Case Study Scenario APC Sharing is a transportation sharing company based in Australia. It runs electric...
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Case Study Scenario APC Sharing is a transportation sharing company based in Australia. It runs electric scooters, electric bikes, and car-sharing systems in various cities in Australia. This company has been operating successfully for the last two years; however, the level of competition in the market is expected to increase due to new entrants in the market. Therefore, APC Sharing decided to initiate the following: Marketing department: is engaged with social media marketing and, each month, different sales promotions will be conducted through the social media networks. Five more employees will be employed and be placed in the marketing department to support their activities. The budgets for the marketing department are expected to increase by 20%. For social media marketing, relevant training will be organised and provided. Accounting department: aims to support the marketing department by promptly approving the budgets and reimbursements and analysing efficiency for the marketing activities. The marketing department activities were conducted last year as follows: Marketing Department ● ● ● Activities Market Research Owned Media (homepage, blog) Video advertising (YouTube) Social Media Advertisement Creative Design Marketing software Equipment purchases Staff Salary Staff training Sales support tools New Service Development Total 2020 The objectives: ● Budget ($) $25,000 $32,000 $150,000 N/A $60,000 $120,000 $210,000 $550,000 $85,000 $100,000 $120,000 $1,452,000 Actual ($) $22,000 $28,000 $167,000 N/A $70,000 $124,000 $215,000 $590,000 $44,000 $210,000 $140,000 $1,610,000 Budget ($) You have been appointed as the Accounting Department Manager. One of your tasks is to complete the budgeting for the Marketing department for the year 2021. After the consultation with the Marketing department manager, the marketing department manager has set up the goals and objectives for the marketing department for the year 2021 as follows: 2021 The goal: ● Increased the number of service users (customers) by 15% more than the previous year by the end of 2021. ther million followers at the social media network Actual ($) Increase customer satisfaction rate by 10% - (currently 8.2 out of 10) Increased the service awareness by the sales promotions (targeted no of visitors in total: 800,000). Therefore, you and the marketing department manager have decided the following: Due to the increased number of marketing activities in 2021, the budgets for the marketing department will be increased by 20% more than the actual spending in the year 2020. Marketing software is to be subscribed from the year 2021, and the estimated subscription is $31,000 per annum. Five full-time staff to be employed, and their total remuneration package, including the superannuation, is $55,000 per employee. Staff training costs will be increased by $42,000 from the actual spending in 2020 as more training is planned. The creative design team will have the same budget as the one in 2020. Social Media Advertisement costs are estimated at $250,000. All other activities are estimated to be the same as the actual spending in 2020. Budgeting for the marketing department Question 1: In the first place, complete the following table provided by the marketing department. You are required to complete the BUDGET column under 20201 only!!! (PC 1.1 PE 1, KE 1, 6.1, 6.3) Marketing Department Activities Market Research Owned Media (homepage, blog) Video advertising (YouTube) Social Media Advertisement Creative Design Marketing software Equipment purchases Staff Salary Staff training Sales support tools New Service Development Total 2020 Budget ($) $25,000 $32,000 $150,000 N/A $60,000 $120,000 $210,000 $550,000 $85,000 $100,000 $120,000 $1,452,000 Actual ($) $22,000 $28,000 $167,000 N/A $70,000 $124,000 $215,000 $590,000 $44,000 $210,000 $140,000 $1,610,000 2021 Budget ($) Actual ($) Question 2: You are required to calculate the maximum funds (budgets) available for the marketing department in accordance with the scenario. (PC 1.2 PE 2, PE 6) Question 3: You have a meeting with the marketing department. You will need to explain the initial budgeting for the marketing department in 2021, and whether the initial budget exceeds the maximum budget for the department. (PC 1.2) Question 4: You are now required to provide recommendations on equipment purchases and sales support tools for the marketing manager. Provide your recommendation on how the marketing manager may reduce the budgets for equipment purchase and sales support tools. (PC 1.3 PE 4) Question 5: After the meeting with the marketing manager, the manager informed you of the followings: All new equipment in 2021 will be on a lease contract. The Sales Support tools will be only rented out when sales promotion is on. ● Due to the changes in the plan, the budget is to be adjusted with the following information: The lease costs for the new equipment in 2021 is estimated at approx. $8,000 per month. The expected total rental costs for the sales support tools for the year 2021 are estimated at approx. $88,000 for 20 sales promotion activities. Required: You are now required to adjust the budget for the marketing department for the year 2021. (PC 1.3 PE 4, KE 5, 6.1, 6.7) Marketing Department Activities Market Research Owned Media (homepage, blog) Video advertising (YouTube) Social Media Advertisement Creative Design Marketing software Equipment purchases Staff Salary Staff training Sales support tools New Service Development Total Sales Activities 2016 Sharing Services Repairing Services Consultation Services Total Sales Volume 2020 Budget ($) $25,000 $32,000 $150,000 N/A $60,000 $120,000 $210,000 $550,000 $85,000 $100,000 $120,000 $1,452,000 2017 $380,000 $510,000 Actual ($) $22,000 $28,000 $167,000 N/A $70,000 $124,000 $215,000 $590,000 $44,000 $210,000 $140,000 $1,610,000 Question 6: You are now required to analyse the sales volume for the year of 2021. You have the following information and have to use trend analysis to forecast the sales volume in the year of 2021. (PC 1.3, KE 6.1, 6.2, 6.3, 6.7) Budget ($) 2021 2019 2018 $945,000 $1,520,000 $72,000 $112,000 $246,000 $315,000 $465,000 $50,000 $88,000 $167,000 $330,000 $520,000 2020 $2,150,000 Actual ($) $502,000 $710,000 $1,358,000 $2,165,000 $3,135,000 2021 Question 7: The CEO called a meeting with you about the marketing department manager and asked if the expected sales budget would cover the increase in the marketing department budgets. (PC 1.4, PE 3 KE 2 KE 6.1, 6.2) Question 8: You are required to provide a recommendation to the CEO for the contingency plans when the expected sales volume does not happen. (PC 1.4, PE 3 KE 2 KE 6.1, 6.2) Question 9: Business Report As the accounting department manager, you are now required to inform the finalised budgets for the senior management. You are required to fill up the following table for the business report. (PC 2.1 PE 2, KE 2, 6, 7) Date Reported by <Insert your name> Topic Financial Plan Business Report <Insert the date that you are working on> Detailed budgetary information in marketing department Expected sales volume for the year of 2021 How to achieve the financial plan Marketing Department Activities Staff Salary Staff training The budget for the marketing department 2020 Market Research Owned Media (homepage, blog) Video advertising (YouTube) Social Media Advertisement Creative Design Marketing software Equipment purchases Sales support tools New Service Development Total Actual ($) $22,000 $28,000 $167,000 N/A N/A $60,000 $70,000 $120,000 $124,000 $210,000 $215,000 $550,000 $590,000 $85,000 $44,000 $100,000 $210,000 $120,000 $140,000 $1,452,000 $1,610,000 Budget ($) $25,000 $32,000 $150,000 2021 Budget ($) Actual ($) Sales Activities Sharing Services Repairing Services Consultation Services Total Sales Volume The expected sales volume for the year of 2021 2018 2019 2016 2017 $380,000 $510,000 $945,000 $72,000 $112,000 $246,000 $1,520,000 $2,150,000 $315,000 2020 $50,000 $88,000 $167,000 $330,000 $465,000 $520,000 $502,000 $710,000 $1,358,000 $2,165,000 $3,135,000 2021 Question 10: According to the scenario, the marketing department will initiate social media marketing in the year 2021. In addition, from Question 5, the department will rent the sales support tools on an event basis. Recommend how the marketing manager can support their team members. (PC 2.2, PE 5, KE 5) Case Study Scenario APC Sharing is a transportation sharing company based in Australia. It runs electric scooters, electric bikes, and car-sharing systems in various cities in Australia. This company has been operating successfully for the last two years; however, the level of competition in the market is expected to increase due to new entrants in the market. Therefore, APC Sharing decided to initiate the following: Marketing department: is engaged with social media marketing and, each month, different sales promotions will be conducted through the social media networks. Five more employees will be employed and be placed in the marketing department to support their activities. The budgets for the marketing department are expected to increase by 20%. For social media marketing, relevant training will be organised and provided. Accounting department: aims to support the marketing department by promptly approving the budgets and reimbursements and analysing efficiency for the marketing activities. The marketing department activities were conducted last year as follows: Marketing Department ● ● ● Activities Market Research Owned Media (homepage, blog) Video advertising (YouTube) Social Media Advertisement Creative Design Marketing software Equipment purchases Staff Salary Staff training Sales support tools New Service Development Total 2020 The objectives: ● Budget ($) $25,000 $32,000 $150,000 N/A $60,000 $120,000 $210,000 $550,000 $85,000 $100,000 $120,000 $1,452,000 Actual ($) $22,000 $28,000 $167,000 N/A $70,000 $124,000 $215,000 $590,000 $44,000 $210,000 $140,000 $1,610,000 Budget ($) You have been appointed as the Accounting Department Manager. One of your tasks is to complete the budgeting for the Marketing department for the year 2021. After the consultation with the Marketing department manager, the marketing department manager has set up the goals and objectives for the marketing department for the year 2021 as follows: 2021 The goal: ● Increased the number of service users (customers) by 15% more than the previous year by the end of 2021. ther million followers at the social media network Actual ($) Increase customer satisfaction rate by 10% - (currently 8.2 out of 10) Increased the service awareness by the sales promotions (targeted no of visitors in total: 800,000). Therefore, you and the marketing department manager have decided the following: Due to the increased number of marketing activities in 2021, the budgets for the marketing department will be increased by 20% more than the actual spending in the year 2020. Marketing software is to be subscribed from the year 2021, and the estimated subscription is $31,000 per annum. Five full-time staff to be employed, and their total remuneration package, including the superannuation, is $55,000 per employee. Staff training costs will be increased by $42,000 from the actual spending in 2020 as more training is planned. The creative design team will have the same budget as the one in 2020. Social Media Advertisement costs are estimated at $250,000. All other activities are estimated to be the same as the actual spending in 2020. Budgeting for the marketing department Question 1: In the first place, complete the following table provided by the marketing department. You are required to complete the BUDGET column under 20201 only!!! (PC 1.1 PE 1, KE 1, 6.1, 6.3) Marketing Department Activities Market Research Owned Media (homepage, blog) Video advertising (YouTube) Social Media Advertisement Creative Design Marketing software Equipment purchases Staff Salary Staff training Sales support tools New Service Development Total 2020 Budget ($) $25,000 $32,000 $150,000 N/A $60,000 $120,000 $210,000 $550,000 $85,000 $100,000 $120,000 $1,452,000 Actual ($) $22,000 $28,000 $167,000 N/A $70,000 $124,000 $215,000 $590,000 $44,000 $210,000 $140,000 $1,610,000 2021 Budget ($) Actual ($) Question 2: You are required to calculate the maximum funds (budgets) available for the marketing department in accordance with the scenario. (PC 1.2 PE 2, PE 6) Question 3: You have a meeting with the marketing department. You will need to explain the initial budgeting for the marketing department in 2021, and whether the initial budget exceeds the maximum budget for the department. (PC 1.2) Question 4: You are now required to provide recommendations on equipment purchases and sales support tools for the marketing manager. Provide your recommendation on how the marketing manager may reduce the budgets for equipment purchase and sales support tools. (PC 1.3 PE 4) Question 5: After the meeting with the marketing manager, the manager informed you of the followings: All new equipment in 2021 will be on a lease contract. The Sales Support tools will be only rented out when sales promotion is on. ● Due to the changes in the plan, the budget is to be adjusted with the following information: The lease costs for the new equipment in 2021 is estimated at approx. $8,000 per month. The expected total rental costs for the sales support tools for the year 2021 are estimated at approx. $88,000 for 20 sales promotion activities. Required: You are now required to adjust the budget for the marketing department for the year 2021. (PC 1.3 PE 4, KE 5, 6.1, 6.7) Marketing Department Activities Market Research Owned Media (homepage, blog) Video advertising (YouTube) Social Media Advertisement Creative Design Marketing software Equipment purchases Staff Salary Staff training Sales support tools New Service Development Total Sales Activities 2016 Sharing Services Repairing Services Consultation Services Total Sales Volume 2020 Budget ($) $25,000 $32,000 $150,000 N/A $60,000 $120,000 $210,000 $550,000 $85,000 $100,000 $120,000 $1,452,000 2017 $380,000 $510,000 Actual ($) $22,000 $28,000 $167,000 N/A $70,000 $124,000 $215,000 $590,000 $44,000 $210,000 $140,000 $1,610,000 Question 6: You are now required to analyse the sales volume for the year of 2021. You have the following information and have to use trend analysis to forecast the sales volume in the year of 2021. (PC 1.3, KE 6.1, 6.2, 6.3, 6.7) Budget ($) 2021 2019 2018 $945,000 $1,520,000 $72,000 $112,000 $246,000 $315,000 $465,000 $50,000 $88,000 $167,000 $330,000 $520,000 2020 $2,150,000 Actual ($) $502,000 $710,000 $1,358,000 $2,165,000 $3,135,000 2021 Question 7: The CEO called a meeting with you about the marketing department manager and asked if the expected sales budget would cover the increase in the marketing department budgets. (PC 1.4, PE 3 KE 2 KE 6.1, 6.2) Question 8: You are required to provide a recommendation to the CEO for the contingency plans when the expected sales volume does not happen. (PC 1.4, PE 3 KE 2 KE 6.1, 6.2) Question 9: Business Report As the accounting department manager, you are now required to inform the finalised budgets for the senior management. You are required to fill up the following table for the business report. (PC 2.1 PE 2, KE 2, 6, 7) Date Reported by <Insert your name> Topic Financial Plan Business Report <Insert the date that you are working on> Detailed budgetary information in marketing department Expected sales volume for the year of 2021 How to achieve the financial plan Marketing Department Activities Staff Salary Staff training The budget for the marketing department 2020 Market Research Owned Media (homepage, blog) Video advertising (YouTube) Social Media Advertisement Creative Design Marketing software Equipment purchases Sales support tools New Service Development Total Actual ($) $22,000 $28,000 $167,000 N/A N/A $60,000 $70,000 $120,000 $124,000 $210,000 $215,000 $550,000 $590,000 $85,000 $44,000 $100,000 $210,000 $120,000 $140,000 $1,452,000 $1,610,000 Budget ($) $25,000 $32,000 $150,000 2021 Budget ($) Actual ($) Sales Activities Sharing Services Repairing Services Consultation Services Total Sales Volume The expected sales volume for the year of 2021 2018 2019 2016 2017 $380,000 $510,000 $945,000 $72,000 $112,000 $246,000 $1,520,000 $2,150,000 $315,000 2020 $50,000 $88,000 $167,000 $330,000 $465,000 $520,000 $502,000 $710,000 $1,358,000 $2,165,000 $3,135,000 2021 Question 10: According to the scenario, the marketing department will initiate social media marketing in the year 2021. In addition, from Question 5, the department will rent the sales support tools on an event basis. Recommend how the marketing manager can support their team members. (PC 2.2, PE 5, KE 5)
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To finish the planning for the Promoting office for the year 2021 in view of the gave objectives and targets we really want to examine the ongoing financial plan and change it appropriately Here is a ... View the full answer
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