Save:
Favorite
Share:
Calculator Allowed: Yes

Question

Answer

Transcription of this question: 4.Hair & Beauty (HRB)Bettina runs a successful hairdressing salon called Hair & Beauty (HU). She Offers a range Ofservices such as haircutting, colouring, and beauty treatments such as body massages. H&BSpopularity is mainly based on Bettina’s expertise, networks and personality. Many local celebritiesrely on her sense Of style; as a consequence, H&B customer base is growing rapidly.Bettina currently has 12 employees. They are paid good salaries plus commission, but Bettina is verycontrolling and demanding. Morale and job satisfaction are falling; absenteeism and staff turnoverare high. Some workers have expressed concerns about not spending enough time with their families.As a result, Bettina is reluctantly planning to introduce a flexitime workscheme.Her younger brother Gavin wants to open a franchise in a small city nearby where severalhairdressing salons already operate. None, however, is perceived as stylish and high quality.Bettina will be responsible for training the new employees. She will also pay for the advertisingcosts. In return, Gavin will pay Bettina an annual fee Of 100/0 Of his sales revenue and maintainhigh standards and quality.Gavin’s personal savings are insufficient to meet the start-up costs Of the new salon. He will ask fora bank loan. He has already prepared a business plan for his bank manager.(a)(b)(c)(d)Describe one source Of finance, other than a bank loan, that Gavin could use tofund the start-up Of the new salon.(i) Explain one disadvantage to Of introducing a flexitime workscheme.(ii) Explain one advantage and one disadvantage to Of using acommission-based financial reward package.Analyse the importance Of Gavin’s business plan when seeking finance from hisbank manager.Evaluate the use Of franchising as a growth strategy for Bettina and her salon,[2 marks][2 marks][4 marks][5 marks][7 marks]

Leave a Reply