discuss the extent to which different stakeholders would regard BPL as a successful business

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4. With reference to Appendix 3 and any other relevant information, discuss the extent to which different stakeholders would regard BPL as a successful business (18 marks)

Appendix 3 shows that the total amount of dividend, amounting to £50,000, was paid to shareholders of BPL in 2010, the same amount as the previous year. Wilhelm mentions that “most” shareholders are also golf club members and thus BPL represents a “lifestyle choice rather than [a] financial investment” for BPL's shareholders. It can be assumed, since there is no mention of any unrest from shareholders within the case study - as an aiming “luxury leisure destination” business in BPL - that shareholders would regard BPL as successful, for the “most” part. However BPL has shareholders that are not members of the golf course that are more likely to be inclined for a financial reward. Wilhelm, BPL's managing director, has set an objective “for BPL in 2011 is to reverse the decline in revenue and net profit margin”. Wilhelm also mentions of a “difficult trading year” present in 2010, though a somewhat contradictory statement to make when compared to the growth in the first three quarters of GDP in 2010, with a believed growth figure in the fourth quarter as far as his knowledge is concerned. The change in GDP figures show 2009 decreasing by 3.4% overall, indicating it was actually more difficult for the whole UK economy than for trading than 2010, which had a figure of +1.7%. However, when dissecting the GDP figure, only singling out the sector of 'hotels, restaurants and distribution', the sector grew by 1.7% in 2009 and only 0.7% in 2010, 1.3% below the Monterey Policy Committee's collected GDP 2% target, thus backing up Wilhelm's statement. Since BPL has came through a difficult trading year, BPL's financially motivated stakeholders should be pleased that BPL managed to maintain amount of divined paid out. Shareholders of BPL would be the top stakeholder group to see BPL as successful, since it offers a luxury service as well as a financially rewarding business, satisfying the listed wants of stakeholders in the case.

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Sue Bell, BLP's Hotel manager, has been set the objective from Wilhelm of “getting room occupancy up to 75% by the end of 2013”. In 2007 BPL had an average room occupancy percentage of 74.25%, which has fallen year-on-year to only 56% in 2010. Sue raises concerns about the way overheads are allocated across BLP's various profit centres, of which she feels puts a “disproportionate cost burden on the hotel”. It can be seen in the case that BLP charges up to a published £780 per room/night, a figure that is potentially too high in Sue's belief to, due ...

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