Let’s take a look at how exactly we can use a business example to help develop a point.
During the a2 that is recent studies revision workshops we dedicated to the need for students to use independent research evidence to help support the lines of analysis their essay points.
One analogy we used was thinking about examples (evidence) whilst the seasoning in an essay hot-pot or casserole. The seasoning can there be to help make the meal taste great; but you likewise require the ingredients that are raw! An essay point this is certainly developed to a depth that is good always score better using the examiners than answers which are plagued by a lot of examples.
In March 2012, tour operator and travel agent Thomas Cook announced that its 16,000 UK staff would not any longer be able enjoy discounts of up to 75pc off their holidays. The move was element of a cost-cutting strategy by the tour operator which includes a target to cut operating costs by Ј35m a year in order to improve cash flow and reduce its substantial bank debts.
So, we have an example of a piece that is recent of news. It’s this that we call evidence – and it’s an easy task to get your hands on by simply reading the continuing business news regularly.
You don’t need to research anything you possibly can about Thomas Cook. You don’t need to memorise Thomas Cook’s recent results that are financial have detailed understanding of the cost-reduction plan. You just need some examples that are good. It is how you utilize them that really matters.
How could we make use of the evidence about Thomas Cook’s decision in order to make savings by restricting the staff discount scheme?
The evidence may be beneficial in several contexts. For example, it could be used by you in an essay on strategic retrenchment, or approaches for profit improvement. You could put it to use as a example of how board-level decisions designed to achieve corporate objectives can have effects at a level that is functional. You might make use of it in an essay on culture (new management taking a choice for financial motives without necessarily considering most of the HRM & operational implications)
The important thing to remember is that the evidence needs to be used to aid the type of analysis in each paragraphpoint. Make the example and explore the implications. Consider the significance of the example and those implications.
An way that is effective do that is with “connectives” – phrases and words which help develop a logical chain of argument.
So, why don’t we see a good example of that for action. We are going to utilize the Thomas Cook staff discount evidence/example and apply it to a paragraph point which explores the potential undesireable effects of a strategy that is cost-cutting.
Glance at the paragraph below. See how it uses the data and then builds upon it. Underline the connectives used – how many can you spot? Its also wise to note the way the example uses business that is relevant – this can help build credibility aided by the examiner.
Firms that need to improve their profitability and cash flow will look at reducing inevitably operating costs where possible. However, you will find potential dangers with a cost-minimisation strategy. For instance, Thomas Cook has set itself a corporate objective of reducing annual operating costs by at the very least Ј35m p.a. because it seeks to enhance cash flow in the short-term to aid it reduce high gearing levels. It is implementing a variety of measures shop that is including, redundancies as well as reducing the price of financial benefits (such as for instance generous discounted holidays) paid to Thomas Cook staff. When you look at the short-term, reducing staff discounts should result in a substantial cost saving since TC has thousands of staff, although which will depend in the extent to which TC staff make use of the discount scheme. However, there are potential downsides to the decision, like the odds of reduced morale and motivation of staff who value their holiday discounts, which could indirectly lead to worse customer support or lower productivity, ultimately causing lower revenues and profits which for that reason may actually end up in lower cash flows in the long-term. The decision to limit staff discounts may initially seem quite popular with management, however as described payforpapers.net, you can find potential hidden tangible and intangible costs which would lower the impact of the decision on TC’s cost-reduction strategy.