Revision Guide for Webdespix Ltd

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Miss Seward
Case study Guide
Monday June 7th
CONTEXT ­ WebDesPix Ltd (WDP)
In 1999, three students (Tom, Dee and Ali) in the final year of their Computer Studies degrees at Bristol
University decided to start a business designing websites. The business was called WebDesPix
(WDP). On the advice of Tom's father, John, WDP was a private limited company. John is still involved
with the company as nonexecutive Chair and attends a monthly board meeting, travelling from Suffolk
to Bristol. The company has always been located in Bristol. Tom says, "We could have run the
company from anywhere in England but, as we were all from different parts of the country, it was easier
to locate where we had studied".

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Miss Seward
The initial capital of £8 000 was raised from the three families. Ali left the company after two years and
was bought out by Tom and Dee, who each now own 50% of the shares. They are planning to give
John shares in the company. It is company policy to reinvest profits. The company has never had a
bank loan but uses an overdraft facility.…read more

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Company policy to reinvest profits
Has bank overdraft
Never had a bank loan
4 Key objectives:
o Sustained growth 15% on turnover per annum
o Market all products online
o Increase use of ecommerce
o Continue trading in competitive web design market
Web Design is core business
Expanded to:
o Electronic newsletters
o Domain Registrations
o Hosting
o Search engine optimisation
Standard design packages:
o Budget £800
o Professional £1000
o Executive £1500
Each package provides a number of web pages, email and…read more

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Miss Seward
1. Business Activity and the changing environment
Types of organisations
Exam board says:
You must have an understanding of the different types of ownership and what would influence a
businesses choice of this o
wnership type.
Case study
We know from the case study that WDP is a private limited company. This means that the business
has share holders but that the shares are not for sale on the stock market.…read more

Page 5

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WDP is a web design business.
Customers ­ are largely located in the SW of Engalnd, but 25% of their income is from clients in
London they can charge them more money.
Employees ­ 2 part time, rest full time.
Suppliers possibly anyone they buy computer parts or software from.
Shareholders/Owners (remember it is a private limited company)
Managers ­ Tom, Dee and Ali appear to share the workload.…read more

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Miss Seward
An understanding of how the changing business environment influences decisions on the location of a
business and how this may provide opportunities for, and impose constraints upon, the pursuit of
business objectives. An understanding that the relevant factors include production, competition in the
location, legislation regarding marketing/trading, availability of workforce, the local environment
constraints/opportunities and the government and the EU.…read more

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Miss Seward
If interest rates go up then it will be more expensive to borrow money and be better to save money (you
will get a higher rate of interest on your savings). WDP does not have a bank loan, however they will be
charged interest on their overdraft. If interest rats go up businesses will have less money to spend on
promotion and web design this could affect the number of customers that WDP has.…read more

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Miss Seward
Technology is a big issue as this at the core of their business. Its is essential that you understand what
is meant by the following terms.
Domain registrations: hosting
Search engine optimisation.
The intend to market all products online, think about the type of technology they would need to do this.
Remember that the business is very labour intensive despite the emphasis on technology.…read more

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Miss Seward
study, but remember you could still get asked questions on other issues not yet flagged up in the case
2.1 Internal organisation
Tom, Dee appear to manage the company and are majority share holders, each with 50%. The
organisational structure is quite flat as there are few levels. Make sure you understand the chain of
command within the business and Tom and Dee's span of control.…read more

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Miss Seward
2.4 Training
One way to improve the quality of staff in any organisation is obviously to provide training.
Two different types of training:
On the job Off the job
Training in the workplace Training undertaken away from the job,
usually outside of the business.
Find some examples of each that can apply to the case study.
Training will cost the business money and time. When a worker is training they won't be working.…read more


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