| Module Learning Outcomes (from module syllabus) |
| Prepare control reports which show original, flexed and actual budgetsCalculate key variances.Evaluate decisions using relevant costingDemonstrate decision making abilities under risk. |
Amana Ltd is a family-owned tourist business located in England which sells souvenirs to tourists. They have several locations in tourist hotspots across England namely Brighton, London bridge, Westminster bridge, Buckingham Palace, Birmingham city centre and Manchester city centre. Souvenirs are produced by a Chinese manufacturer specifically according to designs made by the Amana team.
They have been operating a successful business for 40 years and have come to understand the dynamic nature of the tourism industry. Recently, the Covid-19 pandemic broke out in England leading the government to impose restrictions on movement and travel which severely impacted the tourism industry. Amana’s revenue took a big hit in April 2020 as tourists could not travel for the Easter holidays, sales picked up slightly in the summer of 2020; however, the prolonged lock down between December 2020 and February 2021 depleted any additional revenue that had been made in the summer.
In the past, Amana ltd has only traded within physical stores with a functioning website serving as a channel for marketing their business. Mr Amana, the owner of the business has hired you as a manager and provided a cost break down of their products.
| Original budget (£) | Actual (£) | |
| Units | 100,000 | 80,000 |
| Selling price | 25 | 20 |
| Variable costs: | ||
| Materials | 2.50 | 280,000 |
| Labour | 4 | 440,000 |
| Overhead | 1.50 | 120,000 |
| Contribution | 17 | 760,000 |
| Fixed overheads: | ||
| Warehouse rental | 200,000 | 170,000 |
| Insurance | 100,000 | 100,000 |
| Fulltime warehouse supervisor salary | 50,000 | 35,000 |
*Figures are based on average estimates incurred in producing a mix of souvenirs.
Required:
- Prepare the monthly control report showing original budget, flexed budget, and variances. (25 marks)
- Using your control report prepared in (i) above, prepare a report on Amana’s performance during the year 2020. (20 marks)
- Provide recommendations to Amana’s CEO on areas of improvement. (15 marks) (1500 words, TOTAL = 60 marks)
PART B
Mr Amana has noticed that a lot of his competitors now sell online to customers in the UK, Europe and US. He has been considering closing the Brighton, Birmingham city centre and Manchester city centre branches in order to streamline the business activities and move 50% of their sales online. Several factors have to be taken into consideration when making this decision.
- Cost of setting up delivery network – £150,000
- Cost of upgrading current website to handle large volume of sales – £50,000
- Salary of a fulltime IT programmer – £35,000 per annum
- Based on market research, there would be guaranteed sales of 100,000 units annually
The business also has the alternative of selling their products directly on Amazon and would have to take the following factors into consideration when making this decision.
- Amazon fulfilment fees – £50,000
- High levels of competition between Amana souvenirs and other sellers on these platforms – Guaranteed sales of 65,000 units on Amazon annually with the potential to increase depending on demand.
- Lack of control over pricing and return policy.
Required:
In your report, provide an analysis of Mr Amana’s decision to go online and advise if they should set up their own online shop or sell on Amazon. You should take into consideration all the relevant costs. (1000 words, TOTAL = 40 marks)
Guidance specific to this assessment: A report is required, 2,500 words, with appropriate referencing and headings.
This section details the extent to which the assessment criteria are demonstrated by you, which in turn determines your mark. The marks available for each category of skill are shown. Lecturers will use the space provided to comment on the achievement of the task(s), including those areas in which you have performed well and areas that would benefit from development/improvement.
| Generic Assessment Criteria | Marks available | Marks awarded |
| 1. Engagement with Literature Skills . | 15 | |
| Extent of research and/or own reading, selection of credible sources, application of appropriate referencing conventions | ||
| 2. Knowledge and Understanding Skills | 20 | |
| Extent of knowledge and understanding of concepts and underlying principles associated with the discipline. | ||
| 3. Calculations | 25 | |
| Clarity and accuracy of calculations. Use of professional and well-structured layout. | ||
| 4. Practical Application Skills | 25 | |
| Deployment of methods, materials, tools and techniques; application of concepts; formulation of innovative and creative solutions to solve problems. | ||
| 5. Transferable Skills for Life and Professional Practice | 15 | |
| Attributes in professional practice: individual and collaborative working; deployment of appropriate media; presentation and organisation. |
| Assessment Mark (Assessment marks are subject to ratification at the Exam Board. These comments and marks are to give feedback on module work and are for guidance only until they are confirmed. ) | Late Submission Penalties (tick if appropriate) | % |
| Up to 1 week late (40% Max) | ||
| Over 1 week late (0%) |
| Level 5 |
| In accordance with the Framework for Higher Education Qualifications, at the end of Level 5 students will be expected to have developed sound knowledge and critical understanding of the well-established concepts and principles in their field of study, and of the way in which those principles have developed. They will have learned to apply those concepts and principles more widely outside the context in which they were first studied, including, where appropriate, the application of those principles in an employment context. They will have knowledge of the main methods of enquiry in the subject area, and ability to evaluate critically different approaches to problem solving. They will possess an understanding of the limits of their knowledge, and how this influences their analyses and interpretations. They will be able to use a range of established techniques to initiate and undertake critical analysis of information, and to propose solutions to problems arising from that analysis. They will be able to effectively communicate information, arguments and analysis in a variety of forms to specialist and non-specialist audiences, and deploy key techniques of the discipline effectively. They will be able to undertake further training, develop existing skills and acquire new competences that will enable them to assume significant responsibility within organisations. They will have the qualities and transferable skills necessary for employment requiring the exercise of personal responsibility and decision-making. |
| Level 5 | FAIL | MARGINAL FAIL | SATISFACTORY (3rd / Pass) | GOOD (2.2 / Pass) | VERY GOOD (2.1 / Merit) | EXCELLENT (1st / Distinction) | EXCEPTIONAL (1st / Distinction) |
| Category | 0-29% | 30-39% | 40-49% | 50-59% | 60-69% | 70-84% | 85-100% |
| Engagement with literature (including reading, referencing, academic conventions and academic honesty) | Little or no evidence of reading and/or reliance on inappropriate sources. Views and findings mostly unsupported and non- authoritative. Referencing conventions used incoherently or largely absent. | Poor engagement with essential reading. No evidence of wider reading. Reliance on inappropriate sources, and/or indiscriminate use of sources. Heavily reliant on information gained through class contact. Inconsistent and weak use of referencing. | Engagement with a limited range of mostly relevant and credible sources. Some omissions and minor errors. Referencing conventions evident though not always applied accurately or consistently. | Engagement with an appropriate range of literature, including sources retrieved independently. Some over- reliance on texts. Referencing may show minor inaccuracies or inconsistencies. | Engagement with a wide range of literature, including sources retrieved independently. Selection of relevant and credible sources. Very good use of referencing, with no/very few inaccuracies or inconsistencies. | Engagement with an extensive range of relevant and credible literature. Consistently accurate application of referencing. | Exceptional engagement with an extensive range of relevant and credible literature. High- level referencing skills consistently applied. |
| Knowledge and understanding (Sound knowledge and critical | Major gaps in knowledge with unsatisfactory, uncritical understanding of the subject | Fragmentary knowledge, with only superficial critical understanding. Some significant | Limited but adequate knowledge and critical understanding of the well- | Knowledge is reasonably detailed and accurate. A good critical understanding of | Knowledge is reasonably extensive. Exhibits very competent critical | Excellent, detailed knowledge and highly critical understanding of the well- | Exceptionally detailed knowledge and outstanding critical understanding of |
| Level 5 | FAIL | MARGINAL FAIL | SATISFACTORY (3rd / Pass) | GOOD (2.2 / Pass) | VERY GOOD (2.1 / Merit) | EXCELLENT (1st / Distinction) | EXCEPTIONAL (1st / Distinction) |
| Category | 0-29% | 30-39% | 40-49% | 50-59% | 60-69% | 70-84% | 85-100% |
| understanding of the well- established concepts and principles in their field of study; knowledge of the main methods of enquiry in the discipline.) | matter. Much irrelevant material. Substantial inaccuracies. Significantly flawed understanding of the main methods of enquiry in the discipline. | inaccuracies and/or irrelevant material. Incomplete or partially flawed understanding of the main methods of enquiry in the discipline. | established concepts and principles within the subject area, with a few gaps in the selection of material. A narrow critical understanding of the main methods of enquiry. | the well- established concepts and principles and the main methods of enquiry, with minor gaps in the selection of material. | understanding of the well- established concepts and principles of the subject and the main methods of enquiry. Breadth and depth of knowledge. | established concepts and principles of the subject and the main methods of enquiry. | the well- established concepts and principles of the subject and the main methods of enquiry. May go beyond established theories. |
| 3. Calculations Clarity and accuracy of calculations. Use of professional and well- structured layout. | Little or no attempt to present calculations. Incorrect calculations for the most part. Poor layout and structure | Weak attempt to present calculations. Incorrect calculations for the most part. Weak layout and structure. | Some attempt to present calculations. Correct calculations for the most part. Satisfactory layout and structure. | A good attempt at the calculations. Correct calculations for the most part. Good layout and structure. | A very good attempt at the calculations. Correct calculations for the most part. Very good layout and structure. | An excellent attempt at the calculations. Accurate calculations throughout. Excellent layout and structure. | An exceptional attempt at the calculations. Accurate calculations throughout. Exceptional layout and structure. |
| Practical skills (Apply underlying concepts and principles more widely outside the context in which they were first studied; use a range of established techniques; propose solutions to problems arising from analysis.) | Limited or no use of established methods, materials, tools and/or techniques. Little or no appreciation of the context of the application. Limited understanding of the application of theory to practice or making appropriate links between the two. | Rudimentary application of established methods, materials, tools and/or techniques but without consideration and competence. Flawed appreciation of the context of the application. Weak understanding of the application of theory to | An adequate awareness and mostly appropriate application of established methods, materials, tools and/or techniques. Basic appreciation of the context of the application. Theoretical knowledge and understanding applied in practice, but not | A good and appropriate application of established methods, materials, tools and/or techniques. Clear appreciation of the context of the application. Mainly consistent, accurate and logical application of theory to practice, making | A very good application of a range of established methods, materials, tools and/or techniques. Very good consideration of the context of the application, with perceptive insights. Consistent, accurate and logical application of theory to | An advanced application of a range of established methods, materials, tools and/or techniques. The context of the application is well considered, and insightful. Consistent, accurate and logical application of theory to practice, making well-developed | Exceptional levels of application and deployment skills using established methods, materials, tools and/or techniques. Consistent, accurate and logical application of theory to practice, making highly developed links between the two. Can |
| Level 5 | FAIL | MARGINAL FAIL | SATISFACTORY (3rd / Pass) | GOOD (2.2 / Pass) | VERY GOOD (2.1 / Merit) | EXCELLENT (1st / Distinction) | EXCEPTIONAL (1st / Distinction) |
| Category | 0-29% | 30-39% | 40-49% | 50-59% | 60-69% | 70-84% | 85-100% |
| Very weak problem-solving skills outside the context in which they were first studied. | practice, with only occasional evidence of making appropriate links between the two. Weak problem- solving skills outside the context in which they were first studied. | always making logical links between the two. Can identify problems and propose basic solutions outside the context in which they were first studied. | appropriate links between the two. Can identify problems and propose mostly appropriate solutions outside the context in which they were first studied. | practice, making appropriate links between the two. Can identify problems and propose appropriate solutions outside the context in which they were first studied. Evidence of some creativity. | links between the two. Can identify problems and propose excellent, creative solutions outside the context in which they were first studied. | identify routine and non-routine problems and propose quite sophisticated, creative solutions outside the context in which they were first studied. | |
| Transferable skills for life and professional practice (Effectively communicate in a variety of forms to specialist and non-specialist audiences; the qualities and transferable skills necessary for employment requiring the exercise of personal responsibility and decision-making.) | Communication medium is inappropriate or misapplied. Work is poorly structured, disorganised and/or confusingly expressed. Very weak use of language and/or very inappropriate style. Failure to work effectively as part of a group. Little or no evidence of the skills for employment requiring the exercise of personal responsibility and decision- making. | Communication medium is poorly designed and/or not suitable for the audience. Work is poorly presented in a disjointed manner. It is loosely, and at times incoherently, structured, with information and ideas often poorly expressed. Weak use of language and/or inappropriate style. Flawed approach to group work, meeting only partial obligations to others. Limited | Can communicate in a suitable medium for the audience but with some room for improvement. Mostly ordered presentation and structure in which relevant ideas / concepts are reasonably expressed. Work may lack coherence in places. Can work as part of a group, meeting most obligations to others but perhaps with limited involvement in group activities. Demonstrates the basic skills | Can communicate effectively in a suitable medium for the audience, but may have minor errors. Mostly coherent, organised work, in a suitable structure and is for the most part clearly expressed. Can work effectively independently and/or as part of a team, with clear contribution to group activities. Demonstrates the skills for employment requiring the exercise of personal | Can communicate well, confidently and consistently in a suitable medium for the audience. Work is coherent, fluent, well-structured and organised. Can work very well autonomously and/or as part of a team, with very good contribution to group activities. Demonstrates very good skills for employment requiring the exercise of personal responsibility and decision- | Can communicate professionally confidently and consistently in a suitable medium for the audience. Work is coherent, very fluent and is presented proficiently. Can work autonomously with initiative. Where relevant can work professionally within a team, showing leadership skills as appropriate, and meeting obligations. Demonstrates excellent skills for employment | Can communicate with an exceptionally high level of professionalism, highly suitable for the audience. Work is exceptionally coherent, very fluent and is presented professionally. Can work exceptionally well within a team, showing leadership skills. Demonstrates exceptional skills for employment requiring the exercise of personal responsibility and decision- |
| Level 5 | FAIL | MARGINAL FAIL | SATISFACTORY (3rd / Pass) | GOOD (2.2 / Pass) | VERY GOOD (2.1 / Merit) | EXCELLENT (1st / Distinction) | EXCEPTIONAL (1st / Distinction) |
| Category | 0-29% | 30-39% | 40-49% | 50-59% | 60-69% | 70-84% | 85-100% |
| evidence of the skills for employment requiring the exercise of personal responsibility and decision- making. | for employment requiring the exercise of personal responsibility and decision- making, with some areas of minor weakness. | responsibility and decision- making, with some areas of strength and some of minor weakness. | making, with just occasional minor weakness. | requiring the exercise of personal responsibility and decision- making and an appetite for further development. | making and an appetite for further development. |
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