National Diploma in Business L5
Unit 1994 Version 6 Title Manage the development of small business ventures L 6 C 5
NOTE: USE SEPARATE SHEETS FOR YOUR ANSWERS. THE ANSWER SHEETS SHOULD INCLUDE THE CASES AND QUESTIONS AND MUST BE SUBMITTED IN SOFT COPY TO FACILITATE ANTI-PLAGIARISM CHECKING. Task 1 Directions In this task you are required to select and assess the implications of relevant national indicators for specific small business ventures. Before you commence each question, carefully read through the relevant Case associated with the question. This is to ensure you understand the facts and issues the small business venture’s is facing. After reading the case, ...view middle of the document...
While $1 menu items can boost traffic and sales, restaurant operators can lose money if too many of those sales come from money-losing items and this problem is exacerbated by rising prices. There was a sharp increase in producer prices but virtually no growth in consumer prices. Producers are having a tough time passing on higher costs to consumers and are therefore left with the tough choice of either: eating the cost, skimping on the product or risk losing customers by raising the price.
Assess the implications of interest rate on Sak Strandbag’s business operations. (O1 – ER 1.1) Case 2: Interest Rate Sak Strandbag(SS) is a highly successful wholesaler of handbags since 1989. The company’s forte is fabricating high-quality handbags from distinctive, richly textured (original) textiles. The success of the enterprise speaks for itself—THE SAK STRANDBAG, sold in more than 50 department stores and 200 boutiques across the New Zealand and in 22 international markets, has evolved into a lifestyle brand. The firm’s growth has been extraordinary, but the road to the top has included a few bumps along the way. In 1999, after 10 very successful years in the handbag business, SS decided it was time to expand their product line. The success had proven that SS knew more than a thing or two about handbags and decided to introduce new product lines such as footwear, belts, and jewelry. Mr. Falucci, CEO of Sak Strandbag played spin the wheel of growth and considered getting additional loan from the ANZID Bank, the same bank who provided them the company its capital during its first year of operation. To their surprise, they have to burden the interest rate of 10 % of the amount loaned per month.
© IANZ | 1994 Manage the development of small business ventures |
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Assess the implications of unemployment on Max Hamburger Restaurants business operations if they were to set up in New Zealand. (O1 – ER 1.1) Case 3: Unemployment Max Hamburger Restaurants Incorporated is a fast food corporation which was founded by Curt Bergfors in Gällivare, Sweden in 1968. Bergfors' oldest son Richard Bergfors is the current president since 2002. Until the 1980s, Max was the largest hamburger restaurant chain in northern Sweden, with only a single restaurant outside of Norrland. This changed during the 1990s, when they expanded to become a nationwide fast-food chain. By 2011, there are around 85 restaurants in Sweden, compared to 40 just five years earlier. From 2005 to 2010, Max expanded extensively to the western parts of Sweden. Plans have been announced to expand to New Zealand in 2013/14 In their research of the New Zealand employment market, the following information was gathered. In January 2011 OECD figures reported youth unemployment in New Zealand at 19.4%, the highest since the early 1990s and above the OECD average. The youth unemployment rate reported in September 2010 by the Household Labour Force Survey (HLFS) was 16.2%, two...