Discuss the extent to which different stakeholder groups might be able to influence SLSL’s decision over a move into Market Harworth.

An answer to Question 26 of the APT revision pack produced for the OCR F297 2012 paper. My teacher marked this, and I have included her feedback in red italics.

HideShow resource information
  • Created by: Yosola
  • Created on: 03-05-12 23:04
Preview of Discuss the extent to which different stakeholder groups might be able to influence SLSL’s decision over a move into Market Harworth.

First 751 words of the document:

Olaleye O
Question 26
Discuss the extent to which different stakeholder groups might be able to influence SLSL's decision
over a move into Market Harworth.
Moving into Market Harworth is a major strategic move on the part of SLSL, and in order for such a
decision to be made, a majority of stakeholders in the business must be considered as any decision
the business makes can affect them positively or negatively. Some of the stakeholders that will be
influenced largely by SLSL's decision to move into Market Harworth include the major shareholders
(Alistair and Penelope Roley, and Andrew Boddie), the employees, most especially Hanna Boddie
who manages the Stamton branch, the customers (the vendors), and rival estate agencies amongst
other stakeholders. Alistair plans to move into Market Harworth as either a fourth branch or a
replacement branch, so already it is clear that some stakeholders will be less willing to agree to the
move than others.
Firstly, Alistair and Penelope might be happy to make a move into Market Harworth as either a
replacement branch or an expansion into four branches. Based on the information in Table 5 of the
case material, it is possible that a Market Harworth branch will be profitable for SLSL in the long run,
especially as households in the area are expected to increase by 15% for the next ten years,
meaning that there will be 1145 more houses in Market Harworth and a possible increase of houses
on SLSL's portfolio, and in Market Harworth, the average value of a house is £245,000, so if SLSL can
establish itself properly in that area, they might be able to achieve the 4% revenue increase they aim
for. Although they will be entering a market with 11 estate agencies already, therefore being open
to severe competition, if their marketing strategies and customer service are effective, SLSL is likely
to succeed in Market Harworth as time goes on. Also the case study mentions that the business
operates in a monopolistically competitive market, so SLSL might be offering something that is new
to Market Harworth (My teacher's comment here suggested that I include examples of the `new'
services SLSL could bring to Market Harworth). Furthermore, Alistair and Penelope will be happy to
expand into Market Harworth because it can increase their status and reputation in the housing
market as they will be running a bigger business by having a fourth branch ­ gaining more recognition
might have a positive influence on the business and evidence in Table 1 suggests that they are
already a well-known company.
In the case of Andrew Boddie who owns a 10% share in the business, he can respond to the decision
to make this move both positively and negatively. If Andrew acts like a reasonable business man and
analyses the costs, profits and possible revenue that will come from setting up a branch in Market
Harworth, he might be more than happy for this move to be made as the greater the profits made,
the more he receives in dividends. Also if the move into Market Harworth is profitable, Andrew can
receive the money he loaned to SLSL quickly with the interest (<-My teacher imagines that this is
level 4 material), but as a managing partner of a Law firm, the money might not mean very much to
him. On the other hand, if SLSL's move into Market Harworth was as a replacement branch, the
branch that is most likely to be replaced is the Stamton one which Andrew's daughter Hanna
manages, as it doesn't seem to be very successful according to the information in Table 4. If the
Stamton branch is closed down to be replaced by the Market Harworth branch, Andrew might not
agree with the Alistair's decision to make such a move because the job of his daughter may be at
risk, whether or not her management skills are to blame for the `failure' of the Stamton branch. (It is
not particularly clear that Stamton is a failure, so Hannah could move over to manage Market
Harworth), Depending on what move Alistair decides to take, Andrew's opinion will have to be
considered, but seeing as he only has a 10% ownership of the business, and Alistair and Penelope

Other pages in this set

Page 2

Preview of page 2

Here's a taster:

Olaleye O
have 90% in total, his opinions might not be greatly considered if Penelope and Alistair both want to
move into Market Harworth as either a replacement or a fourth branch.
Hanna, the manager of the Stamton branch, might also not be very happy with the decision to move
into Market Harworth especially if it's as a replacement branch, and as mentioned above, Stamton is
most likely to be shut down due to its minimal contribution to SLSL's revenue.…read more


No comments have yet been made

Similar Business Studies resources:

See all Business Studies resources »See all resources »