Business 2024 · Oct/Nov · Paper 22

Labour turnover rate = (number of employees leaving during the year ÷ average number of employees) × 100. Use the figures in Table 1.1 to calculate the percentage.

Trade union membership may increase PP's labour costs because employees may negotiate for higher wages and better working conditions.

One advantage is that outsourcing may reduce PP's costs because the external supplier may produce pots more cheaply due to economies of scale or lower labour costs. This could improve PP's profit margin. One disadvantage is that PP may lose control over quality and delivery times, which could damage customer satisfaction and lead to delays in production.

Workforce planning is important because it helps PP ensure it has the right number of employees with the right skills at the right time. This can reduce labour shortages, avoid overstaffing, and improve productivity. It is especially important if PP is expanding, changing production methods, or facing seasonal demand. However, its importance depends on the stability of PP's business environment. If demand is predictable and the workforce is small, workforce planning may be less critical than issues such as finance or marketing. Overall, workforce planning is likely to be important to PP because poor staffing decisions can increase costs and reduce output, but its exact importance depends on the scale of change facing the business.

Introduction.

Limited liability means that the owners of a company are only responsible for the amount they invested in the business and their personal assets are protected if the business fails.

Variance = actual revenue ($340m) - budgeted revenue ($400m) = -$60m. The variance is adverse.

Budgets help TDC plan and control its spending by setting financial targets. This allows managers to compare actual performance with planned performance and take corrective action if necessary.

TDC could use the Boston Matrix to decide which products to invest in and which to reduce. For example, products in the high growth/high share category should be supported with more marketing and investment because they may become future cash generators. TDC could also use the matrix to identify products in low growth/low share categories that may need to be discontinued or given less support, allowing resources to be focused on stronger products.

The merger with HL may help TDC achieve its objectives. By combining with a competitor, TDC may gain economies of scale, which could reduce the cost of raw materials and improve profit margin. The merger may also increase TDC's market share because the combined business will have a larger presence in the drinks market. However, HL operates in the B2B market while TDC mainly serves B2C customers, so the merger may not significantly increase TDC's share of the B2C market. There may also be integration problems, such as clashes in management style or systems, which could reduce the expected benefits. Overall, the merger could support TDC's objectives, but success is not guaranteed and depends on how well the businesses are integrated and whether cost savings are actually achieved.