...:
First, you have some time to look at questions 21 to 25.
...:
Now listen carefully and answer questions 21 to 25.
PROFESSOR:
Hi Frances, Sam.
PROFESSOR:
So, how did you go with applying the different theoretical business tools for the report I asked you to write?
FRANCES:
It was interesting and made us really focus on which tool was best to use when analysing a business.
PROFESSOR:
So, tell me what you found out.
FRANCES:
We liked the theory behind pest analysis.
FRANCES:
That's political, economic, social and technological, although we're not sure if it was very applicable to our case.
FRANCES:
Some of the other groups had studies for which it worked really well and they said it was easy to use, but I felt it focused too much on the big picture and was unsuitable for our company.
SAM:
On the other hand, I enjoyed using the drill-down method.
SAM:
It was painstaking to do and we seemed to be working on it for ages, but the results were worth waiting for.
FRANCES:
Yes, I liked the way it eventually broke down complex problems.
SAM:
Yes, I much preferred doing the PMI analysis.
SAM:
It was so straightforward to break down into its three components, plus, minus and interesting implications.
SAM:
You just needed to brainstorm these components and then write them up.
SAM:
And it didn't make your brain hurt doing it.
FRANCES:
And you don't need any special training at all.
FRANCES:
Anyone can use it.
PROFESSOR:
So, was there any tool that you thought was superior to the others?
FRANCES:
In my opinion, the one tool that is critical to business, especially for larger companies, is Pareto analysis.
FRANCES:
If they applied Pareto analysis, they would see that by focusing on the critical 20% of their problems, they could generate 80% of the benefits.
FRANCES:
This would allow them to work faster and it also reduces their workload.
FRANCES:
It's all about finding out what their basic problems are.
SAM:
I agree with Frances about Pareto, but my favourite was the SWOT analysis.
SAM:
You know, looking at the company's strengths, weaknesses, opportunities and threats, as it can be used in so many different situations.
SAM:
It works in large and small companies and even down to departmental level.
SAM:
It was great for our case study.
FRANCES:
Yes, that's true.
...:
Before you hear the rest of the discussion, you have some time to look at questions 26 to 30 on page 6.
...:
Now listen and answer questions 26 to 30.
PROFESSOR:
OK, I've read your draft report, but can you tell me a bit more about that company you focused on?
FRANCES:
Well, the company we used in our study was a manufacturing company who have relied on distributors to take their product to the end user.
FRANCES:
We did some analysis examining the possibility of them distributing their own products.
SAM:
We initially looked at their strengths.
SAM:
The company, although it is small, is well known and has a very good reputation.
SAM:
The management are very committed to increasing the company profits and they are confident this move would be successful.
FRANCES:
Right, and the company has quite a lot of staff who have previously worked for distribution companies, so the knowledge is already there.
FRANCES:
That was something we didn't expect to find and is probably going to help them the most to achieve their goals.
PROFESSOR:
I was quite impressed by some of the opportunities you detailed.
PROFESSOR:
I did think you missed something quite pertinent to their future growth, however.
PROFESSOR:
You didn't consider the potential for establishing an offshore division.
PROFESSOR:
You talked about the company negotiating better terms with its suppliers.
PROFESSOR:
Most of these are based abroad and so if the company had a way of actually distributing the product there, this could be a tremendous opportunity and give them an edge over their competitors.
FRANCES:
That's a good point.
FRANCES:
So, what did you think about the threats we identified?
PROFESSOR:
I thought you did a good job.
PROFESSOR:
I was really pleased to see that you considered how the government's planned environmental policy could really affect the viability of this venture.
PROFESSOR:
With this law being introduced next year, they might need to find new ways of using their existing technology.
PROFESSOR:
It's easy to identify what your competitors are doing, but it's the bigger picture that often gets ignored.
PROFESSOR:
So, Sam, what did you learn from this assignment?
SAM:
I guess I hadn't realised how much time it takes to ensure your company survives and profits.
SAM:
It was great to study the different tools in books, but applying them in the real world was much harder than I thought.
SAM:
It was a great learning experience.
PROFESSOR:
I'm glad I could make your assignment relevant.
PROFESSOR:
I'm basically happy with your report.
PROFESSOR:
You've got the format correct with the necessary headings, etc.
PROFESSOR:
And you've got sufficient details under the different headings.
PROFESSOR:
Just remember to state whether or not you think the company should go ahead with a new venture.
PROFESSOR:
But you've done a good job so far.
...:
That is the end of Section 3.
...:
You now have half a minute to check your answers.
...:
Now turn to Section 4.
