home

Welcome to Les Maisonnettes at Patana.

// Please DO NOT edit the contents of this page. //

This Wiki Space has been set up to help prepare IB students for the Business and Management P1 (Pre-seen case study) Exam in 2009. Use the navigation bar on the left to find the area of the syllabus covered. Before you start, here is some important information you should know about this paper.

The questions you will find in each section are based on the questions prepared by Supriya Atal for students of Dhirubhai Ambani International School. Many thanks to Supriya for allowing us to use her material. For a copy of the case study, please click here: For a copy of the case study with some comments added, please click here: To access the French eco-tourism website mentioned on line 42 click here: [|ecotourisme] To access the visual PowerPoint click here:

__ UPDATED RESOURCES: APRIL 2009. __ To access another SWOT click here: To access another PEST click here: To access a PowerPoint on HRM click here: To access a PowerPoint on Marketing click here: To access a PowerPoint on Finance click here:  This paper comprises 40% (HL), 35% (SL) of your grade Duration of Paper 1 HL 2 hours 15 minutes 80 marks SL 1 hour 15 minutes 50 marks

Complete 2 out of 3 structured questions of 15 marks each (a) (i) 2 marks - Define (ii) 2 marks – Describe/ identify (b) 4 marks - Explain/ comment (c) 7 marks - Examine/ Analyse
 * __Section A__** HL/SL (30)

1 compulsory structured question of 20 marks (evaluative) (a) (i) 2 marks (ii) 2 marks (b) (i) 2 marks (ii) 6 marks (c) 8 marks
 * __Section B__** HL/SL (20)

1 compulsory question on strategic decision making using extension material (a) 4 marks (b) 8 marks (c) 8 marks (d)10 marks
 * __Section C__** HL (30)


 * TIPS FOR PERFORMING WELL IN PAPER 1 - STANDARD LEVEL **

This is the ‘seen’ case study paper. It does not really cover any new topics or ideas. It is concerned with how a business would actually use the ideas that you have learnt. It is broken down into two sections Section A Answer **2 questions out of 3** Section B answer the compulsory question. You have no choices here. The secret to success  in Paper One is: **Your answers must relate to the case study. **  So, all examples MUST relate to the case study. The theories that you use must apply to the business in the case study. When evaluating you must take into account the case study. How do you think the people in the case study business will react? What motivates them? Is it realistic for that business? We will cover the case study in great detail. We do this for a reason! The top bands in the mark scheme are reserved for those answers that link to the case study. It says this explicitly. If your answer does not take the case study into account it will (at best) get half marks.

All of this is on top of the usual stuff for exams, about time management, about mark allocation, about obeying the command word, about using proper business terminology and so on.

 This is the ‘seen’ case study paper. This is also the ‘strategy’ paper. It does not really cover any new topics or ideas. It is concerned with how a business would actually use the ideas that you have learnt. How a business would build a strategy to achieve it’s goals.
 * TIPS FOR PERFORMING WELL IN PAPER 1 - HIGHER LEVEL **

It is broken down into three sections Section A Answer **2 questions out of 3** Section B & C answer the compulsory question. You have no choices here. The secret to success  in Paper One is: **Your answers must relate to the case study. **  So, all examples MUST relate to the case study. The theories that you use must apply to the business in the case study. When evaluating you must take into account the case study. How do you think the people in the case study business will react? What motivates them? Is it realistic for that business? We will cover the case study in great detail. We do this for a reason! The top bands in the mark scheme are reserved for those answers that link to the case study. It says this explicitly. If your answer does not take the case study into account it will (at best) get half marks.

Section C (and to a lesser extent section B) will give you extra information that was not on the case study. They have added this for a reason. **Make sure you use it in your answer**.

All of this is on top of the usual stuff for exams, about time management, about mark allocation, about obeying the command word, about using proper business terminology and so on.

Footnote:

A strategic plan needs three main sections… 
 * 1) Where is the company now.
 * 2) What are the options open to it
 * 3) <span style="font-family: 'Tahoma','sans-serif';">How will it achieve it’s objectives (evaluating the possibles so that they fit with the company’s overall objectives.)

<span style="font-family: 'Tahoma','sans-serif';"> __Useful Website Links__
 * http://www.intrepidtravel.com/ An excellent section on 'responsible travel' and 'green' holidays.
 * http://en.wikipedia.org/wiki/Eco_tourism Wikipedia has detailed information on all aspects of ecotourism.
 * http://www.ecotourism.org/ The International Ecotourism Society (TIES).
 * http://www.bangkokpost.com/business/economics/11353/focus-shifts-from-environment-to-society A recent article from the 'Bangkok Post' discussing how important, or not so important is the whole 'green' issue in the current economic climate.
 * http://www.responsibletravel.com/?gclid=CN7nmpSk1pgCFREupAod-Uz-dg Useful to see recommendations for sustainable holiday experience which involve the local community.

**Les Maisonettes: Main points to remember** The ideas here are not always in the best order, but in the order they appear when reading through the case study. I have tried to link them where appropriate. I am **not** trying to predict questions but I want to give you ideas for answers and things to say that link to //Les Maisonettes//, do not try and ‘shoe horn’ these points in willy-nilly, you must make sure you answer the question asked. ** There is no substitute for being able to think for yourself on this paper! ** This is not meant to be a complete and exhaustive list, but I think I have covered the main points of the case study. ** You must remember to link your answers back to //Les Maisonettes//. What would work for them? ** __I cannot emphasise this enough__. Students again and again do poorly in this paper because they write general answers that are plausible but not specific to //Les Maisonettes// and therefore receive, at best, mediocre marks. ** Therefore read the case study, re-read it and read it again! ** They are a small company, with a good reputation, but are starting to face more competition and falling prices. In general, they are a small niche company, and risk getting squeezed out by firms with more market power. This needs to be borne in mind when offering suggestions. The number (and type) of customers is fairly small and specific; this will limit, for example, their choice of marketing. Finally, positioning the business as a socially responsible business **must** echo through all decisions if it is to work, therefore this should be a standard thing to add to your evaluation. i.e. how does any recommendation sit with being a socially responsible company? The **buildings are of a high quality**. This fits in with option 3. It also fits the market segment that Sophie is aiming at.
 * Issues from an analysis of //Les Maisonettes// **

In the **shop** there is **a high turnover of staff** (her old friends) this poses a number of problems. Firstly, Sophie must spend a lot of time training new people and sorting out problems/mistakes caused by the fact that the manager is inexperienced. It could also lead to low motivation amongst any other staff there, as no need to work hard as the boss wont be around long enough to notice/reward it. Also, a lack of team spirit if the leader of the team is always changing. This however could also be good as it means that there are lots of new ideas being bought into the business, and they don’t just do things because that’s how they’ve always done them. Why do none of these school friends last very long? <span style="font-family: Symbol; mso-list: Ignore; msofareastfontfamily: Symbol; msobidifontfamily: Symbol; msolist: Ignore;">· Low wages? <span style="font-family: Symbol; mso-list: Ignore; msofareastfontfamily: Symbol; msobidifontfamily: Symbol; msolist: Ignore;">· Better opportunities elsewhere (Lyon)? <span style="font-family: Symbol; mso-list: Ignore; msofareastfontfamily: Symbol; msobidifontfamily: Symbol; msolist: Ignore;">· No career progression? <span style="font-family: Symbol; mso-list: Ignore; msofareastfontfamily: Symbol; msobidifontfamily: Symbol; msolist: Ignore;">· Boring job? Therefore, what could be done about it? <span style="font-size: 12pt; color: windowtext; font-style: normal; font-family: 'Tahoma','sans-serif'; mso-spacerun: yes; msospacerun: yes; msofareastfontfamily: 'Times New Roman'; msospecialcharacter: comment; msoansilanguage: EN-GB; msoansifontsize: 12.0pt; msobidifontsize: 12.0pt; msofareastlanguage: EN-US; msobidilanguage: AR-SA;">(see footnote 1)  // In large firms you just go in, do your job, go home, get paid. You do not really see any link between what you do and the overall success of the business. Workers may be //// seconded //// (Sent to work there for a specified amount of time.) In order to gain experience or to re-enthuse them. Each founding firm may also benefit from exposing their workers to the culture of the other firm. It may give them insights into different ways of approaching problems or ways of working, etc. // // Often, these firms are very successful, and can then be floated off on their own (Become independent PLC’s or a private limited companies in their own right). This nets the founding firms huge amounts of splodge, from selling some or all of their shares in this new company. // // Drawbacks include disagreements over the strategic direction of the venture, and possible conflicts between the different staff. // //** Quality grades awarded by trade organisations **//// This means customers can be confident that their holiday will meet certain standards (which they can check beforehand). It means that Sophie can charge a //// premium price // as it ‘guarantees’ that quality. It also differentiates her from the competition. They also mean she has access to their website so can use it as a way of picking up business.
 * Joint venture with a winery ** . //What is a joint venture?// // Two (or more) firms set up a separate, quasi-independent firm to carry out a particular task, or to compete in a particular market. The founding companies keep their independence, but still can benefit from each other’s expertise. The Wine co. gets access to Sophie’s affluent middle aged customers, she gets an added attraction that fits her image. They will jointly own the shares in the new company.  //

Sophie is in a **niche market**. (albeit one that is at the ‘tipping point’ ). This means her product is specialised. It is a small part of the larger holiday market. This may well limit the number of potential customers, but hopefully those that are interested in our product will be attracted to Les Maisonettes as it is exactly what they want. Again, they may be able to charge a premium as they are exactly meeting the requirements of a particular market segment. It is also a good way of avoiding direct competition with other, bigger rivals. However, if a niche is successful and grows then these larger firms will often muscle in on the original firms and using their economies of scale be able to drive out the smaller player.

The //Association Francais d’Ecotourisme (A.F.E.)// is a **pressure group**. What impact might that have on the business (advice and help as well as providing a known quality standard.) and on Government (lobbying for their particular cause)? What factors will determine how successful they are? <span style="font-family: Symbol; mso-list: Ignore; msofareastfontfamily: Symbol; msobidifontfamily: Symbol; msolist: Ignore;">· Funding, fairly obviously, the more money they have the more they can achieve. This can be regarded as one of the problems of pressure groups, their success is dependent the money they receive rather than the level of popular support or ‘rightness’. <span style="font-family: Symbol; mso-list: Ignore; msofareastfontfamily: Symbol; msobidifontfamily: Symbol; msolist: Ignore;">· Public opinion, if the public are broadly behind the objectives of the group then it is more likely to be successful in achieving its aims. Of course this raises the question of how do we know how strongly or many people support an issue. <span style="font-family: Symbol; mso-list: Ignore; msofareastfontfamily: Symbol; msobidifontfamily: Symbol; msolist: Ignore;">· Number of members. Again, the more members the more influence it is likely to have. <span style="font-family: Symbol; mso-list: Ignore; msofareastfontfamily: Symbol; msobidifontfamily: Symbol; msolist: Ignore;">· Commitment of members. Often a small(ish) number of committed members will allow a pressure group to succeed <span style="font-family: Symbol; mso-list: Ignore; msofareastfontfamily: Symbol; msobidifontfamily: Symbol; msolist: Ignore;">· How effective it is getting its voice across. E.g. compare friends of the Earth and Greenpeace. ** Branding **. What are the issues associated with turning //Les Maisonettes// into a brand? What benefits will it bring? Sophie relies heavily on **word-of-mouth. **This is a good exam topic, which many people do badly on year after year. It has two main attractions. Firstly it is cheap (free) and secondly it is very powerful (people believe the source). You can also argue that it is very targeted. You tell a friend about //Les Maisonettes// because you think it will be something they would like. You know your friends far better than marketers do. Does this sound like the kind of thing that would appeal to //Les Maisonettes//? (Ans: Yes!) However, you don’t have much (any) control over what people say, are they promoting the business in the way you want it to be perceived? It is also ‘slow moving’: you can’t reach many people quickly although it may be worth including consideration of the power of social networking sites such as facebook and twitter ! // Les Maisonettes // is currently marketed as a product and not a service. What are the differences? Be ready to answer questions on a new marketing mix for //Les Maisonettes//. Things to take into account… <span style="font-family: Symbol; mso-list: Ignore; msofareastfontfamily: Symbol; msobidifontfamily: Symbol; msolist: Ignore;">· Increased competition. (Should they ignore ‘Sanctuary’ as it is not really direct competition for them?). A surplus of holiday accommodation will lead to a fall in prices. What is their **price elasticity of demand?** Probably inelastic. Why? What does this mean for the rest of the marketing mix? <span style="font-family: Symbol; mso-list: Ignore; msofareastfontfamily: Symbol; msobidifontfamily: Symbol; msolist: Ignore;">· While we are on the subject, what about income elasticity of demand (YED)? Again probably inelastic, but why? Advertising elasticity, a bit more tricky to answer. It will depend upon the individual product (service?) The case emphasises the need to attract new customers, so make sure your marketing mix ideas will reach new customers from the targeted market segments. // Sanctuary // gains **economies of scale**. Such as?? Also, how can small firms compete with larger ones that can produce more cheaply than you? // Sanctuary // has problems with **motivation**. Why? How do the reasons given in the case study compare with say Taylor or Herzberg for example? Would we expect //LM// to have similar issues? NO, because it is a small company and so more ‘personal’, also do not underestimate the advantage to motivation to be gained from having a strong set of ethical values. Or, is that just wishful thinking? Again, refer back to the theorists.
 * E-commerce ** . What are the advantages and disadvantages to **//Sophie & Les Maisonettes//** of using e-commerce. What are the ethical considerations of such a move? Apart from on line bookings how else could she make use of technology and e-commerce?
 * Good value ** is mentioned. This DOES NOT mean cheap. It means you get a lot in relation to what you pay. For example, a journey on the Orient express is expensive, but many would say it offers good value considering the level of service and the whole experience. It links with ‘added value’.
 * Business plans **// Les Maisonettes // needs a business plan to develop the idea of cooking holidays. Why is it important? What would it include?

Sophie has a **paternalistic style of management**. This is defined by Wikipedia as “one who makes decisions on behalf of others (the "[|children]") for their own good, even if this is contrary to their wishes.” What effect will this have on the workers? Some may like knowing that Sophie has their best interests at heart, (I would guess that these would be longer-term employees) others may resent her meddling, especially if they don’t know her particularly well. May struggle with this approach as the business grows. In a similar way there are concerns about **staff absences**, what problems does this cause? Fist off, it means that somebody (Sophie) can’t do their normal job as they are covering for other employees. It could also become the ‘culture’ of the place, that you ‘throw a sickie’ when you feel like it, and it doesn’t matter. It could well be symptomatic of other problems within the business. Money probably wont solve the problem. So we need to make employees feel valued and that they have a long term stake in the business. For example training and internal promotion may prove to work. Sophie could hold weekly meetings with staff to listen to what they have to say (both good and bad) so they feel valued. This will only work if they see outcomes from the meetings. This also links in with the problem of possible local labour shortages. She will not be able to pay as much as //Sanctuary// as they will be gaining EofS. Therefore Sophie needs to find other ways of attracting the staff she needs. You can add to the list above the attraction of working for an ecotourism venture for some workers.

There is a proposal to have **core and peripheral** workers at //Les Maisonettes//. This will give Sophie many advantages. These temporary workers are often cheaper to employ as they get fewer benefits than permanent employees. It also means she does not have to employ them during quiet periods and so saves money that way too. However, will the workers really be committed to providing a good service for //LM’s// clients? Probably not as they know that in two weeks time they won’t be working their. Sophie will have to keep on retraining workers too. What if she needs workers for a busy period and there aren’t any because they are all now at //Sanctuary//? Would such a policy fit with her ecotourism image? One of the tenets of ecotourism is that it is fair on the local communities. // Les Maisonettes // is in the **tertiary sector**. This means that they provide a service rather than **secondary** (making things) or **Primary** (extracting raw materials from the earth.)
 * Demographics ** are changing in Southern France, which means fewer young employees. What can Sophie do about this? Employ older people (like her parents for example). This may mean that she has to change their work patterns to suit them. (They may only want occasional work, so this would suit her core <span style="font-size: 12pt; font-family: 'Tahoma','sans-serif'; mso-ansi-language: EN-GB; mso-fareast-font-family: 'Times New Roman'; mso-fareast-language: EN-US; mso-bidi-language: AR-SA;">and peripheral workers i dea) See footnote 2. She could look to employ more part time workers, and give hours to suit around their other commitments (Usually to do with families). Tourism inside the EU is often now staffed by young migrant workers from Eastern Europe who are happy to accept the (often) lower wages in the tourism industry for a summer or two, in exchange for improving their English (or French in this case). In fact they may seem like good wages compared to those they could get at home.

Sophie is concerned about the **market share**. Calculated by __ Your sales __ x 100 Total industry sales How realistic is this? This is a highly fragmented industry; any single firm’s market share will be tiny and therefore insignificant. Occupancy rate would be a far more realistic measure of how well she was doing.

 footnote 1: This is a classic example of what you shouldn’t say! WHY NOT? Because Les Maisonettes doesn’t have any middle managers, it applies to BIG firms only.  footnote 2: This brings together different ideas in the case study. Excellent! = =