People in Business Case Study Solutions

Operations “A” 8 marks

3 (a) Explain four reasons why effective communication between the owner and employees in a business is important.

Reason 1:            To ensure mistakes are not made by employees

Explanation:       as employees may not have much experience and only know how to carry out tasks so need clear instructions.

Reason 2:            To ensure the business works efficiently,

Explanation:       as bad communication could lead to double orders of products and increased wastage.

Reason 3:            To find customer preferences from employees

Explanation:       as employees can pass on important information on how to improve the product or service.

Reason 4:            Motivation is better between worker and owner,

Explanation:         as workers will know the owners’ objectives and can work as a team to achieve them.

Operations “B” 12 marks

(b) Explain why the following three factors are important to Conor when choosing a new manager for the gym:

Knowledge of new technology: Knowledge of the new treatments for recovery after workouts means the new manager will not need additional training on how to use the new technology and can train the other three personal trainers on how to use the new equipment.

This will significantly reduce costs and make introducing the new equipment to the gym much easier.

However, there is no guarantee that the manager will know how to use the recovery technology.

Experience in managing a gym: This will mean Conor can learn from the additional manager’s experience in how to efficiently run a gym.

The manager will have experience of dealing with some of the same issues as Conor has, like motivating the personal trainers and booking appointments.

This means the gym will be run more profitably and Conor can enjoy more free time as he knows the new manager has the right experience and can be trusted.

Experience in accounts: Conor currently fills in his account books by hand, if the manager has experience in accounts, they can do this work and find better ways of doing the accounts, like using computers which will save time.

This means that Conor can focus on more important tasks, like getting more bookings for appointments.

However, Conor will have to give up control of the accounts and trust the new manager.

Recommendation:          Knowledge of new technology is most important as Conor should focus on employing a manager who can help him in areas where he is not an expert. Conor already knows how to run a successful gym, so experience is not so important. The new technology could help him with his accounts. Knowledge of new technology will help him compete against the other gyms and get a competitive advantage.

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