Venetian Ices Ltd

Then in 1962 another problem was faced by the ice cream industry when a tax was put on the ice cream. Sales fell dramatically but only for a short time; however, this was too long for smaller firms, which went out of business. In order to take advantage of this situation the Directors of Venetian Ices Ltd agreed to introduce franchising into the mobile selling part of the business. This meant that Venetian Ices Ltd would gave the right to other businesses to sell its products using its brand name. The businesses that the right was given to are known as Franchisees, which means Venetian Ices is the Franchisor. An advantage for the franchisor is that the franchisee puts up money at the start and during the running of the business. This means that the franchisor doesn’t have to find the money to run its business. An advantage for the franchisee is that it is provided with all the equipment and material needed and an exclusive area in which to sell the ice cream, by the franchisor.  Another advantage for the franchisee is that the franchisor provides a whole range of back up services such as advice, loans and insurance cover. A disadvantage to the franchisee is that it does not have the freedom to operate, as ordinary businesses would have. In particular, the franchisee cannot sell the business without the permission from the franchisor.

The franchising scheme was enormously successful for Venetian Ices Ltd.

In 2000 Stephanie Wallace, the marketing director, was convinced that there was a real business opportunity in supplying ‘own label’ take home ice cream to the large supermarkets. This meant that the product was sold under the brand name of the supermarket rather than under the name of the business, which manufactures the product (Venetian Ices).

b)

The business functions (departments) involved in the tasks to be completed are:

1. Sales Dept

This department’s job is to strategise the ways in which the ice cream can be sold. The product could be sold at a market-orientated price. This is when Venetian Ices looks at the prices of other ice cream products in the market and prices their own products accordingly.

2. Finance Dept

This department’s job is to look after the financial side of Venetian Ices. This may include new business ventures for the company, wages, debts of the company and the profit maintained.

3. Human Resources Dept

This department’s job is to recruit new employers with the right skills and at a wage Venetian Ices can afford. The Human Resources Dept can recruit new employers through internal recruitment. This is when the post, opened for application, is given to someone already working for Venetian Ices. The Human Resources Dept can also recruit new employers through external recruitment. This is when the available post is opened to the public

4. Production

This department’s job is to take care and deal with the production of the ice creams. The department looks after the resources needed in the production of the ice cream (e.g. machinery, milk, cream and flavours) -These resources can also be known as Factors Of Production.

5. Marketing

This department specialises in pricing the product and advertising it. This means the price charged on the ice cream is based on an analysis of the market and its characteristics. Another way in which the product could be sold is through sales promotion. This is when the price of the ice cream is alternated to be made cheaper or when free gifts/coupons are attached to the product or when an exclusive flavour is released.