SCSA Business Management and Enterprise Management

A macro external environmental factor that influenced change at the vet clinic is the legal environment. The legal environment relates to the laws that state how a business must operate. Stimulus 11 refers to the lobbying influence of welfare groups and veterinary associations in achieving legislative change, which resulted in updates to legislation. These updates mandate that vet nurses must have necessary training to perform complementary therapies. Therefore, the business needs to change to abide by the new laws.

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The just-in-time technique is an inventory technique that is based on inventory being manufactured at the time the products are needed – just the right amount/number of goods/services needed. These products would also be delivered to customers upon completion of the production process. This eliminates the need for inventory storage, wastage and other costs.

Advantages:

• there is a less storage space needed which allows a business to save on rent and insurance costs
• discourages the build-up of any unsold products
• there is a minimal chance of stock becoming ‘out-of-date’.

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The just-in-case technique is an inventory technique that is based on having spare inventory which could include raw materials, spare parts, etc. in stock just in case it needs to be used. The business is manufacturing its products based on either a predicted or planned sales rate.

Advantages:

• there is a greater ability to meet any unexpected increases in demand for the business’ product as there is always inventory on hand to meet these demands
• businesses hold large amounts of inventory just-in-case there are surges in demand or supply
• reduces down-time in production as there is no delay in inventory from suppliers
• customer satisfaction is maintained as production does not wait for materials to be delivered
• businesses could reap the benefits of economies of scale, such as buying supplies in bulk.

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• Production management systems deal with converting raw materials into finished goods or products.
• This is done by deciding on the inputs, outputs, processes and controls that need to take place in order to ensure a product or service is created in line with the specifications, within the quantity and by the schedule demanded and at a minimum cost to the business.

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Quality assurance:

• is the process of guaranteeing a product’s quality to the consumers
• informs customers that products have been manufactured to a quality standard doing things ‘right the first time’
• involves checking and reviewing the production process
• focuses on preventing poor quality products as opposed to correcting problems
• can allow employee participation, generating new ideas for operations, processes and the quality of the end product, resulting in improved staff morale
• can result in a reduction of production costs, less waste and reworking of products.

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Quality improvement:

• is the systematic approach to reduction or elimination of waste, rework, and minimisation of losses in the production process
• refers to the continuous improvement process focused on processes and systems
• involves to the analysis of business performance and business efforts to improve performance
• includes features such as benchmarking or quality circles, Kaizen and Total Quality Management.

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• Communicating directly with customers globally through email, or video conference such as Zoom or teams calls assists in global distribution.
• Businesses can use a website for e-commerce: customers are purchasing more and more online and are receiving products delivered to home through enhanced technology in transport, tracking and delivery systems.
• Technology can be used to help track inventory of global distribution in real time.
• Technology aids in the transfer of equipment and delivery methods.
• Technology can be used to reduce costs and improve accuracy in procurement and inventory.
• Technology enables increased access to data and collaboration in supply chains.
• Technology can be used for faster planning and decision making, hence faster problem solving.
• Technology used in transportation, such as GPS technology, makes tracking faster and more efficient.
• The use of apps facilitates quick, efficient procedures, including the use of credit cards with encrypted payment facilities which are safe.

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The current ratio:

• is a financial measure used to evaluate a business' ability to meet its short-term obligations with its short-term assets
• is calculated by dividing a business' current assets by its current liabilities
• a higher current ratio indicates good liquidity, suggesting the business has more than enough assets to cover its short-term liabilities
• a lower current ratio may indicate potential liquidity issues, as the business might struggle to meet its short-term obligations.

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Return to equity ratio:

• the ratio's formula (profit/equity)
• the ratio is one way to measure the profitability of Sofie's business
• the larger the ratio, the greater the return on investment
• the ratio has increased from 1.5% to 1.8% indicating a slight increase in profitability for Sofie's business.

Debt to equity ratio:

• the ratio's formula (total liabilities/total equity)
• the ratio measures the stability of Sofie's business
• the ratio indicates the proportion of Sofie's business capital made up of internal borrowing against external borrowing
• this ratio has increased across the years from 22% to 25%, indicating the Sofie's business is financed by an increasing amount of borrowing.
  Accept other relevant answers.

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Current ratio:
The current ratio is measures the liquidity of the business. It measures how much
current assets it has to meet its short-term debt. A ratio over 100% indicates that the
business has enough current assets to cover the short-term debt of the business.

Debt to equity ratio:
Debt to equity measures the gearing of the business. The debt-to-equity ratio shows
the percentage of company financing that comes from creditors and investors. A
higher debt to equity ratio indicates that more debt (bank loans) is used than equity
(shares).

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Profit ratio:
The profit ratio has decreased by 6% from 2020 to 2021 and is 4% below the industry
average. This reveals that the capacity for the business to make a profit has
decreased. This could be due to sales reducing without an accompanying decrease in
expenses.

Expense ratio:
The expense ratio has increased dramatically from 28% in 2020 to 42% in 2021 and is
9% higher than the industry average. This reveals that the business’ expenses have
increased greater than their income. This could be due to a large reduction in sales.

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Currency fluctuations:

• refers to changes in the exchange rate of a currency relative to another currency; these fluctuations can result in an exporter losing money
• exchange rates are determined by the supply and demand of a currency in the foreign exchange market
• factors that influence the supply and demand of a currency include a country's economic and political conditions, interest rates, inflation and market expectations.

Non-payment of monies:

• refers to a situation where one party fails to fulfil its obligation to pay money to another party
• can have significant financial consequences for the party owed money, especially if they rely on the payment to meet their own financial obligations
• to avoid non-payment, it is important to establish clear payment terms and conditions upfront, including deadlines, methods of payment, and consequences for non-payment.

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E-commerce:

• involves the use of websites where potential customers can view and purchase inventory
• allows a domestic business to enter global markets without having a physical presence in a target country
• the growth of e-commerce and the use of mobile devices have enabled better communication between staff, customers and suppliers around the world.
  Examples:
• customers can customise a business's website with a chosen currency and language to enhance their shopping experience
• businesses can use social media to sell their products online, allowing them to access a global market.

Distribution of products:

• technology can be used to communicate directly with customers globally through email and websites
• technology can be used to help track inventory and automate distribution in global markets
• technology in transportation will aid the transfer of products from domestic to international markets.
  Examples:
• GPS technology can be used to track data in real-time, making tracking faster and more efficient
• increased access to data and collaboration in supply chains using technology such as Zoom or Teams to assist.

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Financial gain:

• An increase in satisfied customers can lead to an increased market share, sales and repeat customers. Innovation can also lead to creating a delay in the decline stage of the product lifecycle resulting in greater profit for Matilda.
• Product innovation occurs if Matilda sources new and/or more products to sell. This may increase interest, sales and, in turn, profit.
• Process innovation occurs if Matilda is able to improve her processes through new technology. She could see productivity gains and better customer satisfaction, resulting in increased financial gain.

Expansion of global market presence:

• Innovation can be a driver of business growth. Therefore, Matilda expanding into the European market will enhance her global market presence.
• Innovation can give Matilda a competitive edge over her foreign competitors.
• Matilda's innovation can lead to her successful expansion into Europe and ensure that she is competitive in global markets through her business being new and different.

Increased market share:

• Innovation can assist with producing more appealing/innovative products and, therefore, increase market share for Matilda when she expands into the European market.
• Innovation can create a competitive advantage. A new product can create a consumer demand for the product, resulting in more products being sold and Matilda's business' market share increasing in the European market.

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Timing:

• Timing can have an impact the success of innovation in terms of how it relates to customer purchasing cycles.
• Matilda has just read an ecommerce report in 2020 stating that European shoppers are spending more time shopping online. This means the timing is right for her to expand to Europe.
• It would be a good idea for Matilda to innovate her product, process and service while online marketplaces in Europe are attracting significant online traffic and high visitor engagement. This should lead to increased sales, thus success at this time is likely to be high and worth her investment in the innovation.

Cost:

• Investment in innovation, whether it is product, process or service, is costly.
• Money needs to be spent on research and development and can be significant. Therefore, it requires appropriate financial resources.
• Matilda has stated that she is willing to invest money into her business operations, so she has the best opportunity to be profitable.
• Matilda has seen a surge in online sales in 2020 and 2021. Therefore, she has income available to spend on innovation.
• If Matilda spends too much money on research and development, and innovation, and does not receive increased sales through the European market, she may be at risk of business failure.
• Matilda's financial investment in innovation may be important to her standing out from competitors in the European market, and be an important contributor to her success.

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• Marketing through social media campaigns – researching and creating social networking sites used in Europe. This will be an easy and cost-effective way for Matilda to expand into the European Market.
• Adopting faster shipping technology. This will be positive for Matilda's business as it will improve customer satisfaction due to timely delivery of orders.
• Implementing safe payment methods – around the world customers are happy and confident utilising payment methods such as PayPal. This will assist Matilda expanding into the European market.
• Applying GPS delivery tracking systems – for both the business and the customer. This ensures the customer is updated via email or SMS, making them confident regarding the delivery of their order.
• Adopting e-commerce procedures. This will enable transfer of monies between currencies and countries instantly.
• Matilda can purchase relevant and reliable hardware and software for the business' needs. She can improve her website capabilities to change the language and/or apply different currencies. This will increase the business' reach to different countries where customers can make purchasing decisions using their own currency.

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Availability of substitutes: Matilda needs to consider:
likelihood that customers will easily switch or use a competitor's product over hers.

• Are there similar products being sold online at a similar price or lower?
• Do the competitors pose a threat to her business' success?
• Are her products new, innovative and of high quality, compared to others on the market?
• Are there better-quality products available?
• Are there products of better value?
• Can she create buyer loyalty in Europe, or will consumers easily change brands?

Bargaining power of buyers: Matilda needs to consider the bargaining power of the buyers in Europe.

• What is the bargaining position of the buyers? Can the customers drive down the price?
• What is the level of quality and service demanded by buyers in Europe?
• What are the buyer numbers in Europe? Europe has a large population, therefore a large number of potential buyers.
• Which countries in Europe will have more buying power? Many parts of Europe have a large middle class, hence the disposable income to purchase Matilda's products.

Advice:
Due to the fact that Matilda is going to be investing in innovation of her product, process and service, the huge population of Europe and the fact that more European shoppers are spending significant time shopping online, there is no reason why she should not trial an entry into the European market. Her product is unique, luxurious and of high quality, thus should negate the issue of availability of substitutes.

The e-commerce report also affirms 'online marketplaces in Europe have attracted significant traffic and seen high visitor engagement that has translated into sales'. Due to the fact that more Europeans are spending time at home and shopping online, it is worth Matilda expanding her business into the European market.

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• EduOz.com should have a presence amongst the main social media platforms like Facebook, Instagram, LinkedIn. The most common way companies do this is by creating a short video about the benefits of the product which pops up in people's feeds. At the end of the video, there would be a button where a prospective customer can click to find out more and proceed to provide contact details (phone or email).
• LinkedIn would be another very suitable, place where EduOz.com can create a campaign. LinkedIn also has a 'learning' section on its user interface. Perhaps EduOz may want to provide a free sample of an online topic for users to try. EduOz.com may also want to sponsor a popular podcast also.

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Product features (standardisation)

• English as a language has a global functionality. It is the most common language used in business, so it may make sense to standardise its course which would then negate the cost of making alternative versions in different languages.
• As business environments (political, economic, social, technological) change, online courses may also need to be updated. Therefore, having just one language to deal with would be easier and cost effective.

Product name (standardisation)

• A uniform policy on the product name can enable a consistent and coherent brand message across various cultures.
• However, care must be taken to ensure that the name does not cause offence to local culture, and that the translation is not embarrassing. This may damage the brand quality of the product.

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Levels of education

• EduOz.com may need to make a decision to target recent school leavers who are just out of high school, or perhaps adults who already have a formal qualification and want another skillset in order to become entrepreneurs.
• The market segment of EduOz.com would have to have a basic level of English literacy if they are to understand most of the topic content, as it is written in English.
• There may need to be some translation of some key words so that students are able to understand certain key concepts.

Customs

• Customary greetings to students could be included in some course content that is suited to local cultures of international students, such as 'As-Salaam-Alaikum' (peace be with you) for Islamic countries or 'nihao' for the countries that have Chinese speaking students (Mandarin and Cantonese).
• EduOz.com developers will have to be careful not to stereotype certain cultures and seek advice as to the best way to communicate with students from diverse cultures.

Business etiquette

• The EduOz.com course could include content for entrepreneurs looking to do business in other foreign countries, so it would pay to learn about the way different culture's view notions of introductions/relationships, business card provision, being on time/punctuality, gifts, socialising expectations, working hours, handshakes and dress codes.

Communication protocols

• EduOz.com developers need to pay attention to how they convey their messages. For instance, some cultures may value directness and brevity, while other cultures may prefer a more indirect and nuanced communication.
• Even though the course a written in English, understanding the importance of subtle non-verbal communication between cultures is crucial in international business.

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Level of consumer demand

• Price: from an economic point of view, price can determine the level of demand for goods and services. EduOz.com must consider at what price customers in international markets are willing to pay.
• Scale of demand: it is estimated that by 2025, one billion students from around the globe will be actively seeking education and skill development.
• Economic growth: owners should monitor GDP levels in the various countries they would expand to. Increased GDP may mean more availability of disposable income, which makes it fertile ground to establish operations there.
• Product quality: the online education platform must be able to work well in all operating system and internet browser contexts (e.g., iOS, Windows, Chrome, Mozilla, Safari). The quality of the product must also be dynamic so that it works on desktops and mobile devices.
• Marketing: EduOz.com's branding efforts could also influence demand if people are persuaded to believe in the benefits the online product may provide them. Perhaps some testimonials from satisfied customers may be appropriate in establishing credibility.

Competitor activity

• 'Globally, the online learning industry is increasing rapidly with many regional education hubs being established by competing international learning institutions'.
• Competition within the Southeast Asian online education industry would be fierce. Competitors from Southeast Asian regions may have a significant competitive advantage in that they would have the resources available to translate into different languages, including Mandarin.
• Aspects of the competitor activity could be to scan those that are offering similar online learning products and the degree of market share they are currently holding.
• EduOz.com would want to know who the new and old players in the market are. As well as growth rates of all the competition in order to evaluate who are the biggest threats.
• Competitor activity in terms of marketing strategies would be a very important measure of feasibility, such as the occurrences where pricing wars happen or social media platforms where a high volume of advertising is taking place.

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• sustainability aims to meet the needs of the business while seeking to protect and preserve resources and the environment for the future. This includes finding ways to reduce waste and recycling of more resources such as water, energy and paper
• CHF can also measure their carbon footprint and investigate carbon offsets. Sustainable practices can differentiate businesses in the market and be used to promote the CHF in a positive light to build CHF's customer base
• CHF's employees will feel ethical by working in a sustainable business. Sustainable businesses have been shown to improve staff morale and increase staff productivity and reduce absenteeism
• one way that CHF can be more sustainable is for it to be efficient with resources, recycling supplies and reducing waste. CHF can promote the business more through its website and social media and not through other advertising methods such as print material.

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• control of quality may involve quality assurance (QA), quality improvement (QI) and quality control (QC)
• QA refers to a set of activities designed to make sure the development and maintenance process is adequate so that a system can meet its objectives, for example, CHF could use QA to prevent defects throughout the production process
• QI refers to the effort taken to increase efficiency, actions and procedures, with the purpose of achieving additional benefits for the business and its users, for example, CHF could use Total Quality Management (TQM) to improve its production process
• QC refers to the process of checking and reviewing processes at the end to determine if the requirements of the business are being met, for example, it ensures that the final product meets a defined set of quality criteria and meets the requirements of CHF's customers
• maintenance of quality is essential for CHF to maintain its brand. A brand is often associated with a particular level of quality and any lowering of quality or perception of quality would result in a loss of consumer confidence in the brand resulting in a decline in sales and profits.

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Profit ratio:

• shows the percentage of net sales
• in 2022, this was 12% which means for every ＄1 of sales earned, CHF had ＄0.12 profit
• in 2023, this increased to 14%, which means for every ＄1 of sales earned, CHF had ＄0.14 profit
• ratio has improved in 2023 by 2%.

Return on equity ratio:

• measures how much profit a business generates on capital invested
• in 2022, this was 8%. For every ＄1 of sales earned, CHF had invested ＄0.08 from capital
• in 2023, this increased to 11%. For every ＄1 of sales earned, CHF had invested ＄0.11 from capital
• ratio shows a 3% improvement in generating profits.

Expense ratio:

• shows the percentage of sales that is consumed by operating expenses
• in 2022, this was 60%. For every ＄1 of sales earned, CHF consumed ＄0.60 in operating expenses
• in 2023, this decreased to 55%. For every ＄1 of sales earned, CHF consumed ＄0.55 in operating expenses
• this ratio has improved by 5%, showing that CHF has reduced its expenses.

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Customs:

• when conducting business in another country such as Indonesia, CHF will need to consider cultural differences that may be presented
• cultural differences could include basic customs, mannerisms, and gestures. For example, if a salesperson for CHF approaches a meeting with knowledge of a customer's cultural background, then this salesperson's words, body language, and actions can all be adapted to better suit those of the customers in Indonesia
• understanding cultural differences and adapting to these differences will allow CHF to be better-liked by customers in Indonesia. This will enable CHF to grow their customer base, increase their sales and profits, and to operate successfully in Indonesia.

Business etiquette:

• the formality of address is an important consideration when dealing with colleagues and business partners from different countries. CHF can consider if team members in Indonesia prefer titles and surnames or being on a first name basis
• while it can vary across organisations, Asian countries such as Indonesia tend to use formal 'Mr/Ms Surname', while Australians and Americans tend to use first names
• CHF will need to be aware of business etiquette in the countries in which they choose to operate. This will allow CHF to operate successfully in Indonesia.

Eshan’s breads could use Just In Time, which involves the right number of inputs arriving just as they’re needed for production. By ensuring their ingredients to make bread like flour, oil and sugar only arrive as they’re needed for production, this can reduce the amount of ingredients in Eshan’s inventory that may spoil and become unusable, thus reducing wasted inputs and the costs associated with this wastage, which is an optimal use of resources, improving efficiency of inputs at Eshan’s Breads.

An automated production line (APL) refers to a process where raw materials enter and finished products leave with little to no human intervention. This can reduce the time and labour resources used as the APL will quickly transfer the bread through the entire production process without requiring manual handling or manual mixing of ingredients etc., which optimises resource use and reduces inputs required to produce their bread, thus improving efficient management of its processes. Furthermore, this will allow them to reduce wastage (as an APL is often very accurate) in the form of low-quality bread, cracked eggshells and improve the quality of their product, meeting customer expectations, reducing level of wastage and increasing sales of their bread, thus meeting its objectives and therefore improving effectiveness.

One quality management strategy that could be used to improve effective management of outputs (the produced good/service being bread) is quality control. As quality control refers to the evaluation and checking of bread by highly trained quality control teams, this will ensure that Eshan’s Breads are able to produce crisp and fresh bread as desired in their business objectives. Through inspection and removing the sub-standard bread before reaching the supermarkets, restaurants and catering businesses, Eshan’s breads are able to achieve their objectives of increasing customer satisfaction through removing faulty or undesirable bread. This will ensure that Esha’s Breads is able to maintain a good quality reputation and this leading to an increase in sales, revenue to achieve business objectives of profit (expense deducted from revenue) where quality is under constant surveillance.

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• the strategic planning process guides managers when they are making decisions regarding the allocation of resources
• it involves various stakeholders of a business and the purpose of the process is to build commitment upon goals and objectives
• the purpose could be to analyse the external and internal environments, to develop a mission statement, identify goals and objectives and to come up with strategies.

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Environmental scan = PEST

• a PEST analysis is a strategic planning tool that evaluates the political, economic, social and technological factors that could impact a business
• a business can assess the major external factors that may impact its operations and overall business success in a particular market
• the PEST analysis will gauge how the external factors may impact the overall profitability and success of a business. Hence, it is an important tool in the strategic planning process.

PEST analysis has four factors, each may assess the following:

• Political (P): tax laws, industrial relations laws, environmental regulations, consumer protection, trade regulations, stability and relationships of foreign governments
• Economic (E): interest rates, inflation, unemployment, growth, discretionary spending, currency fluctuations
• Social (S): population growth, religious beliefs, lifestyles, community expectations for safety, value for money and ethics
• Technological (T): rate of change, automation, research and development.

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• due to the increase in hacking and scams, businesses need to ensure they keep up-to-date with security software and ensure they do not publicly share customer information
• loss of income and customer data can damage a business' reputation and can be impacts of poor security practices and privacy breaches
• as a result businesses should increase investment in secure online payment methods, such as PayPal, to ensure secure payment methods. It does require business to invest money into privacy and security software
• businesses should also review/audit their policies and procedures to safeguard against potential security and privacy threats.

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Stability of foreign governments:

• lack of political stability in a particular country will affect business operations
• unstable countries may have riots, protests, looting and general disorder, which will disrupt business operations. Whereas countries with more stable governments will be more attractive for Australian business operations
• Australian businesses should assess how stable a foreign government is, for example know what type of government the country has, how the business may be impacted by changes in the government and also the legal environment within that country.

Relationship of foreign governments with the Australian government:

• the diplomatic and economic relationship Australia has with a particular country will also impact business operations. This may impact businesses in a positive or negative manner, depending on the relationship
• if the relationship is positive, for example, with New Zealand, as there is a free trade agreement, this provides excellent business opportunities and makes it easier for businesses to conduct operations
• if the relationship is strained with a country, this would provide difficulty in business operations. In recent years the relationship between Australia and China has been strained, causing changes in regulations and issues with import and exports in trade, creating issues for Australian businesses operating in China.

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The Australian New Zealand Closer Economic Relations Trade Agreement (ANZCERTA) is the free trade agreement that Australia solely has with New Zealand.

Features of the ANZCERTA:

• all tariffs and quantitative import or export restrictions on trade in goods originating in the free trade area are prohibited
• the agreement includes provisions for free trade in services, allowing most services to be traded without restrictions between Australia and New Zealand
• goods and occupations are mutually recognised, removing technical barriers to trade and facilitating the movement of skilled personnel between Australia and New Zealand
• Trans-Tasman food standards are harmonised, reducing compliance costs for industry and regulatory barriers
• the 2013 Protocol on Investment reduces investment costs, providing greater legal certainty and higher screening thresholds for investors in both countries.
• products that meet the ANZCERTA Rules of Origin criteria can be traded duty-free between Australia and New Zealand
• the ANZCERTA aims to strengthen the economic relationship between Australia and New Zealand through mutually beneficial expansion of free trade and reduced trade barriers.

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• access to a larger customer base across Australia and New Zealand would lead to higher sales of greeting cards and revenue for AuraAsh Designs
• enhanced brand visibility and recognition on an international scale will allow AuraAsh Designs to attract more customers and business opportunities
• a global brand can instil confidence in customers, leading to increased trust and loyalty towards the brand
• reduced dependency on a single market, providing financial stability and mitigating risks associated with market fluctuations
• establishing a strong global presence can differentiate AuraAsh Designs from competitors and position them as a leading brand in the greeting card industry
• potential for cost savings through bulk production and streamlined operations, leading to improved profit margins for AuraAsh Designs
• exposure to diverse markets can inspire new ideas and innovations, helping AuraAsh Designs stay ahead of trends and customer preferences in the greeting cards industry
• having a global brand will increase AuraAsh Designs' ability to attract and retain quality staff from different regions and allow the business to bring in diverse perspectives and expertise to the company.
  Accept other relevant answers.

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Just-in-time (JIT):

• just-in-time is an inventory control technique which focuses on minimising inventory as a business only receives inputs only when these are required in the production process. This allows a business to reduce holding costs, increase efficiency, and eliminate waste
• AuraAsh Designs can implement JIT by closely coordinating with local suppliers in New Zealand to deliver raw materials and card-making supplies precisely when they are needed for production. However, this requires the business to accurately forecast their demand and a responsive supply chain with their suppliers
• by using JIT, AuraAsh Designs can lower its holding costs as inventory is minimised, leading to reduced warehouse space requirements and associated expenses. This is particularly beneficial for AuraAsh Designs to manage different seasonal demands for their greeting cards when expanding into the New Zealand market.

Just-in-case (JIC):

• just-in-case is an inventory control technique that involves a business maintaining a level of reserved stock to guard against unexpected variations in demand, supply chain disruptions, or other uncertainties which may arise
• AuraAsh Designs can implement JIC by setting aside a certain quantity of inventory beyond what is expected to be sold in the immediate future. This reserved stock then acts as a safety net in case of unexpected events or changes in demand
• JIC helps maintain customer satisfaction by preventing AuraAsh Designs running out of stock during peak seasons or special occasions. However, JIC increases expenses incurred for storing inventory as AuraAsh Designs would require additional space for storage when expanding into the New Zealand market.
  Accept other relevant answers.

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Technology that assists business in the expansion into global markets:

• AuraAsh Designs can effectively reach their target audience in New Zealand if the business investigates and creates popular social networking sites. This would be an easy and cost-effective way to expand AuraAsh Designs' presence in the new market
• implementing technology that results in faster shipping solutions will improve AuraAsh Designs' customer satisfaction by ensuring timely delivery of orders. This positive experience can enhance AuraAsh Designs' reputation and encourage repeat consumers
• using GPS tracking for deliveries keeps both the business and customers informed. Customers receive updates via email or SMS, which boosts their confidence in the delivery process and enhances their overall experience
• AuraAsh Designs can invest in reliable hardware and software to meet their business needs. Enhancing their website to support multiple languages and currencies will increase their reach, allowing customers to make purchases in their preferred language and currency.

E-commerce, security and privacy issues:

• it is crucial for AuraAsh Designs to stay current with security software and ensure that customer information is not publicly shared. Regular updates can help AuraAsh Designs protect against any new threats and vulnerabilities
• poor security practices and privacy breaches can cause loss of income and customer data, which can severely damage AuraAsh Designs' reputation. This can result in a loss of customer trust and a subsequent decline in sales
• AuraAsh Designs could invest in secure online payment methods, such as PayPal, to ensure secure transactions. This requires allocating funds towards privacy and security software, which can provide customers with a peace of mind when they make purchases through AuraAsh Designs' website
• to safeguard against potential security and privacy threats AuraAsh Designs should regularly review and audit their policies and procedures. This proactive approach can help the business identify and address potential vulnerabilities.

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• increased brand recognition: by establishing a global brand Rayz Umbrellas would benefit from heightened brand recognition on an international scale. This increased visibility would enable the company to tap into new markets more effectively, as consumers around the world would be familiar with the brand and its offerings
• higher sales and market share: Rayz Umbrellas could potentially experience higher sales volumes and market share in various regions, strengthened by the trust and recognition associated with a well-established global brand
• economies of scale: establishing a global brand allows Rayz Umbrellas to achieve economies of scale in production, distribution, and marketing activities. With a larger customer base spanning multiple countries, the company can optimise its operations by producing umbrellas in larger quantities, negotiating favourable terms with suppliers, and implementing cost-effective distribution channels
• marketing: a global brand enables Rayz Umbrellas to use its marketing resources more efficiently, as advertising and promotional campaigns can be standardised across different markets, leading to cost savings and enhanced profitability.

Answers could include:

• understanding the consumption patterns of target markets allows Rayz Umbrellas to tailor its product offerings to meet specific consumer preferences and needs. For example, if consumers in a foreign market prioritise compact and lightweight umbrellas for travel purposes, the company can develop and market products that align with these preferences
• by aligning its offerings with local consumer demand, Rayz Umbrellas can increase the likelihood of success in foreign markets and differentiate itself from competitors
• analysing consumption patterns provides insights into the demand and growth potential of target markets. By identifying regions where there is a growing demand for high-quality umbrellas, Rayz Umbrellas can prioritise expansion efforts in markets with significant growth opportunities
• understanding consumption trends allows the company to allocate resources effectively and invest in markets where the potential for long-term success is highest
• Rayz Umbrellas should consider the cultural, environmental, and economic factors that vary across different regions. For example, in coastal regions with a sunny climate, there may be a higher demand for beach umbrellas offering superior UV protection
• by considering these factors, Rayz Umbrellas can adapt its product offerings and marketing strategies to resonate with local consumers and address specific environmental conditions
• understanding cultural preferences and values enables the company to develop marketing campaigns that resonate with target audiences and build brand loyalty over time.

Answers could include:

Adapt:

• Rayz Umbrellas could consider adapting the product name to align with the cultural and linguistic preferences of the foreign target market
• they need to ensure that the name is easily pronounceable and doesn't have any unintended meanings or connotations in the local language
• Rayz Umbrellas should research competitor names and preferences of the target market, which could reveal whether certain types of names are more appealing or attractive to the local audiences.

Standardise:

• if Rayz Umbrellas' product name has a universal appeal and translates well across cultures, standardisation may be a more viable option as it will enable consistent consumer messaging, operational efficiency, and easier and faster global expansion
• standardising Rayz Umbrellas product name could translate to global brand recognition and cost efficiency
• standardising the product name means Rayz Umbrellas would reduce the costs associated with rebranding efforts, including marketing materials, packaging, and promotional campaigns.

Answers could include:

Purpose:

• includes a business's culture, values, ethics, competitive advantage, future goals and agenda
• define how each of these applies to the business's stakeholders, employees, distributors, suppliers, shareholders and the community at large.

Examples:

• at Rayz Umbrellas, our mission is to provide protection from the elements while enhancing the outdoor experience for our customers
• the business strives to offer innovative and high quality umbrellas, which combine functionality, durability and style.

Answer(s) could include:

• Consistency – communicates a consistent message to all customers in all markets resulting in stronger brand awareness and positioning
• Low risk – can use marketing strategies that have worked in domestic markets
• Lower cost – businesses can achieve economies of scale by using the same advertising/packaging around the world. A centralised team can develop marketing strategies for all markets
• Easier to manage – standardised approach to global branding will be less complex to manage
• Better differentiation – a consistent global brand can stand out from the competition. The same logo, colours, product names and advertising can be seen all over the world.

Answer(s) could include:

Corporate slogan:

• language and cultural differences need to be considered
• translations of words may not be accurate or have different meanings in different cultures that could result in offence or not suit the culture
• there have been many businesses in the past that have got it wrong by not conducting the correct market research and not understanding the culture or translations, causing embarrassing blunders and campaign failures. This is why a business may adapt their corporate slogan.

Product features:

• colours play an important role in the design and marketing of products, packaging, branding and advertising as different cultures place different meanings to colours, e.g. white is associated with funerals in Asia
• differences in climate may impact marketing strategies
• businesses need to be aware of common practices, laws and regulations internationally as there may be different labelling rules, electrical requirements, etc.
• these above considerations are just a few reasons why a business may choose to adapt their product features to suit their international market. If they don’t adapt certain features, it may affect the business’ success.

Answer(s) could include:

• A marketing strategy is required to build awareness, interest and desire for the innovation. If this is not done correctly the innovation is at risk of failure.
• An education campaign may be required to build understanding about the need for the innovation and the benefits it will bring to customers.
• A marketing strategy may require a range of approaches including public relations, advertising and changes to packaging and promotion in order to create awareness and a desire, so the innovation is successful.
• Positioning may also have an impact on success for an innovation. A company’s reputation for being innovative may impact their success for new and improved products.
• A well-planned marketing strategy is key to the success of an innovation.

Answer(s) could include:

• Social media campaigns are an important technological tool when marketing in a global environment.
• A business can use a social media campaign to gain a competitive advantage or penetrate a new market.
• A social media campaign can be used across a series of different platforms, sharing the same message with a broad audience.
• A targeted campaign could be created across Tik Tok, Snapchat, WeChat, WhatsApp, Facebook, Instagram and Twitter. These platforms reach a large audience hence enhancing marketing opportunities.
• A business could create targeted ads using geographic location or cookies that directly market to their target demographic.
• Businesses can engage with influencers or partner with other businesses to promote their business brand overseas and in a new global market.
• A business could use universal hashtags across all platforms for each particular social media campaign.
• Stories and videos could be used and shared across platforms to engage with a global market.
• Businesses can run global competitions or use influencers to connect with new markets.
• Businesses can direct messages on different platforms to provide updates on campaigns or events to their target demographic around the world.
• All the above strategies are possible examples of social media campaigns that can help to enhance marketing opportunities in a global environment.

In operations management, quality refers to achieving a standard of excellence in a finished good or service that is provided or delivered to an end customer, e.g. at Surf ‘n Stuff they want to improve the quality in the standard of excellence of their finished product of swimwear by reducing defective outputs. Less defective outputs improves quality as more outputs achieve a standard of excellence.

Effectiveness refers to meeting goals and objectives whereas efficiency refers to the best use of resources. Operations management is the business of producing desired goods and services to satisfy customer needs so effectiveness can refer to set objectives in sales/quality, whereas efficiency refers to elements such as reducing waste or increasing productivity. On the other hand, the two terms are similar in that they can both be used to frame business objectives. For example, a business might set the objective of improving efficiency by 5%, and they can also set an objective of improving effectiveness by reducing wastage by 3%.

Computer aided design is the use of technology by a firm to create and design products which may be then made. At Surf n’ Stuff they would be able to use computer aided design to create different swimwear products and new surfboard shapes using technology. This would be able to design boards with correct sizing and volume. Such as it may be able to create a longboard with the height of 9,2 and the correct volume and dimensions all through the use of technology. This then allows them to see whether this board will look good and whether it needs to be produced Rather than simply producing it and then realising it is not a good product which would be extremely inefficient. Instead using computer aided design will benefit Surf n’ Stuff even potentially allowing for individual customer orders to be created online. Which they can then show to customers what their board will look like to ensure the utmost level of satisfaction. As efficiency is the ability to increase outputs with the same or less inputs. The use of computer aided design will reduce inputs in the production process as less is wasted due to being able to pre check designs online rather than producing them and hoping they are up to standard. This then lowers inputs and can even save time for the same amount of outputs. Thus, increasing their efficiency as a result.

Surf ‘n Stuff could use the principle personal mastery to create a positive culture for change because it’s where an individual (employee) is committed to self-improvement and becomes a lifelong learner. For example, workers at Surf ‘n Stuff could take additional training to develop their skills and knowledge regarding the sale of surfing equipment. This may lead to employees feeling more confident in their abilities and skills at Surf n’ Stuff. Thus, creating a positive culture to change, as the employees will be more open and accepting of change (e.g. new product lines) if they feel as though they are equipped to deal with it.

Surf ‘n Stuff can also use the principle systems thinking as it involves evaluating the performance of a business as a whole, and as a part of the wider environment, rather than as separate units. This may lead to integrating different parts of Surf ‘n Stuff such as operations finance, human resources etc. together. Thus, creating a positive for change as elements at Surf ‘n Stuff will be working together and supporting each other to improve whole business performance, making them more accepting of change as they are all working together.