Business timeline of Skandvig Terra PLC (SVT)        2

Organisational Chart        2

Internal Stakeholders        3

External Stakeholder        4

Definitions (Alphabetized)        5

 Tools and Theories (for 10 markers & 20 Markers):        11

SWOT Analysis:        12

ANSOFF Matrix        13

STEEPLE Analysis        14

PESTLE Analysis (STEEPLE)        16

Product Life Cycle        17

BCG Matrix (Market growth rate VS Relative market share)        18

Stakeholder Mapping for SVT (HL)        19

Lewin’s Force-Field(s)        19

TBL (Triple Bottom Line)        20

Fish Bone Diagram        21

Motivational Theories        21

1.         Taylor’s theory        21

2.          Adams’ theory of equity        22

3.          Herzberg’s Theory        22

4.          Pink’s theory        23 Identify four ways to ensure reliability of the mark–release–recapture method in estimating population size.

Analysis of Company        24

Sample Questions        25

Unit 1: Introduction: Business Organisation & Environment (stakeholders)        25

Unit 2: Human Resource Management (Leadership and management, motivation and demotivation)        34

Unit 3: Finance & Accounts (sources of finance)        39

Unit 4: Marketing        40

Unit 5: Operations Management        45

Other Possible Questions        47

**Unanswered Questions**        67

Business timeline of Skandvig Terra PLC (SVT)    

Before 1980 - Company founded

1980s - Expanded into other business sector (desalination and household water treatment products) (line 7)

2005 to 2010 - Consumer Products Division made consistently increasing contributions to overall profits. Share price rose by 65% and annual profits doubled. Firm increased dividends (line 87)

2010 onwards - Takeover of small water filter manufacturers in both Europe and the USA (line 91)

2015 - Sales in desalination division boosted by 300% (only smaller desalination plants) (line 45)

2015 - Takeover of H4 PLC (Rival Engineering Company) (line 49)

2015 - Modernization programme and reorganisation of operations at H4 PLC (line 56)

2016 - Programmes complete at H4 PLC and employees set to work (line 73)

2018 - Board of directors approve a substantial 5 year marketing budget (line 93)2019 - Jayne Dees goes to Sudan to teach no English and gets an idea, overlooking their conditions to get  freshwater. Discusses with the Board of Directors to make low-cost, easily transportable water purifiers for use  in countries where access to potable water is limited. (line 106)

2020 - SVT launched a competition, aimed at inventors and entrepreneurs, to develop a water purifier that met strict criteria in terms of cost, usability and longevity. (line 117)

January 2021 - Winner announced (James Azuki) with a design named WF15 for the competition to build water purifiers. (line 120)        

2022 - SVT’s Engineering Division began production of the WF15 (line 126)

2022 - The smallest of the former H4 factories manufactured SVT’s first wind turbine (line 77)

2023 - Full order book for wind turbines at the H4 Factories. (line 80)

Organisational Chart

1.         External - Customers

2.         External - People affected by CSR                                                                

3.         External - WF15 creator (James Azuki)

4.         External - Government Entities (ministry of water and irrigation, and others)

5.         External- NGOs & Charities.

6.   External - Rival engineering and water supply businesses no

7.         Internal - Employees at SVT

8.         Internal - Shareholders of SVT (including board of directors)

9.         Internal - Directors of SVT (Yannick, Ariadne, Jayne)  

  Internal Stakeholders                                                                                                                          

1. Yannick Pedersen

·        Director of the Fresh Water Division (line 17)

·        Situational leadership (line 19-20)

  ·   Fast thinker (in response to shortages of potable water due to climate change, he was able to find alternative sources of potable water (line 15-18)

·        Had clashes with Ariadne regarding the water treatment plant update delays (line 24-26)

2. Ariadne Johansen

·        Director of the Engineering Division (line 22)

·        Autocratic leadership, leading to delayed tasks involving the Fresh Water Division (water treatment plants update) due to having different priorities (line 23, 24-26)

3. Jayne Dees

·        Director (line 106)

·        Proposed for SVT to develop low-cost, easily transportable water purifiers (for places with limited access to potable water) (line 112)

·        Made her own research (observation as primary market research) which is to operate water purifiers using solar power (line 113-115)

·        ​​Spent three months teaching English in village schools in Sudan in 2019 (line 106-107)

4.  SVT Employees

1. Newly hired employees for Engineering Division

·        300 vacancies filled for highly skilled and specialised employees that can work well in team environment (line 65 -68)

·        Went through induction training including a visit to SVT’s factory in Norway (line 71)

2. Old employees

·        After 10 years of employment under SVT, employees are offered 3 months paid leave to join the Outreach Program in LEDCs || (line 99) 

·        Employees taught in schools, dug wells, repaired infrastructure and provided training to local people (line 101)

·        Travel expenses, accommodation cost and salaries covered by SVT (line 100) 

·        6000 employees took part (line 103)

3. Employees that join SVT following acquisition of H4

·        Work three eight-hour shifts per day

·        Given one-time incentive for agreeing to the new flexible-working contract  

5.  SVT’s Marketing Department

·           Used  to investigate the spending patterns of low-income families in LEDCs and their access to media. (line 134-135)

6.  SVT’s Human Resource Department

·           Met resistance following takeover of H4 since long-serving employees from H4 resist the changes made by SVT, essentially an organisational culture clash (line 59)

·           Since a quarter of H4 employees decided to resign, SVT’s HR organised recruitment to fill 300 vacancies (line 66). 

·           Chose carefully where to advertise the vacancies and all vacancies were filled within 3 months = efficient (line 69-70)

7. Board Member

·           Impressed by Jayne’s idea regarding water purifiers needing to be operated by solar power, be simple to use, inexpensive and long-lasting (10 years) because it fitted well with SVT’s vision statement. (line 114-115)

·           Have not agreed on the pricing strategy of WF15 (line 127)

8. Directors

·           Several believed that WF15 should be a not-for-profit operation, a minority felt that SVT should go further and subsidise the product to make it affordable to as many people as possible. (line 127-129)

·           Two directors are against subsidising the WF15, believing that it will negatively impact SVT’s overall profitability. (line 129-130)

External Stakeholder

1. Rival Engineering Company, H4 PLC (Part of Internal Stakeholder after the takeover) 

·        Manufactures steam and gas turbines in four factories in UK (line 50)

·        Originally family-owned business (line 51)

·        Complete takeover by SVT’s Engineering Division in 2015 (line 49-50)

Before takeover:

·           work 5 days per week from 8 to 5; ~27% of total week (line 52)

·           competitive salaries (line 53)

·           no financial/ non-financial rewards/bonus offered (no other methods of motivation offered)  (line 54)

After takeover:

·           factories operate 24 hours every day (line 58)

·           employees work 8 hours per day (three eight-hour shifts) (line 58)

·           employees receive one-time incentive payments (line 60)

·           employees agree to new shift pattern every 6 months (line 62)

·           employees who do not want to sign contract under SVT were offered generous payments to leave (line 63)

2. Geng PLC

·        Major water supplier in UK (line 32-33)

·        Acquired by SVT Fresh Water Division (line 32)

3. NGOs/Charities

·        Identify projects (line 104)

·        Work together with SVT to make best use of SVT employees (line 104-105)

4. Customers (Sudanese People)

·        People in less economically developed countries (LEDCs) (line 97)

·        Poor people that could not afford potable water and water purifiers (line 108-109)

5. James Azuki, WF15 Creator

·        An university student from Tanzania (line 120-121)

·        Won the competition held by SVT in search for low-cost, easily transportable water purifiers (line 120)

·        His design, WF15, won the competition and SVT agreed to retain its name. (line 122)

6. World Health Organization

·        Set up guidelines for potable water (line 124-125)

Definitions (Alphabetized)

1. YT
2. g
3. Acquisition: A takeover (or acquisition) occurs when a company buys a controlling interest in another firm, i.e.it buys enough shares in the target business to hold a majority stake. (usually more than 50%)
4. Aquifer: Natural, underground water storages.
5. Below-the-line promotion (social media, sales promotions): promotion that is not a directly paid-for means of communication but based on short-term incentives to purchase, e.g. sales promotion techniques.
6. Board of Directors (BOD): elected by shareholders to make strategic future-focused decisions on their behalf. Directors are elected because of their skills and expertise and because shareholders do not necessarily want to get involved in the daily running/decision making of the company.
7. Brand Leader: To become the brand with the highest recognition and largest market share in the market. A brand leader is a product or brand that is recognized as the most popular or dominant within a specific market or industry. It is often the first brand that comes to mind when consumers think of a particular product category and has a strong reputation and customer loyalty. A brand leader typically has a large market share and is often imitated by competitors.
8. Business: An idea made to satisfy the wants and needs of customers. The 4 main types of businesses are sole traders, partnerships, private and public limited companies.
9. Business Sectors (line 8): Businesses can be classified according to the stage of production that they are engaged in.

Primary Sector: Resource Extraction. Mostly found in LEDCs (Mining, Forging etc.)

Secondary Sector: Manufacturing products. Mostly found in MEDCs.

Tertiary Sector: Services, mostly found in Economically developed countries.

Quaternary Sector: information technology, research, and development, as well as consulting services and education." mostly found in Economically developed countries.

10. Capital Productivity/Productivity Rate: This measures how efficiently an organisation’s fixed assets are used to generate output for the business.
11. Change: Refers to the modification or transformation in the way business is conducted as a response to internal factors or external influences. It arises when internal and/or external factors that influence the operations of a business do not stay the same.
12. Charities: A charity is a non-profit organisation that uses donations and funding to support a specific cause or mission. Charities can take various forms, including foundations, religious organisations, and community organisations. The main purpose of a charity is to serve the public good and provide assistance to those in need, rather than to make a profit for shareholders or owners.
13. Company → Public limited company (PLC): It is an incorporated business with limited liability and is owned by shareholders, where shares are traded on the stock exchange.
14. Consumer: The end-users of a product. This contrasts with customers who are the buyers of the product.
15. Contribution: Cost set aside to pay towards the fixed cost of the business.
16. Contribution per Unit = Selling Price per Unit - Variable Cost per Unit
17. Corporate Social Responsibility (CSR): It’s the conscientious consideration of ethical and environmental practices related to business activity. A business that adopts CSR acts morally towards its various stakeholder groups and the well-being of society as a whole.
18. Demand: refers to the total amount of a good or service purchased at a particular price, in a given time period.
19. Desalination: A process of removing salts and minerals from seawater to make it suitable for drinking or irrigation.
20. Director: A person responsible for managing and leading a division or department.
21. Distribution Channel: The channel of distribution refers to the means used to get a product to the consumer.
22. Dividends: The distribution of a company's profit, to its shareholders, who get a certain percentage of the profit of the company, if the company allows this, according to their percentage ownership.
23. Division (2.2): A part of a company that operates as a separate unit with its own management and employees.
24. Economies of Scale (EOS): refer to lower average costs of production as a firm operates on a larger scale due to gains in productive efficiency. Essentially, the spreading of fixed costs across a large number of units. It can be:

• Internal EOS: purchasing, operational, marketing, transportation, managerial, finance. Internal measures a company's efficiency of production and occur because of factors controlled by its management team.
• External EOS: pool of skilled labour, good infrastructure, growing market, no. of buyers, technological advancements. External happen due to larger changes within industry, so when industry grows, average costs of business drop

25. Employment: Refers to the number of people of the working age who are in the workforce.
26. External Growth: External growth (or inorganic growth) occurs when a business grows by collaborating with, buying up or merging with another firm. Main types include:

27. Flexible-Working Contract: A flexible working contract is an employment agreement that allows for a more flexible arrangement of working hours and/or location, as opposed to a traditional 9-to-5, in-office setup.
28. Founding: This refers to the date of the official establishment or creation of a business organisation. The owners are called the founders or co-founders.
29. Horizontal Integration (line 32-33): a business acquires another business in the same step in the chain of production (i.e. they have the same business activity). It increases market share and .
30. Human Resources Department: Department focused on dealing with issues regarding employees such as hiring and organisation. Their task is to work out business's needs for employees, given goals for strategic development.
31. Incentive Payment: A payment to the employees to stimulate greater output
32. Income Stream (3.7): A source of revenue for a company.
33. Induction Training: Induction is training done to new recruits to familiarise them with the firm's policies and culture. This technique reduces the time needed to be familiar with the firm and its operations, although key staff are needed to be relieved from their duty for induction training to take place.
34. Internal Growth: Internal growth (also known as organic growth) occurs when a business grows using its own capabilities and resources to increase the scale of its operations and sales revenue.
35. Labour Turnover: Labour turnover measures the number of workers who leave a firm as a percentage of the workforce, per year. It is often used to gauge the level of motivation in an organisation.
36. Leadership: Leadership is the process of influencing and inspiring others to achieve organisational goals.

• Situational Leadership: Situational leadership is a leadership style that is not based on any single dominant approach. In essence, it is about using the right leadership style for the right situation.
• Autocratic Leadership: An autocratic leader is one who makes all the decisions and prefers not to delegate any responsibility. Instead, the autocratic leader (or the authoritarian) simply tells subordinates what to do." Features of autocratic leadership include a top-down chain of command.

37. Lean Production (HL ONLY): Producing goods in a manner that reduces waste output and increases efficiency.
38. Less-economically developed countries (LEDC): are countries with low levels of economic development and a low standard of living for their citizens. These countries typically have a weak industrial base, low per capita income, high levels of poverty, and a lack of basic infrastructure and social services. These countries have prominent primary sectors with most of the workforce working in the primary sector.
39. Manufactures: This refers to the process of combining and transforming raw materials and/or components into final goods, ready for sale to customers. SVT's Engineering Division produces water treatment equipment and power turbines.
40. Market Research: Market Research is designed to discover and gather the opinions, beliefs and preferences of the thinking pattern and buying habits of customers. Market research can either be primary or secondary.
41. Market Share: measures the value of a firm's sales revenues as a percentage of the total sales revenue in the industry. Market share can be calculated in volume (quantity) or value (monetary value).
42. Market: A place or system where goods and services are bought and sold.
43. Marketing Budget: How much money a business allocates to spend on marketing purposes.
44. Mission Statement: A declaration of the underlying purpose of an organisation’s existence and its core values. This statement is updated more frequently than a vision statement.
45. Monopoly: A market structure characterised by a single seller of a product that faces no competition from other firms and it has substantial market power and is the price maker of the product in that region.
46. Motivation: The managerial process/aspect where intrinsic and extrinsic factors are used to increase employees’ satisfaction as to reflect on improving their productivity.

Financial methods of MotivationSalaries - fixed costs to SVT

1. Wages - variable costs (time and pien+ce rates) to SVT
3. Commissions - Getting a certain percentage of what YOU as the employee sold
4. Performance related pay - depending on how you perform you get paid (more likely with individuals)
5. Profit-related pay (more likely with teams)
6. Fringe payments - bonus payments (health care, maternity leave)
7. One time incentive payments
8. Employee Share-ownership schemes

Non-financial methods of Motivation

1. Job Enrichment: Employees have full control over their jobs with little supervision
2. Job Empowerment - when an employee performs well they get recognition and can have more say in decisions etc, may also get promotions
3. Job Rotations: Employers work in different divisions of the business
4. Job Enlargement: Employees have more tasks to do
5. Teamwork - everyone working together allows for encouragement

47. Narrow Span of Control: A narrow span of control means that there are fewer subordinates who are accountable to a manager. It is therefore easier to communicate and the decision making process doesn't take time.p
48. Non-governmental organisations (NGOs): type of non-profit organisation that operates independently from any government. NGOs are established to serve a specific social cause or address a particular issue, and they may focus on areas such as human rights, poverty alleviation, environmental protection, or disaster relief. They are funded through donations, grants, and other forms of support, rather than by government agencies.
49. One-Time Incentive Pay: A bonus or a form of compensation for employees in exchange for going above and beyond their normal duties
50. Operational Authority: refers to the power given to an individual or a group within an organisation to make decisions and take action related to the day-to-day operations of the business. This authority allows the individuals or group to manage and direct the resources of the organisation to achieve desired goals & objectives.
51. Order Book (Line 80): An order book shows the buy and sell prices in real-time (constantly being updated)
52. Organisation by product: refers to structuring a workforce according to the goods or services produced or sold. Each department focuses on a different product within the organisation's overall product portfolio
53. Outreach program: An outreach program is an initiative or effort by an organisation to reach out to and engage with a specific target audience or community.
54. PLC: business organisation owned by shareholders with limited liability. Shares are traded on the public stock exchange.
55. Potable Water: Water that is safe for human consumption.
56. Pricing Strategy: Pricing strategies are the methods and procedures companies employ to determine the rates they charge for their goods and services. Pricing strategies include:

57. Product: A broad term that refers to any physical or non physical item that is purchased by either commercial or private customers.
58. Product Portfolio: all products produced by the firm with different product lines and ranges.

• Product Line: Group of connected products marketed under a single brand name by the same company.
• Product Range: Refers to the different models of the product line.

59. Productivity per Employee: The output of a company divided by the number of employees.
60. Productivity: Refers to the level of efficiency in the production process. The more productive resources are, the more output they generate.

• Productivity per Employee: The output of a company divided by the number of employees.
• Capital Productivity: measures how efficiently an organisation's fixed assets are used to generate output for business.

61. Quality management (HL ONLY): A set of methods used to ensure and improve quality as well as ensure reliability.
62. Recruitment: is the process by which the HR department identifies its needs and vacancies to be filled, and begins the processes of finding most suitable candidates until the contract has been signed.
63. Redundancy: when a job is no longer required so the employee doing this job becomes redundant through no fault of their own.
64. Regional Monopoly: Where a business controls 80% or more of market share and has barriers of entry (such as special licensing from the government, or a high startup cost).
65. Reservoir: A large tank or basin used for storing water or other liquids.
66. Sales revenue: refers to the income of a business derived from the purchase of its goods and/or services from customers. It is calculated by multiplying the selling price of the product by the quantity sold.
67. Secondary data: Involves the collection of second hand data and information that already exists. Secondary research is a cheaper and faster method of data collection.
68. Share Price: The value of the share of a company.
69. Source: To acquire a product or resource from a specific place.
70. Specialised Employees: Employees who are experts in a specific field
71. Stakeholders are individuals, groups or organisations that have an interest or are affected by the operations and decisions of a business.
72. Store: To keep a product or resource in a safe place for later use.
73. Subsidise - Governmental grants given to businesses allowing them to purchase raw materials at a cheaper rate.
74. Supplies: This refers to the good or service that an organisation is willing and able to produce, usually for commercial gain. In general, the higher the price the greater the quantity supplied as the business can earn higher profit margins.
75. Tactical Authority (line 15): refers to the power given to an individual or group within an organisation to make decisions and take action related to the implementation of the organisation's strategy. This authority is focused on the intermediate-term goals of the organisation, typically spanning several months to a few years.
76. Takeover: When a company buys a controlling interest in another firm, i.e.. it buys enough shares in the target business to hold a majority stake.

• Friendly takeover: occurs with the consent of target company's management & board of directors. The acquiring company and the target company work together to negotiate a deal that is mutually beneficial to both parties.
• Hostile takeover: Occurs when acquiring company attempts to take over target company without consent of its management & board of directors. Acquiring company may make a public offer to target company's shareholders to purchase their shares, or may attempt to gain control of target company through other means, like proxy fight.

77. Transport: To move a product or resource from one place to another.
78. Treat: To purify or process a product or resource.
79. Unit costs: refers to cost incurred by a company to produce/ acquire one unit of a product/ service. It is calculated by dividing total cost of production by total number of units produced.
80. Vacancies: exists when a job position becomes available, often due to resignations or growth of an organisation.
81. Vertical Integration (line 8-9): occurs when a business grows by acquiring other businesses in earlier or later stages in the chain of production. It is divided into backwards vertical integration and f es orward vertical integration.
82. Vision Statement (1.3): A statement that defines an organisation's goals and aspirations. Outlines the long term aspirations of a business and what it aims to achieve, usually vague , qualitative and inspiring; forms the foundation for the objectives of a business, including its core values and sense of direction, essentially guiding decision-making and setting the tone of how managers and employees behave
83. Voluntary Redundancy Payments: Compensation offered by a company to employees who voluntarily choose to leave their jobs as a part of a redundancy program.

(Guys please add more tools and theories from the list above, so that we can refer to it later. I have added a few. If the tool is discussed below, please tick it off of the list. As of now, we need fishbone to be added asap. If anyone has a diagram or can make one, please put it up here. Thanks)

1        SWOT Analysis: 

SWOT analysis is a simple yet very useful decision-making tool-bg. SWOT is an acronym for Strengths, Weaknesses, Opportunities, and Threats. It can be used to assess the current situation of a business organization. SWOT analysis considers both internal factors (strengths and weaknesses) and external factors (opportunities and threats) that are relevant to the organization under investigation.

Ansoff Matrix: analytical tool that helps managers choose & devise various product & market growth strategies.

STEEPLE Analysis: acronym for the Social, Technological, Economic, Environmental, Political, Legal and Ethical opportunities and threats of the external business environment. These factors, unlike internal ones, affect all businesses yet are beyond the control of any individual organisation. STEEPLE analysis is central to business strategy, such as assessing the feasibility of an overseas investment project. It is used to enhance opportunities or minimize threats. Businesses need to consider the external factors in order to make informed decisions.

PESTLE Analysis (STEEPLE)    

Product Life Cycle

The product life cycle refers to the stages that a product goes through from its introduction to the market to its eventual decline and removal from the market. It helps businesses develop strategies for each stage to maximise profitability and longevity. The stages are: introduction, growth, maturity, decline.

1. Fresh Water division – Maturity: SVT‘s potable water product is likely in the maturity stage as it has been supplied since the company‘s foundation and the market is still growing. However, it is unclear whether there has been any decline in sales in the past.

2. Desalination division – Growth (Desalination plants): Both small and large desalination plants are likely in the growth stage since sales of the smaller plants has increased by 300%. This increase in sales indicates that the product is still in the growth phase since a maturity would result in a smaller but steady increase in sales.

3. Engineering Division – Introduction (Wind turbines): SVT‘s wind turbine product is likely in the introduction stage as the company has only just begun manufacturing them in 2022 and is only able to produce a limited number (10) per year.

4. Consumer product Division – Growth (Water filters): SVT‘s water filter product is likely in the growth stage since the company is still acquiring smaller businesses and aiming to become the brand leader, indicating that there is room for growth and the product has not yet reached maturity.

BCG Matrix (Market growth rate VS Relative market share)

1. Cash Cow - Fresh Water Division: This division is the largest supplier of potable water to nearly 200 million people around the world and has a regional monopoly in each country in which it operates. It generates a high market share and a steady cash flow for the company, making it a cash cow.
2. Stars - Desalination Division: The desalination division of SVT operates in 19 out of 120 countries and provides 15% of the world's desalination capacity, and the market for desalination is growing rapidly. Therefore, this division is a star as it has a high market growth rate and a high market share.
3. Question marks - Consumer Products Division: This division manufactures home water filters, which are not the primary business of the company. This division has consistently increased their contribution to SVT’s overall profits. They are increasing their market share through internal and external growth strategies, such as takeovers on smaller water filter manufacturers in Europe and the United States of America. They are aiming to  become the brand leader in this market.The consumer products division has low market share and high growth potential, making it a question mark.
4. Question mark transitioning to Star- Engineering Division: The Engineering Division of SVT is one of the industry leaders in productivity per employee. They are big  enough to  complete a takeover on a rival engineering company, H4 PLC, therefore the market share cannot be small and implies that it is large, but also does not directly state that it is large. They also have achieved  and have cut costs of employment, becoming more efficient and increasing their profit margin. There is also a large demand for wind turbines which is expected to keep growing each year, meaning there is high growth potential. Due to these reasons it can be implied that they have high market share and high growth potential, making it a star.

 Stakeholder Mapping for SVT (HL)

Lewin’s Force-Field(s)

The Lewin’s Force-Field is a decision-making tool that looks at helping or hindering forces towards a plan. It is generally used as a tool for facilitating communication and participation of groups. The nature of the point system (scale of 1 to 5) is somewhat arbitrary, thus there is a lot of uncertainty and error associated with this tool; it should not be used for making final decisions.

TBL (Triple Bottom Line): a framework that evaluates a company's performance based on three metrics: social, environmental, and economical performance.

Social Performance:

SVT's case study highlights the importance of their Corporate Social Responsibility (CSR) program. Through the WF15 initiative, SVT has demonstrated a commitment to improving access to clean water for people in need. This social initiative has not only had a positive impact on the communities they serve but also on SVT's reputation as a socially responsible organisation. Additionally, SVT has created job opportunities for local people, which is contributing to the social development of the community.

Ecological Performance:

SVT's core business involves water treatment, which has a direct impact on the environment. The case study highlights that SVT is using innovative technologies that aim to reduce the environmental impact of their operations. SVT's water treatment systems are designed to be energy-efficient, and they use eco-friendly chemicals, which reduce pollution.  

Economical Performance:

SVT is a profitable organisation, and the case study highlights its successful growth in recent years. The company's revenue has increased steadily, and its profits have allowed it to invest in research and development to improve its technologies continually. SVT's CSR initiatives and sustainable business practices have also contributed to its financial performance by enhancing its reputation and attracting socially responsible investors.

Overall, SVT's TBL report highlights its commitment to balancing social, environmental, and economical performance. The company's CSR initiatives, sustainable business practices, and innovative technologies are contributing to its success in all three areas. By focusing on the TBL, SVT is not only a profitable organisation but also a socially responsible and environmentally sustainable company.

Fish Bone Diagram

This tool is used to determine the origin of a problem, or 'the causes of the causes' behind a problem. It is a visual tool that is particularly useful in brainstorming in a group setting. Once a problem is diagnosed, the fishbone diagram can lead to further discussions and suggestions that can help to evaluate potential solutions.

Motivational Theories

 1.                Taylor’s theory

Time and piece rate - Money is the main motivator.

Before SVT took over H4 PLC, H4 PLC was:

• Operating 5 days per week
• Allowing a single shift from 8 a.m. to 5 p.m.
• Providing employees with competitive salaries (similar to those offered by rival businesses)

2.                 Adams’ theory of equity  

People seek fair balance between their outputs and inputs

After the acquisition:

• SVT wanted H4 PLC factories to operate 24 hours a day.
• Working all week days with three 8-hours shifts per day.
• Long- serving employees were against this change and resisted it, asking for equity and to be fairly treated like others.
• SVT offered a one-time incentive payment to employees who agreed on a new flexible working contract with a new shift pattern every 6 months.
• Significant exodus (mass departure) of employees

3.                 Herzberg’s Theory

Salary (hygiene factor): SVT offered their employees very competitive salaries that rivalled other businesses, and they haven’t had a shortage of salaries for their employees. This lowered the employee’s dissatisfaction, hence lowering turnover.

Job enrichment (motivator): SVT applied job enrichment in their business such as the Trip to teach young kids in LEDCs for 3 months after 10 years of employment. This motivated workers to continue working in the business in order to reach this trip and achieve CSR goals.

The case study said that SVT didn’t utilise other financial and non-financial ways of motivation other than those.

Hygiene factors - factors that don’t affect motivation but if they are not present, they may demotivate the workforce. Eg : Good Bathroom

Working conditions: Since employees would spend a huge time working due to their long shifts; they must work in good conditions in order to lower their dissatisfaction

Motivators - factors that help staff gain job satisfaction

Recognition:  giving a sense of recognition from the business to the employee would make them feel more wanted and important rather than just workers or robots, hence giving them recognition would help in motivating them.

Advancement: promote workers for their achievement and loyalty.

Job enlargement:

• Variety in employee’s work
• Giving them more and various goals to achieve

Work itself:  since the employees would work for many hours, the job they’re doing would lose meaning hence resulting in less motivation. So, giving a sense of purpose to the employee’s work would help motivate them.

Achievement: working for many hours employees would also lose their sense of achievement, which would result in less motivation. Hence giving them a sense of achievement by giving small rewards to the employees would result in a higher sense of achievement which would motivate them

Job empowerment: Wouldn’t be possible due to the autocratic leadership style present in the engineering department. It can mean that their is an organization culture of power with centralised decision making.

4.                 Pink’s theory

Analysis of Company

SVT currently supplies potable water to over one million people in Norway and to millions of households in over 20 other countries.

SVT is a public multinational limited company (PLC MNC).

SVT is organised into four divisions based on product.

Fresh Water Division - supplies potable water CASH COW

• to nearly 200 million people around the world
• Yannick Pedersen, the director of the FreshWater Division with situational leadership style
• has increased in size through both internal and external growth strategies
• acquisition of Geng PLC, a major water supplier (UK)

Desalination Division - constructs and operates desalination plants STAR

• The division provides 15% of the world’s desalination capacity (fast growing market that will double in 10 years)
• SVT currently operates desalination plants in 19 of the 120 countries that use such plants
• Smaller desalination plants - increase in the demand for cruise holidays (last 20 years) boosted sales of these plants by 300% since 2015.

Engineering Division -manufactures water treatment equipment and power turbines 

• Ariadne Johansen, the director of the Engineering Division with autocratic
• Completed a takeover of a rival engineering company, H4 PLC, in 2015 (broaden product range)

• H4’s board of directors had been reluctant to embrace change
• Employees were paid competitive salaries
• Company never made use of any other financial or non-financial methods of motivation

• SVT undertook a modernization programme and reorganisation of the operations of H4’s UK factories, achieving

Changes:

Factories operate 24hr high capacity utilisation, everyday, with three 8-hour shifts per day (resistance from HR)

To overcome resistance - SVT offered a one-time incentive payment - (inc. accepting a new shift pattern every 6 months)  

Employees who did not want to sign were offered payments to leave (voluntary redundancy)

Quarter of the employees (average age of 61) turned down the flexible-working contract and left the company, because they are skilled and well experienced labour, which might negatively affect H4. As a result of this significant exodus of former employees from H4, SVT’s HR department organised an external recruitment to fill the 300 vacancies that were created.

Consumer Products Division - manufactures home water filters (lines 83)

Each division is headed by a director with operational and tactical authority

Yannick has a situational leadership style.

Ariadne’s (engineering division) has an autocratic leadership style.

Yannick has clashed with Ariadne - he feels that the machinery needed to update water treatment plants has been delayed due to Ariadne's having different priorities.

Possible solution to distribute WF15 could be outsourcing.

  Tools and Theories (for 10 markers & 20 Markers):

• Motivational Theory
• Fishbone (effects of leadership style)
• Triple Bottom Line (economical, sustainable, social obligations of SVT)
• Stakeholder mapping (HL)
• Forcefield (HL)
• Investment Appraisal
• Balance Sheet & Profit/Loss Account
• CSR
• SWOT
• ANSOFF
• BCG Matrix
• STEEPLE/PESTLE - political (expanding to other countries, bureaucracy)
• Product life cycle
• Fishbone diagram

Sample Questions    

From each unit, add more if you think it will help.

Unit 1: Introduction: Business Organisation & Environment

1. State 2 internal and 2 external stakeholders of SVT [4]

• Internal: Yannick Pedersen and Ariadne Johansen
• External<: customers, James Azuki

Please leave the explanation to revise. In case the command term is different, this question can be used

Internal stakeholders are individuals whose interest in a company comes through a direct relationship. In the context of this case, the internal stakeholders are employees and directors of SVT (such as Yannick Pedersen).

External stakeholders are individuals who do not directly work with a company but are affected by the actions and businesses of the business. An example of external stakeholders in this case are customers, and the WF15 creators.

2. Describe the difference between acquisition and merger [4]

• Acquisition is when a business takes control over the majority stake in another business thereby making them take over the company. It is a form of external growth which is hostile in nature. In this case, the Fresh Water Division took control of a company called Geng PLC. A merger on the other side is when two or more different businesses become one entity. The merger took place during the inevitable war between skandvig llc and chopan pvt ltd.

3. Examine the impact of the external environment on the functioning of SVT [10]

• The external environment has a significant impact on the functioning of SVT. The company's operations, revenue, and profits are influenced by a range of external factors, including political, economic, social, technological, legal, and environmental factors.
• One of the main external factors that affect SVT is climate change. The shortage of potable water in some countries, caused by climate change, has resulted in increased demand for water treatment plants and desalination plants. To respond to this demand, SVT has had to find alternative sources of potable water and invest in desalination plants. SVT's Fresh Water Division, which supplies potable water, has had to expand in size to meet the growing demand for clean water in various countries around the world.
• Another external factor that has impacted SVT is market competition. With the increasing demand for water treatment and desalination plants, the competition in the market has also increased. SVT has responded to this challenge by acquiring other companies, such as Geng PLC in the United Kingdom, and by expanding its product range to include household water treatment products.
• Moreover, technological advancements have impacted SVT's operations, particularly in the Engineering Division. Acquisition of H4 PLC and its modernization program has enabled SVT to expand its product range and achieve . The division manufactures equipment and machinery for SVT's water treatment plants, and the modernization program has allowed it to operate 24/7 and increase productivity.
• In conclusion, the external environment has a significant impact on the functioning of SVT, and the company has responded by adapting its strategies to meet the challenges and opportunities presented by external factors. From climate change to market competition and technological advancements, SVT has had to innovate and expand to continue to achieve its vision of "making the world a safer place."

(please respond to this thread!: I think that in this answer it is more examined how SVT adapted to the external environment on the functioning of SVT and not the sole impact of the external environment on the functioning of SVT how the question states) ( please correct if I'm wrong and reason why!)

4. Prepare a SWOT for SVT. [6]

• Strengths:

• Long-standing reputation as a reliable and trustworthy supplier of potable water.
• Strong market position with regional monopolies in each country where it operates.
• Diversified product portfolio across four divisions, with a focus on water treatment and related equipment.
• Strong leadership and decision-making capabilities within each division, enabling quick responses to changes in the external environment.

• Weaknesses:

• Dependence on regional monopolies for revenue and market share.
• Limited geographical , with a majority of revenue coming from Norway and a few other countries.
• Potential for conflict between different divisions and directors with different leadership styles.
• Limited innovation and investment in emerging technologies compared to some competitors.

• Opportunities:

• Growing global demand for potable water and water treatment solutions.
• Increasing market for desalination, with potential to expand into new markets and increase revenue.
• Growing demand for household water treatment products, with potential for expansion into new markets.
• Opportunity to invest in emerging technologies to enhance efficiency and productivity (like the modernization program).

• Threats:

• Increased competition in the water treatment and desalination industries, with the entry of new players and potential pricing pressure.
• Regulatory risks and political instability in some of the countries where SVT operates.
• Dependence on natural resources and vulnerability to climate change and environmental risks.
• Potential for supply chain disruptions and volatility in raw material prices.

5. Discuss the difference in the manner in which a non-profit organisation functions as compared to a profitable one.[6]

• Goals: Non-profit organisations have a mission to benefit the public or a particular cause, while for-profit organisations focus on generating profits for shareholders or owners. NPOs' objectives can include social or environmental causes, education, healthcare, or other charitable purposes, and their activities are geared towards achieving these goals.
• Revenue: NPOs rely on donations, grants, and fundraising to support their activities and programs, while for-profit organisations generate revenue from the sale of goods or services they offer. This difference in the revenue stream means that non-profit organisations are more accountable to their donors and funding agencies, as opposed to for-profit entities, which are accountable to their shareholders or owners.
• Organisational Structure: NPOs have a different organisational structure from for-profit organisations. NPOs typically have a board of directors or trustees, who are responsible for making decisions that align with the organisation's mission and goals. Additionally, NPOs often rely on volunteers to carry out their programs and activities, whereas for-profit organisations usually have paid staff members who are responsible for carrying out the operations.

6. In the context of SVT, outline the meaning of growth [2]

• Growth is the expansion of SVT as an organisation due to an increase in the size of its operations such as the recent acquisition of Geng PLC and the expansion into new markets by launching new products such as low-cost, easily transportable water purifiers. Growth can be measured in numerous ways, such as an increase in SVT profits, market share or the number of employees.

7. Describe any 2 stakeholder conflicts being experienced by SVT. [4]

• One stakeholder conflict experienced by SVT could be with local governments or communities in countries where they operate, who may feel that SVT's regional monopoly limits their choices and bargaining power. This could lead to tension and conflict, particularly if SVT raises prices or fails to meet local expectations regarding water quality or service provision.
• Another stakeholder conflict could be within the Engineering Division of SVT, where there may be disagreements between employees and management regarding changes to working patterns or conditions, such as shift to a 24-hour, 3-shift system. This conflict could result in low morale, high turnover rates, & even industrial action which could negatively impact division's productivity & profitability.

8. Examine the usefulness of a vision statement to SVT [6]

• Vision statement is an important tool for an organisation to communicate its long-term aspirations and goals to its stakeholders. For SVT, its vision statement "Making the world a safer place" has been in place since its founding and serves as a guiding principle for the company's operations.
• The vision statement is useful to SVT in several ways. First, it provides a sense of purpose and direction for the company, which can help to align the efforts of its employees towards achieving its goals. This is  particularly important for a company like SVT, which operates in a critical industry where the provision of safe and clean water is essential to public health and safety.
• Second, the vision statement can serve as a source of inspiration and motivation for employees. It can help to create a shared sense of purpose and identity among employees, which can lead to higher levels  of engagement, productivity, and job satisfaction.
• Third, the vision statement can be used to communicate SVT's values and priorities to its stakeholders. This can help to build trust and credibility with customers, investors, and other stakeholders who share the company's commitment to making the world a safer place.

9. Distinguish between a vision and a mission statement. [4]

• Vision statement outlines aspirations & goals of organisation, describing what it wants to achieve in future. It provides a clear & compelling image of the future state that the organisation aims to create.
• On the other hand, a mission statement outlines the purpose and core values of an organisation, describing what it does and why it exists. It defines the company's primary objectives and guides decision-making by providing a framework for strategic planning and resource allocation.

10. With reference to SVT, distinguish between external and internal growth [4]

• External growth refers to the expansion of a company's business activities through mergers, acquisitions, or strategic partnerships with other companies. SVT has expanded externally by acquiring other companies in the water treatment and desalination industries, such as Geng PLC and H4 PLC.
• Internal growth, on the other hand, refers to the expansion of a company's business activities through the development and expansion of its existing operations. SVT has achieved internal growth by increasing the size and capacity of its Fresh Water and Desalination Divisions, as well as by expanding the product range of its Engineering and Consumer Products Divisions through research and development.

11. Explain one method of internal and one method of external growth that SVT used [6]

• One method of internal growth that SVT used was to expand its product line by developing new and innovative water filter products. This allowed the company to increase its market share by offering a wider range of products to its customers.
• One method of external growth that SVT used was to acquire small water filter manufacturers in both Europe and the United States of America (USA). This allowed the company to increase its market share by acquiring the customer base and distribution channels of these smaller companies. By acquiring these companies, SVT was able to expand its reach and increase its market share in the home water filter industry.

12. Using the Ansoff matrix examine the growth strategies being considered by SVT. [8]

• Market Penetration - This strategy involves increasing market share in existing markets with existing products. SVT has already achieved a regional monopoly in each country it operates, and the Fresh Water Division supplies potable water to nearly 200 million people around the world. To increase market penetration, SVT can focus on expanding its operations in the existing countries and targeting new areas within those countries to increase the number of people it serves. SVT has also acquired Geng PLC, a major water supplier in the United Kingdom, to expand its operations.
• Market Development - This strategy involves introducing existing products to new markets. SVT already supplies water treatment plants to over 20 countries. To expand further, SVT can identify new countries with high demand for water treatment plants and enter those markets. Additionally, SVT can focus on building more desalination plants in countries with limited freshwater resources.
• Product Development - This strategy involves introducing new products to existing markets. SVT's Engineering Division manufactures water treatment equipment and power turbines. To pursue this strategy, SVT can invest in developing new and innovative water treatment equipment and machinery that can improve the efficiency of its operations. Additionally, the Consumer  Products Division can focus on developing new household water filters with improved technology.
• Diversification - This strategy involves introducing new products to new markets. SVT has already diversified into the desalination and household water treatment product sectors. To further diversify, SVT can consider expanding into related industries such as renewable energy, wastewater treatment, or infrastructure development.

13. Examine the implications of acquiring a UK-based company Geng PLC a water supply company.[6]

• The acquisition of Geng PLC, a major water supplier in the United Kingdom, by Skandvig Terra PLC (SVT) has several implications. First, it increases SVT's market share in the UK's water supply industry, which can lead to increased revenue and profitability. Second, SVT can leverage Geng PLC's existing infrastructure, knowledge, and expertise to expand its operations in the UK and improve its service offerings. Third, the acquisition may lead to job losses in Geng PLC or changes in employment contracts, which can have implications for employee morale and public relations. Fourth, the acquisition may attract regulatory scrutiny, particularly in terms of potential monopoly and antitrust issues, which may require divestitures or other measures to ensure fair competition. Finally, the acquisition may require significant investment in integrating Geng PLC’s operations into SVT's existing infrastructure and management, which can be costly and time-consuming.

14. Examine the implications of taking over H4 PLC, a rival engineering company. [6]

• The takeover of H4 PLC by Skandvig Terra PLC (SVT) has several implications. First, SVT has expanded its product range to include steam and gas turbines, which are used to produce electricity. This acquisition provides SVT with a new income stream, as well as the ability to manufacture and supply its own turbines for use in its water treatment plants.
• Second, the takeover enabled SVT to achieve by modernising H4's operations and integrating them into SVT's existing operations. This allowed SVT to improve efficiency, reduce costs, and increase productivity, which could ultimately result in higher profits.
• Third, the modernization program required a change in the shift patterns of H4's employees, which was met with resistance from some long-serving employees. SVT offered incentives for employees to sign new flexible-working contracts, but a significant number of employees chose to leave the company instead. This could result in a loss of experience and expertise, as well as potential disruption to operations in the short-term.
• Fourth, SVT faced challenges in filling the 300 vacancies that were created as a result of the exodus of former H4 employees. Highly skilled and specialised employees were in short supply in the UK, which could have implications for future recruitment and retention of talent.

15. Analyse the implications of SVT being a multinational corporation.[6]

• SVT being a multinational corporation has several implications. On the one hand, it allows the company to diversify its business portfolio, access new markets, and benefit from it. On the other hand, being multinational also exposes the company to a variety of risks, such as currency fluctuations, political instability, and regulatory differences between countries.
• One advantage of being a multinational corporation is the ability to access new markets. For example, SVT's expansion into other countries has allowed the company to supply potable water to millions of households and diversify its revenue streams. Moreover, being multinational allows SVT to benefit by centralizing certain functions, such as research and development, production, and marketing, which can lead to cost savings.
• However, being multinational also exposes the company to several risks, such as currency fluctuations, political instability, and regulatory differences between countries. For example, if the currency of a country where SVT operates devalues, the company's revenues will decrease. Similarly, political instability in a country could lead to a disruption in SVT's operations and a loss of revenue. Finally, regulatory differences between countries can create challenges for SVT in terms of compliance and adapting to local laws.
• In conclusion, while being a multinational corporation has several advantages, such as a diversified business portfolio and access to new markets, it also exposes the company to risks for instance: currency fluctuations, political instability, and regulatory differences between countries. SVT needs to carefully manage these risks to ensure its long-term success.

16. With reference to Jayne, discuss the qualities that an entrepreneur must have.[4]
17. Jayne, the director of the Consumer Products Division, is an example of an intrapreneur within Skandvig Terra PLC. An intrapreneur is someone who operates within an existing organisation and brings a spirit of entrepreneurship to their work.

• To be a successful intrapreneur, one must possess several key qualities. Jayne, for example, has demonstrated the following qualities:

• Creativity & innovation - She has developed a new home water filter product that has resulted in significant revenue growth for the Consumer Products Division. She has also developed a sustainable packaging initiative that has reduced the division's carbon footprint.
• Risk-taking - Jayne took a risk by investing in development of new home water filter product. She also advocated for the sustainable packaging initiative, despite potential resistance from other stakeholders.

18. Evaluate SVT’s outreach programme.[8]

• SVT's Outreach Programme is an initiative that aims to benefit society by offering free skilled labour to less economically developed countries (LEDCs). It is a long-term commitment that offers SVT employees a chance to participate in the program after ten years of continuous employment. This CSR initiative by SVT has several strengths and weaknesses, which are as follows:
• Strengths:

• SVT's Outreach Programme has helped several LEDCs by offering skilled labour to various projects such as teaching in schools, repairing infrastructure, and providing training to local people.
• The program offers a three-month paid career break to SVT employees, which can help employees develop new skills, gain new perspectives, and increase their job satisfaction.
• The initiative has a positive impact on the company's reputation, as it is seen as a socially responsible company that cares about society.

• Weaknesses:

• The program only offers skilled labour, which may not be the most effective solution for the problems faced by LEDCs. Other solutions such as providing funding, resources, or developing local businesses may be more effective.
• The program is limited to SVT employees who have completed ten years of continuous employment, which may exclude employees who have valuable skills or experiences that could benefit the program.
• The program may create a dependency on foreign aid, which may hinder the development of local businesses and economies in LEDCs.

19. Examine the scope of a PPP model (not for profit) for an organisation like SVT for the new product WF15. [6]

• A PPP model, or Public-Private Partnership model, is a type of collaboration between the public and private sectors to achieve a common goal, usually a public service or infrastructure project. However, in the case of a not-for-profit organisation like SVT, the scope of a PPP model for the new product WF15 may differ from a for-profit organisation.
• The following are some potential scopes of a PPP model for SVT and WF15:

• Collaboration with government agencies: SVT could partner with government agencies to develop and distribute WF15 to low-income or underserved communities, as a public service. The government agency could provide funding or other resources to help SVT achieve this goal.
• Partnership with other non-profit organisations: SVT could partner with other non-profit organisations that share similar values and mission to help distribute WF15 to communities that could benefit from it.
• Collaborating with private sector companies: Even though SVT is a not-for-profit organisation, it could still partner with private sector companies to develop WF15. The private sector company could provide resources and expertise to help SVT develop and distribute WF15.
• Fundraising and grants: SVT could also use a PPP model to raise funds and apply for grants to help fund the development and distribution of WF15. SVT could partner with foundations and other philanthropic organisations to raise funds and apply for grants.
• Crowdfunding: SVT could also use a crowdfunding model to develop and distribute WF15. Crowdfunding allows individuals to contribute small amounts of money to help fund a project. This could help SVT reach a wider audience and raise funds more quickly.

• Overall, the scope of a PPP model for SVT and WF15 would involve collaborations and partnerships with government agencies, other non-profit organisations, private sector companies, and fundraising and grant opportunities. The focus would be on providing WF15 to communities that could benefit from it, rather than generating profits for SVT.

20. State two features of a family-owned business as a form of business ownership (line 51). [2]

• Family control: Family-owned businesses are controlled by a family or a small group of families who have ownership and management control. This means that the business decisions are often made by family members or close relatives.
• Long-term focus: Family-owned businesses are often focused on long-term success and sustainability, rather than short-term gains because the family has a vested interest in ensuring the success of business for future generations, and may prioritise reinvesting profits back into the business instead of taking them out as dividends.

21. Identify two features of non-governmental organisations (NGOs) (line 104). [2]

• Non-profit: NGOs are typically non-profit organisations that do not distribute profits to owners or shareholders, but instead use their resources to pursue specific social or environmental objectives. They are often focused on advocacy, education, and/or service delivery to address societal issues.
• Independent: NGOs are independent of government control and are typically run by a board of directors or trustees who are responsible for setting organisational strategy and ensuring that the organisation's activities align with its mission and values. This independence allows NGOs to operate flexibly and respond quickly to changing circumstances.

22. Identify two features of charities (line 104). [2]

• Charities are organisations that are tax-exempt under the law because they are dedicated to charitable purposes that provide a public benefit. This means that charities are exempt from paying taxes on any income or donations that they receive. This tax-exempt status is granted by the government in recognition of the public benefit provided by charities.
• Must be established exclusively that what the charity does is for the benefit of the public.
• One way that charities are able to raise funds is through donations from the public. Charities often rely on the generosity of individuals and businesses to support their activities. They may use various fundraising methods, such as direct mail, online donations, fundraising events, and corporate sponsorships, to raise funds from the public.

23. Explain two advantages and one disadvantage for SVT to be a PLC (line 1).  [6]

• Advantages:

• Increased access to capital: As a PLC, SVT can raise large amounts of capital by issuing shares to the public. This provides the company with greater financial resources to invest in its operations, expand its business, and fund research and development activities.
• Limited liability: Shareholders of a PLC have limited liability, which means that their personal assets are protected if company faces financial difficulties. This makes investing in SVT more attractive to potential shareholders, as they can invest without the risk of losing more than the value of their investment.
• Disadvantage:
• Increased regulatory requirements: As a publicly traded company, SVT is subject to various regulatory requirements, such as those related to financial reporting, disclosure of information, and corporate governance. Compliance with these regulations can be time-consuming and expensive, which can increase the company's administrative costs and reduce profitability.

24. Distinguish between STV’s aims (line 93) and objectives (line 74). [4]

• In the context of the given text, the aims of Skandvig Terra PLC (STV) refer to the long-term goals or the overall vision of the company, as stated in its vision statement: "Making the world a safer place". Aims are broad and aspirational and may not be measurable.
• On the other hand, the objectives of STV are specific, measurable, achievable, relevant, and time-bound targets that the company sets to achieve its aims. For example, the objective of the Fresh Water Division is to supply potable water to nearly 200 million people around the world. Objectives are more focused and help the company to track its progres towards achieving its long-term goals or aims.

25. Describe how SVT's Outreach Programme in LEDCs helps to fulfil its corporate social responsibility (CSR) (lines 95 - 115). [4]

• The SVT's Outreach Programme in LEDCs helps to fulfil its corporate social responsibility (CSR) in several ways. Firstly, the programme aims to provide access to education and healthcare to underprivileged communities, which aligns with SVT's CSR goals of promoting social and economic development. For example, the programme has set up schools in remote areas of Africa, providing education to children who would otherwise have no access to it. This helps to promote literacy and knowledge, which are important for economic growth and sustainable development.
• Secondly, the programme also focuses on promoting sustainable development through the use of renewable energy sources. This aligns with SVT's CSR goals of reducing environmental impact and promoting sustainable business practices. For instance, the programme has installed solar panels in several villages in Sudan, providing access to clean and sustainable energy. This helps to reduce the dependence on fossil fuels and promotes sustainable development.

26. Explain the importance of corporate social responsibility (CSR) for SVT. [6]

• CSR is increasingly important for companies like SVT, as it allows them to demonstrate their commitment to social and environmental issues beyond their core business activities. This is particularly important given the heightened awareness of the impact that companies have on the environment, society, and economy.
• In terms of text, SVT's CSR initiatives are important for several reasons. Firstly, they help to improve the company's reputation and enhance its brand image. By engaging in socially responsible activities, SVT can demonstrate that it is a company that cares about more than just profit, and is committed to making a positive contribution to society.
• Secondly, CSR initiatives can help to attract and retain talent. Employees are increasingly looking for employers who share their values and are committed to making a positive impact on the world. By demonstrating a strong commitment to CSR, SVT can attract employees who are motivated by these values, and help retain existing employees who are looking for a sense of purpose beyond their job.
• Thirdly, CSR initiatives can reduce risks & costs. For ex: by implementing environmentally friendly practices, SVT can reduce its carbon footprint & minimise the risk of regulatory fines or reputational damage from negative environmental impacts. Similarly, by promoting diversity & inclusion, SVT can reduce the risk of discrimination claims & promote a more inclusive workplace culture.
• Overall, CSR is important aspect of SVT’s business strategy as it allows the company to demonstrate its commitment to social & environmental issues, attract & retain talent, & reduce risk & costs. By embracing CSR, SVT can not only improve its bottom line, but also contribute to the greater good of society.

27. Using the case study, explain two strengths and one weakness of SVT. [6]

Two strengths of SVT are:

1. Monopoly in Regional Water Supply Networks - SVT has a regional monopoly in each country in which it operates, providing it with significant competitive advantages. This ensures that the company is the sole provider of potable water to its customers, allowing it to set prices and control the market. This also eliminates the need for competition, providing SVT with a stable revenue stream. For instance, SVT's Fresh Water Division supplies potable water to over 1 million people in Norway and millions of households in over 20 other countries, giving it a dominant market position.
2. Diversified Business Portfolio - SVT has diversified its business portfolio by expanding into other business sectors, such as desalination and household water treatment products, through the acquisition of other companies. This has enabled the company to increase its sources of revenue and spread its risks across different sectors. For example, the Desalination Division of SVT provides two income streams by manufacturing and operating desalination plants worldwide, and by producing smaller desalination plants for installation on seagoing vessels. This  has enabled the company to be less vulnerable to market fluctuations.

• One weakness of SVT is:

1. Resistance to Change - its employee's resistance to change, particularly in terms of shifting to a new working schedule. This was evident when the company took over H4 & attempted to modernise its operations by introducing a 24/7 shift pattern, but met resistance from a significant number of long-serving employees. This resistance could have led to a loss of productivity and hampered the company's efforts to achieve its goals. Although the company overcame this resistance by offering a one-time incentive payment to employees who agreed to sign a new flexible-working contract, it still resulted in a significant exodus of employees who refused to sign the new contract, leaving the company with 300 vacancies to fill.

• Clashes between stakeholders as Yannick & Ariadne or the directors not deciding WF15 strategy.

• Overall, despite this weakness, SVT's strengths of having a regional monopoly in its market and a diversified business portfolio have enabled it to be successful in providing potable water and related products to customers around the world.

28. Describe how SVT's external growth strategy may help it to become brand leader in Europe and the US (lines 91 - 92). [4]

• Increased market share: By acquiring other companies, SVT can increase its market share and expand its customer base. This can help the company to establish a stronger foothold in the markets where it operates and gain a competitive advantage over its rivals.
• Diversification of product portfolio: Through acquisitions, SVT can expand its product offerings and diversify its portfolio, allowing it to cater to a wider range of customer needs and preferences. This can help the company to attract more customers and strengthen its position in the market.

29. Explain two advantages and one disadvantage of external growth strategies of SVT’s Fresh Water Division (lines 27 - 33). [6]

• Advantages:

• Increased market share: External growth through acquisitions or partnerships with other water companies can help SVT's Fresh Water Division gain access to new markets & increase market share. This can help division to achieve economies of scale, reduce costs & increase profitability.
• Diversification: By acquiring other water companies or investing in new water projects, SVT's Fresh Water Division can diversify its product range and reduce its reliance on any one market or product. This can help to reduce the impact of market fluctuations and provide the division with more stable revenue streams.
• Disadvantages:

• Integration challenges: Acquiring or partnering with other companies can lead to integration challenges, including issues with culture, management styles, & communication. These challenges can be time-consuming & costly to overcome, & may distract the division from its core business activities.

• Costs and opportunity cost

30. Explain two possible reasons for SVT's decision to take over H4 PLC in 2015 (lines 49 - 50). [6]

• Diversification: SVT's Engineering Division was primarily focused on manufacturing water treatment equipment and power turbines. By acquiring H4 PLC, SVT diversified its product range and gained access to H4's expertise in manufacturing steam and gas turbines. This would allow SVT to expand its operations and potentially increase its revenue streams, especially in the area of electricity production.
• Economies of scale: SVT's takeover of H4 PLC allowed it to achieve economies of scale in the manufacturing process. By combining operations of both companies, SVT could increase production efficiency, reduce costs, & improve overall profitability. Moreover, by modernising H4's factories and implementing a new shift pattern, SVT maximised the use of its assets and increase production capacity.

31. Outline two STEEPLE factors that influence SVT’s growth strategies [4]

• Environmental: Climate change and increasing global temperatures are leading to changes in the availability of potable water in many parts of the world. This is likely to increase demand for SVT's products and services, particularly in areas where water scarcity is becoming a pressing issue. SVT could respond by expanding its operations in areas experiencing water shortages, or by investing in research and development to develop new, more efficient water treatment technologies.
• Political: As a provider of critical infrastructure, SVT is likely to be affected by political decisions related to water management and regulation. Changes in government policies or regulations, particularly in regions where SVT has a regional monopoly, could have a significant impact on the company's growth prospects. For example, new regulations could make it more difficult for SVT to expand its operations in certain countries, or could require the company to make significant investments in new technologies or infrastructure to meet new standards.

32. Explain two possible types of EOS for SVT as a large multinational company [6]

1. There are the cost-saving advantages that businesses can enjoy by enlarging the scale of its output. Examples of possible EOS for SVT include:

• Technical : Being a large business, SVT can afford to invest in sophisticated and innovative technologies to increase scales of output, thereby reducing the per unit cost of production. H4 PLC’s factories also operate 24/7, using modernised operations, which again helps the company to achieve technical goals .
• Financial : Large businesses like SVT are usually able to borrow more money and at a lower cost (interest rate change). This is because they are more ‘credit worthy’. For example, SVT represents lower risk for a financial lender, such as a commercial bank, because it is an established multinational company with operations in 21 countries and is profitable so can benefit from more favourable rates of borrowing.
• Marketing : Large businesses like SVT can spread their advertising and substantial marketing budgets over a large volume of output as well as purchasing their stocks/inventory in bulk, at discounted prices, e.g, electric pumps, pressure gauges, hoses, and osmosis systems (water filtration system).

Unit 2: Human Resource Management

1. Explain the importance of the human resource management (HRM) department [6]

1. Human resource management refers to the business function or department responsible to all aspects of personnel in an organisation.

• A division where HRM is important is in terms of Human resource planning. This is the management process of forecasting an organisation's future demand for, and supply of, human resources in order to ensure that it has the optimal number of employees with the right skills in the right place at the right time. Given the large scale of operations, including employees at Geng PLC and H4 PLC, this function is vital at ensuring the company operates efficiently.
• Another area where it is important is for the training and development of employees. They provide adequate and relevant training. This training can have a positive impact on staff motivation and productivity because confident and competent employees lead to greater job satisfaction and higher levels of output. At SVT this includes training employees so that they feel sufficiently upskilled to transition to new work systems and processes, such as the innovative technologies introduced at the company to enhance the speed and quality of production lines.
• The HRM department is also responsible for managing organisational change as well as the potential resistance to change that often comes with this. This includes communicating the purpose and benefits of change and developing improved communications channels. This can help to prevent conflict within the workplace, such as the mass exodus of highly experienced employees when H4 PLC was taken over by SVT.

2. Give/list examples of financial (extrinsic) and non-financial (intrinsic) motivators.

• Financial (extrinsic) motivators:

1. Salary (increase) / Wages / Bonuses
2. Commission or profit-sharing
3. Stock options or equity in the company
4. Fringe benefits: providing benefits to employees, ex: health insurance or retirement plans
5. Paid time off or vacation days
6. Expense accounts or reimbursement for work-related expenses
7. Tuition reimbursement or professional development opportunities
8. Performance-related pay or Profit-related pay
9. Travel allowances or company-paid trips
10. Signing bonuses or relocation assistance

• Non-financial (intrinsic) motivators:

1. Recognition and praise for a job well done
2. Opportunities for personal growth and development
3. Autonomy and decision-making authority
4. Feeling of accomplishment or job satisfaction
5. Meaningful work that aligns with personal values
6. Positive work environment and company culture
7. Opportunities for creativity and innovation
8. Flexibility in work schedule or location
9. Collaborative work environment and teamwork
10. Feeling of making a difference or contributing to a greater cause.
11. Job enlargement, job rotation, job enrichment, empowerment and training.

3. Outline one monetary incentive and one non-monetary incentive to motivate employees at SVT. [2]

• In the case study, SVT offered a one-time incentive payment to employees who agreed to sign a new flexible-working contract in the Engineering Division. This was a monetary incentive that motivated some employees to accept the new contract and work a different shift pattern. This shows that monetary incentives can be effective in motivating employees to take specific actions.
• One non-monetary incentive that SVT could use to motivate employees is recognition and praise for good performance. This could include public recognition in company-wide meetings, emails from senior management, or awards for outstanding performance. This type of incentive can be particularly effective for employees who are motivated by a sense of achievement or recognition, rather than purely financial rewards. Another non-financial motivation is self-fulfilment which SVT promotes by sending employees off to service programs, this makes them a contributor to the good in the world as well as part of SVT’s strong CSR.

4. Compare and contrast the leadership style of Yannick and Ariadne. [6]

• Yannick and Ariadne have different leadership styles. Yannick has a situational leadership style, which is adaptive and flexible, while Ariadne's style is perceived by some employees as autocratic. Yannick is able to respond quickly to unexpected changes in the external environment, such as finding alternative sources of potable water in response to climate change. On the other hand, Ariadne's leadership style has led to the Engineering Division being one of the industry leaders in productivity per employee. However, Yannick has clashed with Ariadne on several occasions because machinery needed to update water treatment plants has been delayed due to Ariadne having different priorities.
• In summary, Yannick's situational leadership style works well in a division that has to respond quickly to unexpected changes, while Ariadne's autocratic leadership style has led to high productivity but may hinder collaboration and adaptability in response to changes.

5. Examine the effectiveness of the leadership style displayed by Yannick[4]

• Yannick’s situational leadership style
• Can respond to the uncertain situation
• Enhances team performance.
• Creates a better work environment for the team members.

6. Explain 2 reasons for which SVT’s employees in the engineering division may have resisted change [4]

• Fear of job loss: SVT was looking to appoint highly skilled and specialised employees, and these skills were in short supply in the UK. If SVT had decided to automate some of its processes or organisaurce jobs to other countries, employees may have been concerned about job losses or redundancies. This fear could have made them resistant to change.
• Lack of training: The new employee induction training included a visit to SVT's flagship factory in Norway, which utilises innovative technologies to enhance the speed and quality of production. However, if the changes required new skills or knowledge that employees were not familiar with, they may have been resistant to change due to a lack of training or support. They may have felt overwhelmed or unsure of how to adapt to the new processes, which could have led to resistance.

7. Examine the effectiveness of the leadership style displayed by Adriane [4]

• Many employees view her as an autocratic leader. Advantages of this can include: Quick decision making because Adriane makes all decisions within SVT’s Engineering division. Another advantage is that all expectations and communications are clear, productivity may be high. After all, the Engineering Division is an industry leader in terms of productivity per employee. However there are some disadvantages, one can be the demotivational effects because employees are not empowered to make autonomous decisions. There also might be a lack of trust within the team as communication is top-down and one way only. Therefore, highly skilled and experienced team members of the Engineering Division may feel there is a lack of trust in them when making important decisions. 

8. Draw the organisational chart of SVT . [4]

9. With reference to SVT, describe two steps in recruiting employees. [4]

• Identification - defining job description, basic roles, responsibilities, necessities needed to fulfil job.
• Selection - analysing & reading different applicant CVs & deciding who is best suited for the job described.

10. Define Induction training. [2]

• Induction is training done to new recruits to familiarise them with the firm's policies as to decrease the time needed to be familiar, which impacts productivity.

11. Explain two advantages of induction training towards SVT employees [4]

• Faster Adjustment: Induction training helps new employees to adjust to their new work environment and job role more quickly. This can be achieved by introducing employees to the company culture, policies, and procedures, as well as the expectations and responsibilities of their job. For example, SVT's HR department arranged for new employees hired to fill vacancies created by the exodus of former employees from H4 to undergo induction training that included a visit to SVT's flagship factory in Norway. This helped new employees to familiarise themselves with the company's culture and innovative technologies used in production, making it easier for them to adjust to their new roles.

• Improved Job Satisfaction: Induction training can also contribute to job satisfaction, as it helps employees to feel confident and prepared for their job. This can reduce stress and anxiety, leading to a more positive work experience. For instance, SVT offered a one-time incentive payment to employees who agreed to sign a new flexible-working contract, which would include accepting a new shift pattern Nevery six months. This not only helped the company to overcome resistance to the new shift pattern but also helped employees who accepted the contract to feel more satisfied with their job, as they were able to adapt to the new working hours while receiving additional financial incentives.

12. Explain the factors leading to low labour turnover in the engineering division. [4]  

• The company's strong CSR policy which motivates employees according to Pink's motivational theory (sense of purpose)
• The flexible working contract could have boosted employee morale and motivation as they feel they have more control over their job
• SVT made use of non-financial motivators such as job enrichment when it made H4 employees visit its plants in Norway or in its Outreach programme where they fixed infrastructure or taught in schools
• the organisation.
• SVT made use of non-financial motivators such as job enrichment when it made the H4 employees visit its plants in Norway or in its Outreach programme where they fixed infrastructure or taught in schools.
• It was implied that Ariadne's leadership style is effective, as employee productivity was high. That means leadership provided a clear sense of direction to its employees

13. Explain how SVT could overcome high labour turnover [4]

• High labour turnover can be difficult to overcome as it can create a bad image for the firm

• SVT can overcome high labour turnover by advertising the jobs in areas that have the type of workers that they need, for example on online platforms such as LinkedIn.
• Implementing motivation theories such as job enlargement and job enrichment. Job enlargement is basically giving workers variety in what they do, and job enrichment is giving employees more challenging and complex tasks so that they can reach their full potential. This leads SVT to overcome high labour turnover as it gives the employees a higher sense of responsibility and confidence when it comes to being trusted with responsibilities and decision making for the company.

14. How did the flexible work-time contract affect SVT positively? [4]  

• SVT has to pay less for resources. Due to flexible work time contracts
• The company has to spend less money on infrastructure as the employees just come and go according to their preference. Due to employees having flexible work-time contracts, they are more motivated as they can work according to their time comfort and preference. This is highly motivating as the employees will put in higher efforts into their work, as they will be working when they are highly energised and motivated. Another way that the contract affected SVT positively is that, due to the fact that the older employees left the company, this created an opportunity for SVT to recruit and hire new and younger employees with a higher and newer skill set, which will allow new ideas to come into the company. This will be highly beneficial for the company in the long run.

15. Examine the reasons why employees at H4 PLC were resistant to change. [8] HL

• The reason for resistance to change at H4 PLC was due to the older employees' self interest. They preferred the old working timing and they worried about how this change would affect them opposed to the beneficial change in the organisation that caused a resistance to change
• Social patterns
• Self interest
• Fear to change at their age, and not being able to adapt to new patterns and technologies..
• Change often brings uncertainty and unpredictability, which can be unsettling for employees who are used to a certain routine or way of doing things.

16. Explain 2 benefits to SVT of having flexible working contracts . [4]

• Improved employee retention: Offering flexible working contracts can help SVT to retain valuable employees who may have other commitments, such as caring for children or elderly relatives. By offering flexible working arrangements, SVT can demonstrate that it values its employees and is willing to accommodate their needs, which can help to improve employee morale and reduce turnover.
• Increased productivity: Flexible working contracts can also lead to increased productivity, as employees may be able to work more efficiently when they have greater control over their work schedule. For example, if an employee is able to work from home, they may be able to avoid a long commute and use that time to focus on work instead. This can lead to higher levels of job satisfaction and better performance.

17. Explain any 2 potential external forms of recruitment adopted by the HR department of the engineering division. [6]

• Job fairs: Job fairs are events where employers can meet potential candidates and provide information about job opportunities. The HR department of the engineering division could attend job fairs to attract candidates with the necessary skills and experience for open positions. This approach can be particularly effective for entry-level positions or positions that require specific technical skills.
• Social media: Social media platforms such as LinkedIn, Twitter, and Facebook can be used to advertise job openings and attract potential candidates. The HR department of the engineering division could use social media to reach a wider audience and target candidates with specific skills or experience. Social media can also be used to build relationships with potential candidates and create a talent pool for future recruitment needs.

18. Using any two relevant motivational theories examine the reasons behind employee turnover in the engineering department of SVT. [8]
19. Explain the importance of induction training to an organisation like SVT . [4]

• Induction training is a type of training that an employee receives when first starting a job, this is a type of on the job training. Induction training is important for the employee as it teaches them the workings of the organisation and the company’s organisation culture.

20. Examine the one-time incentive scheme adopted by SVT for their engineering division. [6]
21. Apply Daniel Pink's theory to SVT. [6] Describe one advantage and one disadvantage of high staff turnover resulting from SVT’s modernization programme for H4 PLC (lines 56 - 64). [4]
22. With reference to SVT, describe two functions of the human resources department (line 59). [4]
23. Explain the suitability of SVT's organisational structure by product (line 10). [6 or 8]
24. Describe how SVT's Outreach Programme may impact the motivation of its employees. [4]
25. Explain two financial and one non-financial methods that H4 PLC could have used to keep its employees motivated (lines 54 - 55). [6]
26. With reference to SVT, distinguish between charities and non-governmental organisations (NGOs) [4]

• A charity is a non-profit organisation set up to provide help and raise money or aid for those in need. Charities typically rely on donations to fund their operations. Charities are typically focused on providing direct.  

27. Using appropriate motivational theory, explain the factors that affect the level of motivation at SVT. [6]
28. Outline two possible sources of conflict between Ariadne and Yannick (HL only). [4]
29. Explain the reasons for resistance to change by some of H4 PLC's employees after the takeover by SVT in 2015 (HL only). [6]

Unit 3: Finance & Accounts

1. Evaluate any two Sources of Finance (SOF) available to a profitable organisation like SVT. 10]

• Bank Loans: a traditional source of financing that allows a company to borrow a sum of money from a bank and pay it back with interest over a set period of time. This type of financing is usually used for long-term investments, such as purchasing new equipment or expanding operations. SVT can use bank loans to finance its expansion plans, including building new water treatment plants or acxquiring new companies. One advantage of bank loans is that they usually offer lower interest rates compared to other forms of financing, such as issuing bonds. However, the disadvantage is that the company is needed to pay interest on the loan which may have strans on the net profits.
• Equity Financing: involves selling shares of a company to investors in exchange for capital. This type of financing can be used to fund a variety of business activities, such as research and development, marketing, and expansion. One advantage of equity financing is that the company does not have to pay back the capital or interest, as investors receive a share of ownership in the company instead. This can be a great way for SVT to raise large sums of money without taking on debt or risking bankruptcy. However, the disadvantage is that the company will need to share control and profits with its investors, which can lead to conflicts of interest and a loss of autonomy.
• In conclusion, bank loans and equity financing are two viable sources of financing for a profitable organisation like SVT. Each option has its own advantages and disadvantages, and the choice ultimately depends on the company's specific needs and financial situation.

2. Examine any 2 SOF available to them for launching WF15. [6]

• Equity financing: SVT could consider issuing new shares in order to raise the required capital for the launch of WF15. This would involve selling ownership in the company to new investors in exchange for cash. Equity financing has the advantage of not creating any debt obligations for the company, which can be attractive to investors who are concerned about a company's debt level. Additionally, if SVT is able to successfully launch WF15 and generate profits, the value of the company could increase, leading to capital gains for shareholders. However, equity financing can dilute the ownership stake of existing shareholders, which may lead to a decrease in the value of their shares.
• Bank loan: SVT could also consider obtaining a bank loan to finance the launch of WF15. This would involve borrowing a fixed amount of money from a bank, with a set repayment schedule and interest rate. Bank loans have the advantage of providing a fixed source of financing, which can help with budgeting and planning. Additionally, the interest paid on the loan is tax deductible, which can reduce SVT's tax burden. However, bank loans also create a debt obligation for the company, which can be a burden if the launch of WF15 is not successful and the company is unable to generate sufficient profits to make the loan payments.
• Overall, both equity financing and bank loans have their advantages and disadvantages. SVT should carefully consider its financial needs, the potential risks and rewards of each financing option, and its ability to repay any debt before making a decision.

3. Outline one fixed cost and one variable cost for SVT. [2]

• Fixed cost for SVT could be the salaries and benefits of their executive team. This cost remains the same regardless of the level of production or sales.
• Variable cost for SVT could be the cost of raw materials, such as chemicals and energy used in the water treatment and desalination processes. This cost will vary depending on the level of production or sales.

4. Explain subsidy as a SOF. [4]

• A subsidy is financial assistance provided by the government or a public authority to support a specific activity or industry. It is a form of financial support given to businesses, organisations, or individuals to help them offset their costs or increase their revenue.
• In terms of finance, a subsidy can be seen as a source of funding because it provides financial resources to the recipient. For instance, a government may provide a subsidy to a business to help it start or expand its operations, or to encourage the development of a new technology or product.
• Subsidies can take various forms, such as cash payments, tax exemptions, loan guarantees, or direct funding. They can also be targeted towards specific industries or groups of people, such as farmers, small businesses, or low-income households.
• From the perspective of recipient, subsidies can be a valuable SOF because they can help reduce the cost of production, increase revenue, or provide access to capital that might otherwise be unavailable.

5. Describe two suitable SOF for SVT's WF15 project in LEDCs (lines 126 - 131). [4]

• One SOF SVT can be the retained earnings SVT has developed over the years of being a PLC, through the profits and share capital they obtain. This internal SOF will not pose threat to SVT, as no external factors will affect the financial inflow and outflow throughout their sourcing for WF15.
• Another source includes government grants and/or subsidies as the government can directly assist SVT in raising finance for initiation for the WF15 project. This could also pose threats to SVT through reporting requirements and other legalities, as the requirements to submit reports can be time consuming as well as inaccuracy would lead to several problems within the financial calculations and the trust within the organisation.

6. Outline how SVT benefits from a fall in its unit costs (line 75). [3]

• As the cost per unit decreases, SVT gains economies of scale. Economies of scale allows SVT to grow in the market, make their product more efficient and developed in the market. It allows them to generate more revenue.

7. Explain the importance of the substantial marketing budget that the directors have approved for the Consumer Products Division (lines 93 - 94). (HL only) [6]

• Become brand leader in Usa and Europe.
• This will help consumer products division to become a star taking into consideration BCG
• Becoming a brand leader may change SVT to product orientation from market orientation.
• Availability to expand through takeovers of larger firms

Unit 4: Marketing

1. Define market share. [2]

The percentage of all sales in a market that is held by a business

Measured in terms of volume and value

2. Explain the usefulness of secondary data as a method of research. [6]
3. Explain any 2 pricing strategies that SVT can adopt for WF15 [6]

• Cost plus - This pricing strategy adds a fixed amount (mark-up) to the actual cost of producing water purifier. Hence, SVT would first determine the cost of purifiers and then add a fixed mark-up to the cost of the purifiers in order to determine the selling price. This piece would then be applied when selling the purifiers in less economically developed countries. By setting the price in this way, SVT can ensure that it is earning a profit while still offering a competitive price to their customers. THis would address the issue of two of the SVT directors who are against subsidising the WF15 water purifiers and making other stakeholders in the business unhappy, such as shareholders who may receive lower dividends.
• Loss leader pricing - This could be an effective way for SVT to increase sales of the WF15 water purifiers, particularly in low-income countries. This pricing strategy involves selling the product at a very low price, even at a loss, in order to attract customers and increase sales of other products. In the case of selling water purifiers in low-income countries, SVT could absorb all of this as a loss as part of its corporate social responsibility program by offering a basic, low-cost water purifier at a significantly reduced price. Although the business would make a loss on the sale of the WF15 water purifier, it is what several directors want, i.e the product to be a non-for-profit operation.

4. Explain one advantage and one disadvantage if SVT adopts a low-price strategy for the WF15 water purifiers [4]

• As pointed out by Jayne Deez, a low-pricing strategy aligns well with SVTs long standing vision statement (which has remained the same since its founding). Doing so will make these water purifiers more accessible to the many low-income individuals and households in LEDCs.
• Due to the perception associated with low prices, SVT may deter some customers who are more concerned about the quality of healthcare products and devices. This can have a negative impact on the demand for the WF15, even in low-income economies and despite the product meeting quality standards set by the WHO.

5. Prepare a suitable promotional mix for WF15 as a product. [6]

• Advertising: involve creating ads for print, online, and broadcast media. The ads should highlight the benefits of using the portable water purifier, such as clean and safe drinking water on-the-go.
• Public relations: This could involve generating positive publicity for the portable water purifier through media coverage, social media, and influencer marketing. The focus should be on creating awareness of the product and its benefits.
• Direct marketing: This could involve reaching out to potential customers directly through email, mail, or social media. The messaging should be tailored to the target audience and emphasise the convenience and affordability of the portable water purifier.

6. Examine the channel of distribution that SVT can adopt for WF15. [6]

• Business-Wholesaler-retailer-consumer
• B2C
• Ecommerce
• Adv and Dis
• Agents ( Since they have less information about the area. Though it could be expensive, it can be added to cost plus pricing if chosen )

7. What is the importance of branding for SVT? [4]

• What is branding? Why branding is important customer loyalty brand awareness. These are few ways that branding is important ; Brand image, reputation.

8. What type of advertising is recommended for SVT to recruit specialised & highly skilled employees? [6]

• 1. Online advertising: SVT can use online job boards and social media platforms to advertise job vacancies. This can help reach a wider audience and attract candidates who are actively looking for job opportunities.

• 2. Referral programs: SVT can also use referral programs to encourage current employees to refer qualified candidates for job vacancies. This can help attract candidates who are already familiar with the company culture and values.
• 3. Industry events: SVT can participate in industry events and job fairs to promote job vacancies and attract candidates who are interested in working in the water supply industry. This can help reach a targeted audience and attract candidates who are passionate about the industry.

9. Recommend a form of marketing for the WF15 according to the results of their secondary market research conducted. [4]

• Viral marketing

10. Suggest a New marketing Mix for WF15 [10]

• WF15 is a household water filter produced by Skandvig Terra PLC's Consumer Products Division. The marketing mix, also known as the 4Ps, comprises product, price, promotion, and place.
• Product: WF15 is a high-quality, durable water filter that removes contaminants from household water, making it safe to drink. Skandvig Terra PLC's Consumer Products Division can improve  the product by introducing new filter technology that removes more types of contaminants, making it more appealing to customers who are health-conscious. They can also introduce new colours and designs to make it more attractive to customers.
• Price: a crucial component of the marketing mix. SVT PLC's Consumer Products Division can price the WF15 competitively to make it more accessible to customers. They can also offer discounts and promotions, such as a buy-one-get-one-free offer or a free filter with the purchase of a WF15.
• Promotion: how a company communicates the benefits and features of its product to potential customers. Skandvig Terra PLC's Consumer Products Division can promote the WF15 through social media platforms, to reach a wider audience. They can also collaborate with social media influencers to endorse the product. The company can also advertise the product on television, radio, and billboards.
• Place: WF15 is currently sold through online retailers and select physical stores. Skandvig Terra PLC's Consumer Products Division can expand the product's distribution by partnering with more retailers to increase its availability. They can also create a direct-to-consumer website to sell the WF15 and offer free shipping to customers who purchase the product online.
• In conclusion, Skandvig Terra PLC's Consumer Products Division can improve the marketing mix of the WF15 by introducing new filter technology, pricing it competitively, promoting it through various platforms, and expanding its distribution.

11. Explain how sales forecasting calculations can help SVT's Desalination Division to benefit from the growing opportunity in the demand for cruise holidays (lines 43 - 45). (HL only) [6]

• Sales forecasting allows a company to forecast the sales it will make in the coming months or even years. This is typically done to help with managing production, and output produced.
• In the case of SVT and their desalination division, it will help them in regards to productivity efficiency, due to the desalination market growing rapidly and demand increasing. Moreover it will improve their budgeting as the desalination division can estimate how much will be needed each month to be able to achieve the needed amount of plants per year.

12. Describe the significance of first hand data collected by Jayne Dees in Sudan (line 107 - 111). [4]

• The first-hand data collected by Jayne Dees in Sudan is significant for SVT because it provides valuable insights into the water supply challenges faced by people in developing countries. By experiencing the challenges firsthand, Jayne Dees was able to identify the need for low-cost, easily transportable water purifiers that can be used in countries where access to potable water is limited. This information can help SVT develop new products and services that are tailored to the needs of customers in developing countries. Additionally, the first-hand data collected by Jayne Dees can also help raise awareness about the water supply challenges faced by people in developing countries and encourage more companies to invest in sustainable solutions.

13. Outline two advantages for SVT's Consumer Products Division being a brand leader (line 92). [4]      

• One advantage for SVT's Consumer Products Division being a brand leader is increased brand recognition and customer loyalty. This can lead to increased sales and market share, as customers are more likely to choose a well-known and trusted brand over competitors. In the case of SVT's WF15 product, being a brand leader could help establish the product as a trusted and reliable source of clean drinking water, which could be especially important in areas where access to clean water is limited.
• Another advantage of being a brand leader is the ability to charge premium prices for products. Customers are often willing to pay more for products from a well-known and trusted brand, which can lead to higher profit margins for the company. In the case of SVT's WF15 product, being a brand leader could allow the company to charge a premium price for the product, which could help offset the costs of developing and distributing the product in LEDCs.
• Able to expand through externally acquiring bigger companies instead of small manufactures

14. Explain two benefits and one disadvantage for SVT having regional monopoly power in the countries in which it operates (line 7). [6]

• One benefit of SVT having regional monopoly power in the countries in which it operates is that it allows the company to have greater control over the market. This can lead to increased profits and a more stable business environment. For example, SVT's regional monopoly in Norway allows the company to have greater control over the water supply market, which can help ensure a steady stream of revenue for the company.
• Another benefit of having regional monopoly power is that it can lead to greater efficiency & economies of scale. By having a monopoly, SVT can invest in infrastructure and technology that can help improve the efficiency of its operations. This can lead to lower costs and higher profits for the company. For example, SVT's regional monopoly in Norway allows the company to invest in water treatment plants and regional water supply networks, which can help improve the efficiency of its operations.
• One disadvantage of having regional monopoly power: lead to a lack of competition, which can stifle innovation and lead to higher prices for consumers. Without competition, SVT may have less incentive to invest in new technologies or improve its products and services. Additionally, without competition, consumers may have fewer options and may be forced to pay higher prices for water supply services.

15. Recommend a suitable distribution channel for the WF15. [4]

• A distribution channel that is suitable for WF15 are wholesalers, this allows for the producers to not have to focus on marketing but rather producing the product. Moreover there are lower transaction costs as the wholesalers are the customers and are the ones buying the products.

16. Describe the importance of effective distribution channels for SVT to distribute consumer products in LEDCs  

• Distribution channels describe how the final good or service, such as the WF15 water purifier, passes from the producer to consumers in LEDCs (the end users). They enable the company to get products from the manufacturer to the end consumer.
• Distribution channels are even more important in less economically developed countries as they often face exceptional challenges including inferior infrastructural, communication, and transportation networks (such as road and rail systems).
• Effective distribution channels are necessary to ensure that SVT products are delivered efficiently and safely in a timely manner. This can also provide SVT with a competitive advantage by giving the business a presence in LEDCs, not necessarily for a profit but an improved corporate image for supporting low-income in LEDCs.

17. Describe two suitable pricing strategies that SVT can use for the WF15 water purifier. [4]

• Loss leader pricing: This strategy involves setting a low price for a product to attract customers and increase sales volume, even if it means selling the product at a loss. SVT can use this strategy for the WF15 water purifier to encourage customers to try the product and establish a loyal customer base. Once customers are familiar with the product and its benefits, SVT can introduce complementary products or services at a higher price point to offset the losses.
• Price discrimination: This strategy involves setting different prices for the same product based on the customer's willingness to pay. SVT can use this strategy for the WF15 water purifier by offering different pricing tiers based on the customer's income level or geographic location. For example, SVT can offer a lower price for customers in low-income areas or countries, while charging a higher price for customers in high-income areas or countries.

18. Outline how SVT can benefit from levels of social media usage fast approaching the levels seen in advanced economies (line 138). [4]

• Increased brand awareness. With more people using social media, businesses have the opportunity to reach a wider audience and increase their brand awareness. By using social media platforms such as Facebook, Twitter, LinkedIn, and Instagram, businesses can create a strong online presence and engage with their target audience.
• Better customer service. Social media provides businesses with an additional channel for providing customer service. Customers can use social media to ask questions or report issues, and businesses can respond quickly and efficiently, improving the overall customer experience.

19. Suggest two possible pricing strategies that SVT can adopt for its WF15.

1. Price discrimination: SVT can charge different prices to different countries. For instance, it can charge cheaper prices for LEDCs for them to afford it and slightly higher prices for MEDCs to make a profit.
2. Cost-plus pricing: SVT can calculate the average unit cost of producing a WF15 and a percentage markup. This ensures that WF15 covers its costs and recoups its R&D costs. However, using cost-plus pricing may not appeal to the market as it may be too expensive for LEDCs.

20. Discuss the two marketing strategies that SVT can use? [4?]

• 1. Differentiation strategy: This strategy involves creating a unique product or service that stands out from competitors. SVT can differentiate its products by highlighting their quality, reliability, and environmental sustainability. For example, SVT can promote its WF15 product as a high-quality water filter that is easy to use and maintain, and that provides clean and safe drinking water. This can help differentiate the product from competitors and attract customers who are looking for a reliable and effective water filter.
• 2. Cost leadership strategy: This strategy involves offering products or services at a lower cost than competitors. SVT can use this strategy to attract price-sensitive customers who are looking for affordable water supply solutions. For example, SVT can offer its desalination services at a lower cost than competitors by investing in more efficient technology and infrastructure. This can help attract customers who are looking for affordable and reliable water supply solutions.

Unit 5: Operations Management

1. Define labour productivity, capacity utilisation HL

• Labour productivity:It is a measure of the efficiency of a firm’s workers by calculating output per worker. It is an indicator of the current level of skills and motivation of the workforce.
• Capacity Utilisation: It measures a firm’s existing level of output as a proportion of its potential output. High capacity utilisation means that the firm is producing close to its productive capacity.

2. Examine the impact of implementing sustainability on SVT [10]

• Improved reputation: By implementing sustainable practices, SVT can improve its reputation as a socially responsible company. This can help attract customers who are looking for environmentally friendly products and services, and can also help attract investors who are interested in socially responsible companies.
• Cost savings: Implementing sustainable practices can also lead to cost savings for SVT. For example, by investing in more energy-efficient technology and infrastructure, SVT can reduce its energy consumption and lower its operating costs. Additionally, by reducing waste and improving resource efficiency, SVT can also reduce its material and disposal costs.
• Regulatory compliance: Implementing sustainable practices can also help SVT comply with environmental regulations and avoid fines and penalties. By reducing its environmental impact, SVT can also reduce its exposure to legal and reputational risks.
• Innovation: Implementing sustainable practices can also drive innovation and help SVT develop new products and services. For example, by investing in research and development, SVT can develop new technologies and solutions that are more environmentally friendly and efficient.
• Competitive advantage: Implementing sustainable practices can also provide SVT with a competitive advantage. By offering environmentally friendly products and services, SVT can differentiate itself from competitors and attract customers who are looking for sustainable solutions. Additionally, by reducing its environmental impact, SVT can also improve its long-term sustainability and resilience.

3. Explain how SVT is environmentally and socially sustainable. [6]

• Environmental sustainability: SVT's Desalination Division manufactures and operates desalination plants around the world, providing a sustainable source of clean water. Additionally, SVT invests in research and development to develop new technologies and solutions that are more environmentally friendly and efficient. By reducing its environmental impact, SVT can improve its long-term sustainability and resilience.
• Social sustainability: SVT is committed to improving access to clean water and sanitation in developing countries. For example, SVT developed the WF15 water purifier, which is a low-cost, easily transportable water purifier that can be used in countries where access to potable water is limited. Additionally, SVT invests in education and training programs to help local communities develop the skills and knowledge needed to maintain and operate water treatment facilities. By promoting social sustainability, SVT can help improve the quality of life for people in developing countries.
• Corporate social responsibility: SVT is committed to being a socially responsible company. This includes investing in sustainable practices, promoting diversity and inclusion, and supporting local communities. By being a responsible corporate citizen, SVT can improve its reputation and attract customers and investors who are interested in socially responsible companies.

4. Explain whether the low cost purifier identified for the LEDCs is being adaptively creative or innovative. [4]

• The low-cost purifier identified for the LEDCs is both adaptively creative and innovative. It is adaptively creative because it is a new solution that has been developed in response to the specific needs and challenges faced by people in LEDCs. It is innovative because it uses new technology and design to create a product that is both effective and affordable. By combining adaptively creative and innovative approaches, SVT has developed a product that can help improve access to clean water in LEDCs and promote sustainable development.

5. Explain and evaluate the implications of the modernisation programme and reorganisation of the operations of H4’s UK factories. [10]

• The modernisation programme and reorganisation of the operations of H4's UK factories had several implications, both positive and negative.
• Positive implications:

• 1. The modernisation programme helped in upgrading the technology and equipment used in the factories, which increased the efficiency and productivity of the factories. The case study mentions that the modernisation programme involved the installation of new machinery and equipment, which helped in reducing the lead time and increasing the production capacity of the factories. This resulted in increased efficiency and productivity of the factories, which helped the company to remain competitive in the market.
• 2. The reorganisation of operations helped in streamlining the production process, which reduced the lead time and improved the quality of the products. The case study mentions that the reorganisation of operations involved the implementation of a new production system, which helped in reducing the lead time and improving the quality of the products. This resulted in increased customer satisfaction and improved the reputation of the company.
• Negative implications:

• 1. The modernisation programme and reorganisation of operations required a significant investment, which increased the financial burden on the company. This resulted in increased debt and reduced the profitability of the company in the short term.

• 2. The modernisation programme and reorganisation of operations required the employees to adapt to new technology and processes, which may have caused some resistance and disruption in the short term. The case study mentions that the modernisation programme and reorganisation of operations required the employees to adapt to new technology and processes, which may have caused some resistance and disruption in the short term. This resulted in reduced employee morale and increased turnover rate in the short term.

• In conclusion, the modernisation programme and reorganisation of operations had a positive impact on the performance of H4's UK factories, which helped the company to remain competitive in the market. However, the investment required and the short-term disruption caused by the changes were some of the negative implications that need to be considered.

6. Describe the importance of ecological sustainability for SVT's operations. [4]

• 1. Comply with environmental regulations and avoid penalties.
• 2. Meet the expectations of its stakeholders, including customers, investors, and employees.
• 3. Reduce its environmental impact and contribute to the protection of the environment.
• 4. Improve its reputation and competitiveness in the market.

7. Describe the importance of social sustainability for SVT's operations. [4]

• Reputation: Social sustainability can help to enhance SVT's reputation as a responsible and ethical company that cares about the well-being of people and communities.
• Stakeholder engagement: Social sustainability can help to engage stakeholders, including employees, customers, and local communities, in SVT's operations and decision-making processes, which can lead to better outcomes for all parties involved.

8. Describe the importance of economic sustainability for SVT's operations. [4]

• Financial performance: Economic sustainability is critical for SVT's financial performance and profitability. By maintaining a strong financial position, SVT can invest in research and development, expand its operations, and pursue new business opportunities.
• Innovation: Economic sustainability can drive innovation by encouraging SVT to develop new products and services that meet the needs of customers and address emerging market trends.
• Job creation: Economic sustainability can contribute to job creation by enabling SVT to expand its operations and hire more employees.

9. Outline how meeting quality standards set by institutions such as the World Health Organization (lines 123 - 125) is important for SVT's launch of the WF15 water purifier. [4]

• Credibility: meeting quality standards set by reputable institutions like the WHO can enhance credibility of SVT's products and services, which can help to build trust with customers and stakeholders.
• Compliance: meeting quality standards is often a legal requirement, & failure to comply can result in legal and financial penalties.y
• Safety: Meeting quality standards can help to ensure that SVT's products are safe for human consumption and do not pose any health risks.
• Market access: Meeting quality standards can help to ensure that SVT's products meet the requirements of different markets and can be sold in different countries, which can help to expand SVT's customer base and increase revenue.

10. Water contamination (lines 84 - 86) is an ever-present threat to SVT. Describe one advantage and one disadvantage for SVT's Fresh Water Division having a contingency plan. (HL only) [4]

• One advantage of SVT's Fresh Water Division having a contingency plan for water contamination is that it can help to minimise the impact of a contamination event on the company's operations and reputation. By having a plan in place, SVT can respond quickly and effectively to a contamination event, which can help to reduce the severity of the impact and prevent further damage. One disadvantage of having a contingency plan is that it can be costly to develop and implement. Developing a contingency plan requires resources, including time, money, and personnel, which can be a burden on the company's finances and operations. Additionally, implementing a contingency plan can require ongoing maintenance and training, which can also be costly.

Other Possible Questions

1. Explain one feature of a public limited company (PLC)  (line 1)

• A company’s shares are publicly traded on a stock exchange. Through this the Public Limited Company can raise capital by selling its shares to the public, as there is a large pool of investors.

2. Explain one advantage and one disadvantage of being a PLC to SVT (line 1)

• Advantage: SVT can raise its capital by issuing and selling its shares to the pool of investors. It also allows SVT to access a range of funding options, such as issuing new shares or borrowing against assets.
• Disadvantage:  As it is a PLC and numerous shares are issued to the public, the ownership of SVT will be more dispersed, and the original founders of SVT could possibly lose control over the business and its management and decision-making.

3. Explain one advantage and one disadvantage of a vision statement to SVT (line 2)

A: SVT management as well as employees would be driven by the motivation through the vision statement SVT has, which gives them an overall idea as to what their vision is, hence making aims.

D/A: The major disadvantage to SVT’s vision statement is its vague goal of “Making the world a safer place”. Numerous factors would have to be considered in order to achieve this vision statement’s aim, and may add to arising uncertainties within the employees and higher management. This in turn would negatively affect SVT and make it difficult for the PLC to achieve its goals.

4. Distinguish between a mission and vision statement  (line 2)

MISSION: a statement of business’s core aims, phrased in a way to motivate employees & to stimulate interest by outside groups.

VISION: a statement of what the organisation would like to achieve in the long term.

5. Discuss the effect of the acquisition to SVT (line 9)

1. SVT’s market share could possibly increase and can gain a competitive advantage in the growing vast market. Revenue and profit could increase.
2. Newer products and markets will be accessed in turn of SVT’s acquisition of other companies. This is seen in the case study where SVT’s takeover and expansion into other markets, such as the desalination market, and creating household water treatment products.
3. SVT’s acquisition of other companies results in an increase of economies of scale. As it combines its existing and new resources and products for an increase in reachability to these new markets. Cost savings and efficiency are one of the few outcomes of the acquisition.
4. Cultural clashes and other factors can arise between SVT and the other company, in this case Geng PLC. The cultures followed and adhered to will differ from that followed in SVT’s, which could lead to resistivity and reluctance to change.

6. Difference between takeover and acquisition (line 49) 

SVT took over its rival H4, essentially meaning: they bought the company, this is seen as “hostile takeover”, an acquisition, on other hand would mean that SVT only bought a portion of H4 & not entirely.

7. Internal VS external motivation factors (line 55)

Financial motivation looks at paying employees competitive salaries, this typically means that their salaries are increased, encouraging them to work harder. The one time incentive payment made, encourages and motivates the workers to continue working at SVT.

Topics that the Case Study Covers (important topics to study)

• Innovation
• CSR
• HR
• Globalisation
• Operations
• Marketing 
• Marketing mix
• External & Intsaernal Growth
• Stakeholder conflict
• Leadership styles
• Motivation
• Conflict resolution
• Organisational structure
• Acquisition/Takeover  
• Diversification
• Market research
• Sources of income
• Vision and mission statement
• Balance sheet
• Budgeting (HL)

https://www.scribd.com/document/625598037/ib-business-management-case-study-may-2023-svt-key-terms?secret_password=de0ELmrYAkKpEJK0q3ym#fullscreen&from_embed - Here is a link for some key terms…

Mock Paper 1 SL - SECTION A

Credit: saif

Mock Paper 1 SL Answers

1. (a) Describe one advantage and one disadvantage of SVT being a public limited company [4]

• Advantages:

1. Increased access to capital: As a PLC, SVT can raise large amounts of capital by issuing shares to the public. This provides the company with greater financial resources to invest in its operations, expand its business, and fund research and development activities.
2. Limited liability: Shareholders of a PLC have limited liability, which means that their personal assets are protected if the company faces financial difficulties. This makes investing in SVT more attractive to potential shareholders, as they can invest without the risk of losing more than the value of their investment.

• Disadvantage:

1. Increased regulatory requirements: As a publicly traded company, SVT is subject to various regulatory requirements, such as those related to financial reporting, disclosure of information, and corporate governance. Compliance with these regulations can be time-consuming and expensive, which can increase the company's administrative costs and reduce profitability.

(b) Explain possible  Economies of Scale that may apply to SVT. [6]

1. Explain two possible types of  for SVT as a large multinational company [6]

The cost-saving advantages that businesses can enjoy by enlarging the scale of its output. Examples of possible for SVT include:

• Technical: Being a large business, SVT can afford to invest in sophisticated and innovative technologies to increase scales of output, thereby reducing the per unit cost of production. H4 PLC’s factories also operate 24/7, using modernised operations, which again helps the company to achieve technical goals .
• Financial: large businesses like SVT are usually able to borrow more money & at a lower cost (interest rate change). This is because they are more ‘credit worthy’. For example, SVT represents lower risk for a financial lender, such as a commercial bank, because it is an established multinational company with operations in 21 countries and is profitable so can benefit from more favourable rates of borrowing.
• Marketing: Large businesses like SVT can spread their advertising and substantial marketing budgets over a large volume of output as well as purchasing their stocks/inventory in bulk, at discounted prices, e.g, electric pumps, pressure gauges, hoses, and osmosis system (water filtration system)

3. (a) With reference to SVT, explain one advantage and one disadvantage of an organisational structure based on product. [4]

• With reference to Skandvig Terra PLC (SVT), one advantage of an organisational structure based on product is that it allows for a clear division of responsibilities and expertise within the company. This is because each division can focus on its specific product and develop expertise in handling it. As a result, coordination problems that may arise under functional departmentation can be reduced.
• On the other hand, one disadvantage of an organisational structure based on product is that it can lead to a loss of central control over each separate division. This is because each division may focus more on its own goals rather than the overall goals of the organisation. This can result in duplication of functions and resources, leading to higher costs and less top management control.

(b) Explain how internal and external growth have helped SVT to grow. [6]  

1. Explain one method of internal and one method of external growth that SVT used [6]

• One method of internal growth that SVT used was expanding its product range through the creation of new divisions. SVT initially specialised in producing and delivering potable water in Norway, but in the 1980s, it expanded into other business sectors, including desalination and household water treatment products, by acquiring other companies. SVT also created four new divisions based on product: The Fresh Water Division, The Desalination Division, The Engineering Division, and The Consumer Products Division. This allowed SVT to diversify its product offerings and increase its revenue streams without relying on external acquisitions.
• One method of external growth that SVT used was through acquiring other companies. SVT has grown through both internal and external growth strategies. Its most recent acquisition was Geng PLC, a major water supplier in the United Kingdom (UK). Acquisitions allow SVT to rapidly expand its business and customer base, as well as to acquire expertise and resources that may not be available in-house. This strategy has helped SVT to expand its operations globally, supplying potable water to millions of households in over 20 countries, and becoming one of the industry leaders in productivity per employee.

SVT decided to produce the portable water purifiers “WF15” within the consumer products division. The board of directors finally decided to set a cost plus (mark up) pricing strategy for the “WF15”. Sales of household filters have exceeded forecasts and reached 10,000 filters for the year. All profits have been reinvested into developing the portable water purifier. The portable water purifier “WF15” is now fully developed and tested. The price and costs of the water purifiers once production has begun are estimated in the following table (Table 1)

The water portable purifiers will be first sold in Sudan. “Sudan Clean Water” (SCW) is a nationwide not-for-profit organisation established by wealthy Sudanese that live abroad. SCW’s objective is to provide clean potable water to all areas of Sudan. SVT is considering forming a joint venture for the sales and distribution of the portable water purifiers “WF15”in Sudan. SCW will have the majority ownership in the joint venture and will provide its expertise and local knowledge to help solve the sales and distribution of the purifiers in Sudan. SCW will sell and distribute “WF15” through volunteers that are present in all areas of Sudan. The volunteers will also train the locals on how to use the product. SCW will also provide senior managers for the human resources and marketing of the joint venture while SVT will be responsible for the production of the water purifiers. SCW will promote “WF15” through social media and sponsorships of local football events. However, SVT’s board of directors are worried about the success of the joint venture and the brand image of the portable water purifiers although this joint venture is an opportunity to make a real change to access to potable water in Sudan especially in rural remote areas.

4. (a) Define two characteristics of a not-for-profit organisation. [2]

• Non-distribution constraint: Any surplus revenues generated by the organisation must be reinvested in the organisation to further its mission rather than being distributed to owners or shareholders as profits.
• Tax-exempt status: Not-for-profit organisations are often exempt from paying certain taxes because they provide a public benefit.
• Their purpose is to help the society and not seek for profits. It's to help the community which may result in a positive change in the society.

Estimated cost and price data for WF15 (Table 1)

Fixed costs: $30,000 per year

Variable costs: $2.1 per item

Price: $2.5 per item

(b) (i) Using the information in above, calculate the break-even output for the portable water purifiers “WF15” (show all your working). [2]

fixed cost/unit contribution

Unit contribution = 2.5-2.1

30000/(2.5-2.1) = 75000

 (ii) Comment on the usefulness of break-even analysis to SVT. [6]

- Break-even analysis can be useful for SVT when considering the WF15 project by helping the company determine the minimum sales volume needed to cover the costs of production. This information can assist in setting sales targets and guiding pricing strategies. By calculating the break-even point, SVT can gain a clearer understanding of the financial feasibility of the project and make more informed decisions on product pricing.

However, there are limitations to break-even analysis in this context. The case study suggests that SVT's board of directors is contemplating a not-for-profit or even a subsidised pricing strategy for the WF15. In such scenarios, break-even analysis may be less relevant as the primary goal is to maximise social impact rather than profit. The focus on corporate social responsibility (CSR) and the need to make the WF15 affordable for those in LEDCs may lead the company to prioritise other factors over profitability.

Moreover, break-even analysis assumes a linear relationship between costs and revenues, which may not hold true for the WF15, given the unique market conditions in less economically developed countries (LEDCs). Factors such as fluctuating demand, variable production costs, and potential government interventions can complicate the break-even calculation and limit its accuracy.

In conclusion, while break-even analysis can provide some insights into the financial viability of the WF15 project, its usefulness may be limited given SVT's potential focus on social impact and the complexities of operating in LEDCs.

 (c) Recommend whether SVT should enter into a joint venture with SCW. [10]

Advantages

1. Access to new markets: Sudan is a large and growing market with a population of over 40 million people. SCW has a strong presence in Sudan and has developed relationships with key stakeholders, including the government, NGOs, and local communities. This would give SVT access to a new market that it would not be able to access on its own.
2. Shared risk and costs: A joint venture would allow SVT to share the risks and costs of entering the Sudanese market. SCW would be responsible for the sales and distribution of the water purifiers, which would free up SVT to focus on its core competency of manufacturing.
3. Access to local knowledge and expertise: SCW has a deep understanding of the Sudanese market and its challenges. This would be invaluable to SVT, which would be entering the market for the first time.
4. Positive brand image: A joint venture with SCW would be seen as a positive move by SVT. It would demonstrate its commitment to social responsibility and its desire to make a difference in the world.

Disadvantages

1. Loss of control: SCW would have a majority ownership in the joint venture, which would give it more control over the business. This could be a disadvantage for SVT, as it would not be able to make decisions without the approval of SCW.
2. Potential for conflict: There is always the potential for conflict between joint venture partners, especially when they have different goals and objectives. This could be a problem for SVT and SCW, as they have different missions and values.
3. Financial risk: A joint venture is a financial risk for both partners. If the joint venture is not successful, both partners could lose money.

Recommendation

I recommend that SVT should enter into a joint venture with SCW. The potential benefits of the joint venture outweigh the risks. SVT would gain access to a new market, shared risk and costs, access to local knowledge and expertise, and a positive brand image. While there is always the potential for conflict between joint venture partners, I believe that SVT and SCW can overcome this challenge by working together and communicating effectively.

However, it is important for SVT to carefully consider the risks of the joint venture before making a decision. SVT should ensure that it has a clear understanding of the terms of the joint venture agreement and that it has a plan in place to manage the risks. SVT should also make sure that it has a good understanding of SCW's business practices and its financial situation.

**Unanswered Questions**

(Someone please answer these ‘likely’ questions at the earliest)

1. Evaluate two external recruitment methods that SVT may have used to overcome the 300 job vacancies following the merger with H4 PLC. [4 marks]

• SVT may have advertised the job vacancies on various job portals and platforms such as Linkedin. This method is effective in reaching a large pool of potential candidates. They can also be targeted to specific job roles, experience levels, and geographic locations to ensure the right candidates are reached. (SVT wanted to appoint employees who worked well in a team environment, and were highly skilled and specialised) However, this method can be expensive, time-consuming, and may attract a large number of unsuitable candidates, requiring significant time and effort to filter through the applications.
• Campus Recruitment: This method involves visiting college campuses and career fairs to attract students and recent graduates who are seeking employment opportunities. This allows SVT to target specific majors and skill sets and can provide a large pool of potential candidates. However, this method may not attract experienced professionals.

2. Describe two steps of the recruitment that apply to SVT in its external recruitment process [4 marks]

• Conducting a job analysis, which involves scrutinising the different components of a job, such as the routine tasks and responsibilities of the post holder, and what the job entails (under its modernization programme). This also helps to verify the skills required to do the job, which is significant as SVT wanted to employ only highly skilled and specialised employees.
• Person specification, which is a document that profiles the ideal candidate, such as the qualifications and experiences sought by the employee. For example, SVT wanted to appoint employees who worked well within a team environment.
• After that it is important for the company to consider if they want to recruit Internally or Externally.
• Then the company conducts job interviews.
• And finally the shortlist people.

3. State two methods of internal growth for SVT [4 marks]

• Expanding their product line by developing new and innovative water filter products.
• Increasing their market share by expanding their distribution channels and entering new markets

4. Explain two advantages of internal growth for SVT [4 marks]

• Increased control: Internal growth allows SVT to maintain control over its operations and decision-making processes. By expanding its business through internal means, SVT can ensure that its growth is aligned with its strategic objectives and values. This can help the company maintain its competitive advantage and achieve long-term success.
• Reduced risk: Internal growth can also be less risky than external growth strategies, such as mergers and acquisitions. By expanding its business through internal means, SVT can avoid the potential risks and uncertainties associated with external growth, such as cultural differences, integration challenges, and regulatory issues. This can help the company maintain its financial stability and minimise its exposure to external risks

5. Explain two benefits for H4 PLC of labour turnover being consistently below the national average (line 75).  [4 marks]

• Cost Savings: A low labour turnover saves costs related to recruitment, training, and onboarding new employees. By retaining employees, H4 PLC can avoid these costs and allocate those resources to other areas of the business.
• Increased Productivity: When employees leave, it can cause disruption and reduce productivity, particularly if key skills or knowledge are lost. In contrast, when employees stay with the company, they become more familiar with its systems, procedures, and culture, which can lead to increased efficiency and productivity. This can be particularly beneficial for H4 PLC, as it operates in a highly competitive industry where productivity is a key driver of success.

6. Outline two disadvantage of an increase in labour turnover (lines 65 - 66) for SVT.  [4 marks]

• Cost of recruitment and training: SVT incurs increased short-term costs associated with recruiting and training new employees to replace them. These costs can be significant, especially since SVT seeks to recruit and train highly specialised staff.
• The new employees may take some time to become fully productive, which can result in a temporary loss of efficiency and productivity.
• Loss of experienced employees: An increase in labour turnover can lead to a loss of experienced and skilled employees. These employees may have built up knowledge and expertise in the company, which may be difficult to replace, and can have a negative impact on overall productivity.

7. Explain one benefit and one cost to SVT of using financial methods of motivation to reward employees (lines 54 - 55).  [4 marks]

• H4 employees were paid competitive salaries, which is a financial method of motivation that can encourage employees to stay with a company. It makes it less likely for employees to seek employment elsewhere, which can reduce employee turnover and recruitment costs for SVT.
• However, only using financial methods of motivation assumes that workers are primarily motivated by financial incentives. It ignores the social and psychological aspects of work and treats workers like machines, which can be demotivating to employees (Herzberg’s theory) and lead to decreased morale and engagement. Employees may feel undervalued and unappreciated, which can lead to increased turnover and difficulty in attracting and retaining skilled employees.

8. Describe two features of a takeover [4 marks].

A takeover is when a company buys a controlling interest in another firm, i.e. it buys enough shares in the target business to hold a majority stake.

• Change in ownership: A takeover involves a change in ownership of the target company.
• Strategic intent: The acquiring may seek to gain access to new markets, technologies, or resources, or to expand its operations and increase its market share. Takeovers can also be motivated by a desire to eliminate competition or to achieve cost savings through economies of scale.

Additional Questions:

1.          (a)   Outline two advantages of SVT’s vision statement (line 2).                                                         [4]

A vision statement is a written statement by an organisation that states their plan for the future (long-term goal).

SVT’s vision statement “making the world a safer place has advantages.

The first advantage is a vision statement provides employees with a clear sense of direction and purpose. It can also motivate them if they have similar values which can increase productivity.

The second advantage is that a vision statement can improve the customer’s perception of a business and its image. SVT is able ot attract and retain brand loyalty from customers who are sensitive to the environment.

(b)   Suggest how a flexible work contract might motivate the employees of SVT (line 61).               [6]

A flexible work contract is an employer arrangement that gives employees the freedom to choose their own working hours. For SVT, it is slightly different in that the employees will be able to accept a new shift pattern (between three-eight hour shifts) every 6 months.

Student Answer:

According to Taylor’s scientific management, pay is the most important factor that motivates the employees. A one-time incentive payment was provided to those accepting the contract. This payment was a financial motivation method to encourage employees to accept the changes quickly and adjust to new working patterns. However, since it is only a one-time incentive payment, it’s effectiveness might reduce as employee’s don’t see the reward as long-term and consistent; therefore, employees may not feel motivated.

The flexibility of changing shifts every 6 months gives the employees (a non-financial motivation method) the ability to rotate between the three shifts if accepted. An employee may realize they prefer the afternoon or night shift in comparison to their 9 hour day shift they previously had.

2.          (a)   Describe the importance of being a brand leader in the home water filter market (line 92).   [4]

From Kognity:                                                                                                                               

A brand leader is the product or brand with the highest market share. The leader will be able to gain a lot of recognition for its products because the relevant market will already be aware of them and know what they represent. There are also advantages for the business' productivity and strategy. Advantages for leader include:

• Easy access to channels of distribution - preferential location in stores where consumers can easily find product
• Brand recognition – high brand recognition = increased sales
• Prominent placement of water filters in stores
• Economies of scale – businesses can benefit from bulk buying and bring lower average costs down as there will be high demand for the product to to its market leader status

(b)   Explain how setting objectives can help SVT’s success in the modernization programme.    [6]

Setting objectives can help SVT’s success in the modernization programme. Each division is headed by a director with operational and tactical authority (line 15). Therefore, each division is responsible for setting appropriate objectives that will help them achieve the organization’s goals, mission and vision statements. The objectives will help guide each division and their respective employees and help motivate them to achieve them as well as to hopefully reduce any potential conflicts that may arise.

Objectives will set a clear direction and employees will be more engaged. By using the hierarchy of objectives, goals are set at each level from the top all the way down to the employees. By setting goals/objectives at each level of the hierarchy, SVT can become successful in achieving the overall vision.

3.  (a) Describe one advantage and one disadvantage of Ariandne’s autocratic leadership style.   [4]

One advantage of Ariandne’s autocratic leadership style is that decisions can be made very quickly as there is no consultation with others. This quick decision-making allows for more efficiency and increased productivity.

A disadvantage of autocratic leadership style is the fact that employees may be demotivated as decision-making is centralised and they may feel their input does not matter. Consultations with others could also lengthen the time for decisions to be made.

(b)   Analyse the importance of SVT having strong ethical objectives. [6]

It is important for SVT to have strong ethical objectives. First of all, their vision statement is is what SVT is guided by “Make the world a safer place”. By ensuring they provide potable water to millions of people they are already demonstrating ethical principles. Having strong ethical objectives will not only attract top employees who have the same values, but it will also attract consumers who can trust SVT. The brand image and reputation of the SVT will increase which then results trust by consumers and develops consumer loyalty.

SVT also has their Outreach Programme that supports their vision statement and ethical objectives. Not only is SVT focused on their own organisation, but they also go beyond to reach the wider community and the world. Helping LEDCs by providing free skilled labour by SVT employees not only helps support those countries, but it gives the employees an opportunity to give back to others creating a positive and engaging atmospher

Dear admission, I'm writing this message to request a reconsideration for my admission into University of Toronto Scarborough despite not fulfilling the condition in getting the IB diploma. The reason for not meeting the academic requirements is due to my HL's not being a total of 12 rather than 11 despite my full final IB grade being 27. I made the mistake of accidentally writing 2 sections of my HL business despite only needing to write one section because I was panicking during the test. This mistake caused my predicted grade of HL business to go from a 5 to a 4, which caused me not to be able to meet the requirements. But I'm writing this request because I'm still committed in studying in Scarborough, as if you see my academic transcripts and IB finals, I maintained my HL bio grades for my admission into life science co-op and even improved my math from a 2 to a 4 in my finals. I understand the importance of maintaining academic standards, but I sincerely hope I can still study in Toronto as I was so close in getting my IB diploma. That one mistake may seem like an excuse but its the truth in why I failed. However, I would still be grateful if you can consider my admission despite not fulfilling the conditional offer of IB diploma. Below is supporting documentation from

Kind Regards,

William Cheng

1012280354

Dear admission, I'm writing this message to request a reconsideration for my admission into University of Toronto Scarborough despite not fulfilling the condition in getting the IB diploma. The reason for not meeting the academic requirements is due to my HL's not being a total of 12 rather than 11 despite my full final IB grade being 27. I made the mistake of accidentally writing 2 sections of my HL business despite only needing to write one section because I was nervous during the test. This mistake caused my predicted grade of HL business to go from a 5 to a 4, which caused me not be able to meet the requirements.

As you can see from my academic transcripts and IB finals, I maintained my HL bio grades for my admission into life science co-op and even improved my math from a 2 to a 4 in my finals. Furthermore, my business IA is a 6 and I maintained my business school grade to a 5. I understand the importance of the IB diploma, but still sincerely hope that I can have the opportunity to study at UTSC as I was so close to getting my IB diploma, and UTSC has always been my important dream university to develop my capacity and pursue my life goal. Hope UTSC can consider my constant effort instead of my regrettable accidental error in the exam. I would be very grateful if you can consider my admission despite not fulfilling the conditional offer of IB diploma. Below is supporting documentation.

Kind Regards,

William Cheng

1012280354

IB Biology HL

Internal Assessment

Examining how the amount of lipids of different milks affect the change in pH after a lipase solution treatment?

Background

        Milk are liquids produced by mammary glands of female mammals as a source of nutritional growth. Milks are a blend of fat, protein in water, dissolved carbohydrates, minerals and vitamins (Britannica, 2024). There are different types of milk with different compositions such as cow milk, sheep milk, and coconut milk. Cow milk comprises about 87.7% water, 4.9% lactose (carbohydrate), 3.4% fat, 3.3% protein, and 0.7% minerals(Milk Facts). The chemical composition of sheep milk per 100g is 5.86g total protein, 7.28g fat, and 3.41g of lactose (Research Gate, 2015). Lastly, coconut milk is made out of 95% saturated fats, however, 70% is medium and short chain triglycerides (ResearchGate, 2015). The difference between the different types of milk chemical composition lies in the different protein contents it contains. For example, sheep milk contains twice the amount of proteins when compared with cow milks, as sheep milk has higher mineralization and both are less hydrated and heat stable(ScienceDirect, 2008). However, coconut milk differs from containing more saturated fats, due to the plant based origin that results in higher concentration of saturated fats (Coconut Handbook).

Figure 1: pH scale ranging from 0 to 14(JanSan Consulting, n.d.)

The pH level is an important factor in milk stability, as pH is the measure of the hydrogen potential referring to how acidic a substance is depending on the amounts of hydrogen ions. In figure 1, it can be shown that the pH range is from 0-14 and 7 is the neutral pH level. However, pH level less than 7 is considered acidic, while pH greater than 7 is considered as a base (USGS, 2019). Cow milks pH is below neutral as it's around 6.7 to 6.9. Fresh coconut milk is usually nearer 7 in the pH scale(Healthline, 2024). Sheep milk pH usually ranges from 6.60 to 6.68, as its slightly acidic but considered neutral(ALAN, 2015).

Figure 2: Structural arrangement of different types of lipids(Cleveland Clinic)

Fats are macromolecules or polymers also known as lipids, these are made out of monomers of fatty acids and glycerol. Lipids are both hydrophobic and hydrophilic as the hydrocarbon chains of fatty acids are nonpolar chains, and the carboxyl group of the fatty acid heads are polar (Khan Academy). The role of lipids is to provide nutritional growth in brain development, body, and the immune system. In figure 2 it is that there are different types of fats that achieve this such as triglycerides, cholesterol, and phospholipids. Triglycerides are fats made out of both glycerol and 3 fatty acids that are 98% primary of milk total fat content (ScienceDirect, 2021). Furthermore, they are fats that are not only present in foods, but are also circulated and stored in the body’s fat cells (NIH, 2023). Cholesterol is a waxy fat that is found in the cell membrane to synthesize hormones and vitamin D, and it contributes to the membrane fluidity in normal temperatures(Khan academy, 2014). Additionally, cholesterol is also the most common sterol in milk (NIH, 2013). Phospholipids are the main components in the plasma membrane that are composed of fatty acid chains attached to the glycerol backbone. Moreover, phospholipids located in the globule membrane of the milk fat are known as Glycerophospholipids and sphingolipids, and they contribute to the milks structural integrity and fat digestion.

Figure 3: Lipid digestion process(shutter, n.d.)

Digestion is a process in the breakdown of digested food into useful energy sources for the body to use for its functions. Lipase is an important enzyme used in digestion as a catalyst in catabolic reaction with fats (NIH, 2023). As seen in figure 3, the lipase for lipid digestion catalyzes hydrolysis through its active sites with specific shapes that allow substrates such as triglycerides to get broken down into 3 fatty acids and glycerol. The digestion process involves using 3 types of lipase known as the lingual lipase, gastric lipase, and the pancreatic lipase. The lingual lipase is used for the first step of digestion, which is present in the saliva in order to break down fat in the mouth. The gastric lipase is a lipolytic enzyme that is secreted in the chief cells that are used for the digestion of fats in the stomach (NIH, 2000). The pancreatic lipase are enzymes secreted from the pancreas and are used in the small intestines to further break down the fats into energy sources(MedicalNewsToday, 2021). Additionally, the gastric lipase and the pancreatic lipase can also work together in the duodenum to further break down triglycerides and monoglycerides into smaller molecules (NIH, 2000).

During this process the lipids are broken down into fatty acids that change the pH of the digestive environment. The pH is an important factor in the human body as it affects the

the acidity of the human body and would lead to a risk of mortality from symptoms such as acidosis and alkalosis. Acidosis is a condition where the pH levels of the blood is below neutral as its unable to remove acid from blood and other body fluids. The symptoms of acidosis are arrhythmias (irregular heartbeats) and coma. Alkalosis is a symptom when the body has too much base, and it causes muscle spasms, coma, and irregular heartbeats (Healthline, 2023). The two life threatening symptoms are also a big contribution to the mortality of people suffering from obesity. Obesity is excessive fat accumulation that leads to health risk, as the body mass index (BMI) surpasses over 30 (WHO). From the studies of National library medicine (NIH) it can be concluded that among 8940 patients suffering from obesity 69% had low pH. The symptoms of obese people having more acidity were shown to have greater risk of mortality compared with individuals with neutral pH (NIH, 2020). A scientific problem that more than 1 billion people suffer from due to obesity (WHO, 2024). This lab will test 3 types of milk (cow, sheep, and coconut) to further understand the lipid relationship between pH and the factors of potential health risk.

Materials

1. Goat Milk
2. Cow Milk
3. Almond Milk
4. Coconut Milk
5. Soy Milk
6. Sheep Milk
7. Lipase powder
8. Stirring rod
9. Deionized water
10. 100 ml Beaker(20 or 10 if you can)
11. 50 ml beaker(20 of them)
12. 400 ml beaker(1 of them)
13. Scale
14. Swan boat
15. Measuring cylinder(2 of them)
16. pH 4 liquid(for calibration)
17. pH 10 liquid(for calibration)

Research question: How does the amount of lipids of different milks affect the change in pH after a lipase solution treatment?

• Alternative hypothesis: cow milk will have the lowest pH due to cow milk containing more fat content for lipase to break down into fatty acids than sheep and coconut milk, which results in more.

• Null hypothesis: Coconut milk will have the lowest pH as it contains less fat content for lipase to break down into fatty acids

Independent variable: The different types of milk:

1. Cow milk (3.6 g/100ml fats)
2. Sheep milk (1.6 g/100ml fats)
3. Coconut milk (1.2 g/100ml fats)

Dependent variable: The pH from different types of milk’s trials beginning to end

Method

1. Label the 10 beaker(50 ml) with trial 1 to trial 10 and type of milk
2. Fill 20ml of cow milk(measured through measuring cylinder) into 50ml beaker(10 of them)
3. Measure 0.5g of lipase powder(10 of them) with scale
4. Make a 10 lipase solution by mixing the 0.5g of lipase powder with 10 ml of deionized water(deionized water measured through beaker, and mixed in 100 ml beaker)
5. Clean the pH probe with deionized water, then calibrate the pH probe using vernier graphical analysis, pH 4 liquid, and pH 10 liquid for calibration
6. Put the probe into milk, then click collect and wait 10 seconds till add lipase solution
7. Wait till 2 min and 10 seconds to stop recording
8. Clean the pH probe with deionized water
9. Repeat steps 6 to 8 for trial 2 to 10 with same type of milk
10. Save graph data
11. Wait 4 hours till next recording
12.  Repeat this whole process again with each milk

Risk Assessment

 Table 1: Identified hazards and risk assessment

Raw Data

Quantitative results:

1. The different types of milk before the lipase reaction was a smooth white liquid with a good smell, however, after 4 hours of reacting with lipase the smell was awful and the milk was like yogurt
2. The pH of the milks decreased after 4 hours of reacting with lipase
3. Coconut milk was the milk that smelled the least awful when compared to sheep and cow milk

Processed Data

Data analysis

From the raw data table it can be shown that the mean average of pH before the lipase reaction decreases after the lipase reaction for different types of milks in different trials. The table shows this in trial 1 for coconut milk, as the pH mean before lipase reaction is 12.68, whereas, after lipase reaction its pH mean is 8.37. Similarly, the decrease in pH mean is further shown in sheep milk, as in trial 3 the milks pH mean is 10.79 and after lipase reaction is 8.35. Moreover, the processed data presents the pH averages before and after lipase reaction for 3 types of milk. The graph shows that cow milk is the most acidic when compared with sheep and coconut, as its pH average after lipase is 5.39, whereas, sheep milk is around 8.17 and coconut is 8.86. Additionally, the t-test was also conducted separately with the results, as it's used to test the difference between pH levels before and after reaction. The p-value was 0.000 in the t-test, which was less than 0.05, indicating that the changes in pH were the result of the enzyme not by random chance.

Discussion

The results in the data table and the processed data depict that cow milk was the most acidic milk when compared with sheep and coconut. This can be supported in raw data table trial 4, as cow milks pH mean after lipase was 5.48, while coconut milk was 9.00 and sheep is 8.20. The reason for cow milk to be the milk with lowest pH is because the cow milk used in the experiment contained 3.6 g/100ml fats, whereas, sheep is 1.6 g/100ml fats and coconut is 1.2 g/100ml fats. Because cow milk had more fat present in reacting with the lipase solution within 4 hours, more fats were broken down into fatty acids, which resulted in a lower pH against coconut and sheep milk. Coconut milk was not the most acidic milk as there were less fats present when compared to cow. As a result, the saturated fats present were not enough to decrease the pH significantly.

Conclusion

        Throughout the experiment, it has addressed the research question in the change of pH varying different concentrations of lipids from separate milks after lipase solution. The research question is answered through exploration gathering pH data from different milks in confirming the hypothesis that cow milk was indeed the most acidic milk, due to containing more fat content when reacting with the enzyme. Given that cow’s milk’s fat content is 3.6 g/100ml, its average pH before lipase is 6.77 and after lipase activity is 5.39 in the processed data. In comparison, sheep milk has a pH of 10.75 (before lipase) and 8.17 (after lipase), while coconut milk being the least acidic is 12.99 (before lipase) and 8.86 (after lipase). This is due to the understanding of enzymatically breaking down fast such as triglycerides, cholesterol, and phospholipids into fatty acids. The relationship in lipase being a catalyst in a catabolic reaction with fats presents the enzyme's role in the production of fatty acids in the decrease of pH, and outlines the risk of eating calorie dense foods that bring symptoms such as acidosis and alkalosis. Symptoms that more than 1 billion obese individuals suffer toward their health in relation to their imbalanced pH levels in their bodies(WHO, 2024).

Evaluation

My first skill is Teamwork, as I would seek help from others and offer my assistance in overcoming a challenge together through both contribution and commitment in collaboration. My second skill is critical thinking, this is due to my ability to identify opportunities, weaknesses, and evaluation of the information to find alternative solutions and perspectives.