Business Planning Edexcel Unit 5

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Planning Unit 5: Business Advanced

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11June2008- Morning Wednesday Time: t hour30 minutes

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Instructions to Candidates In the boxes above, write your centre number, candidatenumber, your surnameand initials, and your signature. Check that you have the correct question paper. Answer the question.Write your answersin the spacesprovided in this questionpaper. Do not use pencil. Use blue or black ink. Show all the stepsin any calculations and state the units. Do not return the context with the question paper. Information for Candidates There is 1 questionin this questionpaper.The total mark for this paper is 84. There are 12 pagesin this questionpaper.Any blank pagesare indicated. There are up to 4 marks for the quality of written communication. Calculatorsmay be used. Dictionaries may not be used in this examination. Advice to Candidates You must ensurethat your answersto parts of the questionsare clearly numbered.

QWC Total This publication may be reproduced only in accordance with Edexcel Limited copyright policy. 02008 Edexcel Limited. Printer's Log. No.

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advancinglearning,changinglives

Youare advised to spend at leost I5 minutes reading thefollowing information, then answer tlte questionwhichfollows.

THE OLD VICARAGE ACTIVITY CENTRE .EDUCAIION, FLIN, CHALLENGES AND MEMORIES - WE PROVIDE THEM ALL!' For 2l yearsthis family-run centrehas specialisedin providitrg a wide range of adventurousactivities, from one hour to one week, for beginnersto the experienced,for nine months of the year.

Basedin 30 acres,surroundedby stunning sceneryin the Shropshirecountryside,the Old Vicarage Activity Centre(OVAC) only takesa limited numberof bookingsat any one time, and offers soleuse of facilities for residentialparties.This policy ensuresunrivalled personalattentionto detail and the undivided attentionof its staff to guararteea safeexperiencefor all guests.It is, therefore,no surprise that the OVAC boastsa tradition of endorsementby the British CanoeUnion, the AdventureActivities LicensingAuthority andthe British MountaineeringCouncil. The OVAC hashaditionally cateredfor a vastrangeofvisitors, from eleven-year-oldBoy Scoutgroups with a passionfor canoeingand archery to middle-agedbusinesspeoplewho wish to simply engage in teambuilding and problemsolving activities.In the last 12monthsthe OVAC haswelcomedgroups from NatWest Bank plc, West Bromwich Building Society (see Appendix 1) and newly-qualified medicalstaff from the local RegionalHealthAuthority. The Centrehasworkedhard to extendits range of activitiesto includeclimbing, abseiling,cavingand,mostrecently,paintball.Indeedthe management is concemedthat the OVAC is in dangerof having to operateat fuIl capacity in order to cope with the growing demand.To avert this problem, the ownersBrian and JaneDavies, are consideringtwo expansionopportunities. Option A - Extend current site by the purchase and developmentof Ginny Farm To developneighbouringfarrn land at a cost of 130000 to housestablesfor horseriding, a l0-acre quadbiking track and a lasergun shootingraage.The quadbikes would cost a further f16000 for 20 bikes;the laserequipmentanothert I 0 000 andthe horseriding would be a concessionarrangementwith managerStephanieEddiesof the local riding school'Counhy Treks', involving no further outlay. It has beenestimatedthat net cash-flowswould increaseby an averageoff,8 000 per year (seeAppendix 2) if this option was chosen.Furthermore,this developmentwould enablethe OVAC to meetthe challenges of the recentUK Govemment'smanifestoon outdooreducation(seeAppendix 3). Option B - Develop an overseascentre in Nepal To developanotler site in the Sukuteregion of Nepal. This option would be a joint venturebetween the OVAC senior instructor,Anthony, eldestson of Brian and Jane,and prospectivebusinesspartner Gerry Moffatt. Anthony and Gerry visited Sukute 18 monthsago and discoveredan outward bound style activity cenhe,ownedby EquatorExpeditions,which is now up for saleat a costof approximately f,20000*. Gerry has calculatedthat a further f,10000 would be neededfor equipmentsuchas canoes, climbing hamessesandropes.What makesthis option particularlyathactiveis that it would enablestaff from the Shropshirecentrea changeof scene,provide opportunitiesfor professionaldevelopmentin a more challengingenvironment(seeAppendix 4), ard it would be operationalall year round. * given curr€ntexchangerate of€l : 140Nepal Rupees

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APPENDIX 1 FACSIMILE To: Fax: From: Fax: Date:

Brian Davies 01746718575 RukhsanaBegum 0l2l 358 5991 8th June 2007

At: OVAC, Stottesdon Phone:01746718436 Position: Human ResourcesManager Phone:0l2l 358 5992

Re: Visit on 28th May and Future Booking Many thanksfor an absolutelyfantasticweekend.The activities you provided were certainly quite a challengeand a really effectiveway of supportingour InductionProgrammefor new staff. Needlessto say,I would like to provisionally book for next season,preferably29th - 3l st May. I realiseyou may alreadybe booked,so would appreciateifyou could let me know assoonaspossibleso that I canmake altemativearaxrgements,if necessary.

APPENDIX 2 Predictednet cash-flowsfor OVAC Ginny Farm Development, Shropshrre, 2007-20 | 6* Year 1: Year 2: Year 3: Year 4: Year 5: Year 6: Year 7: Year 8: Year 9: Year 10:

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f6 000 f.6 400 f6 900 f7 500 f8 200 f8 800 f9 300 f9 500 f9 000 f8 400

* prepared by Juliet Bain, Senior Partner, Ernst & Young plc

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APPENDIX 3

Tuesday28 November2006

This moming, at the Natural History Museum,the EducationSecretary,Alan Johnson,will launch a GovemmentMa.nifestofor Leaming Outsidethe Classroom. "This is a significant step," says StephenBrown, who chairs the national panel representinglocal authority outdooreducationadvisers.*We haveknown the value of theseexperiencesfor many years, but, finally, tle govemmenthasmadethe case." Accordingto the Associationof Headsof OutdoorEducationCentres(Ahoec),a sigrrificantnumberof centresareunderthreat of closureor review. "At the moment,22 centresare facing cuts in proyision, cutsin budgets,or proposalsto close," saysKevin Jackson,Ahoec'schair."We welcomethe Manifesto aad strongly supportthe principlesbehindoutdoorleamiirg,but we will needthe specialistskills of the staffin thesecentres." The Government'sManifestotakesthe form of a seriesof pledges,with local authoritiesand education organisationsbeing invited to sign up as evidenceof their commitnent. There's the promise of a residential experiencefor every state-schoolpupil, alongsidea progftmme to promote and support out-of-classroomlearning.

APPENDIX 4 Extract from StaffAppraisal Record,the Old VicarageActivity Centre Date: Employee: 2007-g CPD* Needs: Line Manager:

2TthAugust2007 Nicki Ayres British Mountaineering CouncilLevel 3 QualificationLeveI2 British CanoeUnion Instructor Bill Brown,SeniorLevel 4 Instructo.r

* CPD = ContinuingProfessionalDevelopment

ActionsProoosed 1. Increasethe numberof working hoursfrom 2l per week to 40 from 3rd September2007 2. Extendthe seasonaad opportunitiesto work with largergroups;suggestedSukuteCenhein Nepal 3. UpdateEmergencyMedical TechnicianCertificatethrough 2-day f:aining eventin Oxford

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With reference to the information given and your own ideas, evaluate the two options availableto Brian and JaneDavies AND constructa businessplan that would ensureihe successfulimplementationof ONE of the options.

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Q1 (Total 80 marks) Quality of Written Communication:4 marks TOTAL FOR PAPER: 84 MARKS END

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