Why don’t we have a look at how exactly we can use a business example to simply help develop a place.

In the recent A2 business studies revision workshops we centered on the necessity for students to make use of independent research evidence to greatly help offer the lines of analysis their essay points.

One analogy we used was thinking about examples (evidence) given that seasoning in an essay casserole or hot-pot. The seasoning can there be to help make the meal taste great; but you also need the ingredients that are raw! An essay point this is certainly developed to a good depth will always score better because of the examiners than answers that are plagued by way too many 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 in order to improve cash flow and reduce its substantial bank debts year.

So, we now have a good example of a recent bit of business news. This is just what we call evidence – and it’s really easy to get your hands on by simply reading the continuing business news regularly.

You don’t have to research everything you possibly can about Thomas Cook. You should not memorise Thomas Cook’s recent financial results or have detailed understanding of the cost-reduction plan. You simply need some examples that are good. It really is how they are used by you that really matters.

How could the evidence is used by us about Thomas Cook’s decision in order to make savings by restricting the staff discount scheme?

The data might be beneficial in several contexts. As an example, it could be used by you in an essay on strategic retrenchment, or approaches for profit improvement. You may put it to use as a example of how board-level decisions designed to achieve corporate objectives can have effects at a functional level. You might even use 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 things to remember is the fact that the evidence needs to be used to aid the line of analysis in each paragraphpoint. Take the example and explore the implications. Look at the importance of the example and those implications.

An way that is effective do this is with “connectives” – phrases and words which help develop a logical chain of argument.

So, let’s see a typical example of that for action. We’ll make use of the Thomas Cook staff discount evidence/example thereby applying it to a paragraph point which explores the potential negative effects of a strategy that is cost-cutting.

Go through the paragraph below. Observe how it uses the evidence and then builds on it. Underline the connectives used – how many could you spot? Its also wise to note the way the example uses business that is relevant – this helps build credibility utilizing the examiner.

Firms that want to enhance their profitability and cash flow will look at reducing inevitably operating costs where possible. However, you can find potential dangers with a cost-minimisation strategy. As an example, Thomas Cook has set itself a corporate objective of reducing annual operating costs by at we do your essay site the very least Ј35m p.a. it reduce high gearing levels as it seeks to improve cash flow in the short-term to help. It really is implementing many different measures shop that is including, redundancies as well as decreasing the cost of financial benefits (such as generous discounted holidays) paid to Thomas Cook staff. Into the short-term, reducing staff discounts should result in a significant cost saving since TC has tens and thousands of staff, although that will depend from the extent to which TC staff take advantage of the discount scheme. However, there are downsides that are potential your choice, for instance the probability of reduced morale and motivation of staff who value their holiday discounts, which could indirectly lead to worse customer care or lower productivity, leading to lower revenues and profits which for that reason might actually bring about lower cash flows within the long-term. The choice to limit staff discounts may initially seem quite attractive to management, however as described, you will find potential hidden tangible and costs that are intangible would lower the impact for the decision on TC’s cost-reduction strategy.