objectives (strategic implementation)It is expected that the answer will include relevant information from the case study, extension material and Items 1to 5 and employ a range of business concepts, tools and terminology.

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- the external factors that might affect Reach Out in raising funds forgrowth- the risks involved in the suggested marketing approaches proposed byJohn.Item 1 provides information about the economic forecasts. Theeconomicdata indicates:)

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