18 Jun WHAT OPTIONS MIGHT BE AVAILABLE TO MANAGE WGL’S ENVIRONMENTAL IMPACT?
As her accountant and trusted advisor, Julie would like you to answer a number of questions:
Calculate the number of children Julie would need to enrol in her service in order for the business to break-even.
Of course, Julie would like to make a profit. Assuming a target profit of $10,500 per month, calculate the number of children who must be enrolled to make this number.
Assume that the building rent increased to $3,150 and that parents are keen that the children go on some on field trips. Monthly costs of the field trips are expected to be $1,300. By how much should Julie increase fees per child to meet the target profit of $10,500 per month, assuming the same number of children as in requirement 2?
Task 4 (Max. 500 words)
Wenson and Gommi Ltd (WGL) produces baby care products. WGL prides itself on its commitment to environmental protection and many of its advertisements focus on its slogan, ‘Taking care of your baby, and your baby’s future’.
One of their most popular products is a sky-blue nappy with pictures of the earth that glow softly in the dark. Producing this effect requires a chemical process that produces dioxins (a highly toxic and persistent organic chemical) as a waste product. The Australian government introduced a national approach to deal with dioxins that included measurement and reduction programs.
In response WGL decided to outsource production to a Pacific island nation where unemployment is a major problem. WGL does not have any ownership interests in this production company, but is its only customer. The government of this Pacific nation was very pleased to have this employment opportunity moving to their country and has been willing to ignore the possible detrimental impact on their environment. Now the only problem facing WGL are criticisms that the nappies are not biodegradable. WGL is not concerned, however, since that is a problem for its customers.
Required
Discuss the principle of life-cycle analysis and how it might apply to WGL.
WGL is considering preparing GRI reports. Will WGL be required to report on the production of the nappies? Why or why not?
What options might be available to manage WGL’s environmental impact?
What arguments can you provide for WGL to incur additional costs to reduce the environmental impact of the production and disposal of their nappies, even though production and disposal are performed by others?
Part B: Critical reflection (approximately 1,000 words)
You had to practically apply the decision making models and tools you have learned about throughout the subject. Reflect on your experience in completing the various assessments in this course. What major learning on measurement and decision making can you apply in practice as a manager in your organisation?
The list below provides some questions you may wish to consider in your critical reflection. These are suggestions only. You may address issues that are not on this list.
Has what you have learned in this subject created an increased awareness of the importance of decision making as a management activity? Why or why not?
Which model or tool most influenced you as you worked your way through the subject? Why?
How critical do you believe the quality of decision making is to an organisation? Why?
Which of the models and tools would you use as a manager? Why?
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