• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

Sound and Vision plc. Case Study

Extracts from this document...

Introduction

A2 past paper Sound and Vision Question 1 Decentralisation is where the authority for decision-making is delegated to subordinates in the organisational structure. There are different reasons why Sound and Vision plc. has a decentralised structure at the moment. One reason might be that it enables quicker decisions within the company by having separate profit centres. As a consequence the business can be more efficient which could lead to an increase in profitability. Furthermore they can respond quicker to customer needs and trends which might give them a competitive advantage. Another reason might be that a decentralised structure allows each manager of Sound and Vision to stock items according to the tastes of their local market, and bonuses are awarded based upon the profitability of their store. Therefore the decentralised structure can be seen as a motivation factor as well. The managers are therefore enriched and may see the store as their own business. As a result each store may be more efficient which could lead again to increased profitability. Question 2 Year Cash inflow Cash outflow Cash flow Interest rate NPV 0 (100) (100) 0 (100) 1 50 10 40 0,91 36,4 2 70 30 40 0,83 33,2 3 120 40 80 0,75 60,0 29,6 Payback: 3years / NPV: £29,6>£25 The Investment appraisal ...read more.

Middle

In general, doing a good market research results in a competitive advantage. However, it can be argued that they don?t need to invest a lot in advertising. The reason for this is that Sound and Vision plc. is already a big established business. Therefore customers will visit the stores on a regular basis and will quickly become aware of the change of the product range. This argument however ignores that they want to focus on a new age group. Furthermore they need to do a lot of advertisement for their new sales channel, the internet, in order to raise people?s awareness and to compete with established online retailers and supermarkets. Question 4 There are arguments for and against Amina?s proposed strategy. First of all, something needs to be done as in recent years, Sound and Vision plc?s profitability has fallen. Therefore Amina wants to enter the market of technology products which has a high market growth and could lead to high sales. Furthermore the idea of ?gaming zones? which gives customers the opportunity to play computer games, watch DVD?s and listen to music on MP3 players sounds very good as it might attract the new age group of 15 to 24 year olds. ...read more.

Conclusion

In addition, Amina wants to change the organisational structure by cutting the span of control into half which is a relatively narrow. The managers can tightly control their subordinates which improves the effectiveness. However, this comes at the expense of two additional levels of hierarchy. This makes it a very hierarchical organisation which generally is very inefficient as the communication flows up and down the hierarchy will suffer. Another argument could be that it is problematic to recruit younger staff. The idea of it is to emphasise the focus on the 15 to 24 year old target group. However, the employees need to be highly trained as they need to know as much as possible about the technological products the stores now offer. Right now Sound and Vision has a reputation of having knowledgeable staff. However, this can change through new inexperienced staff in a negative way. The success of the whole project will depend upon the advertisement strategy in order to attract customers. Another important factor will be whether Sound and Vision plc. picked the right partner with an attractive product and the right advise. In addition, it depends upon the market research. It needs to be good as they need to understand customer needs and behaviour in order to have a competitive advantage. ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our AS and A Level Case Studies and Analysis section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related AS and A Level Case Studies and Analysis essays

  1. Unit 9: Marketing Strategy

    Again with age, I attempted to send the questionnaire to an even number of each age category however, it is clear to see that the age group of 19-30 were not interested in answering questions about a bakery. However, it is clear also that pensioners were highly interested in the

  2. Microsoft Case Study. Objectives, structure and marketing.

    Finally their recent plans are to capture the gaming market. This is evident via the release of games such as Microsoft Flight Simulator and consoles such as Xbox and Xbox 360. Microsoft has already started to gain a small customer base for the gaming market.

  1. Investigating Internet Marketing

    E-bay is an example of website that offers this kind of internet marketing. Affordability Online retailers face more competition because customers can search for cheaper prices more easily. They do know this when using internet marketing and often get items cheaper than they would in a physical store.

  2. The main purpose of this research is to know and analyze whether the Olympic ...

    The overview of the travel and the tourism industry is categorized by this figure. 2.8 London tourism The London is having various features that are present in the travel and the tourism industry like the tour operators who will be planning the total tourism project, such as the transportation facility

  1. NETFLIX CUSTOMERS SATISFACTION

    Customer satisfaction with business service c?n be defined with ? customer's positive or neg?tive feeling ?bout the v?lue of using ? business service in ? specific situ?tion. This feeling c?n be ? re?ction to ?n immedi?te use situ?tion or ?n over?ll re?ction to ?

  2. PEST is a planning tool which is used by a business to evaluate and ...

    Ginsters will also be affected as if there are wars in the middle east where most of the fossil fuels for the entire world come from they will have to pay more money for fuel as their will be less places where they are extracting fossil fuels this means that

  1. SWOT and Pestel analysis for Carlton Forum leisure centre

    business outcomes are the same as they tend to differ a lot. What is the reason for such different patterns in result? Each business operates in different environments, what might apply to one business may not apply to another. To establish the environment factors the forces have been split up

  2. I will be identifying the legal criteria for offer and acceptance in a valid ...

    The relationship between third parties and the main parties is known to be a privity of contract. It is a legal concept that denies third parties the right to sue the contract made between the two other parties. An example of this is when one person promises another to pay a sum of money to a third person.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work