Sandra and Michael Wilson are the parents of Rory who just turned 5 years old (coincidentally on the same date that primary, secondary and university academic years commence). They own a four-bedroom home in Edinburgh. Sandra is a partner in a local dental practice and Michael is a stay at home dad. Sandra earns £100,000 a year (after tax).

Now that Rory is starting primary school, thoughts have turned to saving for his education. Rory is enrolled to attend a state (i.e. non fee-paying) primary school. The Wilsons plan to send Rory to a private secondary school (when he turns 11). The school is prestigious and its fees are set accordingly. Currently tuition is £20,000 per school year and are projected to rise at the rate of inflation. Currently around 2% per annum.

The Wilsons hope that Rory will subsequently attend their alma mater, Oxford University when he turns 18. Most undergraduate courses at Oxford have a four academic year duration. Undergraduate fees at Oxford are currently £9250 per annum and are projected to rise faster than inflation, at a rate of 4% per annum. In addition, as Rory would be living away from home if he attended Oxford, his parents envisage that his living costs (primarily student accommodation and food) would amount to £10,000 per annum (expressed in today’s prices). These living costs are projected to increase at the rate of inflation, 2% per annum.

Using a discount rate of 7%, what is the present value of the combined projected spend on Rory’s private school fees, university tuition and living costs? (Assume that all fees and living costs are incurred at the beginning of each academic year e.g. Rory’s first school fee invoice will arrive in exactly 6 years which coincides with his first day at secondary school when he turns 11).

The Wilsons plan to fund the expenditure on private school fees from Sandra’s income. They would however like to start investing today in a fund that would be used to pay Rory’s university fees and living costs. They would like to make an equal annual payment into that fund every year (starting in one years’ time) with a view to accumulating £120,000 by Rory’s 18th birthday. This £120,000 would then be drawn down over Rory’s time at Oxford to meet expenses as they come due.

How much money would they have to deposit into the fund every year (with the first payment one year from now) to meet that target assuming a conservative fund return estimate of 3% a year. Will the accumulated amount be enough to cover the joint fees and living costs during Rory’s time at Oxford?

A school states that the standard deviation of tuition of their training program for various certifications taught there is $100. You want to prepare a 95% confidence interval of the average tuition for courses. You took a sample of 25 courses and found that the average tuition is $891. Prepare a 95% confidence interval for average tuition for certificate programs at the school.

A random sample size of 1000 school children from urban areas shows average height is 150cm with an S.D. of 45.2cm. Similar sample of students from rural school has average height of 146 cm. with an SD of 37.3cm. Are students from urban area taller than students from rural area?

After the school shooting at Stoneman Douglas High School, many students, staff, and community members were left traumatized as this was a major crisis. If you were a counselor for the community, how would you use crisis counseling strategies to help? Create a treatment plan involving both group and individual crisis counseling.

Owen Mills Limited began its operations on Trumpet Land, a beautiful island in the Caribbean with a very diverse population in terms of age, gender, ethnicity, religion, disability, sexual orientation, education, and origin. In 1970, at the age of twenty-eight (28), Owen Mills a progressive thinking young man decided to start his own business. His father had worked as a Manager at a large department store in the city of Trumpet Land for as long as Owen can remember, and his father would share his daily experiences. The idea of operating his own business was always at the forefront of Owen’s mind. After gaining four (4) Advanced Level subjects (Mathematics, Geography, English Literature and Spanish), Owen got a job at a large Credit Union where he moved up the ranks from a Customer Service Clerk to Supervisory level within four (4) years and then onto being a Credit Officer.

During his time at the Credit Union, Owen attended a number of short management courses. This built his confidence that someday soon he will achieve his dream of being a big business man. At age twenty-eight (28) Owen thought that he had saved sufficient money along with his wife who worked at another Credit Union, so that they could purchase a small one-story building in the heart of the city. The building was at the corner of French Street and John Street, the main street in the city. The building was refurbished and painted in bright red, and blue to suit the liking of Mr. Mills. He thought to himself “No one could miss this building” and he also thought of a tag line. Business started in February 1970. From the inception of the business to date, the tagline emblazoned at the front of the store “We have all that you want!’ has remained.

The Early Years Owen Mills Limited operated as a sole proprietorship for many years selling almost every item that a household could want, staying true to his tagline. The business began with five (5) employees: his wife serving as the cashier, two store clerks, one driver and a cleaner. The store was well sectioned with a variety of items as shown in Table #1 below. Table #1 – Variety of Items sold by Owen Mills Limited Cosmetics and related products for men and women. School items – copy books, pencils, pens rulers, etc. Basic food/grocery items – rice, flour, sugar, peas, salt, seasonings and other condiments Personal hygiene products Plumbing and electrical material A variety of snacks and soft drinks Perfumes/fragrances Small appliances Kitchen ware and Glassware Clothing and footwear for babies, and boys and girls Household items – batteries, glue, tacks, etc. A variety of gift items Ladies and gents’ underwear and other everyday garments Household cleaning products Gardening tools/implements and hardware items Gym shoes and slippers for ladies and gents Sewing items A variety of handy man tools

Orders would be placed with wholesalers who would deliver the products on scheduled days. Mr. Mills was very organized. During the first two (2) years of operating in the city of Trumpet Land, Mr. Mills observed that his customers comprised of citizens from all over the island. He got an idea, “I could go to the outer area of the city with my products.” He started in October 1971 to pack his Toyota panel van and leave with his driver on Saturdays and Sundays to the areas bordering the city. Mr. Mills was successful with this venture and discovered that there were retirees and housewives who were at home during the week, and he began to go into those area at least two (2) days per week in addition to Saturdays and Sundays.

Clearly, Mr. Mills was an astute businessman who was always thinking of the next move to grow the business. He and his wife joined the Chamber of Commerce, read widely about what was happening locally, regionally and internationally, and made every effort to attend conferences and seminars which they thought would be beneficial. He was always thinking about growth and expansion. Owen Mills Limited became a known business even to those persons who had never patronized the store. In the midst of it all, Mr. Mills understood his corporate social responsibility and as such was respected highly by other businessmen and members of the community and country. A proud moment for Mr. Mills, his family and employees occurred when he was awarded Business Man of the Year Award in 1999.

On a Growth Path The years flew by very quickly and by 1995, Mr. Mills had added two (2) more floors to the original building that he bought. He now had four (4) grown children 4 (two (2) boys and two (2) girls) all in their twenties and who all showed an interest in the business. Similar to their father, they had done very well at the secondary school level and had aspirations of gaining a tertiary level education as well as being a part of the business. They pondered their options of going to school fulltime or enrolling in an online programme, so that they could better manage their time and fulfill their career objectives. The oldest son began to pursue the Association of Chartered Certified Accountants (ACCA) Programme. He thought that he can become the Accountant for Owen Mills Limited or open an accounting firm in the next few years.

By the year 2000, Mr. Owen Mills had spread his wings to the eastern, southern and western part of Trumpet Land. He was able to purchase within a five-year period, three (3) large two-story buildings in each of the areas. The buildings were painted in the same colors as the first one in the city in the north and carried the well-known tagline - We have all that you want! The business incurred a manageable mortgage loan, but that will be repaid in less than ten (10) years. Mr. Mills began to think about succession for his business and the future of his children who had been supporting him throughout the years. He held a family meeting and it was decided that with the imminent opening of three (3) other Branches, that each child would manage a branch and he will now be considered as the Chairman.

In the midst of the initiatives being undertaken, Mr. Mills was very cognizant that the world of business was wrought with dynamism and uncertainty and he and his family needed to understand about strategic moves that could be undertaken. He had been reading and trying to keep up to date with what was happening in the world of business. He and his family did not have a full grasp of the theoretical 5 underpinnings to maneuver quickly out of any new challenges, and he understood very well that challenges can surface with expansion. By 2018, the total staff had grown to eighty (80) persons which included cashiers, information technology personnel, supervisors, customer service staff, cleaners, drivers and his four (4) children as managers,

Looking to the Future Undoubtedly, Owen Mills Limited has been a successful enterprise. However, Mr. Mills and his eldest son, who had gained his ACCA qualification began to look at the financials very closely. They recognized that while the company had repaid the mortgage loans, and there was still an influx of customers at all branches, the profits had been reducing in the three (3) years prior to 2020, though minimally. Mr. Mills and his family had their usual monthly meeting in December 2019. One of the daughters took some points in relation to the present status of the Company. It related to a SWOT Analysis. Whist the SWOT Analysis was not fully articulated in terms of what the strengths can and have brought to the Company; how the weaknesses are impacting the Company; the possible outcomes from taking advantage of available opportunities; and the possible impact of threats, her brief notes are highlighted below:

Strengths:  Committed employees and management  Appropriate management style  Adequate financial and human resources  Wide variety of products 6  Broad market coverage  Good financial management  Brand name reputation  Excellent customer service skills  Some expertise in new venture management

Weaknesses  Lack of research and development skills  Lack of understanding of strategic management and planning

Opportunities  Exploit new market segments  Move into new businesses, but how and what type  Expand into foreign markets  Acquire a profitable acquisition

Threats  Increase in competition, but where do we look  New forms of competition  Changes in customer preferences  Rising costs of products and labour

At the start of 2020, Mr. Mills and his family began to follow the news with respect to the deadly COVID-19 virus. “This is a time for quick action” pondered Mr. Mills. The business has been successful, but Mr. Mills and family has recognized that things are changing in the environment and could have negatives on the business. At the January 2020 monthly meeting, it was decided that the company should seek the services of a reputable consultant who can advise and assist the company with getting a clear understanding of what strategic management and planning entails. Other matters discussed which the family agreed to pursue, include embarking on a training initiative which would include staff at all levels as well as to create an awareness of the environmental factors that can affect the company. One member in the meeting raised the issue of how they can determine with accuracy the financial situation at the company. She is aware that ratios could be used, but that’s as much as she knows. Changes in demographic factors  Changes in economic factors and down turn in the economy  Slow growth in the market

Mr. Mills stretched his imagination, “We had better start thinking about starting a branch in some foreign country, or start to manufacture something that people will need.” Then he pondered to himself, “I do not have all the knowledge about the intricacies of manufacturing and so-called strategies to continue to be a winner” The meeting ended with Mr. Mills thinking aloud that they should all read up about what it means to be innovative. He indicated that at the next meeting, they will all come with their ideas of a plan that is different to what they are doing now and which can contribute to continued success. He was not sure what type of plan that would be. He has been following keenly the possible impact and negative fallout that the company could experience because of the COVID-19 virus. However, the astute businessman that Mr. Mills is, he purchased some cotton material, took some elastic and thread from the store, and hired two (2) seamstresses to make 8 protective masks. The masks have been a fast seller and is bringing a profit to the store. Once more, Owen Mills Limited is living up to its tagline - We have all that you want!

Question:

Q1 a). In the early years, Mr. Mills along with his driver went into the areas bordering the city where his store was located. Identify the type of strategy by name that was used by Mr. Mills in his effort to capture additional sales. Also, provide a brief explanation for the strategy identified as well as provide three (3) reasons why Mr. Mills was successful with that initiative.

Q1(b). With the emergence of COVID-19, Mr. Mills saw an opportunity to help with protective gear, namely masks, as well as to make some money. Identify the type of strategy by name that was used by Mr. Mills through the initiative to make and sell masks. Also, provide a brief explanation for the strategy identified as well as provide three (2) reasons why Mr. Mills was successful with that initiative.

Q1(c). Mr. Owen Mills is thinking about starting a branch in some foreign country, but will need advice on the types of strategies that could be adopted. As the hired Consultant, how would you advise Mr. Mills and family about the best approaches to entering a foreign market. Provide justification for your advice.

In addition, could you provide Mr. Mills and family about the types of experiences that they may encounter, and which may not be always positive. Based on your response, would you advise Mr. Mills to enter a foreign market? Provide justification for your advice.

Case Study

Owen Mills Limited

We have all that you want!

Owen Mills Limited began its operations on Trumpet Land, a beautiful island in the Caribbean with a very diverse population in terms of age, gender, ethnicity, religion, disability, sexual orientation, education, and origin. In 1970, at the age of twenty-eight (28), Owen Mills a progressive thinking young man decided to start his own business.   His father had worked as a Manager at a large department store in the city of Trumpet Land for as long as Owen can remember, and his father would share his daily experiences. The idea of operating his own business was always at the forefront of Owen’s mind. After gaining four (4) Advanced Level subjects (Mathematics, Geography, English Literature and Spanish), Owen got a job at a large Credit Union where he moved up the ranks from a Customer Service Clerk to Supervisory level within four (4) years and then onto being a Credit Officer.

During his time at the Credit Union, Owen attended a number of short management courses. This built his confidence that someday soon he will achieve his dream of being a big business man. At age twenty-eight (28) Owen thought that he had saved sufficient money along with his wife who worked at another Credit Union, so that they could purchase a small one-story building in the heart of the city. The building was at the corner of French Street and John Street, the main street in the city. The building was refurbished and painted in bright red, and blue to suit the liking of Mr. Mills.   He thought to himself “No one could miss this building” and he also thought of a tag line. Business started in February 1970. From the inception of the business to date, the tagline emblazoned at the front of the store “We have all that you want!’ has remained.

The Early Years

Owen Mills Limited operated as a sole proprietorship for many years selling almost every item that a household could want, staying true to his tagline. The business began with five (5) employees: his wife serving as the cashier, two store clerks, one driver and a cleaner. The store was well sectioned with a variety of items as shown in Table #1 below.

Table #1 – Variety of Items sold by Owen Mills Limited

Orders would be placed with wholesalers who would deliver the products on scheduled days. Mr. Mills was very organized. During the first two (2) years of operating in the city of Trumpet Land, Mr. Mills observed that his customers comprised of citizens from all over the island. He got an idea, “I could go to the outer area of the city with my products.” He started in October 1971 to pack his Toyota panel van and leave with his driver on Saturdays and Sundays to the areas bordering the city.   Mr. Mills was successful with this venture and discovered that there were retirees and housewives who were at home during the week, and he began to go into those area at least two (2) days per week in addition to Saturdays and Sundays.

Clearly, Mr. Mills was an astute businessman who was always thinking of the next move to grow the business. He and his wife joined the Chamber of Commerce, read widely about what was happening locally, regionally and internationally, and made every effort to attend conferences and seminars which they thought would be beneficial. He was always thinking about growth and expansion. Owen Mills Limited became a known business even to those persons who had never patronized the store. In the midst of it all, Mr. Mills understood his corporate social responsibility and as such was respected highly by other businessmen and members of the community and country. A proud moment for Mr. Mills, his family and employees occurred when he was awarded Business Man of the Year Award in 1999.

On a Growth Path

The years flew by very quickly and by 1995, Mr. Mills had added two (2) more floors to the original building that he bought.   He now had four (4) grown children (two (2) boys and two (2) girls) all in their twenties and who all showed an interest in the business. Similar to their father, they had done very well at the secondary school level and had aspirations of gaining a tertiary level education as well as being a part of the business. They pondered their options of going to school full-time or enrolling in an online programme, so that they could better manage their time and fulfill their career objectives. The oldest son began to pursue the Association of Chartered Certified Accountants (ACCA) Programme.   He thought that he can become the Accountant for Owen Mills Limited or open an accounting firm in the next few years.  

By the year 2000, Mr. Owen Mills had spread his wings to the eastern, southern and western part of Trumpet Land.   He was able to purchase within a five-year period, three (3) large two-story buildings in each of the areas. The buildings were painted in the same colors as the first one in the city in the north and carried the well-known tagline - We have all that you want!  The business incurred a manageable mortgage loan, but that will be repaid in less than ten (10) years.

Mr. Mills began to think about succession for his business and the future of his children who had been supporting him throughout the years. He held a family meeting and it was decided that with the imminent opening of three (3) other Branches, that each child would manage a branch and he will now be considered as the Chairman.

In the midst of the initiatives being undertaken, Mr. Mills was very cognizant that the world of business was wrought with dynamism and uncertainty and he and his family needed to understand about strategic moves that could be undertaken. He had been reading and trying to keep up to date with what was happening in the world of business.   He and his family did not have a full grasp of the theoretical underpinnings to maneuver quickly out of any new challenges, and he understood very well that challenges can surface with expansion. By 2018, the total staff had grown to eighty (80) persons which included cashiers, information technology personnel, supervisors, customer service staff, cleaners, drivers and his four (4) children as managers,

Looking to the Future

Undoubtedly, Owen Mills Limited has been a successful enterprise. However, Mr. Mills and his eldest son, who had gained his ACCA qualification began to look at the financials very closely. They recognized that while the company had repaid the mortgage loans, and there was still an influx of customers at all branches, the profits had been reducing in the three (3) years prior to 2020, though minimally.

Mr. Mills and his family had their usual monthly meeting in December 2019. One of the daughters took some points in relation to the present status of the Company. It related to a SWOT Analysis. Whist the SWOT Analysis was not fully articulated in terms of what the strengths can and have brought to the Company; how the weaknesses are impacting the Company; the possible outcomes from taking advantage of available opportunities; and the possible impact of threats, her brief notes are highlighted below:

Strengths:

• Committed employees and management
• Appropriate management style
• Adequate financial and human resources
• Wide variety of products
• Broad market coverage
• Good financial management
• Brand name reputation
• Excellent customer service skills
• Some expertise in new venture management

Weaknesses

• Lack of research and development skills
• Lack of understanding of strategic management and planning

Opportunities

• Exploit new market segments
• Move into new businesses, but how and what type
• Expand into foreign markets
• Acquire a profitable acquisition

Threats

• Increase in competition, but where do we look
• New forms of competition
• Changes in customer preferences
• Rising costs of products and labour
• Changes in demographic factors
• Changes in economic factors and down turn in the economy
• Slow growth in the market

At the start of 2020, Mr. Mills and his family began to follow the news with respect to the deadly COVID-19 virus.  “This is a time for quick action” pondered Mr. Mills. The business has been successful, but Mr. Mills and family has recognized that things are changing in the environment and could have negatives on the business. At the January 2020 monthly meeting, it was decided that the company should seek the services of a reputable consultant who can advise and assist the company with getting a clear understanding of what strategic management and planning entails. Other matters discussed which the family agreed to pursue, include embarking on a training initiative which would include staff at all levels as well as to create an awareness of the environmental factors that can affect the company. One member in the meeting raised the issue of how they can determine with accuracy the financial situation at the company. She is aware that ratios could be used, but that’s as much as she knows.

Mr. Mills stretched his imagination, “We had better start thinking about starting a branch in some foreign country, or start to manufacture something that people will need.”   Then he pondered to himself, “I do not have all the knowledge about the intricacies of manufacturing and so-called strategies to continue to be a winner”  

The meeting ended with Mr. Mills thinking aloud that they should all read up about what it means to be innovative.   He indicated that at the next meeting, they will all come with their ideas of a plan that is different to what they are doing now and which can contribute to continued success. He was not sure what type of plan that would be.   He has been following keenly the possible impact and negative fallout that the company could experience because of the COVID-19 virus.   However, the astute businessman that Mr. Mills is, he purchased some cotton material, took some elastic and thread from the store, and hired two (2) seamstresses to make protective masks. The masks have been a fast seller and is bringing a profit to the store.   Once more, Owen Mills Limited is living up to its tagline - We have all that you want!

Q1.      Mr. Owen Mills, the owner of Owen Mills Limited has been operating a successful business since 1970. However, he is not fully aware of what strategic management and planning entails. You are hired as a consultant to advise Mr. Mills, his family and selected members of the Company about what strategic management and planning entails as well as how important it is for the organization to engage in strategic management and planning.   

What would you say to the members present at the meeting so that they can have a very good understanding of what strategic management and planning entails, and why they should engage in the process so as to maintain the competitive advantage of Owen Mills Limited? (Total - 25 marks)

Case Study

Owen Mills Limited

We have all that you want!

Owen Mills Limited began its operations on Trumpet Land, a beautiful island in the Caribbean with a very diverse population in terms of age, gender, ethnicity, religion, disability, sexual orientation, education, and origin. In 1970, at the age of twenty-eight (28), Owen Mills a progressive thinking young man decided to start his own business.   His father had worked as a Manager at a large department store in the city of Trumpet Land for as long as Owen can remember, and his father would share his daily experiences. The idea of operating his own business was always at the forefront of Owen’s mind. After gaining four (4) Advanced Level subjects (Mathematics, Geography, English Literature and Spanish), Owen got a job at a large Credit Union where he moved up the ranks from a Customer Service Clerk to Supervisory level within four (4) years and then onto being a Credit Officer.

During his time at the Credit Union, Owen attended a number of short management courses. This built his confidence that someday soon he will achieve his dream of being a big business man. At age twenty-eight (28) Owen thought that he had saved sufficient money along with his wife who worked at another Credit Union, so that they could purchase a small one-story building in the heart of the city. The building was at the corner of French Street and John Street, the main street in the city. The building was refurbished and painted in bright red, and blue to suit the liking of Mr. Mills.   He thought to himself “No one could miss this building” and he also thought of a tag line. Business started in February 1970. From the inception of the business to date, the tagline emblazoned at the front of the store “We have all that you want!’ has remained.

The Early Years

Owen Mills Limited operated as a sole proprietorship for many years selling almost every item that a household could want, staying true to his tagline. The business began with five (5) employees: his wife serving as the cashier, two store clerks, one driver and a cleaner. The store was well sectioned with a variety of items as shown in Table #1 below.

Table #1 – Variety of Items sold by Owen Mills Limited

Orders would be placed with wholesalers who would deliver the products on scheduled days. Mr. Mills was very organized. During the first two (2) years of operating in the city of Trumpet Land, Mr. Mills observed that his customers comprised of citizens from all over the island. He got an idea, “I could go to the outer area of the city with my products.” He started in October 1971 to pack his Toyota panel van and leave with his driver on Saturdays and Sundays to the areas bordering the city.   Mr. Mills was successful with this venture and discovered that there were retirees and housewives who were at home during the week, and he began to go into those area at least two (2) days per week in addition to Saturdays and Sundays.

Clearly, Mr. Mills was an astute businessman who was always thinking of the next move to grow the business. He and his wife joined the Chamber of Commerce, read widely about what was happening locally, regionally and internationally, and made every effort to attend conferences and seminars which they thought would be beneficial. He was always thinking about growth and expansion. Owen Mills Limited became a known business even to those persons who had never patronized the store. In the midst of it all, Mr. Mills understood his corporate social responsibility and as such was respected highly by other businessmen and members of the community and country. A proud moment for Mr. Mills, his family and employees occurred when he was awarded Business Man of the Year Award in 1999.

On a Growth Path

The years flew by very quickly and by 1995, Mr. Mills had added two (2) more floors to the original building that he bought.   He now had four (4) grown children (two (2) boys and two (2) girls) all in their twenties and who all showed an interest in the business. Similar to their father, they had done very well at the secondary school level and had aspirations of gaining a tertiary level education as well as being a part of the business. They pondered their options of going to school full-time or enrolling in an online programme, so that they could better manage their time and fulfill their career objectives. The oldest son began to pursue the Association of Chartered Certified Accountants (ACCA) Programme.   He thought that he can become the Accountant for Owen Mills Limited or open an accounting firm in the next few years.  

By the year 2000, Mr. Owen Mills had spread his wings to the eastern, southern and western part of Trumpet Land.   He was able to purchase within a five-year period, three (3) large two-story buildings in each of the areas. The buildings were painted in the same colors as the first one in the city in the north and carried the well-known tagline - We have all that you want!  The business incurred a manageable mortgage loan, but that will be repaid in less than ten (10) years.

Mr. Mills began to think about succession for his business and the future of his children who had been supporting him throughout the years. He held a family meeting and it was decided that with the imminent opening of three (3) other Branches, that each child would manage a branch and he will now be considered as the Chairman.

In the midst of the initiatives being undertaken, Mr. Mills was very cognizant that the world of business was wrought with dynamism and uncertainty and he and his family needed to understand about strategic moves that could be undertaken. He had been reading and trying to keep up to date with what was happening in the world of business.   He and his family did not have a full grasp of the theoretical underpinnings to maneuver quickly out of any new challenges, and he understood very well that challenges can surface with expansion. By 2018, the total staff had grown to eighty (80) persons which included cashiers, information technology personnel, supervisors, customer service staff, cleaners, drivers and his four (4) children as managers,

Looking to the Future

Undoubtedly, Owen Mills Limited has been a successful enterprise. However, Mr. Mills and his eldest son, who had gained his ACCA qualification began to look at the financials very closely. They recognized that while the company had repaid the mortgage loans, and there was still an influx of customers at all branches, the profits had been reducing in the three (3) years prior to 2020, though minimally.

Mr. Mills and his family had their usual monthly meeting in December 2019. One of the daughters took some points in relation to the present status of the Company. It related to a SWOT Analysis. Whist the SWOT Analysis was not fully articulated in terms of what the strengths can and have brought to the Company; how the weaknesses are impacting the Company; the possible outcomes from taking advantage of available opportunities; and the possible impact of threats, her brief notes are highlighted below:

Strengths:

• Committed employees and management
• Appropriate management style
• Adequate financial and human resources
• Wide variety of products
• Broad market coverage
• Good financial management
• Brand name reputation
• Excellent customer service skills
• Some expertise in new venture management

Weaknesses

• Lack of research and development skills
• Lack of understanding of strategic management and planning

Opportunities

• Exploit new market segments
• Move into new businesses, but how and what type
• Expand into foreign markets
• Acquire a profitable acquisition

Threats

• Increase in competition, but where do we look
• New forms of competition
• Changes in customer preferences
• Rising costs of products and labour
• Changes in demographic factors
• Changes in economic factors and down turn in the economy
• Slow growth in the market

At the start of 2020, Mr. Mills and his family began to follow the news with respect to the deadly COVID-19 virus.  “This is a time for quick action” pondered Mr. Mills. The business has been successful, but Mr. Mills and family has recognized that things are changing in the environment and could have negatives on the business. At the January 2020 monthly meeting, it was decided that the company should seek the services of a reputable consultant who can advise and assist the company with getting a clear understanding of what strategic management and planning entails. Other matters discussed which the family agreed to pursue, include embarking on a training initiative which would include staff at all levels as well as to create an awareness of the environmental factors that can affect the company. One member in the meeting raised the issue of how they can determine with accuracy the financial situation at the company. She is aware that ratios could be used, but that’s as much as she knows.

Mr. Mills stretched his imagination, “We had better start thinking about starting a branch in some foreign country, or start to manufacture something that people will need.”   Then he pondered to himself, “I do not have all the knowledge about the intricacies of manufacturing and so-called strategies to continue to be a winner”  

The meeting ended with Mr. Mills thinking aloud that they should all read up about what it means to be innovative.   He indicated that at the next meeting, they will all come with their ideas of a plan that is different to what they are doing now and which can contribute to continued success. He was not sure what type of plan that would be.   He has been following keenly the possible impact and negative fallout that the company could experience because of the COVID-19 virus.   However, the astute businessman that Mr. Mills is, he purchased some cotton material, took some elastic and thread from the store, and hired two (2) seamstresses to make protective masks. The masks have been a fast seller and is bringing a profit to the store.   Once more, Owen Mills Limited is living up to its tagline - We have all that you want!

Question 3(b):

As a forward-thinking entrepreneur, Mr. Owen Mills is pondering going into manufacturing something, but he has to think carefully about the product to be manufactured. Therefore, he needs to understand what the Value Chain is about as well as the types of strategies that he could utilize to gain a competitive advantage.

What information would you provide to Mr. Mills and his family regarding the Value Chain as they think seriously about going into the manufacturing sector?

Also, what are the possible strategies that could be utilized once the Manufacturing company becomes established?   Provide justification for your advice.

Discuss the strategic role of employee training from the perspective of the organization and the employee.

_{Young School for Wee People}

_{Introduction
Young School for Wee People (YSWP) had been running a small, for-profit preschool program
for young children between the ages of two and four for several decades. YSWP was one of
several privately run programs in the suburban Philadelphia area. For each of the three age
groups (i.e., two-, three- and four-year olds), there were two classes per day for a total of six
classes in the facility each day. The classes were held both in the morning and in the afternoon,
five days a week between September and June; there were approximately 200 days (40
weeks), or 1,200 class meetings, per year.1 Only about one-third of YSWP’s local competitors
offered classes during the summer months. The morning classes ran from 9:00 a.m. to noon,
and the afternoon meetings ran from 1:00 p.m. to 4:00 p.m. Lunch was not served in either
class. However, each class served a snack to the children. Class size varied from nine to 15
students per class. Although there was a lot of pressure from parents to reduce class sizes, a
recent article in an industry newsletter showed that, given current demographics, the market
for such programs could increase by 10% a year for the next five years.
The year before, a parent suggested that the school begin hosting birthday parties on the
weekend. Since YSWP’s three classrooms were empty during this time, it seemed like a good
use of the space and could generate additional revenue. Over the past year, the school had
managed to quickly build a sizable side business hosting birthday parties. Approximately 150
parties were held in the school’s three classrooms on Saturdays and Sundays throughout the
year. The parties were typically attended by 10–20 children and ran for approximately four
hours. The four-hour running time included the time necessary to set up and clean up the
facility. For this service, the school’s main competitors consisted of children’s gyms, arts and
crafts stores, and museums. Each had been offering specialized birthday parties for many
years and charged very high prices. As a result, YSWP was able to significantly underprice
these other firms while maintaining a very high profit margin. In fact, due to the success of the
birthday parties over the past year, YSWP wanted to expand this business. YSWP was
considering switching the bulk of its advertising campaign from one that was designed to build
general awareness of the school to one that was specifically directed at promoting the birthday
party business.}

_{1 Each day there was a morning class and an afternoon class for two-year olds, another morning and afternoon
class for three-year olds, and a morning and afternoon class for four-year olds.}

_{Current Cost System
YSWP’s largest expense was related to the building (see Exhibit 1 for an income statement).
YSWP had initially purchased a single-family home and converted it to a daycare/schoolhouse
setting. The house cost $400,000, including $50,000 for the necessary renovations and license
applications. Building- related expenses included depreciation, utilities, maintenance, cleaning,
property taxes, and so forth. Traditionally, these costs were assigned to the classes on a per
class-meeting basis. The building-related costs had not significantly changed since the
introduction of the birthday party business. Therefore, no building-related costs had been
assigned to the new product.
Salaries, supplies, and food were also allocated based on the meeting, where a meeting was
either a single class meeting for three hours or a single birthday party for four hours. The actual
cost of supplies and food for all of last year’s birthday parties was $3,000; the actual cost for
the preschool classes was approximately $18,000. YSWP had five employees—three full time
and two part time. The school’s director earned $50,000, taught two of the preschool classes
each day, and administered both the preschool and the birthday party programs. She spent
approximately 20% of her time in administration, evenly split between the two programs. The
remaining two full-time employees earned $20,000 per year and taught the other four
preschool classes. Finally, YSWP had hired two part-time employees to run the birthday parties
on weekends, and each earned $5,000 per year. The director had approximately 20 years of
daycare and teaching experience, the full-time teachers each had approximately five years of
teaching experience, and the part-time employees were college students majoring in child
development or education.
As advertising was used to build awareness of YSWP’s presence in the community and
affected both products, it was not allocated to either product.
Pricing
YSWP charged $200 for each birthday party, regardless of how many children attended, and
averaged a total of about $270 for each preschool class session, depending on the number of
students in the class. This was an increase over fiscal-year 2003, when preschool charges
totaled only $240 per class session, even though average class size declined from 12 to 10
students.
Each year, YSWP management prepared a budget for the next year that was exactly equal to
the prior year’s actual results.}

_{Further Changes
Currently, the children’s day was split up between a two-hour core class and a one-hour
elective. The elective aimed to bring new ideas and teaching styles into the classroom.
However, YSWP believed that its core competency lay in delivering a solid, core class to the
children. This method had been successful in preparing children for the move to kindergarten.
Additionally, the elective had not been successful as an experimental setting to test new
teaching styles and ideas; in fact, the elective had become merely an extension of the core
class. Consequently, YSWP planned to abolish the elective class and only offer the standard,
core class.
Additionally, YSWP was considering purchasing a neighborhood school. As part of the
expansion, YSWP’s director would have more administrative responsibility. She had hired
another teacher to cover her classes as well as two administrative assistants to help with the
daily operations of YSWP.}

<sub>Questions
1. Compute the cost of a single preschool class and a single birthday party using the current
cost system.
2. Would you recommend that YSWP continue to allocate the building-related costs only to
the preschool program? What alternative allocation method would you suggest? Justify
your answer. Ignore consideration of excess capacity discussed in question 3 below for this
answer. Please discuss any additional information that you feel is needed.
3. For three months each year (June–August), the school building is largely unused except for
the birthday parties. This represents approximately 60 days, or 360 additional classes that
could be run but are not. How should YSWP account for this excess capacity? Please
explain why you recommend this method.
4. Do you agree with YSWP’s allocation method for salaries, supplies, and food? Why or why
not? Be specific about any alternative allocation methods that you would consider.
5. Do you agree with YSWP’s decision not to allocate the cost of advertising? Why or why
not? Be specific about any alternative allocation methods that you would consider.
6. Compute the cost per class meeting and per birthday party under the assumptions that you
have made.
7. How could YSWP use the information from the revised cost information to enhance
profitability?
8. Briefly explain the change in the average revenues per class (from $240 to $270 per class
between last year and this year). What other information would you collect to help explain
the variation?
9. Would you recommend that YSWP proceed with an expansion? List the pros and cons of
making such a change along with the underlying reasoning.
10. The board has an increased concern about maintaining control of YSWP as it expands.
Until now, it has not used a formal control system. What control systems, if any, would you
suggest that it establish? Be sure to clearly explain your answer thoroughly.</sub>

_{Exhibit 1}

_{Young School for Wee People
Income Statement
for the Year Ended June 30, 2002}

_{Revenue $354,000
Expenses:
Building Related $216,000
Salaries 100,000
Food and Supplies 21,000
Advertising 10,000
Total Expenses 347,000}

_{Net Profit $ 7,000}

Case Study--Sarah CASE SCENARIO

You are one of the school counselors at Northwest Middle School. Your caseload includes Sarah, a seventh grader. She was referred to you by her classroom teacher.

The teacher has concerns regarding Sarah due to Sarah’s recent change in behavior. Historically, Sarah has been a top student and is very outgoing. Sarah is a member of honor society, plays JV basketball, and is a member of the Drama team. Upon her return from Winter break, Sarah was noticeably withdrawn and her grades began to drop. She has withdrawn from the Drama team and she seems to have lost interest in basketball.

The teacher shared that at a recent parent/teacher conference the parents did not seem concerned about Sarah’s behavior changes but rather focused their attention on Sarah’s basketball performance.The teacher also informed you that he had tried to connect with Sarah to talk about his concerns but when he tried to do so, Sarah became angry, burst into tears, and stormed out of the room.

Sarah has agreed to meet with you upon the encouragement of her parents under the auspice that you will help her with her basketball performance issues.

1.The demographics of the clients; the history of the client's family, personal and life as well as psychological background

2. Theoretical approach to use with the client and why, specific techniques and interventions to use with the client); The treatment plan (e.g. goals, objectives (what will occur to meet the goals)

3. What confidential/ethical issues need to be addressed)