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Transcription of this question: 5.Neil Johnson and Laura Chan knew they had to resolve their differences. They asked a managementconsultant, Raj Gupta, for arbitration of their conflicting views over the future strategic direction OfReach Out. Raj had a meeting with both of them. Reluctantly, Laura accepted Raj’s recommendationthat they pursue only Option 2, developing a family brand.After conducting a survey Of the parents who use Reach Out’s therapists (Items 1.1 and 1.2),Raj further recommended organizing Reach Out into two distinct profit centres*:• Laura will run the “Service Centre”, training Andrew Grandin and working with the therapistsand families. Laura’s target is to achieve qualitative improvements to the therapist scheme.This will be measured by feedback from both parents and therapists.• Neil will run the “Marketing Centre”, developing a family brand for Reach Out. Neil’s target is toraise $120 000 annually by selling merchandise with the Reach Out name and logo (Item 2).Laura was relieved that by implementing Option 2, Option 1 would be rejected and the pricing wouldremain the same. Also Reach Out would not have to rely on sponsorship (Option 3) from N-Pharma.However, she was still concerned that by allowing Neil to focus on developing marketingopportunities Reach Out would be changing its strategic direction away from the core business andfrom their mission to introduce subsidized PECS cards. Laura was also unsure about merchandisingfor a small business such as Reach Out (Item 3). Neil argued that subsidized PECS cards could onlybe introduced once Reach Out had the sufficient finance. He hoped that Option 2 would enable this.He recognized that branding ofa charity would be difficult (Item 4), but he was convinced that if theycould gain greater recognition then this was the way forward. He was also still concerned that Lauradid not fully address his worries about Andrew.(Question 5 continued)(a)(b)(c)(d)Identify one type Of on-the-job training and one type Of off-the-job training thatLaura Chan could use with Andrew Grandin.(i)(ii)Using Item 2, calculate the quantity Of merchandise that Reach Out mustsell in order to meet Neil Johnson’s target (show all your working).Using the case study and Items 1.1 and I .2, identify two areas Of concernwith the therapist scheme and explain how Laura Chan can makequalitative improvements to these concerns.Analyse the value to Reach Out Of organizing it into two distinct profit centres.Using Lewin’s force field analysis and the information contained in thecase study and Items 1—4, evaluate Raj Gupta’s recommendation to pursueOption 2 and to reorganize Reach Out.[2 marks][2 marks][5 marks][9 marks][12 marks]

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