General

GENERAL



Complete the following timeline

2001: Sophie’s parents ran a small grocery store.

2003: //Les Maisonettes// moved away from its B&B image. The restaurant started serving lunch and dinner for guests as well as the general public.

2004: Sophie converted //Les Maisonettes// from a sole trader to a private limited company.

2005:  -  In the summer the occupancy rates peaked to 100%. It won a number of regional awards for the quality of food.

2006: The outdoor activities program grew in popularity, earning an average of 100 Euros per person per week.

2007:  -  Sophies parents have retired leaving Sophie with the grocery store and Les Maisonettes. The French tourist board rated regional hotels, and Les Maisonnettes scored highly. It gave them a rating of “2 fireplaces” which is high level comfort and tasty cuisine. This gives her the ability to promote her hotel further with the high ratings she received from the Tourist board.  -  Marie’s French cooking classes generated an average of 400 Euros per person per week in revenue.

2010:  -  The new airport is about to open, Regional airport will be open. Low cost flying air tickets will be available. This will substantially increase the amount of tourists in the region, and increase the amount of business that the Les Maisonnettes will receive in the upcoming years.  -  From 2010 holidaymakers using the low cost airline Fly-Fare will receive a 10% discount on a Les Maisonnette competitor, Sanctuary Holiday.

2026:  -  The loan that Sophie took of 300,000 Euros will be repaid.

      <span style="font-size: 10pt; font-family: 'Arial','sans-serif';"> <span style="font-size: 10pt; font-family: 'Arial','sans-serif';"> <span style="font-size: 10pt; font-family: 'Arial','sans-serif';"> <span style="font-size: 10pt; font-family: 'Arial','sans-serif';"> > <span style="font-size: 11pt; line-height: 115%; font-family: Arial, Helvetica, sans-serif; msoansilanguage: EN-GB; msofareastfontfamily: Calibri; msofareastlanguage: EN-US; msobidilanguage: TH; msobidifontsize: 14.0pt; msobidifontfamily: 'Cordia New'; msoasciithemefont: minor-latin; msofareastthemefont: minor-latin; msohansithemefont: minor-latin; msobidithemefont: minor-bidi;">The reduction in the average cost of a product per unit due to reductions in price resulting from the growth of the company. There are five different types of economies of scale: Purchasing Economies of Scale (reduction in cost through buying in bulk), Managerial Economies of Scale (specialist managers can be hired, thus improving efficiency), Technological Economies of Scale (large machines can be implemented in the production process, thus increasing output), Marketing Economies of Scale (if the company increases output, advertising costs will not have to increase, hence marketing cost per unit decreases) and Financial Economies of Scale (it is easier for bigger firms to receive large loans from banks). - Essentially a reduction in average unit costs as a result of bulk buying <span style="font-size: 10pt; font-family: 'Arial','sans-serif';"> <span style="font-size: 10pt; font-family: 'Arial','sans-serif';"> <span style="font-size: 10pt; font-family: 'Arial','sans-serif';"> <span style="font-size: 10pt; font-family: 'Arial','sans-serif';"> > <span style="font-family: Arial, Helvetica, sans-serif;">The ‘Unique Selling Point’ of a product or service which differentiates it from competitors in a similar market, i.e. a special feature, e.g. iPod’s video function. <span style="font-size: 10pt; font-family: 'Arial','sans-serif';"> <span style="font-size: 10pt; font-family: 'Arial','sans-serif';"> <span style="font-size: 10pt; font-family: 'Arial','sans-serif';"> <span style="font-size: 10pt; font-family: 'Arial','sans-serif';"> <span style="font-size: 10pt; font-family: 'Arial','sans-serif';"> <span style="font-size: 10pt; font-family: 'Arial','sans-serif';"> <span style="font-size: 10pt; color: windowtext; font-family: 'Arial','sans-serif';">
 * Define the following terms:**
 * <span style="font-size: 10pt; font-family: 'Arial','sans-serif';">Socially responsible business( Line 1) : The responsibilitities or obligations a firm may chose to accept over and above what is required by law. Les Maisonnettes promotes eco-tourism and activities that have minimal environmental impact. The fact that Sophie takes into consideration the opinions and impacts on stakeholders, it makes her business socially responsible.
 * <span style="font-size: 10pt; font-family: 'Arial','sans-serif';">Venture(Line 8) new business opportunities
 * <span style="font-size: 10pt; font-family: 'Arial','sans-serif';">Staff turnover (Line 29): The number of staff leaving the business per year. Acts as a good indication of unmotivated workers if this figure is very high.
 * <span style="font-size: 10pt; font-family: 'Arial','sans-serif';">Eco-tourism (Line 39): A form of tourism that appeals to the socially and ecologically responsible/conscious. Eco-tourism focuses on volunteering, personal growth and learning new ways to live on the planet.
 * <span style="font-size: 10pt; font-family: 'Arial','sans-serif';">Niche Market (Line 40) targets a specific and well-defined market segment
 * <span style="font-size: 10pt; font-family: 'Arial','sans-serif';">Early adopter (line 41)
 * <span style="font-size: 10pt; font-family: 'Arial','sans-serif';">Mission (Line 43) sets out the main purpose and objectives of an organization. it is used primiarily by management and shareholders to measure the organization's success
 * <span style="font-size: 10pt; font-family: 'Arial','sans-serif';">Word-of-mouth promotion (Line 57) - Word-of-mouth promotion happens whenever one person tells others about the activity being advanced. For example, when someone tries a new bike path, likes using it and tells another person about it, the use of the bike path is being promoted by word-of-mouth.
 * <span style="font-size: 10pt; font-family: 'Arial','sans-serif';">Survey (Line 78)- research among a large enough sample of consumers to provide valid data.
 * <span style="font-size: 10pt; font-family: 'Arial','sans-serif';">Economies of scale (line 78)
 * <span style="font-size: 10pt; font-family: 'Arial','sans-serif';">Business plan (line 92) : The name given to a report detailing how a business sets out to achieve its aims and objectives. It requires managers to plan their marketing, financial, and human resources.
 * <span style="font-size: 10pt; font-family: 'Arial','sans-serif';">Paternalistic style (line 96)
 * <span style="font-size: 10pt; font-family: 'Arial','sans-serif';">Core staff (line 106)
 * <span style="font-size: 10pt; font-family: 'Arial','sans-serif';">Target market (line 131)- the precise profile of the customers a firm wishes to sell to.
 * <span style="font-size: 10pt; font-family: 'Arial','sans-serif';">USP (line 140)
 * <span style="font-size: 10pt; font-family: 'Arial','sans-serif';">Carbon footprint (line 141) the measure of the impact human activities have on the environment in terms of the amount of green hosue gas produced.
 * <span style="font-size: 10pt; font-family: 'Arial','sans-serif';">Flexible workforce (line 159)
 * <span style="font-size: 10pt; font-family: 'Arial','sans-serif';">Sustainable practices (line 164)
 * <span style="font-size: 10pt; font-family: 'Arial','sans-serif';">Carbon neutral (167) : Having an overall zero carbon footprint by balancing a measured amount of carbon released with an equivalent amount of sequestered or offset.
 * <span style="font-size: 10pt; font-family: 'Arial','sans-serif';">Reposition (line 170) changing the product positioning either on failure of the original positioning or to react to changes in the market place
 * <span style="font-size: 10pt; font-family: 'Arial','sans-serif';">Market segment (line 173) distinct groups of buyers categorized by various factors such as similar needs, gender, age, etc.The market segment for Les Maisonnettes includesd tourists who support eco-tourism. This segment is attracted to Sophie's use of only local products and having activities that have a minimal environmental impacts (refer to line 45)
 * <span style="font-size: 10pt; font-family: 'Arial','sans-serif';">Gearing (line 177) a long-term liquidity ratio that measures the percentage of firm's capital employed that comes from long-term liabilities such as debentures and mortgages. Firms that have a 50% gearing are said to be highly 'geared'. Sophie's substantial investment in expanding facilities means that she will have a higher gearing ratio. How acceptable the ratio is depends on the size, status, and potential profitability of the company. Since Sophie's business is becoming more and more successful, the status of her business is improving. Her high income target market will generate lots of profit therefore she will most likely be able to pay her long term liability; if she was still owning a small shop, being highly geared is extremely risky.


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