Vous êtes sur la page 1sur 3

1.2.

12 outline two problems that Mr Carroccios shoe repair start-up business


may have faced
One of the problems mr Carroccios shoe repair startup business faced is that
his cash flow forecasts are weak at the beginning, thus he got turned down
several times for bank loans, therefore he couldn't secure enough capital,
until he managed to obtain a small grant from a government agency that
helped entrepreneurs, the second problem his business faces is because he
operates as a sole trader, therefore he has unlimited liability, making him
solely responsible to consequences of his business actions such as lawsuit,
for example..
1.3.15 discuss the impact of implementing ethical objectives at LadyA
Ethical objectives are objectives that concern ethics the principles that
guide decision making and strategy in terms of whats right and wrong. In
context, LadyA would associate herself with charitable causes and many nonprofit organizations in order to rebrand herself.
Benefits this can improve her corporate image, as she takes the path of
philanthropy, enhancing her reputation and image, gradually leading to
popularity..
Moreover she appears in American television talk shows and does magazine
interviews. This would greatly broaden LadyAs awareness to major regions
of the world, thus she gains a wide customer base as well as strengthen
customer loyalty, letting the audience and fans in domestic areas and
overseas be aware of her ethical campaigns, which will let the audience look
up to her as a role model.
Drawbacks her appearances in social media could be a threat to her. She
gets paid obscene amount of money to be in television talk shows most of
the time to broadcast herself, her achievements, and what she is going to do
in the future. However her frequent appearances in social media after her
philanthropic work, would call to question of the amount of money she is
getting paid to appear in social media, critics would use it as a weapon
against her, saying how her work with ethical objectives is just a cover to
gain more attention and money, and does not relate to her charitable
causes, leading to diminishing reputation, image, fans and audiences looking
up to her; as well as her relationships with social media and non-profit
organizations.
Moreover a lot can change in three years, when she lays low, leading to
audiences forgetting about LadyA, as well as future pop stars to surface. As

she is currently focusing on philanthropy, and later shifts back into writing
music, her fame as a musician diminishes, which wouldn't guarantee her
rebranding a success as a musician in the entertainment industry.
POOFHFEST LadyA will be associating herself with charitable cause during
the 3 years, meaning the revenue she earns now would not be as much as
before. LadyAs 3-year commitment to charitable causes will be the
opportunity cost to her fame as a musician and will appear less in social
medias, and because the 3 years is considered long term, her engagement
on charitable causes will occupy her from making new music and selling
them, or being paid to appear in social media to maintain her strong image.
But most importantly, LadyAs option to rebrand herself will mean that she is
taking a new direction. And by doing so she needs to be certain that
implementing ethical objectives to rebrand herself is working towards her
goals to preserve her successes.
3.1.8 Recommend two sources of finance for LadyA if Kersey & Joyce suggest
the company moves into South American markets (strategic option 1)
One internal source Retained profits is the percentage of net earnings not
paid out as dividends, but retained by the company to be reinvested. In this
case, LadyA can use the retained profits generated from LadyA Management
Limited, where she owns 98% of the shares. For the past few years, LadyA
has created a strong image in the North American market, being at the peak
of her media power, wealth, and fame, and along with her endorsements on
cosmetics and perfumes through careful above-the-line and below-the-line
promotion, thus has created herself relatively huge profitability. With what is
considered an obscene amount of money, she could successfully manage
conducting the concert tour in South America. On the other hand, the
concert tour includes huge amounts of both fixed, and variable costs. LadyA
would need to hire employees on the lightings, sound checks, performance
dances, costume design, and so on. With so much to concern on, LadyA
might need to find an external source of finance in case her retained profits
are not enough to financially fund her concert tour.
One external source bank loans is medium-to-long term source of finance
obtained from banks, which are commercial lenders. The bank who lends
LadyA a certain amount of money does not have any ownership position to
LadyA and they do not get involved in LadyAs decision making, as well as
her activities on moving into South American markets, bringing her career
success in the US with her, and conduct a major concert tour in South
America, thus giving LadyA the freedom and flexibility to do what she wants

with it as proceeded. It moreover is the substitute in case LadyAs retained


profits are not enough, thus financial funding on the concert tour wont be a
major burden. On the other hand, interest rates are considered quite high for
LadyA. And if LadyA is unable to pay back the interests before its still rising,
she will be facing a financial problem. In worst case scenario, LadyA has
injured herself during her concert tour, or contracts a severe disease either
way that would cause her to cancel the on-going concert tour in South
America, she would have to return the loan to the bank, with interests.
Interest rates can be known for becoming high quickly, and LadyA might
have to use her retained profits to compensate it, however if her retained
profits are not enough for paying back the interest rates, then she will be
facing a huge financial problem.
External sources require LadyAs guarantee on her returns with her
objectives and previous successes. Because she didn't prioritize Spanishspeaking markets, the majority of Spanish-speaking markets and customers
would have forgotten about her, and even though she is bring her N.A.
success with her on her concert tour, there is a possibility that external
sources of finance such as banks might not approve giving her loan to fund
on her concert tour.
4.2.13 explain why the Spanish-speaking market in the USA is a example of
market segmentation
Market segmentation is a marketing strategy that involves splitting a market
into distinct groups of buyers to better meet their needs. The population in
the USA has the diversity of different ethnic groups. Spanish-speakers, more
commonly the Hispanics, who are one of the most diverse ethnic groups
within the US, has become a strong influence on American culture, and with
the rapid rising number of Hispanics in the USA, LadyA has many business
opportunities created, therefore the Spanish-speaking market is a market
segment in the USA.
6.3 explain what it means by the strategic direction of brands
Strategic direction involves central forces that propel the business towards
its intended objectives. Branding is a form of differentiating a firms products
from those of its competitors. In this case, LadyA hired business consultants,
Kersey & Joyce (K&J) who specialized in strategic direction of brands to help
her consider her options.