Download Writing in Business and Economics

WRITING IN BUSINESS AND ECONOMICS (Language and Learning
Online)
Writing in Business and Economics
These tutorials are intended to help you develop skills to improve your
writing in Business and Economics subjects. Take a look at the resources
in the Commercial Law <www.monash.edu/lls/llonline/writing/businesseconomics/commercial-law/index.xml> , Economics
<www.monash.edu/lls/llonline/writing/businesseconomics/economics/index.xml> , Management
<www.monash.edu/lls/llonline/writing/businesseconomics/management/index.xml> , or Marketing
<www.monash.edu/lls/llonline/writing/businesseconomics/marketing/index.xml> modules to learn more about meeting
your lecturer's expectations and developing your own writing skills in these
subjects. These tutorials all feature samples of student writing, as well as
student comments on the writing process.
Commercial Law assignment
This tutorial contains information about assignment writing based on materials from the first-year subject
Commercial Law. You will also find much of the information to be useful for your other Business Law
subjects. Navigate through the tutorial using the Table of Contents on the left. The tutorial's three main
sections are outlined below.
Lecturer's advice <www.monash.edu/lls/llonline/writing/business-economics/commerciallaw/1.xml>
Get information from the lecturer about what is required for Commercial Law assignments.
Skills for writing in Commercial Law <www.monash.edu/lls/llonline/writing/businesseconomics/commercial-law/2.xml>
Learn to write better assignments through interactive tasks.
Annotated assignments <www.monash.edu/lls/llonline/writing/businesseconomics/commercial-law/3.xml>
View samples of student work with lecturer and student comments.
Lecturer's advice
In this section, one of your lecturers - Brendan Sweeney - answers Frequently Asked Questions (FAQs)
about researching and writing assignments in first-year Commercial Law.
FAQs: Click on those topic areas that are of interest to you, or that you need to know more about.
Objectives
1. What are you hoping to achieve in setting the main assignment?
<www.monash.edu/lls/llonline/#faq1>
2. What do you hope students will gain from the experience of researching and writing it?
<www.monash.edu/lls/llonline/#faq2>
3. In the preparation of their assignments, what aspects of the course (content covered, skills, etc.)
would you expect students to draw on? <www.monash.edu/lls/llonline/#faq3>
Assessment
4. What are your main considerations when assessing assignments?
<www.monash.edu/lls/llonline/#faq4>
Perception of performance
5. What in your experience are some of the main difficulties first-year students have with commercial
law assignments? <www.monash.edu/lls/llonline/#faq5>
6. Which of these would you say are of a more generic nature (e.g. structuring paragraphs) and which
specifically relate to writing in your discipline? <www.monash.edu/lls/llonline/#faq6>
Reading requirements
7. Students are often uncertain about the amount and type of reading they need to do for a university
assignment. What are your expectations in this regard for a first-year commercial law assignment?
<www.monash.edu/lls/llonline/#faq7>
Transition issues
8. Do you have any sense of how the writing requirements of VCE compare with the type of writing
required in your course? What transitions do you think students need to make?
<www.monash.edu/lls/llonline/#faq8>
Advice
9. If you were to give students three simple pieces of advice as they prepare to do an assignment in
your subject, what would these be? <www.monash.edu/lls/llonline/#faq9>
1. What are you hoping to achieve in setting the main assignment?
The aim of this assignment is:
1. To test the student's ability to apply the skills learnt in lectures and tutorials to a problem without the
aid of extensive guidance
2. To provide students with the opportunity to cover one aspect of contract law in more detail
Back to top <www.monash.edu/lls/llonline/#faqs>
2. What do you hope students will gain from the experience of researching and writing it?
1. Knowledge from the research
2. Practice in applying conceptual principles to solve a practical problem
3. Confidence from being required to submit a solution without guidance
Back to top <www.monash.edu/lls/llonline/#faqs>
3. In the preparation of their assignments, what aspects of the course (content covered,
skills, etc.) would you expect students to draw on?
1. Analytical skills
2. Preparation of coherent written opinion
3. Note: quality research skills are not really required for this assignment
Back to top <www.monash.edu/lls/llonline/#faqs>
4. What are your main considerations when assessing assignments?
1.
2.
3.
4.
Application of the relevant rules to resolve the issues
Ability to reach a reasoned conclusion
Relevance of material
Presentation (mainly the coherence of the argument, but also other factors such as clarity of
expression)
Back to top <www.monash.edu/lls/llonline/#faqs>
5. What in your experience are some of the main difficulties first-year students have with
Commercial Law assignments?
1. Failure to identify the issue properly. Failure to understand the notion of arguing by analogy. Students
spend hours looking for a situation that is exactly the same as the one given. However, perhaps we
shouldn't overstate this as a problem. If a student comes to the realization during the course of the
assignment that what matters is the core issue not the superficial facts, then they have learnt a key
lesson.
2. Fear of writing. This is particularly true of international students.
3. Fear of committing themselves to a solution. This may be particularly true of some international
students who may be used to a system of assessment based on repeating precisely what they have
been taught. They are uncomfortable expressing a conclusion that has not already been approved by
the teacher.
Back to top <www.monash.edu/lls/llonline/#faqs>
6. Which of these would you say are of a more generic nature (e.g. structuring paragraphs)
and which specifically relate to writing in your discipline?
Essentially they are all generic. However, they are often dressed up as problems with Law. Students have a
notion that there is some secret to writing in Law and if only we would give them the secret all would be clear.
This is just not true.
Back to top <www.monash.edu/lls/llonline/#faqs>
7. Students are often uncertain about the amount and type of reading they need to do for a
university assignment. What are your expectations in this regard for a first-year commercial
law assignment?
Our problem is based on testing their analytical skills rather than their research skills. Therefore, we do not
expect much reading beyond the text. The test lies in their ability to reason. However, this puts us in a
dilemma. We don't want to state outright that we do not want - or expect - students to do some reading
beyond the text. We do however stress that the key to the assignment (and indeed to the subject) is how
students go about solving the problem and not about the depth of research.
Back to top <www.monash.edu/lls/llonline/#faqs>
8. Do you have any sense of how the writing requirements of VCE compare with the type of
writing required in your course? What transitions do you think students need to make?
I have to say that I am no expert on the VCE. However, I do understand that frequently the CATS were based
on written work that was edited and re-edited many times following assessment by the teacher. This is clearly
quite differently from what we expect. I note that a common complaint from students is that tutors are
instructed not to help them with their assignment. This is absolutely true. On the other hand, the tutor is there
to answer questions. The tutors will most certainly answer conceptual difficulties the students are having.
However, many students really just want to be told what the answer is, or whether their answer is correct.
Having said this it must be remembered that we get some very good answers that would certainly not be
misplaced in a Law school.
Back to top <www.monash.edu/lls/llonline/#faqs>
9. If you were to give students three simple pieces of advice as they prepare to do an
assignment in your subject, what would these be?



Begin early.
Focus properly - look at the assignment as an analytical problem, not a research exercise.
Read the assignment aloud to someone. If it doesn't seem to make sense, then it is probably not
going to get many marks when we read it.
Back to top <www.monash.edu/lls/llonline/#faqs>
Skills for writing in Commercial Law
In this section, you have a chance to practice skills to help you with your report writing for Commercial Law.
The materials cover four broad topics and include a range of practice tasks. Select those topics from the
menu on the left that you'd like to work on. If you want to practice all of them, work from start to finish.
Topics:



Assignment tasks <www.monash.edu/lls/llonline/writing/business-economics/commerciallaw/2.1.xml>
Style of writing <www.monash.edu/lls/llonline/writing/business-economics/commerciallaw/2.2.xml>
Using paragraphs <www.monash.edu/lls/llonline/writing/business-economics/commerciallaw/2.3.xml>

Legal arguments <www.monash.edu/lls/llonline/writing/business-economics/commerciallaw/2.4.xml>
Assignment tasks
When you study Commercial Law, your assignment and exam questions will most likely be problem
questions.
These differ from essay and report tasks in that the latter are only a few sentences, or a short paragraph, in
length. Problem questions in Commercial Law are often at least three quarters of a page in length.
The information provided in the problem tasks has issues or problems embedded in them. You have to find
these and then build your response on them.
Structuring a written response
Click on the highlighted text to see the comments.
It is important that you address the directions given to you by your examiner.
Study the [1]assignment task. Note how it concludes with a direction to you, the student. You are required to
look at the situation from the perspective of one party involved in the situation presented: Patricia.
[1]
Patricia Wu had recently opened up her own office supplies business 'Wu's Wonders' which deals mainly with
students at a local university. In addition to selling pens and paper, Patricia also provides copying services for
students, particularly science and medical students. She specialises in the copying and binding of student
theses.
One day her photocopier broke down and she went to Bob's Warehouse Pty Ltd to purchase a new one.
Several were displayed, including a second-hand one, manufactured by Kojack Ltd. It had a huge sign on it
saying 'Great Bargain. Low mileage. Almost as good as new. Buy now and save!! Yours for $35,000.'
Patricia asked Shirley, the salesperson, what 'low mileage' meant. Shirley explained that the machine had
hardly been used and had only completed 1,000 copies. Patricia then asked how old it was. Shirley replied, '
Oh I'm not 100 % sure but I think it is last year's model'. Patricia told Shirley about her business of copying
theses, which included photographs, and then asked if the copier could do a number of specialised tasks,
such as colour copies, double-siding, collating, stapling and reducing. Most importantly, she asked whether it
was capable of producing large quantities of copies quickly and without breaking down.
Shirley reassured her and said: 'This copier will do all that and more. It has the best quality lens for really
clear reproductions. You'll have no problem and anyway we provide a month's free service. We have had no
complaints about this model.'
Patricia then signed a contract of purchase, buying the copier for $35,000.
When using the copier, Patricia soon realised that not all copies were clear, the colours appeared to be
'washed-out' and 'red' was always 'pink'. She rang Bob's Warehouse Pty Ltd who sent out a repairman to
service the machine. The next day the copier broke down and the repairman explained that it needed a new
lens valued at $10,000. Patricia, who had just recently obtained a contract, valued at $50,000, to provide
copying services to the University's Faculty of Business, was placed in a stressful position. In order to honour
this contract, Patricia had to lease another copier from 'Joe's Office Rentals' at $100 a day for a total of 14
days. When Patricia explained her story to Joe, he laughed and said that that particular model of copier was
always breaking down and had been recalled by the manufacturer due to the overwhelming number of
complaints. He also said that it was about 5 years old and explained that normally a lens only needed
replacing after 200,000 copies had been made. Furthermore, he believed the copier was only worth
approximately $15,000.
When the new lens arrived, Patricia's troubles continued. The machine could not reduce and produce doublesided copies simultaneously. It could perform each task separately, but not simultaneously.
Bob sent Patricia an account for the new lens, which Patricia refused to pay because she thought it was
included in the first month's free service. Bob replied that the service deal didn't include spare parts, just the
labour costs. Patricia re-read the contract. Although it contained a clause which stated that there was one
month's free service, the meaning of 'service' was not stated.
She did however, notice the following clause:
'Any conditions, statutory or otherwise, not contained herein are excluded.'
a. What legal rights (including remedies) would Patricia have against Bob's Warehouse Pty Ltd arising
out of the above set of facts? Explain your answer.
b. What legal rights (including remedies) would Patricia have against Bob's Warehouse Pty Ltd if the
price for the photocopier was $45,000? Explain your answer.
As you will note in the task, you need to look at the facts from the perspective of Patricia and find the legal
problems embedded in the task that relate to her dealings with a) Bob's Warehouse Pty Ltd. generally; and b)
Bob's Warehouse concerning the $45,000 price for the photocopier. You then need to devise legal solutions
to both these areas and present them on Patricia's behalf. However, you also need to remember that you are
dealing with an adversarial legal system.
Question 1
Bearing in mind that it is an adversarial legal system, look at the task again. Think about how you
might structure your written response when you provide a legal solution to the problem(s). Select
from the following alternatives the one that you think is the best structure for a response.
possible assignment response
a. Summarise the facts presented in the
problem question and explain clearly
to your examiner what happened in
the situation presented.
best
response
feedback
This is incorrect. You would not get many
marks for a response such as this. Your
examiner knows and understands very
clearly the facts of the problem question
because (s)he wrote it. You do use the facts
from the problem question in your
assignment, but only those relevant for the
issue for which you are developing a legal
argument.
b. After you have identified cases and
law that are relevant to the facts in
the problem question, summarise
and express these clearly for your
reader.
c.
Both a) and b) above. Place a
summary of the facts in one section
of the assignment and a summary of
the law in another section.
d. When you have found the legal
issues or disputes in the problem
facts in relation to the party you are
advising, develop and present legal
arguments for both sides of the issue.
In the legal arguments, name the
issue, give the relevant law and
analyse the relevant facts from the
problem question.
This is correct to some extent, but the
law on its own is inadequate. If you
express it clearly, this would show your
examiner that you have a clear
understanding of the law, but it would not
show that you are able to apply the law to
the particular facts in your problem
question.
You need to identify and present in writing
the law relevant to the issue and your facts
and then analyse the facts from your
problem in relation to it.
This is an inadequate response. You do
need to use both the law and the facts from
your problem question in your legal
argument. However, they need to be linked
to the relevant issues and they need to be
interwoven as you analyse the problem
facts in relation to the law.
Correct. You must identify clearly for your
examiner the issue(s) that are in the
problem facts, in relation to the party you
are advising. Then, you develop legal
arguments for both sides of the issue,
bringing in the relevant law and the relevant
problem facts.
Question 2: Directions to the student
Study the assignment task again at the top of the page. You will note that, at the end of the series of facts,
the examiner has provided clear instructions for the student on what they have to do in their written response.
There is no choice or room for negotiation in this matter. If you do not follow your examiner's instructions, you
will not receive many marks for your work.
The direction for this assignment task is "What legal rights (including remedies) would Patricia have
against...?"
What do you think this means? Select from the following alternatives the one that you think is the
most appropriate.
possible interpretations of the question
a. Only look at the problem facts and develop a legal argument from the
perspective of the person or party that you have been asked to advise.
Completely ignore any counter-arguments for the other person or party also
involved in the issue or dispute.
best
interpretation
b. Look at the problem facts to isolate issue(s) and develop legal arguments from
the perspectives of all people and parties involved in the problem facts, even if
their involvement is only minimal.
c.
Find the legal issue(s) in the problem facts concerning the person or party you
have been asked to advise. Then, develop and present in writing legal
arguments in their favour as well as counter-arguments that could be
presented by the other person or party to the issue or dispute. At the end of
your response, summarise your advice to the specified person or party,
indicating if you think they have, or do not have, a good chance of success if
the case went to court.
[2]
Check your answer
Interpretation C is the correct response. As you are looking at the facts from the perspective of one party,
you should also present the counter-arguments. At the end, you summarise your overall advice after
weighing up the strength of the various alternatives you have presented.
[2]
Style of writing
When you study Law subjects and you read legal texts and cases, you will note that the writing style can be
complex and difficult to understand. Especially in the words of judges cited in cases, the sentences may be
very long and complicated, with many relative and subordinate clauses, and the vocabulary used may be
very formal.
Sometimes when students are writing their assignments, they think that they have to write in a sophisticated
and complex style like this. The result can be that the meaning in the sentences is lost and the examiner may
be completely confused as to the student's meaning. You do not have to write in a complex style in your
Commercial Law assignments.
Your writing style should be premised on expressing your meaning clearly for your reader (your examiner).
Clear expression is based on clear and logical organisation of ideas in the written piece, as well as clear
structure in the sentences. This means that you should plan your response clearly and logically before you
start writing. In this section, we focus on clear sentence-level expression.
Clear writing
Click on the highlighted text to see the comments.
Study the two samples of student writing below.
a. The first breach of the implied term of merchantable quality under section 71(1) of the Trade
Practices Act, which states that when a good is fit for the purpose it is reasonable to expect that
the good will be fit for the purpose, it is to be used for, seems to have occurred. As was the
decision in the case H Beecham and Co Pty Ltd v Francis Howard and Co Pty Ltd [1921] VLR
428, as the photocopier was not fit for the purpose that Patricia bought it for having regard to the
price and other circumstances and because Patricia was not aware of the defect prior to sale and
any inspection made by Patricia would not have revealed the defect, the photocopier does not
seem to have been of merchantable quality.
b. The first implied term that has been breached is the term of merchantable quality under section
71(1) of the Trade Practices Act. Merchantable quality is when a good is fit for the purpose it is
reasonable to expect the good will is used for. The photocopier that Patricia bought is not of
merchantable quality as the goods are not fit for the purpose that it is reasonable to expect having
regard to price and other circumstances (H Beecham and Co Pty Ltd v Francis Howard and Co
Pty Ltd [1921] VLR 428). Also Patricia was not aware of the defect prior to sale and any
inspection made by Patricia would not have revealed the defect. The term of merchantable quality
has clearly been breached.
Select the one where you think the writer's meaning is clear and easy to follow.
a.
b.
[1]
Check your answer
[1]
If you answered that Example B is clearer than Example A, you are correct.
Because:
Example A uses very long sentences, with too much information packed into them. There are only two
sentences in this whole passage.
Example B is clearer. It uses four sentences to express the same information.
Sentence structure
Click on the highlighted text to see the comments.
A basic sentence consists of a subject, a verb, and an object.
For example, in the sentence below, subject is in bold, verb is highlighted, and object is in italics.
The bank officer signed the contract.
This is a basic sentence, and it would not be good style to write all of your sentences as simply as this.
You can add extra information in a sentence by including relative clauses and phrases, to provide further
information about the main elements of the sentence.
Note how we've added extra information by adding relative clauses and a phrase to our simple sentence
below. (The relative clauses and phrase are in bold.)
The bank officer, who had been dealing with both parties, signed, in a hasty manner, the contract
which had been drawn up two years previously.
Now it's time for you to try to include information in reasonably sized sentences.
Study the notes below:
Main points
 2nd situation for consideration: photocopier purchased for $45,000
 Trade Practices Act does not apply: goods over $40,000, not normally used for household or
domestic use
 Non-consumer contract. So Patricia might use Goods Act
 But Section 61: exclusion clauses not allowed in non-consumer contract
 This is non-consumer contract: so, Patricia might use Goods Act
 But Section 61, Goods Act, exclusion clauses permitted in non-consumer contract: businesses
normally on equal terms and do not need protection
 Only legal rights for Patricia: sue for misrepresentation
 But which type of misrepresentation? Two types are torts of deceit and negligence
Using the above main points for your paragraph, see if you can express the information clearly. Write
your response in the box below.
Type your response into the text box below.
[1]
Check your answer
[1]
Look at the response below which is one way of expressing this information. Is your response similar to this?
In what ways is it similar? In what ways is it different?
Under the second situation, where the photocopier was purchased for $45,000 the Trade Practices Act
will not apply as the good was over $40,000 and is not of a type that is normally used in household or
domestic use. As this is a non-consumer contract Patricia may try to use the Goods Act however section
61 states that exclusion clauses are permitted in non-consumer contracts as businesses are normally on
equal terms and do not need protection. The only legal rights available to Patricia under these
circumstances are to attempt to sue for misrepresentation. The first step would be to see which type of
misrepresentation she could sue for. The two areas are the torts of deceit and negligence.
Using paragraphs
When you are structuring your writing, you need to consider where you will begin and end paragraphs. Good
organization of information in paragraphs helps your reader (who is your examiner) to follow your discussion.
If the paragraphs are too long, your examiner may lose concentration and become lost in the information you
are providing. If the paragraphs are too short (a paragraph of one sentence, for example, is too short), you
are not indicating to your examiner that you are capable of investigating or arguing a point in detail.
Paragraph structure
Click on the highlighted text to see the comments.
Study the first part of the [1]sample assignment. (Print it out if you like - the paragraphs have been numbered
in bold to help you with the exercises following the sample.)
Question 1
What is your overall impression of the size of the paragraphs in this piece?
Paragraphs are too short
Paragraphs are too long
Paragraphs are just right
[2]
Check your answer
[2]
The ideas are expressed clearly at the sentence level. However, perhaps the continuity of the discussion
could be enhanced by joining up some of the smaller paragraphs to make longer, more complicated
paragraphs.
Question 2
Which paragraphs do you think could be combined to produce a more flowing piece of writing?
Paragraphs 1 and 2 should be combined
Paragraphs 3, 4, 5, and 6 should be combined
Paragraphs 8 and 9 should be combined
Paragraphs 10 and 11 should be combined
Paragraphs 12 and 13 should be combined
Paragraphs 14, 15, and 16 should be combined
Paragraphs 17 and 18 should be combined
Paragraphs 20, 21, and 22 should be combined
[3]
Check your answer
[3]
Answer:
Paragraphs 3, 4, 5 and 6 could be combined into one paragraph. This is because all of these paragraphs
contain information that relates to the end of Paragraph 2 (that is, the four steps for proving if the Trade
Practices Act applies).
Paragraphs 8 and 9 could be combined. This is because they both contain information on breaching of the
implied term of merchantable quality.
Paragraphs 10 and 11 could be combined. Both contain information and argument about fitness for purpose.
Paragraphs 14, 15, and 16 could be combined as they all deal with rescinding the contract.
Paragraphs 17 and 18 could be combined as both are concerned with damages.
[1]
Part 1
1. Clearly a contract exists here. The issue is what, if any, legal rights Patricia Wu might have against Bob's
Warehouse Pty Ltd after having purchased the photocopier for $35,000.
2. Patricia's best course of action would be under the Trade Practices Act (Cth) 1974 or the Goods Act (Vic).
However as there is an exclusion clause in this contract the Goods Act will not apply as under section 61 of
the act exclusion clauses are permitted. The Trade Practices Act however does not permit exclusion clauses
under section 68. She would look toward section 4 to see if the Trade Practices Act does apply in these
circumstances. There are four steps in testing whether the Trade Practices Act applies.
3. Step one is to check whether the seller is a corporation, Patricia purchased the photocopier from Bob's
Warehouse Pty Ltd who are clearly a corporation as they have proprietorship limited attached after their
name.
4. Step two is whether the contract is a consumer contract. A consumer contract is when the price of goods is
less than $40,000 or the goods are normally used in a domestic or household situation. As the photocopier
was $35,000 it is a consumer contract as it is less than the prescribed amount.
5. Step three is whether the sale was in the course of business. This means that the sale was done by a
licensed seller and bought by a consumer, not just a sale between two people. Patricia bought the
photocopier from Bob's Warehouse Pty Ltd so it is clearly in the course of business.
6. The final step is that the sale was not at an auction. As the photocopier was bought from Bob's and not at
an auction the Trade Practices Act obviously applies.
7. However Patricia must prove that the contract has been breached. The first way to see if it has is by seeing
if any of the express terms have been breached, as the contract was a contract of purchase it would only
contain terms relating to purchase, sale, warranties and the exclusion clause. As none of the express terms
have been breached the next step would be to see if any of the implied terms have been breached.
8. The first implied term that has been breached is the term of merchantable quality under section 71(1) of
the Trade Practices Act. Merchantable quality is when a good is fit for the purpose it is reasonable to expect
the good will be used for. The photocopier that Patricia bought is not of merchantable quality as the goods
are not fit for the purpose that it is reasonable to expect having regard to price and other circumstances (H
Beecham and Co Pty Ltd v Francis Howard and Co Pty Ltd [1921] VLR 428).
9. Also Patricia was not aware of the defect prior to sale and any inspection made by Patricia would not have
revealed the defect. The term of merchantable quality has clearly been breached.
10. The next implied term that has been breached is fitness for purpose under section 71(2) of the Trade
Practices Act. Second-hand goods such as the photocopier are generally expected to not be as fit as new
goods (Atkinson v Hastings Deering (Qld) Pty Ltd [1985] ATPR 40-625). Also under this term the buyer must
rely on seller's skill and judgement.
11. Patricia described to the salesperson that she needed the photocopier for her business of copying theses,
and asked whether it could do a number of specialised tasks. The salesperson said that it could do all this
and more, Patricia relied on the salesperson knowledge and therefore signed the contact (David Jones Ltd v
Willis [1934] 52 CLR 110). However the photocopier was not fit for the purpose that Patricia described to the
salesperson and she had to replace the lens and hire the photocopier for 14 days.
12. The final implied term that has been breached is the term of correspondence with description under
section 70 of the Trade Practices Act. This term is concerned with those matters that serve to identify the
goods sold. The salesperson identified the photocopier as having only done 1000 copies and she thought it
was last year's model, she also said that they had no complaints about that particular model. However the
lens had to be replaced, and that usually only occurs after 200,000 copies, also Joe from Joe's Office Rentals
told her that the photocopier was 5 years old and there had been numerous complaints about that model
(Beale v Taylor [1967] 1 WLR 1193). As Patricia relied on what Shirley said and it convinced her to sign the
contract to purchase the photocopier, the term of correspondence with description has been breached.
13. The Trade Practices Act does not allow terms to be excluded under section 68. If any term of the contract
that purports to exclude, restrict or modify or has the effect of excluding restricting or modifying sections of
the Trade Practices Act is void
14. Patricia will not be able to terminate the contract as the contact is already complete, she has the
photocopier and Bob's Warehouse Pty Ltd has the $35,000. Also if she terminated the contract she would still
have the decrepit photocopier and Bob's would still have the money.
15. However she may try to rescind the contract for misrepresentation, as Shirley misrepresented the facts by
stating that the photocopier had only done 1000 copies, she thought it was last year's model and that there
had not been any complaints about that model. These misrepresented statements induced Patricia into
buying the photocopier; therefore she may rescind the contract.
16. Rescinding a contract means that the parties involved are returned to the position they were in before the
contract was formed. So Patricia would return the photocopier to Bob's Warehouse Pty Ltd and Bob would
return Patricia's $35,000 as well as the $10,000 for the new lens and the $1400 for the hire of the other
photocopier from Joe's Office Supplies. However, since section 52 of the Trade Practices Act was enacted,
rescission has become less important and the courts may be reluctant to grant it as a remedy.
17. The other option that Patricia has is to sue for damages, which is the most common remedy granted. The
losses must be caused by the breach of the contract and the plaintiff has a duty to mitigate losses. Also the
losses must not be too remote, which means that the losses must either flow from the breach according to
the usual course of things or be losses that D was aware of prior to the contract (Hadley v Baxendale [1854]
156 ER 145)
18. The damages that Patricia could sue for in this case is the $10,000 for the new lens as she bought the
photocopier under the misconception that it had only done 1000 copies. She should not have had to buy a
new lens and therefore Bob's Warehouse should cover those damages as they are caused by the breach of
the contract and they flow from the breach in the usual course of things.
19. The hiring of the photocopier from Joe's Office Supplies for 14 days at $100 a day amounted to $1400
worth of damages. Patricia could sue for these damages as the hiring of the new photocopier was caused by
the breach in the contract. Patricia told the salesperson of her business in copying theses and the
requirements that she needed in a photocopier so Bob's Warehouse was aware of the losses that would be
caused by the faulty photocopier.
20. Finally Patricia may with extreme difficulty be able to sue for damages for disappointment and distress
(Jarvis v Swan Tours Ltd [1973] 1 QB 233). Courts have generally been reluctant to grant damages for
disappointment and distress in commercial cases.
21. Patricia may attempt to prove that she was extremely distressed when she received a $50,000 contract
from the university's business faculty and had to find other means to be able to honour that contract. Also she
may have been distressed when she found out she had to pay $10,000 for the lens, also that the photocopier
was actually only approximately worth $15,000. The most difficult thing in granting damages for distress is the
amount of damages to be awarded. In this case I would believe that only $20,000 could be granted as that is
the difference between the estimated price of the photocopier and the price Patricia paid.
22. The best step for Patricia would be to rescind the contract, however as I said earlier that is sometimes not
granted. The next step would be damages however Patricia would be unlikely to receive damages for her
distress so she would receive $11,400 for the lens and the hiring of the other photocopier.
Structure of legal arguments
Click on the highlighted text to see the comments.
When you are developing your response to your problem question, you need to develop legal arguments.
Study these paragraphs below taken from Part 2 of the sample assignment. These two paragraphs should be
combined as they both contain the legal argument concerning the implied term of fitness for purpose.
Question 1
What are the types of information or the 'moves' in the following legal argument?
10. The next implied term that has been breached is fitness for purpose under section 71(2) of the Trade
Practices Act. Second-hand goods such as the photocopier are generally expected to not be as fit as new
goods (Atkinson v Hastings Deering (Qld) Pty Ltd [1985] ATPR 40-625). Also under this term the buyer
must rely on seller's skill and judgement.
11. Patricia described to the salesperson that she needed the photocopier for her business of copying
theses, and asked whether it could do a number of specialised tasks. The salesperson said that it could
do all this and more, Patricia relied on the salesperson knowledge and therefore signed the contact (David
Jones Ltd v Willis [1934] 52 CLR 110). However the photocopier was not fit for the purpose that Patricia
described to the salesperson and she had to replace the lens and hire photocopier for 14 days.
[1]
Check your answer
[1]
Information relevant to this legal argument
The issue for examination (fitness for purpose)
The law about fitness for purpose
The facts that are relevant to this area of law from the problem
Interpretation of the facts in relation to the law
The outcome of the analysis of the relevant facts in relation to the law
Question 2
Do you think that these aspects are components of a legal argument?
Yes
No
[2]
Check your answer
[2]
If you answered yes, you are correct. In a legal argument, you must always identify the area of law you are
investigating, tell your reader what that law says, look at and interpret the relevant facts from your problem in
relation to the law. Arrive at a conclusion of the situation when you have done this.
Question 3
Match the points listed below to the types of information appropriate to a legal argument.
However, photocopier not fit for the purpose that Patricia described to the salesperson; she had
to replace the lens and hire a photocopier for 14 days.
Second hand goods such as photocopier: not expected to be as fit as new goods (Atkinson v
Hastings Deering (Qld) Pty Ltd [1985] ATPR 40-625)
Patricia: told salesman that she needed photocopier for her business (copying theses), and
inquired if photocopier could do several specialized tasks. Salesman said photocopier could do
all this and more.
Next implied term breached: fitness for purpose, section 71(2) Trade Practices Act.
Under implied term fitness for purpose for second hand goods, buyer must rely on seller's skill
and judgment.
Patricia relied on salesperson's knowledge and signed the contract (David Jones Ltd v Willis
[1934] 52 CLR 110)
Question 4
Using this information above, see if you can re-organise it and form it into a legal argument.
Type your response into the text box below.
[3]
Check your answer
[3]
See if your response is similar to the legal argument below, which is a suitable way of organising and
expressing the information in a legal argument.
The next implied term that has been breached is fitness for purpose under section 71(2) of the Trade
Practices Act. Second-hand goods such as the photocopier are generally expected to not be as fit as new
goods (Atkinson v Hastings Deering (Qld) Pty Ltd [1985] ATPR 40-625). Also under this term the buyer
must rely on seller's skill and judgement. Patricia described to the salesperson that she needed the
photocopier for her business of copying theses, and asked whether it could do a number of specialised
tasks. The salesperson said that it could do all this and more, Patricia relied on the salesperson's
knowledge and therefore signed the contact (David Jones Ltd v Willis [1934] 52 CLR 110). However the
photocopier was not fit for the purpose that Patricia described to the salesperson and she had to replace
the lens and hire photocopier for 14 days.
Other Commercial Law resources
Additional resources available to you on Commercial Law include:
Crosling, G and Murphy, H. (2000) How to study Business Law (3rd edition.) Butterworths, Sydney.
Q Manual, Faculty of Business and Economics
http://www.buseco.monash.edu.au/publications/qmanual/
<www.buseco.monash.edu.au/publications/qmanual/>
Annotated assignments
Topic:
Commercial Law assignment




Lecturer's expectations <www.monash.edu/lls/llonline/writing/business-economics/commerciallaw/3.1.1.xml> : Read what the lecturer expected from this assignment
Steve's assignment <www.monash.edu/lls/llonline/writing/business-economics/commerciallaw/3.1.2.xml> : See Steve's assignment before he received feedback on it
Steve's assignment and what his lecturer thought <www.monash.edu/lls/llonline/writing/businesseconomics/commercial-law/3.1.3.xml> : Read the lecturer's comments on this assignment
Interview with Steve <www.monash.edu/lls/llonline/writing/business-economics/commerciallaw/3.1.4.xml> : Listen to Steve talk about the writing process
The annotated assignments and the writing approaches described by students should not be seen as ideal
models for you to copy. They are intended to be a general guide to writing in your subject and to help you to
reflect on your own approach.
Steve's assignment
Steve is a first-year Commercial Law student. His assignment for the subject is a case involving the legal
rights of a consumer against a business.
Assignment topic:
This assignment involves the legal rights and responsibilities of Patricia Wu and Bob's Warehouse Pty
Ltd. [1]View the whole assignment question here.
1. Look at the lecturer's expectations <www.monash.edu/lls/llonline/writing/businesseconomics/commercial-law/3.1.1.xml> of the assignment.
2. Next read Steve's assignment <www.monash.edu/lls/llonline/writing/businesseconomics/commercial-law/3.1.2.xml> .
o How well do you think the assignment responds to the topic?
o Do you think the assignment could be improved in any way?
3. Now read the lecturer's comments <www.monash.edu/lls/llonline/writing/businesseconomics/commercial-law/3.1.3.xml> about Steve's assignment.
4. Finally, listen to Steve <www.monash.edu/lls/llonline/writing/business-economics/commerciallaw/3.1.4.xml> talk about how he wrote his assignment and read feedback about how to overcome
the difficulties he faced.
[1]
Assignment - Semester 2, 2000
Patricia Wu had recently opened up her own office supplies business 'Wu's Wonders' which deals mainly with
students at a local University. In addition to selling pens and paper, Patricia also provides copying services
for students, particularly science and medical students. She specialises in the copying and binding of student
theses.
One day her photocopier broke down and she went to Bob's Warehouse Pty Ltd to purchase a new one.
Several were displayed, including a second-hand one, manufactured by Kojack Ltd. It had a huge sign on it
saying 'Great Bargain. Low mileage. Almost as good as new. Buy now and save!! Yours for $35,000.'
Patricia asked Shirley, the salesperson, what 'low mileage' meant. Shirley explained that the machine had
hardly been used and had only completed 1,000 copies. Patricia then asked how old it was. Shirley replied, '
Oh I'm not 100 % sure but I think it is last year's model'. Patricia told Shirley about her business of copying
theses, which included photographs, and then asked if the copier could do a number of specialised tasks,
such as colour copies, double-siding, collating, stapling and reducing. Most importantly, she asked whether it
was capable of producing large quantities of copies quickly and without breaking down.
Shirley reassured her and said: 'This copier will do all that and more. It has the best quality lens for really
clear reproductions. You'll have no problem and anyway we provide a month's free service. We have had no
complaints about this model.'
Patricia then signed a contract of purchase, buying the copier for $35,000.
When using the copier, Patricia soon realised that not all copies were clear, the colours appeared to be
'washed-out' and 'red' was always 'pink'. She rang Bob's Warehouse Pty Ltd who sent out a repairman to
service the machine. The next day the copier broke down and the repairman explained that it needed a new
lens valued at $10,000. Patricia, who had just recently obtained a contract, valued at $50,000, to provide
copying services to the University's Faculty of Business, was placed in a stressful position. In order to honour
this contract, Patricia had to lease another copier from 'Joe's Office Rentals' at $100 a day for a total of 14
days. When Patricia explained her story to Joe, he laughed and said that that particular model of copier was
always breaking down and had been recalled by the manufacturer due to the overwhelming number of
complaints. He also said that it was about 5 years old and explained that normally a lens only needed
replacing after 200,000 copies had been made. Furthermore, he believed the copier was only worth
approximately $15,000.
When the new lens arrived, Patricia's troubles continued. The machine could not reduce and produce doublesided copies simultaneously. It could perform each task separately, but not simultaneously.
Bob sent Patricia an account for the new lens, which Patricia refused to pay because she thought it was
included in the first month's free service. Bob replied that the service deal didn't include spare parts, just the
labour costs. Patricia re-read the contract. Although it contained a clause which stated that there was one
month's free service, the meaning of 'service' was not stated.
She did however, notice the following clause:
'Any conditions, statutory or otherwise, not contained herein are excluded.'
[a] What legal rights (including remedies) would Patricia have against Bob's Warehouse Pty Ltd arising out of
the above set of facts? Explain your answer.
[15 marks]
[b] What legal rights (including remedies) would Patricia have against Bob's Warehouse Pty Ltd if the price for
the photocopier was $45,000? Explain your answer.
[15 marks]
Lecturer's expectations
In this section, one of your lecturers - Brendan Sweeney - sets out what he expects from student
assignments on this topic.
How I would expect students to go about researching and writing an answer to this
particular task
Students must explain their answer in the sense that it is not sufficient just to say that Patricia might have an
action for damages for breach of contract and then set out the basis for an action of this nature. Students
must explain why Patricia (in respect of the facts given) would or would not succeed.
This question could easily be answered without recourse to any other material than the text book.
We expect students to recognize the key difference between Part A and Part B of the question. This could
significantly alter the way in which they write their answer. Having said that, however, we are not out to
punish those who may not have adopted the most rational and efficient approach. This is more a matter of
the better students being rewarded for thinking through the best way to structure their answer.
I think the question is difficult because of the thought that is required to plan the answer properly. Planning (or
lack thereof) is a key issue in some of the papers I have corrected. I think the difference in planning stood out
between the Fails and the Credits (and above).
Steve's sample assignment
Assignment topic:
[1]Click
to view the assignment topic
Part 1
Clearly a contract exists here. The issue is what, if any, legal rights Patricia Wu have against Bob's
Warehouse Pty Ltd after having purchased the photocopier for $35,000.
Patricia best course of action would be under the Trade Practices Act (Cth) 1974 or the Goods Act (Vic) .
However as there is an exclusion clause in this contract the Goods Act will not apply as under section 61 of
the act exclusion clauses are permitted. The Trade Practices Act however does not permit exclusion clauses
under section 68. She would look toward section 4 to see if the Trade Practices Act does apply in these
circumstances. There are four steps in testing whether the Trade Practices Act applies.
Step one is to check whether the seller is a corporation, Patricia purchased the photocopier from Bob's
Warehouse Pty Ltd who are clearly a corporation as they have proprietorship limited attached after their
name.
Step two is whether the contract is a consumer contract. A consumer contract is when the price of goods is
less than $40,000 or the goods are normally used in a domestic or household situation. As the photocopier
was $35,000 it is a consumer contract as it is less than the prescribed amount.
Step three is whether the sale was in the course of business. This means that the sale was done by a
licensed seller and bought by a consumer, not just a sale between two people. Patricia bought the
photocopier from Bob's Warehouse Pty Ltd so it is clearly in the course of business.
The final step is that the sale was not at an auction. As the photocopier was bought from Bob's and not at an
auction the Trade Practices Act obviously applies.
However Patricia must prove that the contract has been breached. The first way to see if it has is by seeing if
any of the express terms have been breached, as the contract was a contract of purchase it would only
contain terms relating to purchase, sale, warranties and the exclusion clause. As none of the express terms
have been breached the next step would be to see if any of the implied terms have been breached.
The first implied term that has been breached is the term of merchantable quality under section 71(1) of the
Trade Practices Act. Merchantable quality is when a good is fit for the purpose it is reasonable to expect the
good will is used for. The photocopier that Patricia bought is not of merchantable quality as the goods are not
fit for the purpose that it is reasonable to expect having regard to price and other circumstances (H Beecham
and Co Pty Ltd v Francis Howard and Co Pty Ltd [1921] VLR 428).
Also Patricia was not aware of the defect prior to sale and any inspection made by Patricia would not have
revealed the defect. The term of merchantable quality has clearly been breached.
The next implied term that has been breached is fitness for purpose under section 71(2) of the Trade
Practices Act. Second-hand goods such as the photocopier are generally expected to not be as fit as new
goods (Atkinson v Hastings Deering (Qld) Pty Ltd [1985] ATPR 40-625). Also under this term the buyer must
rely on seller's skill and judgement.
Patricia described to the salesperson that she needed the photocopier for her business of copying theses,
and asked whether it could do a number of specialised tasks. The salesperson said that it could do all this
and more, Patricia relied on the salesperson knowledge and therefore signed the contact (David Jones Ltd v
Willis [1934] 52 CLR 110). However the photocopier was not fit for the purpose that Patricia described to the
salesperson and she had to replace the lens and hire photocopier for 14 days.
The final implied term that has been breached is the term of correspondence with description under section
70 of the Trade Practices Act. This term is concerned with those matters that serve to identify the goods sold.
The salesperson identified the photocopier as having only done 1000 copies and she thought it was last
year's mode, she also said that they had no complaints about that particular model. However the lens had to
be replaced, and that usually only occurs after 200,000 copies, also Joe from Joe's Office Rentals told her
that the photocopier was 5 years old and there had been numerous complaints about that model (Beale v
Taylor [1967] 1 WLR 1193). As Patricia relied on what Shirley said and it convinced her to sign the contract to
purchase the photocopier, the term of correspondence with description has been breached.
The Trade Practices Act does not allow terms to be excluded under section 68. If any term of the contract
that purports to exclude, restrict or modify or has the effect of excluding restricting or modifying sections of
the Trade Practices Act is void.
Patricia will not be able to terminate the contract as the contact is already complete, she has the photocopier
and Bob's Warehouse Pty Ltd has the $35,000. Also if she terminated the contract she would still have the
decrepit photocopier and Bob's would still have the money.
However she may try to rescind the contract for misrepresentation, as Shirley misrepresented the facts by
stating that the photocopier had only done 1000 copies, she thought it was last years model and that there
had not been any complaints about that model. These misrepresented statements induced Patricia into
buying the photocopier; therefore she may rescind the contract.
Rescinding a contract means that the parties involved are returned to the position they were in before the
contract was formed. So Patricia would return the photocopier to Bob's Warehouse Pty Ltd and Bob would
return Patricia's $35,000 as well as the $10,000 for the new lens and the $1400 for the hire of the other
photocopier from Joe's Office Supplies. However since section 52 of the Trade Practices Act was enacted
rescission has become less important and the courts may be reluctant to grant it as a remedy.
The other option that Patricia has is to sue for damages, which is the most common remedy granted. The
losses must be caused by the breach of the contract and the plaintiff has a duty to mitigate losses. Also the
losses must not be too remote, which means that the losses must either flow from the breach according to
the usual course of things or be losses that D was aware of prior to the contract (Hadley v Baxendale [1854]
156 ER 145)
The damages that Patricia could sue for in this case is the $10,000 for the new lens as the she bought the
photocopier under the misconception that it had only done 1000 copies. She should not have had to buy a
new lens and therefore Bob's Warehouse should cover those damages as they are caused by the breach of
the contract and they flow from the breach in the usual course of things.
The hiring of the photocopier from Joe's Office Supplies for 14 days at $100 a day amounted to $1400 worth
of damages. Patricia could sue for these damages as the hiring of the new photocopier was caused by the
breach in the contract. Patricia told the salesperson of her business in copying theses and the requirements
that she needed in a photocopier so Bob's Warehouse was aware of the losses that would be caused by the
faulty photocopier.
Finally Patricia may with extreme difficulty be able sue for damages for disappointment and distress (Jarvis v
Swan Tours Ltd [1973] 1 QB 233). Courts have generally been reluctant to grant damages for disappointment
and distress in commercial cases.
Patricia may attempt to prove that she was extremely distressed when she received a $50,000 contract from
the university's business faculty and had to find other means to be able to honour that contract. Also she may
have been distressed when she found out she had to pay $10,000 for the lens also that the photocopier was
actually only approximately worth $15,000. The most difficult thing in granting damages for distress is the
amount of damages to be awarded. In this case I would believe that only $20,000 could be granted as that is
the difference between the estimated price of the photocopier and the price Patricia paid.
The best step for Patricia would be to rescind the contract, however as I said earlier that is sometimes not
granted. The next step would be damages however Patricia would be unlikely to receive damages for her
distress so she would receive $11,400 for the lens and the hiring of the other photocopier.
Part 2
Under the second situation, where the photocopier was purchased for $45,000 the Trade Practices Act will
not apply as the good was over $40,000 and is not of a type that is normally used in household or domestic
use. As this is a non-consumer contract Patricia may try to use the Goods Act however section 61 states that
exclusion clauses are permitted in non-consumer contracts as businesses are normally on equal terms and
do not need protection.
The only legal rights available to Patricia under these circumstances are to attempt to sue for
misrepresentation. The first step would be to see which type of misrepresentation she could sue for. The two
areas are the torts of deceit and negligence.
Fraudulent misrepresentation is extremely difficult to prove. There are three steps involved; step one is that a
false representation of fact was made (Smith v Land and House Property Corp [1884] 28 Ch D 7). Under the
circumstances in this situation a false representation was made as Shirley stated that the photocopier had
only completed 1000 copies when it had more likely completed 200,000.
Step two is whether the representation was intended to and did induce the representee to act (Holmes v
Jones [1907] 4 CLR 1692 High Court). This is one of the harder steps to prove, as we do not know whether
Shirley actually used the false fact of the photocopier having only done 1000 copies to induce Patricia into
buying the good. However as Shirley is a salesperson in the store and more than likely knew how many
copies the photocopier had done she probably did use those false facts to induce Patricia.
The final step is whether the representor made the false representation knowing it to be untrue, or was
reckless as to whether it was true or not (Derry v Peek [1889] 14 App Cas 337). Shirley may not have known
whether the number of copies it had done was true but she recklessly did not know and she should have
known. Therefore Shirley and Bob's Warehouse were fraudulent in the sale of the Photocopier.
Under the tort of deceit it is not possible to exclude liability as a person is not entitled to take advantage of his
or her own deceit.
However due to the difficulty in proving fraud Patricia may attempt to prove negligent misrepresentation.
There are also three steps in proving negligence, step one is whether the representor owed a duty of care. A
duty of care was originally only owed for the chance of the goods harming somebody physically or mentally.
However since Shaddock and associates Pty Ltd v Parramatta City Council (1981) 55 ALJR 713, a purely
economic loss can also be considered in the duty of care.
Under Patricia's circumstances a duty of care was owed as Bob's Warehouse was told that she was in the
business of copying theses and needed a photocopier that could do specific jobs. However the photocopier
was sold in a poor condition that caused Patricia to buy a new lens for the photocopier and also to have to
hire a new photocopier at a cost of $1400 for 14 days.
The second step is the standard of care owed. The standard of care is what a reasonable person in the
community would expect be owed knowing the qualifications and means of the person or company. Under
these circumstances Bob's Warehouse Pty Ltd specialises in photocopiers. Therefore they should know how
many copies the photocopier had and its capabilities, also exactly what model it was.
The final step is the remoteness of the damage. Under the circumstances in this situation Patricia could get
damages for the lens and the hiring of the photocopier, so a total of $11,400.
However there is also a possibility that the exclusion clause at the end of the contact could remove Bob's
Warehouse Pty Ltd duty of care in this case.
Patricia's best course of action would be to attempt to sue for fraudulent misrepresentation, as the exclusion
clause will not be included. Also if the facts of the case point toward deceit there is a much higher chance of
winning the case and receiving damages. The problem with negligent misrepresentation in this case is the
exclusion clause.
The facts of the case point toward a fraudulent misrepresentation due to the false representation of the
number of copies that the photocopier had completed, this induced Patricia into the contract so deceit was
involved. If I was advising Patricia on the legal rights that she had and what course of action to take I would
use fraudulent misrepresentation.
The remedies that she would receive under this situation would be damages for the lens and the hiring of the
other photocopier, so a total of $11,400.
[1]
Assignment - Semester 2, 2000
Patricia Wu had recently opened up her own office supplies business 'Wu's Wonders' which deals mainly with
students at a local university. In addition to selling pens and paper, Patricia also provides copying services for
students, particularly science and medical students. She specialises in the copying and binding of student
theses.
One day her photocopier broke down and she went to Bob's Warehouse Pty Ltd to purchase a new one.
Several were displayed, including a second-hand one, manufactured by Kojack Ltd. It had a huge sign on it
saying 'Great Bargain. Low mileage. Almost as good as new. Buy now and save!! Yours for $35,000.'
Patricia asked Shirley, the salesperson, what 'low mileage' meant. Shirley explained that the machine had
hardly been used and had only completed 1,000 copies. Patricia then asked how old it was. Shirley replied, '
Oh I'm not 100 % sure but I think it is last year's model'. Patricia told Shirley about her business of copying
theses, which included photographs, and then asked if the copier could do a number of specialised tasks,
such as colour copies, double-siding, collating, stapling and reducing. Most importantly, she asked whether it
was capable of producing large quantities of copies quickly and without breaking down.
Shirley reassured her and said: 'This copier will do all that and more. It has the best quality lens for really
clear reproductions. You'll have no problem and anyway we provide a month's free service. We have had no
complaints about this model.'
Patricia then signed a contract of purchase, buying the copier for $35,000.
When using the copier, Patricia soon realised that not all copies were clear, the colours appeared to be
'washed-out' and 'red' was always 'pink'. She rang Bob's Warehouse Pty Ltd who sent out a repairman to
service the machine. The next day the copier broke down and the repairman explained that it needed a new
lens valued at $10,000. Patricia, who had just recently obtained a contract, valued at $50,000, to provide
copying services to the university's Faculty of Business, was placed in a stressful position. In order to honour
this contract, Patricia had to lease another copier from 'Joe's Office Rentals' at $100 a day for a total of 14
days. When Patricia explained her story to Joe, he laughed and said that that particular model of copier was
always breaking down and had been recalled by the manufacturer due to the overwhelming number of
complaints. He also said that it was about 5 years old and explained that normally a lens only needed
replacing after 200,000 copies had been made. Furthermore, he believed the copier was only worth
approximately $15,000.
When the new lens arrived, Patricia's troubles continued. The machine could not reduce and produce doublesided copies simultaneously. It could perform each task separately, but not simultaneously.
Bob sent Patricia an account for the new lens, which Patricia refused to pay because she thought it was
included in the first month's free service. Bob replied that the service deal didn't include spare parts, just the
labour costs. Patricia re-read the contract. Although it contained a clause which stated that there was one
month's free service, the meaning of 'service' was not stated.
She did however, notice the following clause:
'Any conditions, statutory or otherwise, not contained herein are excluded.'
[a] What legal rights (including remedies) would Patricia have against Bob's Warehouse Pty Ltd arising out of
the above set of facts? Explain your answer.
[15 marks]
[b] What legal rights (including remedies) would Patricia have against Bob's Warehouse Pty Ltd if the price for
the photocopier was $45,000? Explain your answer.
[15 marks]
Steve's assignment and what his lecturer thought
Click on the highlighted text to see the comments.
Part 1
[IMG-1]
[1]Clearly
a contract exists here. The issue is what, if any, legal rights Patricia Wu might have against Bob's
Warehouse Pty Ltd after having purchased the photocopier for $35,000.
Patricia's best course of action would be under the Trade Practices Act (Cth) 1974 or the Goods Act (Vic) .
However as there is an exclusion clause in this contract the Goods Act will not apply as under section 61 of
the act exclusion clauses are permitted. The Trade Practices Act however does not permit exclusion clauses
under section 68. She would look toward section 4 to see if the Trade Practices Act does apply in these
circumstances. There are four steps in testing whether the Trade Practices Act applies.
Step one is to check whether the seller is a corporation, Patricia purchased the photocopier from Bob's
Warehouse Pty Ltd who are clearly a corporation as they have proprietorship limited attached after their
name.
[IMG-2]
[2]Step
two is whether the contract is a consumer contract. A consumer contract is when the price of goods is
less than $40,000 or the goods are normally used in a domestic or household situation. As the photocopier
was $35,000 it is a consumer contract as it is less than the prescribed amount.
Step three is whether the sale was in the course of business. This means that the sale was done by a
licensed seller and bought by a consumer, not just a sale between two people. Patricia bought the
photocopier from Bob's Warehouse Pty Ltd so it is clearly in the course of business.
The final step is that the sale was not at an auction. As the photocopier was bought from Bob's and not at an
auction the Trade Practices Act obviously applies.
[IMG-3]
However Patricia must prove that the contract has been breached. The first way to see if it has is by seeing if
any of the express terms have been breached, as the contract was a contract of purchase it would only
contain terms relating to purchase, sale, warranties and the exclusion clause. [3]As none of the express terms
have been breached the next step would be to see if any of the implied terms have been breached.
[IMG-4]
[4]The
first implied term that has been breached is the term of merchantable quality under section 71(1) of the
Trade Practices Act. Merchantable quality is when a good is fit for the purpose it is reasonable to expect the
good will be used for. The photocopier that Patricia bought is not of merchantable quality as the goods are
not fit for the purpose that it is reasonable to expect having regard to price and other circumstances (H
Beecham and Co Pty Ltd v Francis Howard and Co Pty Ltd [1921] VLR 428).
Also Patricia was not aware of the defect prior to sale and any inspection made by Patricia would not have
revealed the defect. The term of merchantable quality has clearly been breached.
The next implied term that has been breached is fitness for purpose under section 71(2) of the Trade
Practices Act. Second-hand goods such as the photocopier are generally expected to not be as fit as new
goods (Atkinson v Hastings Deering (Qld) Pty Ltd [1985] ATPR 40-625). Also under this term the buyer must
rely on seller's skill and judgement.
Patricia described to the salesperson that she needed the photocopier for her business of copying theses,
and asked whether it could do a number of specialised tasks. The salesperson said that it could do all this
and more, Patricia relied on the salesperson knowledge and therefore signed the contact (David Jones Ltd v
Willis [1934] 52 CLR 110). However the photocopier was not fit for the purpose that Patricia described to the
salesperson and she had to replace the lens and hire photocopier for 14 days.
The final implied term that has been breached is the term of correspondence with description under section
70 of the Trade Practices Act. This term is concerned with those matters that serve to identify the goods sold.
The salesperson identified the photocopier as having only done 1000 copies and she thought it was last
year's model, she also said that they had no complaints about that particular model. However the lens had to
be replaced, and that usually only occurs after 200,000 copies, also Joe from Joe's Office Rentals told her
that the photocopier was 5 years old and there had been numerous complaints about that model (Beale v
Taylor [1967] 1 WLR 1593). As Patricia relied on what Shirley said and it convinced her to sign the contract to
purchase the photocopier, the term of correspondence with description has been breached.
[IMG-5]
[5]The
Trade Practices Act does not allow terms to be excluded under section 68. If any term of the contract
that purports to exclude, restrict or modify or has the effect of excluding restricting or modifying sections of
the Trade Practices Act is void.
Patricia will not be able to terminate the contract as the contact is already complete, she has the photocopier
and Bob's Warehouse Pty Ltd has the $35,000. Also if she terminated the contract she would still have the
decrepit photocopier and Bob's would still have the money.
[IMG-6]
[6]However
she may try to rescind the contract for misrepresentation, as Shirley misrepresented the facts by
stating that the photocopier had only done 1000 copies, she thought it was last years model and that there
had not been any complaints about that model. These misrepresented statements induced Patricia into
buying the photocopier; therefore she may rescind the contract.
Rescinding a contract means that the parties involved are returned to the position they were in before the
contract was formed. So Patricia would return the photocopier to Bob's Warehouse Pty Ltd and Bob would
return Patricia's $35,000 as well as the $10,000 for the new lens and the $1400 for the hire of the other
photocopier from Joe's Office Supplies.
[IMG-7]
[7]However
since section 52 of the Trade Practices Act was enacted rescission has become less important
and the courts may be reluctant to grant it as a remedy.
The other option that Patricia has is to sue for damages, which is the most common remedy granted. The
losses must be caused by the breach of the contract and the plaintiff has a duty to mitigate losses. Also the
losses must not be too remote, which means that the losses must either flow from the breach according to
the usual course of things or be losses that D was aware of prior to the contract (Hadley v Baxendale [1854]
156 ER 145)
The damages that Patricia could sue for in this case is the $10,000 for the new lens as she bought the
photocopier under the misconception that it had only done 1000 copies. She should not have had to buy a
new lens and therefore Bob's Warehouse should cover those damages as they are caused by the breach of
the contract and they flow from the breach in the usual course of things.
The hiring of the photocopier from Joe's Office Supplies for 14 days at $100 a day amounted to $1400 worth
of damages. Patricia could sue for these damages as the hiring of the new photocopier was caused by the
breach in the contract. Patricia told the salesperson of her business in copying theses and the requirements
that she needed in a photocopier so Bob's Warehouse was aware of the losses that would be caused by the
faulty photocopier.
[IMG-8]
[8]Finally
Patricia may with extreme difficulty be able sue for damages for disappointment and distress (Jarvis
v Swan Tours Ltd [1973] 1 QB 233). Courts have generally been reluctant to grant damages for
disappointment and distress in commercial cases.
Patricia may attempt to prove that she was extremely distressed when she received a $50,000 contract from
the university's business faculty and had to find other means to be able to honour that contract. Also she may
have been distressed when she found out she had to pay $10,000 for the lens also that the photocopier was
actually only approximately worth $15,000. The most difficult thing in granting damages for distress is the
amount of damages to be awarded. In this case I would believe that only $20,000 could be granted as that is
the difference between the estimated price of the photocopier and the price Patricia paid.
The best step for Patricia would be to rescind the contract, however as I said earlier that is sometimes not
granted. The next step would be damages however Patricia would be unlikely to receive damages for her
distress so she would receive $11,400 for the lens and the hiring of the other photocopier.
Part 2
Under the second situation, where the photocopier was purchased for $45,000 the Trade Practices Act will
not apply as the good was over $40,000 and is not of a type that is normally used in household or domestic
use. As this is a non-consumer contract Patricia may try to use the Goods Act however section 61 states that
exclusion clauses are permitted in non-consumer contracts as businesses are normally on equal terms and
do not need protection.
[IMG-9]
[9]The
only legal rights available to Patricia under these circumstances are to attempt to sue for
misrepresentation. The first step would be to see which type of misrepresentation she could sue for. The two
areas are the torts of deceit and negligence.
[IMG-10]
[10]Fraudulent
misrepresentation is extremely difficult to prove. There are three steps involved; step one is that
a false representation of fact was made (Smith v Land and House Property Corp [1884] 28 Ch D 7). Under
the circumstances in this situation a false representation was made as Shirley stated that the photocopier had
only completed 1000 copies when it had more likely completed 200,000.
Step two is whether the representation was intended to and did induce the representee to act (Holmes v
Jones [1907] 4 CLR 1692 High Court). This is one of the harder steps to prove, as we do not know whether
Shirley actually used the false fact of the photocopier having only done 1000 copies to induce Patricia into
buying the good. However as Shirley is a salesperson in the store and more than likely knew how many
copies the photocopier had done she probably did use those false facts to induce Patricia.
The final step is whether the representor made the false representation knowing it to be untrue, or was
reckless as to whether it was true or not (Derry v Peek [1889] 14 App Cas 337). Shirley may not have known
whether the number of copies it had done was true but she recklessly did not know and she should have
known. Therefore Shirley and Bob's Warehouse were fraudulent in the sale of the Photocopier.
Under the tort of deceit it is not possible to exclude liability as a person is not entitled to take advantage of his
or her own deceit.
However due to the difficulty in proving fraud Patricia may attempt to prove negligent misrepresentation.
There are also three steps in proving negligence, step one is whether the representor owed a duty of care. A
duty of care was originally only owed for the chance of the goods harming somebody physically or mentally.
However since Shaddock and associates Pty Ltd v Parramatta City Council (1981) 55 ALJR 713, a purely
economic loss can also be considered in the duty of care.
Under Patricia's circumstances a duty of care was owed as Bob's Warehouse was told that she was in the
business of copying theses and needed a photocopier that could do specific jobs. However the photocopier
was sold in a poor condition that caused Patricia to buy a new lens for the photocopier and also to have to
hire a new photocopier at a cost of $1400 for 14 days.
The second step is the standard of care owed. The standard of care is what a reasonable person in the
community would expect be owed knowing the qualifications and means of the person or company. Under
these circumstances Bob's Warehouse Pty Ltd specialises in photocopiers. Therefore they should know how
many copies the photocopier had and its capabilities, also exactly what model it was.
The final step is the remoteness of the damage. Under the circumstances in this situation Patricia could get
damages for the lens and the hiring of the photocopier, so a total of $11,400.
However there is also a possibility that the exclusion clause at the end of the contact could remove Bob's
Warehouse Pty Ltd duty of care in this case.
Patricia's best course of action would be to attempt to sue for fraudulent misrepresentation, as the exclusion
clause will not be included. Also if the facts of the case point toward deceit there is a much higher chance of
winning the case and receiving damages. The problem with negligent misrepresentation in this case is the
exclusion clause.
The facts of the case point toward a fraudulent misrepresentation due to the false representation of the
number of copies that the photocopier had completed, this induced Patricia into the contract so deceit was
involved. If I was advising Patricia on the legal rights that she had and what course of action to take I would
use fraudulent misrepresentation.
The remedies that she would receive under this situation would be damages for the lens and the hiring of the
other photocopier, so a total of $11,400.
[IMG-11]
[11]
[Lecturer's Overall comment]
[1]
Concise
This is good. In a problem-based assignment there is no need for a lengthy introduction. The parameters of
the ensuing discussion have already been set by the facts of the case.
[2]
TPA s 4 B
There should be some reference in the paragraph to the fact that the goods were not bought for resale.
[3]
Is this correct?
The facts do not support such an unconditional statement. On the contrary, they indicate that there has
probably been a breach of an express warranty. This whole paragraph should be deleted from the paper.
[4]
Good
The discussion on the implied terms is good. In particular the student has discussed the facts of the problem.
The student has correctly referred to the relevant sections of the Trade Practices Act. The student referred
correctly to cases that support his argument.
[5]
"the implied"
Section 68 of the Trade Practices Act does not apply to all terms within a contract. It is only relevant to the
terms 'implied' by virtue of the Trade Practices Act (i.e. merchantable quality, fitness for purpose,
correspondence with description).
[6]
TPA s 75A
The TPA s75A gives the buyer the right to return the goods. Patricia did not need to rely on rescission for
misrepresentation.
[7]
Relevance
The final sentence of this paragraph is irrelevant. Generally the student has avoided the trap of quoting
passages from text books. This is one case, however, where he has paraphrased a sentence from the text
book without considering whether it adds anything to the argument he is developing.
[8]
An unlikely remedy
Damages for distress in this context are so unlikely that the student must consider whether it is worthwhile
even mentioning it. However, it should be said that the student's comments are not incorrect.
[9]
Why not breach the warranty?
The conclusion is not correct. The exemption clause does not exclude liability for all breaches, only breaches
of conditions (statutory or otherwise). Therefore, Patricia could seek damages for breach of a warranty. The
student failed to examine the exemption clause closely.
[10]
Good, but why not s 52 TPA?
The discussion on fraud and negligence is good. However, if fraud and negligence may apply, why wouldn't s
52 TPA?
[11]
Lecturer's overall comment
The approach to answering the assignment is very good. It is well planned. It concentrates on the facts of the
problem. The critical difference between Part 1 and Part 2 of the question (i.e. the application of the Trade
Practices Act) is clearly articulated.
But, there are three mistakes that prevented the student from obtaining a higher mark:



Part 1 - no discussion on the remedy provided under the TPA s75A;
Part 2 - no consideration given to the possibility of seeking damages for breach of an express
warranty;
Part 2 - no discussion on the possibility of a breach of s 52 of the TPA.
Steve's comments
How did you feel when you were doing your assignment?
<www.monash.edu/lls/llonline/writing/business-economics/commerciallaw/3.1.4.xml#audioDiv>
When I was doing my Commercial Law assignment, I felt at ease as I felt that I knew what I was doing and I
thought that I was going to get a good mark
How did you feel about the assignment after you had handed it in?
<www.monash.edu/lls/llonline/writing/business-economics/commerciallaw/3.1.4.xml#audioDiv>
The final paper that I handed in, I was very pleased with, as I was happy with everything I had done, I thought
I had done a very good job.
How did you feel when you had handed in your assignment?
<www.monash.edu/lls/llonline/writing/business-economics/commerciallaw/3.1.4.xml#audioDiv>
When I finally handed my assignment in, I felt relieved as it was another assignment out of the way and I
could focus on the other assignments that I had to do.
How did you feel when you got your assignment mark?
<www.monash.edu/lls/llonline/writing/business-economics/commerciallaw/3.1.4.xml#audioDiv>
When I got my result I was very happy as to me it was a good result for what I had done and it showed that
I'd did my job very well.
How effective do you think your approach to the assignment was?
<www.monash.edu/lls/llonline/writing/business-economics/commerciallaw/3.1.4.xml#audioDiv>
I felt that with my assignment, my approach was fairly effective as it gave me a good structure and I used
many cases and I ended up with a fairly good result. The way which I believe I could of improved it was by
doing more as it would of helped me with more cases and more acts and laws which were more relevant than
the ones which I had used.
What have you learnt from completing the Commercial Law assignment?
<www.monash.edu/lls/llonline/writing/business-economics/commerciallaw/3.1.4.xml#audioDiv>
When I completed my assignment it gave me a knowledge on how to write law assignments much better than
I had before and also how to write university assignments in a more grammatical manner. It gave me a
knowledge of Commercial Law in the Acts and the cases which I had to do for the assignment as does it
taught me exactly what occurs when those cases are used and what has to happen for that law to be relevant
to a certain case.
What have you come to understand about university study from Semester 1 to Semester 2 of
your first year? <www.monash.edu/lls/llonline/writing/business-economics/commerciallaw/3.1.4.xml#audioDiv>
Once you learn second semester, you know how university works, you know what you have to do when you
go to lectures, you know what you have to do when you go to tutorials. You know more how to write the
assignments and what to do in exams and it helps you a lot as it gives you knowledge and it helps you to
write the assignments better and you are not so stressed as most people are in first semester. You learn how
to deal with how the university works in second semester by the experience you had in first semester, and
also the university does help by, with the university union and the information they give you on how to write
the assignments and things and what to do in exams and any help they can give you and things like that.
Students that are stressed in first semester, they cope with it by just getting their work done and getting it
over and done with and then they can relax after that. Others just can't really handle the stress and they just
get their work done but they don't always get the best results but most students just get their work done and
they just try and ignore the stress and then just get everything over and done with in first semester.
How did you go about completing your Commercial Law assignment?
<www.monash.edu/lls/llonline/writing/business-economics/commerciallaw/3.1.4.xml#audioDiv>
The lecturers and tutors gave a lot of assistance to the students in the classes as, if you ever wanted any
help you just have to go up and ask them a question and they told you and they are your structure for the
assignment, they told you what cases could be relevant and it helped a lot when you had to write the
assignment.
What assistance did you get in completing your assignment?
<www.monash.edu/lls/llonline/writing/business-economics/commerciallaw/3.1.4.xml#audioDiv>
When I first worked the assignment I started by doing a lot of research with the text book that we got given in
the class as well as going to the library and hiring some of the textbooks and one's which were based entirely
on the act and then I continued them up by taking notes down and doing a rough draft, rough plan and draft
of my assignment and then after I had done a final draft I did my final presentation.....
How did your friends help in completing your assignment?
<www.monash.edu/lls/llonline/writing/business-economics/commerciallaw/3.1.4.xml#audioDiv>
My friends, when I was doing an assignment were very helpful as you ask each other questions and you gave
each other ideas for what cases might be, needed to be used or what parts of the laws were relevant to the
assignment. We also gave each other support when you were doing the assignment and it helped a lot.
Regarding when I was, when we were working with friends by, giving each other ideas but not giving our
entire idea so that we didn't, our assignments didn't look that entirely similar, they just had some ideas which
were vaguely similar and that's all.
How did you go about interpreting the task? <www.monash.edu/lls/llonline/writing/businesseconomics/commercial-law/3.1.4.xml#audioDiv>
When I was interpreting the topics and actually finding out how to do the assignment, the best way that I went
about it was by listening to the tutor and the lecturer, in the lectures and tutorials and asking many questions
of the lecturer and tutor and also reading the text book helped a lot as it gave a very good basis for the
knowledge that you had to know for the assignment.
How did you research for your assignment? <www.monash.edu/lls/llonline/writing/businesseconomics/commercial-law/3.1.4.xml#audioDiv>
The research I did for an assignment was mainly in the library where I hired multiple books on the acts that
we were using as well as other legal studies and Commercial Law books, as well as the text book that we
were given for the class and I just read through those relevant areas and took notes on all the areas I needed
to and use that in my assignment.
How did you cope with the reading for your assignment?
<www.monash.edu/lls/llonline/writing/business-economics/commerciallaw/3.1.4.xml#audioDiv>
Legal textbooks are not very difficult to understand as they are written in a more layman's manner than the
acts are. The acts are very difficult to understand as they are written in a legal manner and that is very hard
to understand and follow. I helped myself in understanding the acts by going to the tutor in the lectures and
asking bits of the acts, which I did not understand and they helped a lot in that area.
How did you find out what your lecturer expected in your assignment?
<www.monash.edu/lls/llonline/writing/business-economics/commerciallaw/3.1.4.xml#audioDiv>
You worked out exactly what the lecturer and tutor wanted by going to the lecturing tutor and asking
questions and looking at past assignments and doing your down research. It gave you a basis on what you
had to do.
How did you know how to structure your assignment?
<www.monash.edu/lls/llonline/writing/business-economics/commerciallaw/3.1.4.xml#audioDiv>
In the writing of an assignment the structure was given to us by the lecturer and the tutor and they showed us
exactly how they wanted us to write the assignment, in what order we needed to do it and also they offered
us cases which could be relevant to the assignment.
How did you know how to develop legal arguments?
<www.monash.edu/lls/llonline/writing/business-economics/commerciallaw/3.1.4.xml#audioDiv>
They give you clues on developing a legal argument by telling you the way to start off the argument and the
central point to the argument and then how to conclude it and that helped us a lot in putting our augments
down on paper. Despite having to look at the assignments in one party's perspective you also have to look at
the other party's perspective to get ideas on how they would defend against her case and also the methods
that they would use to stop her from suing their company. They also helped you give ideas for what she could
do to win her case.
How did you know how to incorporate cases in your assignment?
<www.monash.edu/lls/llonline/writing/business-economics/commerciallaw/3.1.4.xml#audioDiv>
Our lecturers and tutors told us that cases were very important in the assignment as it could make our grades
go from a credit to a distinction in that it showed that you had used a textbook and you had knowledge of
other cases. We knew how to use it because the lecturer and tutor taught us when, when you give an
example of a situation you should always use the case that you got the example from and that told us when
we should use cases as examples.
What does it mean to be analytical and have your own point of view?
<www.monash.edu/lls/llonline/writing/business-economics/commerciallaw/3.1.4.xml#audioDiv>
At university they always ask you to be analytical in your assignments. In Commercial Law this means that
you have to analyse the case that they have given you and put it in your own perspective of what cases are
relevant and what examples are relevant and how you should actually write the assignment. In Commercial
Law, your own point of view in the assignments is writing the assignment and using cases that you have
decided that need to be used and using a structure that, even though it is based on what the lecturers and
tutors said, that you think will make the assignment sound and look the best.
How did you apply the law to the problem in your assignment?
<www.monash.edu/lls/llonline/writing/business-economics/commerciallaw/3.1.4.xml#audioDiv>
The situation that we had to deal with in the assignment was bought together with the laws by you do a lot of
reading and then you've read your case and anything that just clicks, is it should go together, that's when you
know that the law and the case go together, and that's when you have to write as an example and put the
cases that are relevant and also examples of acts and things like that.
Do you have to develop a legal argument for only one side of the case in Commercial Law
assignments? <www.monash.edu/lls/llonline/writing/business-economics/commerciallaw/3.1.4.xml#audioDiv>
In Commercial Law you never have to have one point of view as in Law there's a number of points of view
and you have to choose one that you think is the best that you can also say this could occur as well as
another case could occur or this can as well but you should choose which one you think is best. The way to
get a balance of which point of view is the best is by reading a text book and going over the notes that you
have done and choosing which one you think would be the best chance of an....
How did Year 12 Legal Studies help you with your Commercial Law assignment in your
university studies? <www.monash.edu/lls/llonline/writing/business-economics/commerciallaw/3.1.4.xml#audioDiv>
Legal Studies in Year 12 was very helpful to Commercial Law as it gave me a basis for Commercial Law and
it just gave me a general knowledge to help me in Commercial Law in the first year of Uni. In Legal Studies in
Year 12, they do Criminal Law and Commercial Law throughout the entire year and the Commercial Law
knowledge which is a lot more basic than the one in Commercial law, it helped me a lot to learn the
Commercial Law subject a lot easier when I started it.
In what ways is Year 12 Legal Studies different from Commercial Law at university?
<www.monash.edu/lls/llonline/writing/business-economics/commerciallaw/3.1.4.xml#audioDiv>
Year 12 Legal Studies assignments and Commercial Law assignments varied very much as legal studies
assignments were all Criminal assignments, while the Commercial Law assignments were just on
Commercial Law aspects of the legal area.
Are Year 12 Legal Studies and Commercial Law assignments similar or different?
<www.monash.edu/lls/llonline/writing/business-economics/commerciallaw/3.1.4.xml#audioDiv>
The assignments that I did at Uni were similar to university in that you had to answer them from your own
point of view and be analytical and express yourself in a clear way with good English. The Year 12
assignments varied from the Uni assignments as in year 12 you get a criteria based system where you had to
answer criteria 1, 2, 3, 4, 5 while in University you are just given a case study and you have to go and do your
own research and everything yourself with some help from your lecturer and your tutor. You did not get the
criteria in University as you just got given the case study, so you didn't actually know where..what....
In what ways are university assignments similar to or different from Year 12 assignments?
<www.monash.edu/lls/llonline/writing/business-economics/commerciallaw/3.1.4.xml#audioDiv>
The assignments were similar in that they were both problem based and that you got a case study and you
have to deal with that and answer it in a specific way.
What was easy and what was difficult about Year 12 and university assignments?
<www.monash.edu/lls/llonline/writing/business-economics/commerciallaw/3.1.4.xml#audioDiv>
In the first semester the assignments were fairly difficult, as a change from year 12, as they were a lot more
involved and the marking structure was a lot more harder than in year 12. They are easier in that you didn't
have the pressure of a teacher over your shoulder saying this is due at this date, you must do this, you must
do this now, but that is also difficult as well because then you don't pressure yourself.
Download the full interview with Steve (mp3, 7.14 MB).
<www.monash.edu/lls/llonline/assets/utilities/download.php?file=assets/audio/steve/steve-all.mp3>
Economics assignment
This tutorial contains information about writing based on materials from the first-year subject Introductory
Microeconomics. You will also find much of the information to be useful for your other Economics subjects.
Navigate through the tutorial using the Table of Contents on the left. The tutorial's three main sections are
outlined below.
Lecturer's advice <www.monash.edu/lls/llonline/writing/businesseconomics/economics/1.xml>
Get information from the lecturer about what is required for Economics assignments.
Skills for writing in Economics <www.monash.edu/lls/llonline/writing/businesseconomics/economics/2.xml>
Learn to write better assignments through interactive tasks.
Annotated assignments <www.monash.edu/lls/llonline/writing/businesseconomics/economics/3.xml>
View samples of student work with lecturer and student comments.
Lecturer's advice
In this section, one of your lecturers - Shirley Richardson - answers Frequently Asked
Questions (FAQs) about researching and writing reports in first-year Economics.
FAQs: Click on those topic areas that are of interest to you, or that you need to know more about.
Objectives
1. What are you hoping to achieve in setting the main assignment?
<www.monash.edu/lls/llonline/#faq1>
2. What do you hope students will gain from the experience of researching and writing it?
<www.monash.edu/lls/llonline/#faq2>
3. In the preparation of their assignments, which aspects of the course (content covered, skills, etc.)
would you expect students to draw on? <www.monash.edu/lls/llonline/#faq3>
Assessment
4. What are your main considerations when assessing assignments?
<www.monash.edu/lls/llonline/#faq4>
Perception of performance
5. What, in your experience, are some of the main difficulties first-year students have with Economics
assignments? <www.monash.edu/lls/llonline/#faq5>
6. Which of these would you say are of a more generic nature (e.g. structuring paragraphs) and which
specifically relate to writing in your discipline? <www.monash.edu/lls/llonline/#faq6>
7. Is there any feature of first-year assignments that you find particularly problematic?
<www.monash.edu/lls/llonline/#faq7>
Reading requirements
8. Students are often uncertain about the amount and type of reading they need to do for a university
assignment. What are your expectations in this regard for a first-year Economics assignment?
<www.monash.edu/lls/llonline/#faq8>
Transition issues
9. Do you have any sense of how the writing requirements of VCE compare with the type of writing
required in your course? What transitions do you think students need to make?
<www.monash.edu/lls/llonline/#faq9>
10. What would you say is distinctive about writing in Eeconomics? Is there anything you would point to
that distinguishes Economics writing from the writing in other business/commerce disciplines?
<www.monash.edu/lls/llonline/#faq10>
Advice
11. If you were to give students three simple pieces of advice as they prepare to do an assignment in
your subject, what would these be? <www.monash.edu/lls/llonline/#faq9>
1. What are you hoping to achieve in setting the main assignment?
Summary: First assignment tests basic skills
The first assignment is as much about finding out how we are going as teaching staff as it is about where the
students are at.
The first assignment establishes the basic foundations for all the future learning in Economics. It is therefore
essential that students have to carry out tasks that test the "basic skills". Students know these basic skills are
the same skills to be examined.
Back to top <www.monash.edu/lls/llonline/#faqs>
2. What do you hope students will gain from the experience of researching and writing it?
Summary: Economics is visually oriented
It is made clear in the assignment that NO RESEARCH is necessary, only reading the prescribed text. This
reading cannot be classified as research.
The students gain experience in handling diagrams and building their written answer around them.
Economics is both (or either) diagram or maths oriented. We concentrate upon the visual, using geometry
instead of maths.
Back to top <www.monash.edu/lls/llonline/#faqs>
3. In the preparation of their assignments, which aspects of the course (content covered,
skills, etc.) would you expect students to draw on?
Summary: Students use skills from the teaching program
It is expected that students will use all the skills and content which are demonstrated in the weekly lecture
presentation, practised in the student activity segment of the lecture, and reinforced in the weekly tutorial.
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4. What are your main considerations when assessing assignments?
Summary: Assessment criteria




Do students understand?
Can they apply it?
Can they express it well in writing?
Is referencing correct?
We have a feedback sheet attached to the returned assignment indicating the relative importance of the
content needed in the answers to all questions.
We are looking to see that the student understands what has been written and can apply the tools of
Economics to solving problems which occur in the real world. Quoting slabs from the text book gives no
indication of understanding, and only illustrates that the student knows where to look in the text. (This
information is already given on the assignment sheet, so it tells us nothing.)
The student is expected to be competent in the written expression of their work and professional in their
presentation, including detailed referencing.
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5. What, in your experience, are some of the main difficulties first-year students have with
Economics assignments?
Summary: Students' problems with the assignment



Not enough effort
Not answering the question
Not writing information "in own words"
Many students do not want to put the necessary work into understanding the reading. They still expect to
understand everything by just reading the prescribed text once, rather than reading some of the chapters
more than once.
Less skilled students do not answer the question asked, but instead tell us everything they know about a
topic.
Students need to recognise that they will not be able to put their answers to the assignment questions "into
their own words" unless they actually understand the content being demonstrated. Often quoting the author's
words does not demonstrate student understanding.
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6. Which of these would you say are of a more generic nature (e.g. structuring paragraphs)
and which specifically relate to writing in your discipline?
None of these is generic in nature. If students understand the concepts and can demonstrate them , the
writing required in economics at introductory level is minimal. Students who have accomplished VCE English
will have little difficulty in writing for economics if they have done the prescribed reading and practised using
the concepts.
The economic vocabulary used at the first-year level is straightforward and students are immersed in it
through lectures, student activities, and tutorials, as well as in the prescribed text.
With the assistance given during the normal semester of lectures and tutorials, students should have little
difficulty in gaining a good grade.
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7. Is there any feature of first-year assignments that you find particularly problematic?
Summary: Students' problems with the assignment



Not following instructions
Not doing assignments progressively
Not reading/studying the text
Problems arise for a few reasons:



Students do not follow the instructions given on the assignment.
Students do not do the questions progressively but complete the whole assignment in one hit.
Students try to do the assignment from lecture notes and tutorials only, without reading the
prescribed text.
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8. Students are often uncertain about the amount and type of reading they need to do for a
university assignment. What are your expectations in this regard for a first-year Economics
assignment?
There is no such problem in economics. The week of the lecture is identified as well as the particular chapter
students need to understand.
I expect students to follow the instructions and guidelines given on the assignment sheet.
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9. Do you have any sense of how the writing requirements of VCE compare with the type of
writing required in your course? What transitions do you think students need to make?
In Economics, students need to understand what they read – the theory – and then apply it to a similar
situation. They cannot just regurgitate the text content to answer the problems set. They have to use the
basic concepts to solve simple and familiar problems.
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10. What would you say is distinctive about writing in Economics? Is there anything you
would point to that distinguishes Economics writing from the writing in other
business/commerce disciplines?
Economics is about the real world and people. It is also about key relationships. Students need to be taught
how to think about the key relationships (e.g. demand and supply), and the language that describes those
relationships.
Economics is a subject built on understanding certain key concepts and the terminology that describes the
key concepts. These basic key concepts occur throughout all levels of Economics studies.
If the students don't understand the basics thoroughly, they will always struggle in the subject area. If they
learn the basic concepts well, they can always work their way to a correct or justifiable answer.
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11. Do you have any sense of how the writing requirements of VCE compare with the type of
writing required in your course? What transitions do you think students need to make?
Summary: Advice to students



Read instructions and guidelines
Attend lectures and tutorials, do the reading thoroughly
Complete assignment progressively
Read the assignment including the instructions and guidelines.
Ensure that you have attended the lectures and tutorials, and have covered the required reading at least
twice.
Do each question on the assignment progressively. For example when told in the lecture that "after this
week's tutorial you should prepare your draft answer to Q5", the student should do so. This means that as
each layer of knowledge is learned, the student is then carrying out the application of that layer of knowledge.
By the time the due date for the assignment comes around, a complete draft of the assignment is ready for
the final copy.
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Skills for writing in Economics
In this section, you have a chance to practice skills to help you with your report writing for Economics.
The materials cover four broad topics and include a range of practice tasks. Select those topics you"d like to
work on from the menu on the left.
Topics:




Reading <www.monash.edu/lls/llonline/writing/business-economics/economics/2.1.xml> Reading and understanding texts
Applying theory <www.monash.edu/lls/llonline/writing/businesseconomics/economics/2.2.xml> - Applying theory and principles to real life
Analysing <www.monash.edu/lls/llonline/writing/business-economics/economics/2.3.xml> Analysing your assignment tasks
Style <www.monash.edu/lls/llonline/writing/business-economics/economics/2.4.xml> - Writing
in an Economics style
Reading
This exercise focuses on reading economic theory in texts, understanding it, and writing in your own words.
In Economics assignments, as in most assignments you do, you need to read theory in texts and articles.
These explain the economics principles that you will apply to the different contexts or situations represented
in your assignment tasks. To be able to apply theory to new situations in your assignments, you need to be
able to read and understand the economic principles.
Read, understand, and identify key terms
Click on the highlighted text to see the comments.
Read the following excerpt from McTaggart, D., Findlay, C and Parkin, M. Macroeconomics. Addison-Wesley
Publishing Company, Sydney. 1992. Page 66.
Demand
The quantity demanded of a good or service is the amount that consumers plan to buy in a given period of
time. Demands are different from wants. Wants are the unlimited desires or wishes that people have from
goods or services. How many times have you thought that you would like something 'if only you could
afford it' or 'if it weren't so expensive'? Scarcity guarantees that many - perhaps most - of our wants will
never be satisfied. Demand reflects a decision about which wants to satisfy. If you demand something,
then you've made a plan to buy it.
The quantity demanded is measured as an amount per unit of time. For example, suppose a person
consumes one cup of coffee a day. The quantity of coffee demanded by that person can be expressed as
one cup per day or seven cups per week or 365 cups per year. Without a time, dimension, we cannot tell
whether a particular quantity demanded is large or small.
If you were trying to understand "demand" and take notes on it, your next step would be to identify the key
terms about demand in the above excerpt.
Identifying the key terms assists your understanding. You can't separate the important from the less important
information if it is only a mass of words for you.
1. Can you identify the key terms about demand?
Your key terms
[1]
Check your answer
[1]
Another way to understand a concept or economics principle is to try to group key information in note form.
Did you identify these key terms?:
Key terms
Quantity
demanded:
Amount consumers plan to buy, over given time period.
Demands:
Different from wants, which are unlimited desires for goods/services.
Not necessarily quantity actually bought.
Quantity wanted:
Quantity bought and sold called quantity traded.
If quantity demanded more than amount of goods available, then quantity traded is
less than quantity demanded.
Diagramming the concept
Diagramming is another way to consolidate your understanding of the concept. It helps you to see how the
key ideas in the concept are related.
2. Using the key words from Task 1(above), see if you can fill in the detail on the diagram below.
Demand
 Goods/services consumers
 Different from
to buy
unlimited desires
 Because of
, most wants not satisfied.
 Therefore, demand involves decisions of what to satisfy.
[2]
Check your answer
[2]
Demand




Goods/services consumers plan to buy.
Different from wants, unlimited desires
Because of scarcity, most wants not satisfied.
Therefore, demand involves decisions of what to satisfy.
Write in your own words
When using an economics concept in your written work, it is important to be able to write it in your own words
(or paraphrase it). This demonstrates to your examiner that you understand the concept.
You can use the keywords and their relationship from your notes or diagram as the basis for your
paraphrase.
3. Using the framework above, type in below an explanation of 'demand' in your own words.
[3]
Check your answer
[3]
Does your paraphrase look something like this?
Demand is concerned with the goods and services that consumers plan to buy in a given period. It is
different from wants, which are unlimited desires. Because of scarcity of goods or services, most wants
are not satisfied. Thus, demand involves decisions of what to satisfy.
An important note!
Remember: You must always reference through the footnote or the Harvard in text method whenever you use
material from texts and other sources. If you take the words directly, you need to indicate this by using
quotation marks. When you write the idea from a text in your own words, you still need to reference it. The
Bibliography at the end of your assignment is where you record full details about the sources that you have
used in your assignment.
Applying theory
Click on the highlighted text to see the comments.
This exercise focuses on applying economic theory to your Economics problems and in your written work.
As in most university subjects, this is an important aspect in writing in Economics . Your lecturers want to see
that you not only understand the theory or principles underpinning your subject, but also that you are able to
apply them to other settings.
Identifying economic principles
Look at the example below of the application of the economic principle of "supply" to the assignment task on
electricity.
[1] In analysing the market for electricity, the supply curve would be affected
[2] because there would be an increase in supply as there is a new product on the
[3] market and everybody would want it. The law of supply states that an increase
[4] in quantity demanded would increase the price of the product and therefore less
[5] will be demanded at the new process. This factor is exogenous as it did not
[6] appear in either of the axes and affects both demand and supply curves.
On which lines in the above example from the assignment is the economic principle presented?
Line 1
Line 4
Check your answer
Line 2
Line 3
Line 5
Line 6
[1]
Applying economic principles
On which lines is the application of the economics principle presented?
Line 1
Line 4
Check your answer
Line 2
Line 3
Line 5
Line 6
[2]
Linking economic principles to assignment topics
On which lines are the economic principles linked to the assignment topic?
Line 1
Line 2
Line 3
Line 4
Line 5
Line 6
[3]
Check your answer
[1]
Identifying economic principles: answer
If you answered Lines 3, 4, 5 and 6, you are correct.
[2]
Applying economic principles: answer
If you answered Lines 2 and 3 and Lines 5 and 6, you are correct.
[3]
Linking economic principles to assignment topics: answer
In Lines 2 to 5, the phrase "the supply curve would be affected because... and everybody would want it"
explains the economic principle in practical terms. A link is evident between this and the next sentence
because the next sentence provides the theoretical explanation for this phenomenon.
Analysing
In completing university assignments in Economics, it is vital that you carefully read and completely
understand the task with which you have been presented. Your lecturers are looking to see that you can
come to terms with their requirements and, importantly, that you can respond to the directions in a relevant
way. If you write an answer to what you think the task is about, or what you would like it to be about, you will
not get many marks if it is not what the task is actually asking you to do. It may be a well-written response,
but it must address and be relevant to the requirements.
Hence, it is important that you take the time to pull apart, or analyse, your task so that you are crystal clear
on what you are being asked to do. You then have a clear direction for further work on the assignment, and
you will be using your time as efficiently as possible.
Analysing the topic
Click on the highlighted text to see the comments.
Contextualising the topic
Look at the topic task for Question 2 of the assignment below, and then answer the questions as we analyse
the topic.
[1] Both illicit and legal drugs are often cited as the classic example of goods which are very price
inelastic.
[2] Explain why this might be the case.
[3] Draw a demand curve illustrating price inelastic demand and explain how the curve relates to the
definition of price inelasticity of demand.
[4] Use the diagram to explain how the inelastic demand has implications for pharmaceutical company
price setting and revenue.
[5] Word limit: 750
You can see that this topic question comprises two sections:


a contextualising sentence
a set of directions to the student.
Which part of the task is the contextualising topic or sentence?
Sentence
1
[1]
Check your answer
Sentence
2
Sentence
3
Sentence
4
Sentence
5
Number of tasks
How many subtasks must the students complete in this assignment?
1
subtask
[2]
Check your answer
2
subtasks
3
subtasks
4
subtasks
Direction words
In the directions section of the topic question, what are students instructed to do? That is, what are
the directive words in each of these subtasks? The first one has been done for you.
Subtask 1's instruction words:
Subtask 2's instruction words:
Subtask 3's instruction words:
[3]
Check your answer
Choice of tasks
Are you given the choice of which of these subtasks you will complete?
Yes
No
[4]
Check your answer
[1]
Contextualising the topic: Answer
The contextualising sentence is Sentence 1, which establishes that this assignment is about illicit and
legal drugs. The other sentences are directions.
[2]
Number of tasks: Answer
This assignment has three subtasks: Sentences 2, 3, and 4.
[3]
Direction words: Answer
If you included these directions, you are correct:



Explain why
Draw a diagram and explain
Use the diagram to explain how
[4]
Choice of tasks: answer
The correct answer is No.
You must respond to all of these tasks. If you only respond to two out of the three tasks, the most you can
obtain for the assignment is 25% of the total marks.
Instruction words
Click on the highlighted text to see the comments.
Below are some meanings of directive words.
See if you can match the correct word with its meaning.
1. Describe, say what they are, name.
2. Pull apart, dissect, explain the parts and how they work together to produce the result.
3. Spell out, tell in a step by step, cause and effect way the process involved.
Term
Analyse
Explain
Identify
[1]
Check your answers
[1]
Your Answer
Correct Answers:
Analyse: Meaning 2
Explain: Meaning 3
Identify: Meaning 1
Check your answers above and look at the wording of the assignment task below where the directive words
and phrases have been bolded.
Both illicit and legal drugs are often cited as the classic example of goods which are very price
inelastic.
Explain why this might be the case.
Draw a demand curve illustrating price inelastic demand and explain how the curve relates to the
definition of price inelasticity of demand.
Use the diagram to explain how the inelastic demand has implications for pharmaceutical company
price setting and revenue.
Word limit: 750
Economics style
This section focuses on the style suitable for writing in Economics.
Complete tasks related to the following:



Types of thinking
Diagrams
Headings
Types of thinking
Click on the highlighted text to see the comments.
Both illicit and legal drugs are often cited as the classic example of goods which are very price
inelastic.
Explain why this might be the case.
Draw a demand curve illustrating price inelastic demand and explain how the curve relates to the
definition of price inelasticity of demand.
Use the diagram to explain how the inelastic demand has implications for pharmaceutical company
price setting and revenue.
Word limit: 750
Look at the task above. From your analysis of the task, how would you explain the type of thinking
that is required in studying economics and completing economics assignments such as this?
Choose the examples that you think are involved in economics from the list below:
a. Learning economics principles and retelling them to the examiner/lecturer
b. Pulling apart an economics principle so that you can explain how it works. That is, the components of
it and how the components interact/affect each other to produce the result.
c. Learning the text book off by heart and rewriting this.
d. After explaining the components of an economics principle and how it works, explaining to your
examiner/lecturer how it relates to a topic that you have been presented with.
e. All of Style D above, as well as being aware of and explaining to your reader implications, or effects
in the future, of the process that you have just explained and applied.
Option A
Option D
Check your answer
Option B
Option C
Option E
[1]
[1]
Options A and C are not adequate in the study of economics. It is important that you go much further with
the content of your study, as we have explained in Options B, D, and E.
Diagrams
Click on the highlighted text to see the comments.
Integrating graphs and diagrams in written work
In completing Economics assignments, you will need to draw graphs to explain in visual form the effect on
economic principles under certain conditions that have been presented to you in your task.
It is important that you integrate these visual representations with the text of your assignment. Not only will
this indicate to your lecturer/examiner that your thinking is organised, it will make it easier for them to follow
your written text.
You can integrate them by labelling them correctly, and then making a clear link in words for your reader
between the graph and the written information.
Look at the section from the sample assignment below, and then answer the following questions about it.
This factor was exogenous, outside the Australian model. The lower price in the United States did not
appear on either of the axes. This means a shift of the demand curve to the left, towards the origin, as the
quantity demanded has decreased.
The new demand curve (D2) now shows that at the old equilibrium price at point Z, the quantity
demanded is actually Q3. At this same price the quantity demanded before the shift was at Qb. As the
diagram shows there is now too much supplied, excess supply as at this price.
To adjust to the new equilibrium, there must be an adjustment along both the demand and supply curves.
Both curves will have movements along them. The supply curve will have a downward movement along
the supply curve meaning less is being supplied at the lower price. As the price falls the quantity
demanded will increase until the market reaches a new equilibrium between demand and supply at Q1
and P2 where there is no further tendency to change.
Graph: Market for Australian Tertiary Education
1. Is the graph labelled?
Yes.
No.
[1]
Check your answer
2. Could the labelling be improved?
Yes.
No.
[2]
Check your answer
3. Does the student refer to the graph in her written text?
Yes.
No.
[3]
Check your answer
4. Is it clear that she is referring to that particular graph?
Yes.
No.
[4]
Check your answer
5. How could this be improved in the written text about the graph?
Choose the best responses from the examples below by clicking the box:
a) Place the written information about the graph under the graph.
b) Write "See graph" in brackets next to the information about the graph.
c) Write something like:
"Graph 1 above explains the..."
OR
"As can be seen in Graph 1 below..."
[5]
Check your answer
[1]
Question 1: answer
Yes, it does have a title: "Market for Australian Tertiary Education".
[2]
Question 2: answer
Yes. It could be given a number. For example:
Graph 1. Market for Australian Tertiary Education.
This should be placed above or below the graph.
[3]
Question 2: answer
Yes. She states "As the diagram shows..."; "The lower price in the United States did not appear on either of
the axes..."; "The new demand curve (D2) now shows that...".
[4]
Question 4: answer
No. The reader would need to infer this.
[5]
Question 5: answer
Options A and C together are the best responses. Option B is an improvement from the use in the sample
assignment, but it is not as clear for the reader as A and C.
Headings
Click on the highlighted text to see the comments.
Using headings in assignments
In all university assignments, including Economics, you should aim to make it as easy as possible for your
lecturer/examiner to follow and understand your written response. It is important to remember that your
lecturer will be reading and assessing a large number of students' assignments and they want to be able to
understand your response without too much difficulty. Using headings also indicates in a subtle way to your
lecturer that you have worked in a systematic way and that you are organised in your approach.
As you can see in the Economics assignment covered in this tutorial, there are several sections of the task to
be addressed. You need to guide your lecturer through your assignment. Using headings as "signposts" of
the sections that are being addressed at particular points is a good way of doing this.
Look at the final draft of the sample response on illicit and legal drugs. We have reproduced it for you below.
As you can see, this response does not include any headings, even though there are three components to
the task question. You can also see that it is not easy for the lecturer to know where the different sections of
the task start and end. It would make it much easier to read in relation to the tasks if headings were included.
Both illicit and legal drugs are often cited as the classic example of goods which are very price
inelastic.
 a) Explain why this might be the case.
 b) Draw a demand curve illustrating price inelastic demand and explain how the curve relates to the
definition of price elasticity of demand.
 c) Use the diagram to explain how inelastic demand has implication for pharmaceutical company
price setting and revenue.
[1] Elasticity is a measure of the responsiveness of quantity supplied to one of its determinants (Gans,
King and Mankiw, 1999, page 88).
[2] Illicit and legal drugs can be classed as both elastic and inelastic products because for some there can
be close substitutes found. Therefore they are not needed as much and people are not dependent on just
the one particular product. With inelastic products, when the price changes dramatically there is not a
large decrease in the quantity demanded. This shows that people who are dependent on this product
have no choice, and therefore will pay a higher price for it. These products will always be demanded.
[3] People become addicted to drugs or need them for medical reasons and therefore they will always
demand them. This means that distributors and sellers can raise their prices and people will still buy them,
there will not be a dramatic decrease in consumers if there is a sudden price increase.
[4] This shows the product is inelastic because it is may be addictive or always demanded for health
reasons. It is something that people have to have so they can live, and therefore prices can increase, as
quantity levels of consumers will not decrease dramatically.
Graph 4: Inelastic Demand Curve
[5] The inelastic demand curve is very similar to a straight line, because of the curve's almost vertical
appearance. It shows that quantity levels will only decrease by a little when price increases quite
dramatically. The two points I have drawn on the curve show this. Even when I made one dot quite a lot
higher than the other the quantity demanded didn't decrease dramatically.
Graph 5: Inelastic Demand Curve
Graph 6: Elastic Demand Curve
[6] By colouring in the difference between the two dots and the vertical and horizontal axis, you can see
the revenue gain is larger than the revenue loss (as drawn on the diagram).
[7] Whereas the other diagram is the elastic demand curve, and it shows the same two points with similar
dramatic price increases. The price increases however, show a large drop in the quantity levels. Again,
when you shade in the required areas you can see that with the same price increase the revenue loss
wedge is larger than the revenue gain. This then explains that with a dramatic price increase inelastic
companies still make a profit.
[8] By showing the two diagrams I have attempted to show that the elastic demand curve does not have
the same responses as the inelastic when it comes to price increases, and that the products which are
inelastic can absorb slight price increases and will not lose a lot of their consumers.
[9] Inelastic demand products are different from other products on the market. Usually when a products
price increases consumers may change brands or find a substitute product, and this is a way that product
prices are kept reasonable, as long as all the products don't go up all at once. This is because these
products rely on their demand to maintain their profit.
[10] Inelastic products however are not the same, they do not keep customers because their prices are
low, or because it is a well-known brand name. Pharmaceutical companies know that their market is
dependent on their products and therefore they can raise their prices. These are a product without which
the consumer would not be able to survive, that is why when there is a dramatic price increase there is not
the same decrease in quantity demand. For example the price of cigarettes has recently risen but this has
not encouraged many smokers to quit, this is because they are addicted and can't stop therefore they are
willing to pay the higher price for their nicotine fix.
1. Which paragraphs do you think respond to Subtask A of the assignment?
Paragraph
1
Paragraph
2
Paragraph
3
Paragraph
4
Paragraph
5
Paragraph
6
[1]
Check your answer
Paragraph
7
Paragraph
8
Paragraph
9
Paragraph
10
2. Can you think of a heading that encapsulates the requirements of Subtask A?
Look at the examples below and select the one that you consider to be the best heading for Subtask A.
Illicit and Legal Drugs
Price Inelastic Goods
Price Inelasticity and Illicit and Legal Drugs
[2]
Check your answer
3. Before which paragraph would you put a heading for the response to Subtask B?
Paragraph
1
Paragraph
6
[3]
Check your answer
Paragraph
2
Paragraph
3
Paragraph
4
Paragraph
5
Paragraph
7
Paragraph
8
Paragraph
9
Paragraph
10
4. At what point in the text would you begin Subtask C and place a heading?
Paragraph
1
Paragraph
6
[4]
Check your answer
Paragraph
2
Paragraph
3
Paragraph
4
Paragraph
5
Paragraph
7
Paragraph
8
Paragraph
9
Paragraph
10
5. The key areas of Subtask C are inelastic demand, pharmaceutical company price setting and
revenue, and the implications of inelastic demand for price setting and revenue of pharmaceutical
companies.
See if you can combine these concepts into an appropriate heading.
[5]
Check your answer
[1]
Question 1: answer
Beginning with "Elasticity is a measure..." and ending with "...as quantity levels of consumers will not
decrease dramatically", Paragraphs 1-4 respond to Subtask A.
In using headings in assignments, it is most important that the headings you devise encapsulate the task and
are relevant to the information to which they refer. Otherwise, they will only confuse your lecturer and will not
give them the impression that you are in control of your response.
[2]
Question 2: answer
If you selected the third option - Price Inelasticity and Illicit and Legal Drugs - you are correct. This
heading encapsulates all the concepts involved in Subtask A.
[3]
Question 3: answer
If you think it would be best placed after the graph "Inelastic Demand Curve" and before Paragraph 5, you
are correct.
[4]
Question 4: answer
Probably above Paragraph 10, beginning with "Inelastic products however are not the same..."
However, there is not a clear demarcation in the way the text has been composed here to introduce the
response to Subtask C. It should be rephrased to indicate a new beginning that addresses the task.
[5]
Question 5: answer
If you used a heading such as "Pharmaceutical Company Price Setting, Revenue and Inelastic
Demand", you have encapsulated the key areas.
Other Economics resources
Additonal resources available to you on Economics include:
McConnell, J., Nailon, K., Bell, G., Johnston, C. (1995) Economics Activity Book 2, McMillan Education
Australia, South Melbourne.
Q Manual, Faculty of Business and Economics
http://www.buseco.monash.edu.au/qmanual/qmanual/ <www.buseco.monash.edu.au/qmanual/qmanual.pdf>
(PDF 4.3MB)
Annotated assignments
Topic:
Economics Assignment




Lecturer's expectations <www.monash.edu/lls/llonline/writing/businesseconomics/economics/3.1.1.xml> : Read what the lecturer expected from this assignment.
Rebecca's sample assignment <www.monash.edu/lls/llonline/writing/businesseconomics/economics/3.1.2.xml> : See Rebecca's assignment before she received feedback on it.
Rebecca's assignment and what her lecturer thought <www.monash.edu/lls/llonline/writing/businesseconomics/economics/3.1.3.xml> : See the assignment along with the lecturer's comments.
Interview with Rebecca <www.monash.edu/lls/llonline/writing/businesseconomics/economics/3.1.4.xml> : Listen to Rebecca talk about the writing process.
The annotated assignments and the writing approaches described by students should not be seen as ideal
models for you to copy. They are intended to be a general guide to assignment writing in your subject and to
help you to reflect on your own approach.
Rebecca's assignment
Rebecca is a first-year Economics student. For her main assignment in the subject, Rebecca had to complete
the three questions based on supply and demand.
Assignment topic:
[1]Click
to view the assignment topic
1. Look at the lecturer's expectations <www.monash.edu/lls/llonline/writing/businesseconomics/economics/3.1.1.xml> of the assignment.
2. Next read Rebecca's assignment <www.monash.edu/lls/llonline/writing/businesseconomics/economics/3.1.2.xml> .
o How well do you think the assignment responds to the topic?
o Do you think the assignment could be improved in any way?
3. Now read the lecturer's comments <www.monash.edu/lls/llonline/writing/businesseconomics/economics/3.1.3.xml> about Rebecca's assignment.
4. Finally, listen to Rebecca <www.monash.edu/lls/llonline/writing/businesseconomics/economics/3.1.4.xml> talk about how she wrote her assignment and read feedback about
how to overcome the difficulties she faced.
[1]
Assignment Questions
Assignment Question 1
This question relates to content and skills covered in Week 2 of the Subject Guide, Chapter 4, Gans, King,
Mankiw.
Use the four steps from Week 2 of the Subject Guide to answer the following questions.
Draw a separate diagram for each event and refer to points on the diagram in your explanation.
(a) Analyse the impact on the market for Australian tertiary education of a decrease in the price of tertiary
education in the United States.
[10 marks]
b) Analyse the impact on the market for electricity of new regulations requiring the installation of pollution
reduction equipment by all electricity producers.
[10 marks]
(c) Analyse the impact on the market for tea of new medical research linking tea drinkers to lower rates of
cancer.
[10 marks]
Word Limit 750
Assignment Question 2
This question relates to content and skills covered in Week 3 of the Subject Guide, Chapter 5, Gans, King,
Mankiw.
Both illicit and legal drugs are often cited as the classic example of goods which are very price inelastic.
a) Explain why this might be the case.
b) Draw a demand curve illustrating price inelastic demand and explain how the curve relates to the definition
of price elasticity of demand.
c) Use the diagram to explain how inelastic demand has implication for pharmaceutical company price setting
and revenue.
Word Limit 750
Assignment Question 3
This question relates to content and skills covered in Weeks 4 and 5 of the Subject Guide, Chapters 6,7,8,
Gans, King, Mankiw. Chapter 12, Gans, King, Mankiw is not part of the prescribed reading but does provide
Australian context, which may be useful to answer part (d) of this question.
Australia's taxation system will change on July 1, 2000 to include a broad based Goods and Services Tax
(GST), which will be added to the price of most goods and services purchased by consumers. A hair cut is
currently untaxed in Australia.
a) Use a demand and supply diagram to show the impact of the GST on prices and output in the Australian
hair cutting industry. (Actual prices and quantities are not required).
b) Identify and explain the areas of consumer surplus, producer surplus and government tax revenue. In
doing so, comment on whether the burden of tax falls only on consumers.
c) Use your diagram and the concept of deadweight loss to predict the oveall effect on welfare as a result of
the GST on hair cuts.
d) Part of the new tax package is a reduction in income tax rates. Knowing that taxes change economic
incentives, explain why the broader based GST tax system may be preferable to the current system of
progressive income taxes.
Word Limit 1000
Lecturer's expectations
In this section, one of your lecturers - Shirley Richardson - sets out what she expects from student
assignments on this topic.
How I would expect students to go about researching and writing an answer to this
particular task
No research is necessary except the reading of the prescribed text as indicated on the assignment sheet.
How should students interpret the topic?
It is expected that the students will interpret the topic by making use of all the skills and content which are
demonstrated in the weekly lecture presentation, practised in the student activity segment of the lecture, and
reinforced in the weekly tutorial.
What reading would you expect them to do?
The reading is indicated on the assignment sheet; usually a single chapter, occasionally several, depending
on the question asked. The reading for Economics is very reasonable when measured against some other
subject areas - Management for instance.
With the usual topics that are in the newspapers or on the current affairs students are encouraged to listen to
what others say about things - GST being one of them.
How long would you expect students to spend on the question overall?
As long as it takes to draw the particular diagrams, go through the steps which are indicated in the subject
book and demonstrated in class.
Economists are in the business of prediction, so students need to commence as early as possible.
What would a good response on this topic need to contain?
The student needs to address all parts of the question.
The student will have to make use of the relevant and labelled diagram with a discussion that indicates the
student understood the basic concepts underlying the construction of the diagram.
The student needs to have used the theory underlying the diagram to make some conclusions or
observations that may or may not be similar to others speaking on the topic elsewhere.
How in general terms would a High Distinction response differ from one at a Pass/Credit
level?
High Distinction - would have included all as indicated above; whereas the Pass and Credit would have
omitted more than one of the above.
A Pass or Credit is usually one where the student may have drawn the diagram perfectly but does not
understand what they have drawn and therefore cannot discuss the diagram fully or use the diagram to make
a prediction.
Rebecca's sample assignment
Assignment topic:
[1]Click
to view the assignment topic
Assignment topic Question 1
In analysing the three examples I will use the four-step approach outlined in the study book for Introductory
Microeconomics.




Step one, identify which curve (demand or supply) will be affected?
Step two, how will the curve be affected? It will be either a shift of the curve or a movement along.
Step three, in which direction?
Step four, analyse the adjustment process for both supply and demand.
(a) Analyse the impact on the market for Australian tertiary education of a decrease in the price of tertiary
education in the United States.
In analysing the market for Australian tertiary education, the demand curve would be affected because the
fees in the United States of America were going down and the law of demand states a decrease in price will
lead to an increase in quantity demanded. Relative to the United States, Australia's tertiary education is now
more expensive; therefore there will be less demand for tertiary places in Australia. Students will choose to
go to the United States instead.
This factor was exogenous, outside the Australian model. The lower price in the United States does did not
appear on either of the axes. This means a shift of the demand curve to the left, towards the origin, as the
quantity demanded has decreased.
The new demand curve (D2) now shows that at the old equilibrium price at point Z, the quantity demanded is
actually Q3. At this same price the quantity demanded before the shift was at Qb. As the diagram shows
there is now too much supplied, excess supply as at this price.
To adjust to the new equilibrium, there must be an adjustment along both the demand and supply curves.
Both curves will have movements along them. The supply curve will have a downward movement along the
supply curve meaning less is being supplied at the lower price. As the price falls the quantity demanded will
increase until the market reaches a new equilibrium between demand and supply at Q1 and P2 where there
is no further tendency to change.
Graph 1: Market for Australian Tertiary Education
(b) Analyse the impact on the market for electricity of new regulations requiring the installation of pollution
reduction equipment by all electricity producers.
In analysing the market for electricity I found that the supply curve would be affected because there would be
an increase in supply as there is a new product on the market and everybody would want it. The law of
supply states that an increase in quantity demanded would increase the price of the product and therefore
less will be demanded at the new price. This factor is exogenous as it did not appear in either of the axes and
affects both demand and supply curves.
It would then shift the supply curve right, or away from the origin, as the supply has increased. The new
supply curve now intersects at the old equilibrium price at point W; at this point the quantity supplied is Q3.
This shows the excess demand, as at this price there is more supplied than there is demanded.
To adjust the curves so that they are at equilibrium, both curves will have movements along them. The supply
curve will have an upward movement along the curve because more is being supplied at the higher price. As
the price is increasing the quantity demanded will decrease until the market reaches a new equilibrium
between Qh and Pz where there is no further tendency to change.
Graph 2: Market for Electricity
(c) Analyse the impact on the market for tea of new medical research linking tea drinkers to lower rates of
cancer.
In analysing the market for tea the new medicinal characteristics would cause an increase in the amount of
people drinking and buying tea, so therefore the demand curve would be affected.
The increase in demand would shift the demand curve to the right, a shift away from the origin. The new
demand curve (D2) at the old equilibrium price at point F, has the quantity demanded as Q3. At this same
price the quantity demanded before the shift was Qc. This shows that at the old price too much is demanded,
while not enough is being supplied. There is excess demand. For the market to adjust so that both demand
and supply are at equilibrium, there must be a movement along both demand and supply curves.
The supply curve will have an upward movement along the curve because more will be supplied at the higher
price. As the price increases the quantity demanded decreases until the market reaches a new equilibrium
between Qx and Pr where there is no further tendency to change.
Graph 3: Market for Tea
Assignment topic Question 2
Both illicit and legal drugs are often cited as the classic example of goods which are very price inelastic.



(a) Explain why this might be the case.
(b) Draw a demand curve illustrating price inelastic demand and explain how the curve relates to the
definition of price elasticity of demand.
(c) Use the diagram to explain how inelastic demand has implications for pharmaceutical company
price setting and revenue.
Elasticity is a measure of the responsiveness of quantity supplied to one of its determinants (Gans, King and
Mankiw, 1999, page 88).
Illicit and legal drugs can be classed as both elastic and inelastic products because for some there can be
close substitutes found. Therefore they are not needed as much and people are not dependent on just the
one particular product. With inelastic products, when the price changes dramatically there is not a large
decrease in the quantity demanded. This shows that people who are dependent on this product have no
choice, and therefore will pay a higher price for it. These products will always be demanded.
People become addicted to drugs or need them for medical reasons and therefore they will always demand
them. This means that distributors and sellers can raise their prices and people will still buy them, there will
not be a dramatic decrease in consumers if there is a sudden price increase.
This shows the product is inelastic because it is may be addictive or always demanded for health reasons. It
is something that people have to have so they can live, and therefore prices can increase, as quantity levels
of consumers will not decrease dramatically.
Graph 4: Inelastic Demand Curve
The inelastic demand curve is very similar to a straight line, because of the curve's almost vertical
appearance. It shows that quantity levels will only decrease by a little when price increases quite
dramatically. The two points I have drawn on the curve show this. Even when I made one dot quite a lot
higher than the other the quantity demanded didn't decrease dramatically.
Graph 5: Inelastic Demand Curve
Graph 6: Elastic Demand Curve
By colouring in the difference between the two dots and the vertical and horizontal axis, you can see the
revenue gain is larger than the revenue loss (as drawn on the diagram).
Whereas the other diagram is the elastic demand curve, and it shows the same two points with similar
dramatic price increases. The price increases however, show a large drop in the quantity levels. Again, when
you shade in the required areas you can see that with the same price increase the revenue loss wedge is
larger than the revenue gain. This then explains that with a dramatic price increase inelastic companies still
make a profit.
By showing the two diagrams I have attempted to show that the elastic demand curve does not have the
same responses as the inelastic when it comes to price increases, and that the products which are inelastic
can absorb slight price increases and will not lose a lot of their consumers.
Inelastic demand products are different from other products on the market. Usually when a products price
increases consumers may change brands or find a substitute product, and this is a way that product prices
are kept reasonable, as long as all the products don't go up all at once. This is because these products rely
on their demand to maintain their profit.
Inelastic products however are not the same, they do not keep customers because their prices are low, or
because it is a well-known brand name. Pharmaceutical companies known that their market is dependent on
their products and therefore they can raise their prices. These are a product without which the consumer
would not be able to survive, that is why when there is a dramatic price increase there is not the same
decrease in quantity demand. For example the price of cigarettes has recently risen but this has not
encouraged many smokers to quit, this is because they are addicted and can't stop therefore they are willing
to pay the higher price for their nicotine fix.
Assignment topic Question 3:
Australia's taxation system will change on July 1 next year to include a broad based Goods and Services Tax
(GST), which will be added to the price of most goods and services purchased by consumers. A hair cut is
currently untaxed in Australia.
(a) Use a demand and supply diagram to show the impact of the GST on prices and output in the Australian
hair cutting industry. (Actual prices and quantities are not required).
(b) Identify and explain the areas of consumer surplus, producer surplus and government tax revenue. In
doing so, comment on whether the burden of tax falls only on consumers.
(c) Use your diagram and the concept of deadweight loss to predict the overall effect on welfare as a result of
the GST on haircuts.
(d) Part of the new tax package is a reduction in income tax rates. Knowing that taxes change economic
incentives explain why the broader based GST tax system may be preferable to the current system of
progressive income taxes.
Graph 7: Australian Haircut Industry - Introduction of GST
With the new taxation laws introduced in July there is now going to be taxes on products that never had taxes
before, hairdressing is one of these. With this there will be an increase in the price to have your haircut
(shown by the arrows, and the dot for new price).
Although the price has increased, the amount that the hairdresser receives has decreased (amount received
shown on diagram). The area between this is the tax wedge, or the government tax revenue. The
government tax revenue is the amount that the hairdresser will have to pay the government for every hair cut,
and then they will redistribute to the public. Tax burden falls on both the producer and the consumer; this is
shown because the wedge has taken an even share from both sides of the equilibrium line.
Consumer and producer surplus are both labelled on the diagram. Consumer surplus is found above the
equilibrium line, and is the area or surplus of what consumers have to pay and what they are willing to pay.
That is why it is above the equilibrium because that is the level they have to pay and the space above this
line and the demand curve is the surplus.
Producer surplus is the area from the equilibrium point and down until it hits the horizontal axis. This is the
surplus of what the producers were willing to sell the product for and what they are selling it for.
Dead weight loss is another area labelled on the diagram. This is the area where the consumers were willing
to pay this price, but the producer could not supply it at that price now that tax has been introduced. This now
means people have to pay more for a haircut and that a hairdresser does not receive as much revenue from
each cut because they have to pay tax. The reduction in consumer and producer surplus is bad for welfare,
but the tax revenue is good because then the money can be redistributed to the public, so the dead weight
loss can have both a bad and good outcome.
The new tax package is broad and with the introduction of the higher income taxes it is going to give
consumers more of an incentive to buy items as they have more money in their pockets. But this may not be
the case, as the new tax regulations mean that items that never use to be taxed are, and previously taxed
items will increase in price.
When the new tax regulations are introduced this may, at the beginning, reduce the demand for some
products, but these producers may not be able to lower prices as they now have to pay a tax, therefore the
dead weight loss may grow in size. Producers may have to reduce the levels they supply because they may
not be able to pay the tax, or buy the raw materials now that they have gone up in price.
Although there may seem to be a large amount of problems with the new tax laws, they will end up making all
producers even and will not disadvantage some trades as the previous law may have.
Biblography
[2]Gans.J.,
King.S. and Mankiw.N. (1999) Principles Of Microeconomics. NSW: Harcourt Brace and
Company.
[1]
Assignment topic Question 1:
This question relates to content and skills covered in Week 2 of the Subject Guide, Chapter 4 Gans, King,
Mankiw.
Use the four steps from Week 2 of the Subject Guide to answer the following questions.
Draw a separate diagram for each event and refer to points on the diagram in your explanation.
a. Analyse the impact on the market for Australian tertiary education of a decrease in the price of
tertiary education in the United States.
[10 marks]
b. Analyse the impact on the market for electricity of new regulations requiring the installation of
pollution reduction equipment by all electricity producers.
[10 marks]
c.
Analyse the impact on the market for tea of new medical research linking tea drinkers to lower rates
of cancer.
[10 marks]
Word Limit 750
Assignment topic Question 2:
Both illicit and legal drugs are often cited as the classic example of goods which are very price inelastic.
a. Explain why this might be the case.
b. Draw a demand curve illustrating price inelastic demand and explain how the curve relates to the
definition of price elasticity of demand.
c. Use the diagram to explain how inelastic demand has implications for pharmaceutical company price
setting and revenue.
Assignment topic Question 3:
This question relates to content and skills covered in Weeks 4 and 5 of the Subject Guide, Chapters 6,7,8
Gans, King, Mankiw. Chapter 12, Gans, King, Mankiw is not part of the prescribed reading but does provide
Australian context, which may be useful to answer part (d) of this question.
Australia's taxation system will change on July 1 next year to include a broad based Goods and Services Tax
(GST), which will be added to the price of most goods and services purchased by consumers. A hair cut is
currently untaxed in Australia.
a. Use a demand and supply diagram to show the impact of the GST on prices and output in the
Australian hair cutting industry. (Actual prices and quantities are not required).
b. Identify and explain the areas of consumer surplus, producer surplus and government tax revenue. In
doing so, comment on whether the burden of tax falls only on consumers.
c. Use your diagram and the concept of deadweight loss to predict the oveall effect on welfare as a
result of the GST on hair cuts.
d. Part of the new tax package is a reduction in income tax rates. Knowing that taxes change economic
incentives, explain why the broader based GST tax system may be preferable to the current system
of progressive income taxes.
Word Limit 1000
[2]
In APA Style this is called References.
Rebecca's assignment and what her lecturer thought
Click on the highlighted text to see the comments.
Assignment topic Question 1
In analysing the three examples I will use the four-step approach outlined in the study book for Introductory
Microeconomics.




Step one, identify which curve (demand or supply) will be affected?
Step two, how will the curve be affected? It will be either a shift of the curve or a movement along.
Step three, in which direction?
Step four, analyse the adjustment process for both supply and demand.
[IMG-1]
[1]
(a) Analyse the impact on the market for Australian tertiary education of a decrease in the price of tertiary
education in the United States.
In analysing the market for Australian tertiary education, the demand curve would be affected because the
fees in the United States of America were going down and the law of demand states a decrease in price will
lead to an increase in quantity demanded. Relative to the United States, Australia's tertiary education is now
more expensive; therefore there will be less demand for tertiary places in Australia. Students will choose to
go to the United States instead.
This factor was exogenous, outside the Australian model. The lower price in the United States does did not
appear on either of the axes. This means a shift of the demand curve to the left, towards the origin, as the
quantity demanded has decreased.
The new demand curve (D2) now shows that at the old equilibrium price at point Z, the quantity demanded is
actually Q3. At this same price the quantity demanded before the shift was at Qb. As the diagram shows
there is now too much supplied, excess supply as at this price.
To adjust to the new equilibrium, there must be an adjustment along both the demand and supply curves.
Both curves will have movements along them. The supply curve will have a downward movement along the
supply curve meaning less is being supplied at the lower price. As the price falls the quantity demanded will
increase until the market reaches a new equilibrium between demand and supply at Q1 and P2 where there
is no further tendency to change.
Graph 1: Market for Australian Tertiary Education
[IMG-2]
[2]
(b) Analyse the impact on the market for electricity of new regulations requiring the installation of pollution
reduction equipment by all electricity producers.
In analysing the market for electricity I found that the supply curve would be affected because there would be
an increase in supply as there is a new product on the market and everybody would want it. The law of
supply states that an increase in quantity demanded would increase the price of the product and therefore
less will be demanded at the new price. This factor is exogenous as it did not appear in either of the axes and
affects both demand and supply curves.
It would then shift the supply curve right, or away from the origin, as the supply has increased. The new
supply curve now intersects at the old equilibrium price at point W; at this point the quantity supplied is Q3.
This shows the excess demand, as at this price there is more supplied than there is demanded.
To adjust the curves so that they are at equilibrium, both curves will have movements along them. The supply
curve will have an upward movement along the curve because more is being supplied at the higher price. As
the price is increasing the quantity demanded will decrease until the market reaches a new equilibrium
between Qh and Pz where there is no further tendency to change.
Graph 2: Market for Electricity
[IMG-3]
[3]
(c) Analyse the impact on the market for tea of new medical research linking tea drinkers to lower rates of
cancer.
In analysing the market for tea the new medicinal characteristics would cause an increase in the amount of
people drinking and buying tea, so therefore the demand curve would be affected.
The increase in demand would shift the demand curve to the right, a shift away from the origin. The new
demand curve (D2) at the old equilibrium price at point F, has the quantity demanded as Q3. At this same
price the quantity demanded before the shift was Qc. This shows that at the old price too much is demanded,
while not enough is being supplied. There is excess demand. For the market to adjust so that both demand
and supply are at equilibrium, there must be a movement along both demand and supply curves.
The supply curve will have an upward movement along the curve because more will be supplied at the higher
price. As the price increases the quantity demanded decreases until the market reaches a new equilibrium
between Qx and Pr where there is no further tendency to change.
Graph 3: Market for Tea
[IMG-4]
[4]
Assignment topic Question 2
Both illicit and legal drugs are often cited as the classic example of goods which are very price inelastic.



(a) Explain why this might be the case.
(b) Draw a demand curve illustrating price inelastic demand and explain how the curve relates to the
definition of price elasticity of demand.
(c) Use the diagram to explain how inelastic demand has implications for pharmaceutical company
price setting and revenue.
Elasticity is a measure of the responsiveness of quantity supplied to one of its determinants (Gans, King and
Mankiw, 1999, page 88).
Illicit and legal drugs can be classed as both elastic and inelastic products because for some there can be
close substitutes found. Therefore they are not needed as much and people are not dependent on just the
one particular product. With inelastic products, when the price changes dramatically there is not a large
decrease in the quantity demanded. This shows that people who are dependent on this product have no
choice, and therefore will pay a higher price for it. These products will always be demanded.
People become addicted to drugs or need them for medical reasons and therefore they will always demand
them. This means that distributors and sellers can raise their prices and people will still buy them, there will
not be a dramatic decrease in consumers if there is a sudden price increase.
This shows the product is inelastic because it is may be addictive or always demanded for health reasons. It
is something that people have to have so they can live, and therefore prices can increase, as quantity levels
of consumers will not decrease dramatically.
Graph 4: Inelastic Demand Curve
The inelastic demand curve is very similar to a straight line, because of the curve's almost vertical
appearance. It shows that quantity levels will only decrease by a little when price increases quite
dramatically. The two points I have drawn on the curve show this. Even when I made one dot quite a lot
higher than the other the quantity demanded didn't decrease dramatically.
Graph 5: Inelastic Demand Curve
Graph 6: Elastic Demand Curve
By colouring in the difference between the two dots and the vertical and horizontal axis, you can see the
revenue gain is larger than the revenue loss (as drawn on the diagram).
Whereas the other diagram is the elastic demand curve, and it shows the same two points with similar
dramatic price increases. The price increases however, show a large drop in the quantity levels. Again, when
you shade in the required areas you can see that with the same price increase the revenue loss wedge is
larger than the revenue gain. This then explains that with a dramatic price increase inelastic companies still
make a profit.
By showing the two diagrams I have attempted to show that the elastic demand curve does not have the
same responses as the inelastic when it comes to price increases, and that the products which are inelastic
can absorb slight price increases and will not lose a lot of their consumers.
Inelastic demand products are different from other products on the market. Usually when a products price
increases consumers may change brands or find a substitute product, and this is a way that product prices
are kept reasonable, as long as all the products don't go up all at once. This is because these products rely
on their demand to maintain their profit.
Inelastic products however are not the same, they do not keep customers because their prices are low, or
because it is a well-known brand name. Pharmaceutical companies known that their market is dependent on
their products and therefore they can raise their prices. These are a product without which the consumer
would not be able to survive, that is why when there is a dramatic price increase there is not the same
decrease in quantity demand. For example the price of cigarettes has recently risen but this has not
encouraged many smokers to quit, this is because they are addicted and can't stop therefore they are willing
to pay the higher price for their nicotine fix.
[IMG-5]
[5]
Assignment topic Question 3
Australia's taxation system will change on July 1 next year to include a broad based Goods and Services Tax
(GST), which will be added to the price of most goods and services purchased by consumers. A hair cut is
currently untaxed in Australia.
(a) Use a demand and supply diagram to show the impact of the GST on prices and output in the Australian
hair cutting industry. (Actual prices and quantities are not required).
(b) Identify and explain the areas of consumer surplus, producer surplus and government tax revenue. In
doing so, comment on whether the burden of tax falls only on consumers.
(c) Use your diagram and the concept of deadweight loss to predict the overall effect on welfare as a result of
the GST on haircuts.
(d) Part of the new tax package is a reduction in income tax rates. Knowing that taxes change economic
incentives explain why the broader based GST tax system may be preferable to the current system of
progressive income taxes.
Graph 7: Australian Haircut Industry - Introduction of GST
With the new taxation laws introduced in July there is now going to be taxes on products that never had taxes
before, hairdressing is one of these. With this there will be an increase in the price to have your haircut
(shown by the arrows, and the dot for new price).
Although the price has increased, the amount that the hairdresser receives has decreased (amount received
shown on diagram). The area between this is the tax wedge, or the government tax revenue. The
government tax revenue is the amount that the hairdresser will have to pay the government for every hair cut,
and then they will redistribute to the public. Tax burden falls on both the producer and the consumer; this is
shown because the wedge has taken an even share from both sides of the equilibrium line.
Consumer and producer surplus are both labelled on the diagram. Consumer surplus is found above the
equilibrium line, and is the area or surplus of what consumers have to pay and what they are willing to pay.
That is why it is above the equilibrium because that is the level they have to pay and the space above this
line and the demand curve is the surplus.
Producer surplus is the area from the equilibrium point and down until it hits the horizontal axis. This is the
surplus of what the producers were willing to sell the product for and what they are selling it for.
Dead weight loss is another area labelled on the diagram. This is the area where the consumers were willing
to pay this price, but the producer could not supply it at that price now that tax has been introduced. This now
means people have to pay more for a haircut and that a hairdresser does not receive as much revenue from
each cut because they have to pay tax. The reduction in consumer and producer surplus is bad for welfare,
but the tax revenue is good because then the money can be redistributed to the public, so the dead weight
loss can have both a bad and good outcome.
The new tax package is broad and with the introduction of the higher income taxes it is going to give
consumers more of an incentive to buy items as they have more money in their pockets. But this may not be
the case, as the new tax regulations mean that items that never use to be taxed are, and previously taxed
items will increase in price.
When the new tax regulations are introduced this may, at the beginning, reduce the demand for some
products, but these producers may not be able to lower prices as they now have to pay a tax, therefore the
dead weight loss may grow in size. Producers may have to reduce the levels they supply because they may
not be able to pay the tax, or buy the raw materials now that they have gone up in price.
Although there may seem to be a large amount of problems with the new tax laws, they will end up making all
producers even and will not disadvantage some trades as the previous law may have.
[IMG-6]
[6]
Biblography
Gans, J., King, S. and Mankiw, N. (1999). Principles Of Microeconomics. NSW: Harcourt Brace and
Company.
[1]
Reasonable diagram and discussion
The diagram and the discussion are reasonable and indicate that the four-step process has been applied to
assist the analysis of the market arriving at the new equilibrium. It would have been improved with a more
systematic explanation of the market model and then a concise discussion of the adjustment.
[2]
Poor understanding of supply curve
Clearly the student has not absorbed an understanding that the supply curve in the electricity market is
related to the costs experienced by the market producers. The answer should have reflected that the new
pollution reduction equipment would increase the costs of electricity production, and ceteris paribus decrease
the amount of electricity to be supplied. A shift to the left of the supply curve resulting in a reduction in supply
and an increase in market equilibrium price. On the other side of the market, following the law of demand, the
increased price will necessarily lead to a decrease in the quantity demanded.
[3]
Could be more precise
Similarly to (a), the answer identified and discussed the adjustment processes using the four-step method.
The answer could have been more precise, particularly in the use of the related Economics terminology. The
phrase "upward movement along the curve" is a little confusing. Overall a satisfactory answer.
[4]
Could have improved answer
This answer could have been improved considerably with only a few minor adjustments. Also the separate
parts of the question being addressed needed to be identified.
(a) Examples of the types of drugs for instance, those with and without substitutes, those for patients possibly
suffering terminal illness, as against those for simple remedies, headaches, etc.
(b) This part is solid, with the identification of the inelastic curve and the demonstration of the small decrease
in quantity demanded clearly illustrated graphically an understanding of the concept.
The revenue gains and losses were adequately demonstrated. However, details of the elasticity coefficient
and the features of the different values and their relationship to the impact on total revenue of a price
increase would have provided a more complete answer.
[5]
Answer did not clearly identify...
This part of the question was to allow students to bring in their own views and general knowledge. As well, it
allowed the student the opportunity to use the tools of economics learned to date to compare the predictions
from the economic diagrams to the perceived outcomes indicated by the media and government. The
correctness or otherwise of the answer was not the issue, but the experience of manipulating the diagrams.
Further lecturer's comment
The answer did not again identify clearly the parts of the question being addressed. Even though the
appropriate sections could be identified by the words commencing each part the use of (a-d) may have
assisted your thinking. One diagram could have been used to illustrate the normal market place with demand
(consumer surplus) and supply (producer surplus), and then another with the added GST application and the
identification of the government revenue. This would have given clear reference points for the discussion for
parts (a) and (b).
Another diagram demonstrating how the application of the GST might fall differently upon producers and
consumers would have also improved the answer (e.g. a more inelastic demand curve and an elastic supply
curve).
Part (c) the discussion of the dead weight loss needed an explanation as to why this area is a loss to society
as a whole. Some indication that government taxes (GST) can distort market signals and cause distortions in
the allocation of resources with the result that there will be welfare implications for all.
Part (d) might have addressed some of the comments from the media regarding the impact of the GST and
these could have been illustrated where possible. Some issues raised may have been - the increased
compliance costs upon producers over and above the 10% collected on behalf of the government; that these
additional costs may force some small operators out of the market place completely; the likelihood that with
increased prices, consumers may tend to decrease consumption and increase their savings; the claim that
people who evade tax presently cannot evade it on most purchases especially with having to have ABN
numbers; the black economy should shrink and increase the economy's tax take overall.
[6]
In APA Style this is called References.
Rebecca's comments
What is different about a VCE and a university assignment?
<www.monash.edu/lls/llonline/writing/business-economics/economics/3.1.4.xml#audioDiv>
I found with VCE that they give you the criteria of... if you want to do well, this is what you've got to put in and
how much detail has to be given. Whereas I'm also...and I find that TAFE is a lot more practical and the
questions don't so much... you have to go into detail, but you have to find all the knowledge behind it. It's not
so much about the detail and how much you can write, it's about your research and what you've found and
what you find useful.
What is it like to do an assignment at university?
<www.monash.edu/lls/llonline/writing/business-economics/economics/3.1.4.xml#audioDiv>
My Economics assignment, I found I could relate some parts of it to my normal life; which probably helps with
writing the assignment. Learning like; oh, well if there's a shortage of this then the supply will decrease and
stuff like that. So I could relate it to my personal life, but I also found it hard - there was topics about tax and
stuff like that and I am not really educated in the world of Economics or Accounting or something like that.
When I was in VCE, I did a lot of Science subjects, I didn't do any business subjects. So I didn't sort of know
what I was talking about when it came to taxes or stuff like that; which probably might be general knowledge
to some people, but to me it was just a new experience where I didn't know what I was doing. I'm sure
reading up on stuff like that did help a little.
What are some differences between TAFE and university subjects?
<www.monash.edu/lls/llonline/writing/business-economics/economics/3.1.4.xml#audioDiv>
I do find TAFE a lot more practical because a lot of the stuff I learnt there I can put into everyday use and I
can see it all happening once. I'd agree I could go out somewhere and I could go, "Oh, that's what I learnt at
TAFE, and that's it happening there." Whereas with Uni subjects, the ones I've done so far have seemed to
be very theoretical and not something that you can probably go out and do, "Oh, well that's what I learnt at
Uni today." It's a lot more theory based, and hopefully later down the track or even when I get a job that a lot
of the theory will come back into use. I suppose Economics is a bit different because with the changing in
prices and stuff like that you can sort of see where the Economics I learnt in one semester comes into use.
So it is a bit more practical than some of the other Uni subjects that I've...
How do you cope with the terminology at university?
<www.monash.edu/lls/llonline/writing/business-economics/economics/3.1.4.xml#audioDiv>
I suppose you take the terminology for our Uni subjects from just what you read and what they tell you in the
lectures and what you read in your textbooks and stuff like that. It's just stuff that you have to pick up, it's not
so much given to you. They don't so much say, "You have to use our terminology", but you are marked down
heavily if you don't use their terminology and if you don't grasp their theories and stuff that you learn during
the lectures...
What is a difference between teachers' assistance at school and at university?
<www.monash.edu/lls/llonline/writing/business-economics/economics/3.1.4.xml#audioDiv>
I think with the Uni assignments, the language has to be precise and the genre of the subject. It's hard to
know, if you've never done the subjects before, if you're on the right track, or if you're writing what they want
to know - if you're information is what they want. It's very different, what detail they want you to go into...
What is a difference between university and TAFE assignment questions?
<www.monash.edu/lls/llonline/writing/business-economics/economics/3.1.4.xml#audioDiv>
The TAFE questions are very different from Uni questions. I find that they have a lot more, they're sort of
loaded questions - they've got a lot more in the questions. So that helps you with what you have to do. I don't
find them as hard to know where to start, whereas the Uni questions are very broad and I find TAFE
questions very specific and you sort of know where you're going with TAFE questions. I find the TAFE
teachers are around a lot more and they're a lot easier to find and ask questions...
What is a difference between writing in Economics at university and at TAFE? (part 1)
<www.monash.edu/lls/llonline/writing/business-economics/economics/3.1.4.xml#audioDiv>
Well, I know I have trouble expressing myself and knowing what to say and what parts of the theory to bring
in and if you should be technical or if you should be explaining what you know - showing your knowledge to
the lecturer, tutor or whoever is marking your assignment. That I didn't know what to write, and I found I was
under the word limit. I think my problem with that was because I was too broad; I knew what I was doing and I
didn't know how to elaborate on what I had written and what I knew...
What is a difference between writing in Economics at university and at TAFE? (part 2)
<www.monash.edu/lls/llonline/writing/business-economics/economics/3.1.4.xml#audioDiv>
I found it very hard to crossover from the Uni and TAFE expectations. I find when I am writing a Uni subject, I
have to really sit down and think, "Oh this is a Uni subject, I'll have to go into a lot more detail and I have to
use proper English." Whereas with TAFE you can write things in dot points and your assignments they don't
so much put a word limit on you very much, they just say, "Well, you write what you want to write." Whereas
with Uni they give you the word limit and you feel that you have to meet that word limit. It's very different.
What is a difference between writing in Economics at university and at TAFE? (part 3)
<www.monash.edu/lls/llonline/writing/business-economics/economics/3.1.4.xml#audioDiv>
Well, the Uni questions are very ambiguous and very broad, you don't know where to start and what they
really want you to write about. I find that if you don't listen to your lecturer very carefully when they're going
over what they want in the assignment - it's not written down anywhere for you, so you've really got to listen
to them; and they speak so fast you can't write it down anyway. But they tell you what they want and they sort
of give you a starting point but it's only if whether you pick up on their clues where they're going, or else
you're out there by yourself and you've just gotta guess I suppose.
What else is different about a VCE and a university assignment?
<www.monash.edu/lls/llonline/writing/business-economics/economics/3.1.4.xml#audioDiv>
I think it's also, when you're doing VCE, you get the criteria and you can hand in your assignment a different
criteria at a time. Where with Uni assignments, you have to do the whole assignment at once and you have to
hand it all in at the one date. I find you don't have as long as when you were doing VCE to do like a ...or an
assignment that you had there. You could draft it and re-draft it and give it to the teacher and they could give
you feedback. Whereas with Uni, you do the whole assignment, and you probably only got about three weeks
to do it and you can't see your tutors or lecturers...
What was your first reaction to your Economics assignment task? (part 1)
<www.monash.edu/lls/llonline/writing/business-economics/economics/3.1.4.xml#audioDiv>
When I first got the assignment, I think it was in the first lecture and they gave us a whole heap of sheets and
a whole...there was probably about twenty of them and a booklet, which was the student manual. Which I sort
of put aside and started focusing on my lectures because I was really stressed about catching up... it was a
new subject that I'd never done before. Then, I think it was brought up by a lecturer in the lecture, "Oh, and
your assignment's due..." And I think I was shocked, I was like, "Oh my God, I better get the sheets out and
start looking." So I had a quick look and I went to tutorials that week. And the tutor gave us an example of
Question 1 and showed us the types of things they were looking for; not so much the exact question, but she
gave similar ones which sort of made me think I should get my assignment out and have a look.
What was your first reaction to your Economics assignment task? (part 2)
<www.monash.edu/lls/llonline/writing/business-economics/economics/3.1.4.xml#audioDiv>
When I got the questions and I started looking over and trying to interpret them, I was shocked and it got me,
I really didn't know what I was doing and I suppose if I hadn't gone to my tutorials and probably used my
textbook and done a lot a reading I would have been lost, but interpreting the questions I started from the
base point and went "well, what are they really looking for?" and hopefully from there I went on the right track.
What do you think about the way you approached your Economics assignment?
<www.monash.edu/lls/llonline/writing/business-economics/economics/3.1.4.xml#audioDiv>
My approach to the Economic assignment was in effect if I wrote dot points down when I was doing my
graphs or whenever I thought of something, I think it was effective but maybe not for that assignment. I lost
my momentum because I only wrote those dot points down and when I went to write down the questions, I
didn't do one question all at once, I only elaborated on one dot point, so therefore I think I sort of lost my
momentum of what I was writing about. In the end it sort of didn't come off that well.
How would you describe Economics assignment questions?
<www.monash.edu/lls/llonline/writing/business-economics/economics/3.1.4.xml#audioDiv>
I suppose I was able to call the questions broad, because they only give you the starting point and they sort
of say "this is what we want you to do" but it doesn't really say where they want to you start and which bits
they would like to hear more about and which bits in details and what part of the questions you only have to
into a little bit of detail about.
What did you draw on to complete your Economics assignment?
<www.monash.edu/lls/llonline/writing/business-economics/economics/3.1.4.xml#audioDiv>
When I got my Economics assignment it wasn't so much a research assignment, there was a lot of which you
could have used resources to read it over. But it went off your general knowledge of what you've learnt in the
lecturers and what you have read in your text book, it wasn't so much a research based assignment it was
more an interpretation of what you knew and showing your knowledge of the task.
What was your first challenge in completing your Economics assignment?
<www.monash.edu/lls/llonline/writing/business-economics/economics/3.1.4.xml#audioDiv>
I find there is a concern when you start the assignment, because if you stuff up at the start or you do
something wrong in the first part of the question the rest of the question is sort of gone and that can ruin the
whole thing, because if you start on the wrong track you are always going to head down that same wrong
track.
What was of assistance in completing your Economics assignment?
<www.monash.edu/lls/llonline/writing/business-economics/economics/3.1.4.xml#audioDiv>
It was very much a big learning curve. I find that once you've handed the first assignment in for a new subject
that you have never done before you can sort of see where you're going from. Where you probably need to
go from there if you've got three or four assignments for one new subject, you find with the first one you do
what you think you should be doing and then from there you can either talk to your lecturer or read over the
notes written on your assignment. That can point you in the next direction for the next assignment and say
"well this is the bit where they want us to do better or they want us to write like this."
How can you learn to use language appropriate for Economics?
<www.monash.edu/lls/llonline/writing/business-economics/economics/3.1.4.xml#audioDiv>
Uni students are supposed to very independent. I suppose that's because tutors and lecturers aren't there all
the time like in VCE and even as much TAFE people are always there and are always around for you to ask
questions too. With Uni lecturers you can't find them a lot of the time and when you can find them they can
only talk to you on a broad level, they can't really talk to you specifically about the assignment and stuff like
that. I think it's good because I am friends with quite a few people at Uni that we could all talk about what
we'd done with the questions and where we're having troubles and I think that's good, but it also can cast out
into mind over what you've done and what they've done and who's right and who's wrong. You can't really
tell, you just go by the majority of what the class has done and even the majority have all done the wrong
thing...
How are you expected to use language in Economics?
<www.monash.edu/lls/llonline/writing/business-economics/economics/3.1.4.xml#audioDiv>
I am lucky because I'm at TAFE. The group that I'm at TAFE with go across to Uni with me so all my friends
that I have from TAFE are at Uni, too, so when I started I didn't feel overwhelmed by the number of people
there, the lecturers and all the scary things that go on at Uni. I think it's because I'm at TAFE with these
people that I've got a big group of friends there and it made easier to make friends at Uni because my TAFE
friends knew a few people and I knew a few people and we've all integrated
What would you do better with this type of assignment next time?
<www.monash.edu/lls/llonline/writing/business-economics/economics/3.1.4.xml#audioDiv>
I'd probably, if I had to do the assignment over again, I probably would of started a lot earlier, instead of ... I
probably would of made a time to sit down and do, because it was broken into three, ... I'd probably sit down
and do one question and then probably leave it for a couple of days, go over, reread the question again and
see where I may of gone wrong or made it better. Yeh, I probably would of gone to a lot more resources and
read a lot more text books about what to write and stuff like that, I'd probably, yeh, maybe ask my tutor a lot
more questions......
How did you feel when you received the mark for the Economics assignment? (part 1)
<www.monash.edu/lls/llonline/writing/business-economics/economics/3.1.4.xml#audioDiv>
I found with economics I know what I am doing and when I'm sitting in the lecture or when I was doing my
assignment, Oh yeh, I know what I am doing here, this is breezy this is breezy and maybe because I was too
broad or maybe I didn't elaborate on the bits that they wanted more detail over. I didn't go as well as I thought
I would and it was a bit upsetting when I got my assignment back but I think in the end, like it's all a learning
experience and it helped me sit back and go oh well ..., next assignment or for the exam I know that I have to
go into more detail over this or I have to learn this bit of it, or you know, oh well that bits good, yes but you
didn't elab.....
How did you feel when you received the mark for the Economics assignment? (part 2)
<www.monash.edu/lls/llonline/writing/business-economics/economics/3.1.4.xml#audioDiv>
Yeh, I think it very much is, um, hard because the marks are so broad, there's like, you know, pass the
hardest things and there's not many marks in-between and um, you know, you can be a really high pass but
you still just get a pass, and it, or you could be a really low high distinction but you still get that high distinction
back. You know, its really hard to stay positive when you get an assignment back and you don't go as well as
you probably hoped you would or what you expected to get. I think, yeh, you've just got to lean to stay really
really positive.
How do you balance your time when completing university assignments?
<www.monash.edu/lls/llonline/writing/business-economics/economics/3.1.4.xml#audioDiv>
Time with Uni assignments I find very difficult, er, they sort of creep up on you, when its due and having time
to find how to do an assignment along with tutorial questions you might have and the readings for the lectures
and interpreting what you have learnt in the lectures, its very time consuming....
How can friends help you with your assignments at university? (part 1)
<www.monash.edu/lls/llonline/writing/business-economics/economics/3.1.4.xml#audioDiv>
I have a very busy Uni and TAFE schedule so I have time slotted away each week hopefully to do questions
and readings for my Uni subjects but I find that the assignments are always left up to the last.....
How can friends help you with your assignments at university? (part 2)
<www.monash.edu/lls/llonline/writing/business-economics/economics/3.1.4.xml#audioDiv>
I think friends are very good at Uni because, yeh, they do help you stay positive and they are always there
but it's also hard when you are sitting there and you know you studied very hard for that test or you did a lot
of work on that assignment and your friends got better than you and you know they only did it the night before
but I suppose you have just got to learn that they just interpret it a different way, or, you know, you wrote
about something that they probably didn't write about and they probably went into detail about something you
probably should have, so that's why they got the higher mark than you.
How can friends help you with your assignments at university? (part 3)
<www.monash.edu/lls/llonline/writing/business-economics/economics/3.1.4.xml#audioDiv>
Yeh, I think having a big group of friends and good friends at Uni can help if, you know, if you seem to be
struggling, because you can't, you know, they, well hopefully will let you look at their assignments and you
can see where they went better than you and you could probably sit back and say oh well that's the bit I
should of elaborated on and so can help you for your next assignment saying oh well this is the bit where my
friend elaborated last time maybe I should elaborate this time there.
What help did you get from your lecturer and tutor for your assignment?
<www.monash.edu/lls/llonline/writing/business-economics/economics/3.1.4.xml#audioDiv>
After we got the assignment, our lecturer sort of, the lectures from there on, like the next three lectures were
sort of based around what we had to do on the assignment so then when we went to tut... our tutors seemed
to go through questions which were very similar to the ones in the assignment, but not exactly the same. So
there are pointers saying oh well do this and then you do this and its sort of, examples of what to do and what
to write but not exactly what had to be done in the assignment.
Where can you get help with your assignments?
<www.monash.edu/lls/llonline/writing/business-economics/economics/3.1.4.xml#audioDiv>
In getting assistance with your Uni subjects and assignments is very difficult, I don't know if this is just at my
campus or if its like campuses all over the place but there's not so much anyone that can help you. You can
go to your lecturer or your tutor with very broad questions but you can't go with direct questions about your
exact assignment. Or if you are having trouble with your assignment you can't really go up and say, well I've
done this, is this right. They will say, well we can't tell you that, this is the question and they sometimes
emphasise things or say, oh well, this chapter would really help you in the text book but they can't really, yeh,
they're not as direct as they ...
How do you feel when you are completing an assignment?
<www.monash.edu/lls/llonline/writing/business-economics/economics/3.1.4.xml#audioDiv>
It's a very stressful time when you've got a Uni assignment but I think it's very, you are very glad once you've
handed it in. You may not think you've gone well with it, you're excited and relieved that you have got rid of it.
Um, I found it very hard, it's very stressful.
How did you feel when you had handed in your Economics assignment?
<www.monash.edu/lls/llonline/writing/business-economics/economics/3.1.4.xml#audioDiv>
Um, ... out of my way but I was very uncertain in how I went and I was very, I wouldn't of been able to say, oh
yes I went very well in that assignment, I think I was very unsure of how I went in what parts I had done right
and what parts I had gone badly in. If you'd asked me I would probably say the whole assignment....
Download the full interview with Rebecca (mp3, 11.7 MB).
<www.monash.edu/lls/llonline/assets/utilities/download.php?file=assets/audio/rebecca/rebeccaall.mp3>
Management assignment
This tutorial contains information about writing based on materials from the first-year subject Managing
People and Organisations. You will also find much of the information to be useful for your other Management
subjects. Navigate through the tutorial using the Table of Contents on the left. The tutorial's three main
sections are outlined below.
Lecturer's advice <www.monash.edu/lls/llonline/writing/businesseconomics/management/1.xml>
Get information from the lecturer about what is required for Management assignments.
Skills for writing in Management <www.monash.edu/lls/llonline/writing/businesseconomics/management/2.xml>
Learn to write better assignments through interactive tasks.
Annotated assignments <www.monash.edu/lls/llonline/writing/businesseconomics/management/3.xml>
View samples of student work with lecturer and student comments.
Lecturer's advice
In this section, one of your lecturers - Loretta Inglis - answers Frequently Asked
Questions (FAQs) about researching and writing of reports in first-year Management.
FAQs: Click on those topic areas that are of interest to you, or that you need to know more about.
1.
2.
3.
4.
What do you look for when marking an assignment? <www.monash.edu/lls/llonline/#faq1>
What makes a good first-year Management report? <www.monash.edu/lls/llonline/#faq2>
What are the main difficulties students have? <www.monash.edu/lls/llonline/#faq3>
How much reading and research should I do for my assignment?
<www.monash.edu/lls/llonline/#faq4>
5. What are some of the differences between writing for Management at university and for Business
Management at VCE? <www.monash.edu/lls/llonline/#faq5>
6. What final advice do you have for students? <www.monash.edu/lls/llonline/#faq6>
1. What do you look for when marking an assignment?
Click on the highlighted text to see the comments.
Summary:



use of the case study method throughout
use of supporting theory and evidence
properly completed solutions, recommendations, and implementation
First of all, the assignment should show that you have used the [1]case study method throughout. The main
section is the Problem Identification section where we look for the ability to succinctly identify problems, a
relevant theory which explains the problem, and case evidence which illustrates the problems.
We also look for a range of possible solutions for each problem, which should be thoroughly evaluated, with
at least two to three advantages and disadvantages being given for each one. Finally, we want a clear
recommendation (or two or three) which is justified using the theory, and an Implementation section
presented in concise, practical steps.
Back to top <www.monash.edu/lls/llonline/#faqs>
2. What makes a good 1st Year Management report?
Summary:

consistently good quality in all sections
In terms of the qualities of a good assignment, a High Distinction assignment would be consistently very good
in every section. Many students do a good job of the Problem Identification section, then fail to allow enough
time to put the work into the latter parts of the assignment.
In the case where students fail, this is because they do not seem to have read the information, and have tried
to do the assignment in a hurry.
Back to top <www.monash.edu/lls/llonline/#faqs>
3. What are the main difficulties students have?
Summary:



leaving preparation to the last minute
using theory appropriately
inadequate recommendations and implementation
Case studies just require time in the preparation. Most students don't actually have all that much trouble
producing a satisfactory case in the end. They eventually get the idea in identifying problems and usually they
do a reasonable job of generating suggestions.
Writing up the problems, case evidence, and relevant theory is the demanding part because students will
have rarely experienced an assignment like this before. In particular, I think all first-year students find it hard
to recognise when theory is appropriate and how to use it.
Where students go wrong is that too many appear to leave their preparation to the last minute or just run out
of time and ideas. So the Recommendations section and, particularly, the Implementation section, is often
poorly done. In some cases, students will do the early sections extremely well and just throw marks away in
the later sections.
Back to top <www.monash.edu/lls/llonline/#faqs>
4. How much reading and research should I do for my assignment?
Summary:



Check course guidelines, lecture material
Use a targeted reading strategy
Go beyond the textbook to other sources
In general, I would expect students to start by first reading the relevant case, reading the information about
how to do it, and looking at what has been covered in the subject . They should then relate the case to
the information they have collected. I would then read the appropriate text chapters and find one or two more
texts, or articles on individual topics.
Students don't need to do heaps of reading for this case study. Their reading should be targeted in any case
because of the problems they identify (i.e. it is fairly easy to find the information). I think it advisable that
students learn to use a few more references than the text, such as other management or organisational
behaviour texts, or journal articles.
In terms of time, they should anticipate between 12-20 hours for research and reading.
Back to top <www.monash.edu/lls/llonline/#faqs>
5. What are some of the differences between writing for Management at university and for
Business Management at VCE?
Summary:


the need to think independently
the more varied reference material available
Most business writing is to the point (i.e. it doesn't waste words). Some students may have trouble focusing
on the issue at hand, but I don't see that as a major problem. It's probably because they are used to teachers
telling them whether it is right or wrong all the way. This doesn't happen at university and may make some
people feel very unsure. What we're interested in is how students think for themselves.
Thinking for yourself can involve seeking out additional references. Another important difference is the variety
of reference material available in the Management area. We expect students to make good use of this in their
written work. This means working out when to cite, and how - and summarising others' views to support your
line of argument.
Back to top <www.monash.edu/lls/llonline/#faqs>
6. What final advice do you have for students?
Summary:




read all the information the minute you get it, even if you don't start on the case study immediately
go to lectures and tutorials and listen
ask questions
start early!
Back to top <www.monash.edu/lls/llonline/#faqs>
[1]
MONASH UNIVERSITY
FACULTY OF BUSINESS AND ECONOMICS
DEPARTMENT OF MANAGEMENT
MGX1010 MANAGING PEOPLE AND ORGANISATIONS
Notes on the Case Study Method
The use of case studies is a widely accepted means of bringing theoretical concepts and practical situations
together. It is not possible to take a class into an organisation and observe the subject matter of management
or organisational behaviour in real life - hence a written case study outlining a real, or realistic, situation is the
best available alternative.
When reading and studying a case study it is possible to take two different approaches. The first of these is
the 'analytical' approach where a case structure is examined to try to understand what has happened and
why. In this approach you do not identify problems or attempt to develop solutions. The second approach is
the problem-oriented method. In this approach a case is analysed to identify the major problems that exist,
the causes of and possible solutions to the problems and finally a recommendation as to the best solution to
implement.
In this course we mainly utilise a 'PROBLEM SOLVING' case study method. As with most things in the
management area there is not 'one best way' to analyse or write up a case report. Everyone develops
their own methods of sorting and sifting through the information and presenting their findings.
However, in this subject we have a set format which we would like you to utilise when presenting
your case reports. This format is outlined briefly below.
Some General Issues:
In a case study it is crucial that you integrate relevant theory from the course and evidence from the case.
Failure to attempt to integrate theory will lead to severe mark reduction or failure.
Referencing of all non-original material is essential. You will lose marks for poor referencing. The Faculty of
Business and Economic's Q Manual should be used as a guide. This is available in the library, for sale in the
bookshop and on the web (see Subject Outline for address). The Q Manual should also be used as a guide
for correct presentation of written material.
Check your completed work for internal consistency, for example make sure that you attempt to solve the key
issues you have identified., Don't say 'X' is the major problem and then recommend a solution to 'Y'.
Try not to be overly descriptive. Remember you are trying to identify, analyse and solve the problems of the
case using the relevant theories from the course - not just repeating what the text book, or case information,
has said.
PRESENTATION OF WRITTEN MATERIAL
The following notes are to be used as a guide to students the case studies for assessment in MGX1010.
GUIDELINES








A high standard of presentation is required. Typing, or word processing, of all is expected.
Work that is submitted in an illegible or untidy fashion may, at your tutor's discretion, be returned
unmarked or with marks deducted for poor presentation.
In no circumstances should an assignment be written/typed on both sides of the paper.
Work should be double or 1 spaced.
A margin of 30mm should be left on both sides of the page. This provides adequate room for
examiner's comments as well as creating an uncluttered presentation.
All quotations should be enclosed within inverted commas. The exception is quotations of two or
more sentences which run to four or more lines. These should be single-spaced and indented from
the main body of the text. In these cases inverted commas are unnecessary (see Qmanual).
Assignments should be bound firmly into a cover, such as a manilla folder, plastic folder, ring binder,
etc. Please do not use envelope folders or submit loose sheets. It should be possible to read every
page without undoing any fastenings.
Every assignment must be clearly identified. The following details must be on the front of all
assignments:
o Name:
o Student Number:
o Assignment Name:
o Subject Code/Name:
o Lecturer/Tutor:
o Due Date:


o Date Submitted:
It is recommended that students KEEP A COPY OF ALL WORK SUBMITTED. While it is extremely
rare for student work to be misplaced, it does sometimes occur. The onus is on you to prove that a
piece of work was submitted.
Grammar, spelling and punctuation are matters which should not be neglected. Failure to take care
of these matters causes confusion and ambiguity. Ask someone to read and comment critically on
your work prior to submitting it; can they understand what you are trying to say? If not, re-write it!
PROBLEM SOLVING CASE FORMAT FOR PRESENTATION
1. Title Page
2. Table of Contents
3. Executive Summary
This section should comprise a brief overview of the case, giving a brief background and noting any important
assumptions made. (You will not have all the information you would like - so you may need to make some
assumptions). As well as this, you should give a synopsis of your case report, noting very briefly the major
problems identified and the recommended solutions. One page is enough.
4. Problem Identification and Analysis
In this section you should identify all the major problems in the case in behavioural terms, ie. in
Management/OB related terms (it is not a marketing or an accounting case). Try to get to underlying causes
of problems, not just symptoms. Seek advice from your tutor on the layout of this information.
You should link each problem identified to relevant theory and also to actual evidence from the case.
Remember you MUST integrate theory and reference all non-original work.
5. Statement of Major Problems
In most case studies you will identify a number of problems - too many to actually 'solve' in the number of
words allowed. Hence it is crucial to make it very clear which are the major two or three problems or key
issues, that must be solved first. Therefore this section is just a short concise statement of what problems you
are going to solve in the remainder of the case. Half a page is adequate.
Having once identified the key problems, you can continually check back to ensure that you are actually
attempting to solve them and not some other minor problems you identified. This section is crucial to a good
case report.
6. Generation and Evaluation of Alternative Solutions
While most problems will have a very large number of possible solutions it is your task to identify and
evaluate a number of the more appropriate (at least 2-3 for each major problem identified).
Each alternative solution should be briefly outlined and then evaluated in terms of its advantages and
disadvantages (strong and weak points). Note: You must evaluate alternatives. It is not necessary to make a
statement in this section as to which alternative is considered best - this is the next section. Do not integrate
theory in this section and do not recommend theory. Practical solutions to the problems are required.
7. Recommendation
This section should state which of the alternative solutions (either singly or in combination) identified in
section six is recommended for implementation. You should briefly justify your choice, explaining how it will
solve the major problems identified in section six. Integration of relevant theory is appropriate here.
8. Implementation
In this section you should specifically explain how you will implement the recommended solutions. Theory
cannot be implemented; you must translate it into actions.
What should be done, by whom, when, in what sequence, what will it cost (rough estimates only) and other
such issues.
Remember if a recommended solution cannot be realistically implemented then it is no solution at all.
9. Appendices (if any)
10. Bibliography/References
This will contain an alphabetical list of all the references you have cited in the body of the report. Do not
include details of any sources you have not cited. Ensure the style used is correct and consistent.
Skills for writing in Management
In this section, you have the opportunity to learn and practise different aspects of writing Management case
studies.
The materials and the tasks in this module specifically cover the Problem Identification and
Recommendations sections. The information contained in them however, is relevant to the whole case study.
A range of practice tasks is included in each topic. If you wish to explore all topic areas, work on these in the
order given.
Topics:



Identify problems <www.monash.edu/lls/llonline/writing/businesseconomics/management/2.1.xml> - Writing the problem identification section
Alternative solutions <www.monash.edu/lls/llonline/writing/businesseconomics/management/2.2.xml> - Generation and evaluation of alternative solutions
Recommendations <www.monash.edu/lls/llonline/writing/businesseconomics/management/2.3.xml> - Writing the recommendations section
Identifying problems
Click on the highlighted text to see the comments.
The Problem Identification section is the most important section of the case study report. In it, you will need
to:




identify all the major problems in the case in terms of the management concepts you have studied;
focus on the underlying causes of problems, not just their symptoms;
link each problem identified to both relevant theory and evidence from the case study (i.e. integrate
theory with your analysis);
reference all non-original work.
Before starting on the tasks below, read the [1]Case Study Summary. Please note that the Summary does not
contain all the events discussed in the original. If you prefer, you can go straight to the [2]full case study Lawton, Langridge, Lypton and Lawless, Solicitors. For further advice you can also consult the [3]Notes on the
Case Study Method.
Ordering and presenting information
Good writing in Management, as in other subject areas, requires the structured presentation of information.
The normal pattern for this in English is Introduction - Body - Conclusion, and this structure broadly applies
in the Problem Identification section as well.
As your focus is the solution of a managerial problem, the body of the Problem Identification section will also
need to cover the following information:



theory (theories, concepts, issues raised by other writers/experts)
case evidence
your own comments (ideas about, or evaluation of, the problem).
The table below shows how this information is incorporated within the Introduction-Body-Conclusion
structure. Notice how the Body includes two stages:
Problem identification
Introduction
1 - Introductory
Stage
Body
2 - Case Evidence
Stage
3 - Commentary
Stage
Conclusion
4 - Conclusion
Stage


identifies the problem arising out of the case study
usually introduces some initial theory as background to the
problem identified


introduces case evidence to illustrate the problem identified
may also incorporate further theory

comments on the problem presented through interpretation,
discussion of possible outcomes, etc.
is based on student's own thinking
can also incorporate theory



makes a concluding general statement about the problem
before moving on to the next section or sub-section
Remember, you can use theory anywhere within any stage.
(Adapted from Notes on the Case Study Method: Department of Management, Monash University)
[1]
Case Study Summary
Lawton, Langridge, Lypton and Lawless is a large Sydney legal firm. Among its staff are 22 data entry clerks
who work in the Word Processing Centre (WPC). Their job is to process the large volume of legal documents
produced by the firm's solicitors. WPC clerks are carefully selected and must have a TAFE diploma or Year
12 with good passes in business subjects. When they join the firm they receive a week of training in
specialised legal documents, and extra training sessions are held regularly to ensure they keep their
knowledge up-to-date.
The firm occupies 10 floors of a new building in the centre of Sydney. The WPC is located on the 35th floor
and has wonderful views around the city and harbour. The centre is very well equipped with excellent
furnishings and a very pleasant staff room. The firm is able to attract good quality workers because it offers
above average wages and many other benefits. However, all is not well. Senior staff and solicitors have
complained to Arthur Lawton, the Managing Partner, that they need to check the work of WPC clerks who
work as relief secretaries, because of the frequent errors made. They also believe that these workers are
unreliable and lack initiative. Personnel records show that WPC staff do not stay with the firm for very long,
despite the opportunities for promotion.
None of the solicitors know the workers in the Centre very well, but all praise the hard work and service
provided by Mrs Blakely, the WPC supervisor, who has worked with the firm for over 20 years. Indeed, they
tend to see the problem as the result of something wrong "with young people today." When Mr Lawton raises
the matter of the WPC's problems, Mrs Blakely reacts a little angrily. She defends her clerks, saying that
despite the errors, they do complete a lot of work. She admits that many of them find the job boring, as it
mostly involves keying in information. The clerks also, often come to work late, chat at every opportunity, and
generally don't work too hard. To stop this, she keeps a firm eye on them but she believes she can't be too
hard or they will leave the firm.
Mrs Blakely then explains the WPC system. The work to be done arrives from each solicitor and is allocated
to the clerks on a daily basis. To ensure they know what to do, she goes over each piece of work with them
before they do the job. When information needs to be clarified, Mrs Blakely goes to the relevant solicitor
herself and then passes the information on to the clerks. She collects the output when the job is finished and
returns it to the solicitors.
Her job however, also means she liaises with solicitors on other floors, so she is often away from the Centre.
Mrs Blakely agrees that the workers do not perform very well as relief secretaries, but thinks this is because
the work is more complex than they are trained to do. She says the solicitors do not help the relief secretaries
enough and expect them to know everything straight away.
When questioned, the WPC clerks say they like working for the firm and would like to earn promotion, but find
it hard to stay interested in a job that is so repetitious and boring. Most say they get sick of seeing the same
faces everyday as they are isolated on the 35th floor and have no contact with other staff, except with each
other and Mrs Blakely. After trying to improve efficiency through the use of piped music - an experiment
which fails - Mr Lawton turns to you, as an external management consultant, for advice.
[2]
MGM 1300 INTRODUCTION TO MANAGEMENT
Semester One, 1996
GROUP CASE STUDY
Using the Case Study Method analyse the problems, generate solutions and make recommendations for the
following case.
DUE DATE: Tutorial, Week 11, Week Beginning May 20, 1996
Lawton, Langridge, Lypton and Lawless, Solicitors
Peter Lawless looked over his desk at Arthur Lawton and frowned. "Look, Arthur, I need a new secretary
now. I thought the idea of the Word Processing Centre was, that we recruited talented people and trained
them there, so they were ready and available when we need them. We spend a lot of money on the Centre
and I hear on the grapevine that the work is often sub standard, and now you're telling me that there is no
one there really qualified to be my new secretary. What's going wrong! I have had Kathleen Pearce
temporarily for the past two weeks, but if she is the best qualified person in the Centre, then it's not doing the
job. Her skills are fine, but she has no initiative and doesn't have much of a clue about what we do in this firm
- and she has worked here for 18 months! She is a nice girl, but she is not up to it."
Arthur Lawton sighed. "Obviously something is not working. We do recruit well trained, bright, young people
and hope that one to two years in the WPC will teach them all they need to know about our firm, and I believe
Kathleen Pearce is the best qualified there. I am afraid you will have to persevere with Kathleen. There's
nobody else."
Arthur Lawton and Peter Lawless are senior partners in the legal firm of Lawton, Langridge, Lypton and
Lawless. Arthur is also the Managing Partner responsible for handling the administration of the large firm
which consists of 25 partners and 48 employed solicitors, plus approximately 80 support staff working in the
Sydney office.
Twenty two of the support staff are data entry clerks who work in the Word Processing Centre. Their job is to
word process the large volumes of legal documents produced by the solicitors, together with their long
reports, etc. Only well qualified people are employed, usually with a TAFE diploma or Year 12 with good
passes in business subjects. When they join the firm they receive a week of training in the specialised legal
documents and extra training sessions are held regularly to ensure up to date knowledge of legal documents.
The firm occupies 10 floors of a new building in the centre of Sydney. The Word Processing Centre is located
on the 35th floor and has wonderful views around the city and harbour. The office is very well equipped with
modern, ergonomic furniture and equipment, excellent furnishings, and a very pleasant staff room. The firm is
able to attract good quality workers because it offers above average wages and many benefits such as a
superannuation scheme, health scheme, social club and other non salary benefits.
After his discussion with Peter Lawless, the Managing Partner, Mr Lawton, feels it is time to find out why the
centre is having problems, so he asks around the firm, having talks with other partners and solicitors. He
discovers that, although the centre is very productive, there are several concerns. Most solicitors feel they
must check each piece of work carefully because there are often errors made. Not necessarily typing errors,
but careless errors such as the wrong names or facts keyed into documents. As the clerks are well qualified
and trained by the firm, there is a belief that the error rate is unacceptable. None of the solicitors know the
workers in the Centre very well, but all praise the hard work and service provided by Mrs Blakely, the
supervisor, and suggest that there is something wrong "with young people today". Mr Lawton's personnel
records also suggest that the turnover rate in the centre is also unacceptable. Only three clerks in the Centre
have worked for the firm for more than eighteen months, with the majority staying only 12 months or so,
despite careful selection of excellent staff.
The partners of the firm each have their own secretary, and it is the firm's policy that these secretaries be
recruited from the Word Processing Centre workers. Three to five of these vacancies arise each year, with
workers from the Centre also relieving when the secretaries are on holidays. Although this opportunity for
promotion attracts new workers to the firm, it does not seem to keep many of them long enough to take up
the chance. There have also been complaints that, when a clerk has been used as a relief for a secretary,
they have proved unreliable if left to their own devices and they lacked initiative.
Mr Lawton then talks with Mrs Lorraine Blakely, the supervisor, about the Centre. She has worked with the
firm in various administrative capacities for over 20 years and is greatly liked and admired by all the partners
and lawyers in the firm. They found her very pleasant and helpful to deal with and always efficient in getting
their work through the centre in a short time. She enjoys her job, particularly dealing with the solicitors in the
firm, most of whom have worked with her for years. They believe that she is very efficient and they all like to
deal with her on a regular basis.
Mrs Blakely reacts a little angrily when Mr Lawton brings up the matter of the WPC's problems. She springs
to the defence of her "girls", saying that although there are errors made, they do get through a lot of work.
She does admit that, she believes not many of the clerks like their job very much as they find it boring, as
most of the work is simply keying in information into the forms provided on the firm's computer network. She
finds that they will come late to work, chat with each other at every opportunity, take long breaks and
generally "slack off". To stop this she keeps a firm eye on them, but on the other hand, she tells him, you
can't be too hard on them or they will leave quickly, and it is very hard to get good people to stay long. She
insists that she must keep her "girls" happy if they are to be productive and stay with the firm, and she doesn't
know what to do to keep them with the firm longer or help them to be better secretaries. She states that the
trouble is that young people these days don't want to work, but just want to have fun and there is nothing that
she can do about that.
Mrs Blakely explains the WPC's system to him. The work to be done in the Centre arrives from each solicitor
with a request sheet with details of what is required. Mrs Blakely then allocates work to the clerks each day.
To ensure they know what to do she is in the habit of going over each piece of work with them before they do
the job. There is often a need to clarify some issue with the solicitor. When this is the case, Mrs Blakely goes
to the solicitor herself and then passes the information on to the clerks. She collects the output when the
clerks have finished and returns it to the solicitors.
She emphasises again to Mr Lawton that she does keep a stern eye on the workers to ensure that they are
not wasting time. She insists that tea and lunch break times are strictly adhered to, and discourages chatting
during working hours, although as her job means she must be liaising with solicitors on other floors, she is not
in the Centre quite a lot. She agrees that the workers do not do very well when they relieve a secretary, but
feels it is all so strange to them, much more complex work than they have been used to, but her staff are the
best available, and the solicitors just need to put a bit of effort into helping them to learn the job. She says the
solicitors do not help their new secretaries enough and expect them to know everything straight away. She
suggests to Mr Lawton that she could check every piece of work before it leaves the centre, though this
would slow the turnaround time considerably.
When questioned about their job the clerks say they like working for the firm, would like to earn promotion,
but find it hard to stay interested in a job that is so repetitious and boring. Most say they get sick of seeing the
same faces every day as they are isolated in the WPC on the 35th Floor and have no contact with anyone
apart from each other and Mrs Blakely. Peter Lawless's temporary secretary, Kathleen Pearce, who is the
longest serving clerk, tells Mr Lawton that, although she loves working with so many people her own age, and
Mrs Blakely is a lovely boss, always friendly and helpful, she feels like she is still in school, with someone
always watching what you are doing and telling her what to do. She has stayed with the firm because the
conditions are good and she hopes to achieve promotion. She does, however, express doubts about her
ability as "eighteen months of straight keying have made me forget most of what I learned in TAFE and I don't
seem to have learnt much about what the solicitors do working in the WPC".
Mr Lawton decides to install a piped music system, believing this will add interest to their day's work and aid
concentration. The workers are very pleased with this and even say that it speeds up their work.
Unfortunately six months later the error rate has even increased, the turnover is still high, and Kathleen
Pearce, after six months as secretary to Peter Lawless is just beginning to show more confidence and
initiative in her job. Although Peter is happy with her now, he feels he has wasted a lot of time and energy in
helping her settle into the job and he tells Arthur Lawton that he believes the problems with the WPC would
not be solved by the piped music.
Mr Lawton has approached you, an external management consulting firm, to help them identify the real
problems, to suggest some possible solutions and make recommendations. Your brief is to examine and
analyse the case material and to produce a report, based on the problem solving case method, for Mr
Lawton.
[3]
MONASH UNIVERSITY
FACULTY OF BUSINESS AND ECONOMICS
DEPARTMENT OF MANAGEMENT
MGX1010 MANAGING PEOPLE AND ORGANISATIONS
Notes on the Case Study Method
The use of case studies is a widely accepted means of bringing theoretical concepts and practical situations
together. It is not possible to take a class into an organisation and observe the subject matter of management
or organisational behaviour in real life - hence a written case study outlining a real, or realistic, situation is the
best available alternative.
When reading and studying a case study it is possible to take two different approaches. The first of these is
the 'analytical' approach where a case structure is examined to try to understand what has happened and
why. In this approach you do not identify problems or attempt to develop solutions. The second approach is
the problem-oriented method. In this approach a case is analysed to identify the major problems that exist,
the causes of and possible solutions to the problems and finally a recommendation as to the best solution to
implement.
In this course we mainly utilise a 'PROBLEM SOLVING' case study method. As with most things in the
management area there is not 'one best way' to analyse or write up a case report. Everyone develops
their own methods of sorting and sifting through the information and presenting their findings.
However, in this subject we have a set format which we would like you to utilise when presenting
your case reports. This format is outlined briefly below.
Some General Issues:
In a case study it is crucial that you integrate relevant theory from the course and evidence from the case.
Failure to attempt to integrate theory will lead to severe mark reduction or failure.
Referencing of all non-original material is essential. You will lose marks for poor referencing. The Faculty of
Business and Economic's Q Manual should be used as a guide. This is available in the library, for sale in the
bookshop and on the web (see Unit Outline for address). The Q Manual should also be used as a guide for
correct presentation of written material.
Check your completed work for internal consistency, for example make sure that you attempt to solve the key
issues you have identified., Don't say 'X' is the major problem and then recommend a solution to 'Y'.
Try not to be overly descriptive. Remember you are trying to identify, analyse and solve the problems of the
case using the relevant theories from the course - not just repeating what the text book, or case information,
has said.
PRESENTATION OF WRITTEN MATERIAL
The following notes are to be used as a guide to students preparing the case studies for assessment in
MGX1010.
GUIDELINES





A high standard of presentation is required. Typing, or word processing, of all is expected.
Work that is submitted in an illegible or untidy fashion may, at your tutor's discretion, be returned
unmarked or with marks deducted for poor presentation.
In no circumstances should an assignment be written/typed on both sides of the paper.
Work should be double or 1.5 spaced.
A margin of 30mm should be left on both sides of the page. This provides adequate room for
examiner's comments as well as creating an uncluttered presentation.





All quotations should be enclosed within inverted commas. The exception is quotations of two or
more sentences which run to four or more lines. These should be single-spaced and indented from
the main body of the text. In these cases inverted commas are unnecessary (see Q Manual).
Assignments should be bound firmly into a cover, such as a manilla folder, plastic folder, ring binder,
etc. Please do not use envelope folders or submit loose sheets. It should be possible to read every
page without undoing any fastenings.
Every assignment must be clearly identified. The following details must be on the front of all
assignments:
o Name:
o Student Number:
o Assignment Name:
o Subject Code/Name:
o Lecturer/Tutor:
o Due Date:
o Date Submitted:
It is recommended that students KEEP A COPY OF ALL WORK SUBMITTED. While it is extremely
rare for student work to be misplaced, it does sometimes occur. The onus is on you to prove that a
piece of work was submitted.
Grammar, spelling and punctuation are matters which should not be neglected. Failure to take care
of these matters causes confusion and ambiguity. Ask someone to read and comment critically on
your work prior to submitting it; can they understand what you are trying to say? If not, re-write it!
PROBLEM SOLVING CASE FORMAT FOR PRESENTATION
1. Title Page
2. Table of Contents
3. Executive Summary
This section should comprise a brief overview of the case, giving a brief background and noting any important
assumptions made. (You will not have all the information you would like - so you may need to make some
assumptions). As well as this, you should give a synopsis of your case report, noting very briefly the major
problems identified and the recommended solutions. One page is enough.
4. Problem Identification and Analysis
In this section you should identify all the major problems in the case in behavioural terms, ie. in
Management/OB related terms (it is not a marketing or an accounting case). Try to get to underlying causes
of problems, not just symptoms. Seek advice from your tutor on the layout of this information.
You should link each problem identified to relevant theory and also to actual evidence from the case.
Remember you MUST integrate theory and reference all non-original work.
5. Statement of Major Problems
In most case studies you will identify a number of problems - too many to actually 'solve' in the number of
words allowed. Hence it is crucial to make it very clear which are the major two or three problems or key
issues, that must be solved first. Therefore this section is just a short concise statement of what problems you
are going to solve in the remainder of the case. Half a page is adequate.
Having once identified the key problems, you can continually check back to ensure that you are actually
attempting to solve them and not some other minor problems you identified. This section is crucial to a good
case report.
6. Generation and Evaluation of Alternative Solutions
While most problems will have a very large number of possible solutions it is your task to identify and
evaluate a number of the more appropriate (at least 2-3 for each major problem identified).
Each alternative solution should be briefly outlined and then evaluated in terms of its advantages and
disadvantages (strong and weak points). Note: You must evaluate alternatives. It is not necessary to make a
statement in this section as to which alternative is considered best - this is the next section. Do not integrate
theory in this section and do not recommend theory. Practical solutions to the problems are required.
7. Recommendation
This section should state which of the alternative solutions (either singly or in combination) identified in
section six is recommended for implementation. You should briefly justify your choice, explaining how it will
solve the major problems identified in section six. Integration of relevant theory is appropriate here.
8. Implementation
In this section you should specifically explain how you will implement the recommended solutions. Theory
cannot be implemented; you must translate it into actions.
What should be done, by whom, when, in what sequence, what will it cost (rough estimates only) and other
such issues.
Remember if a recommended solution cannot be realistically implemented then it is no solution at all.
9. Appendices (if any)
10. Bibliography/References
This will contain an alphabetical list of all the references you have cited in the body of the report. Do not
include details of any sources you have not cited. Ensure the style used is correct and consistent.
Ordering information
Click on the highlighted text to see the comments.
Read the model Problem Identification below. It analyses problems of inappropriate leadership in the
Word Processing Centre (WPC) at the law firm of Lawton, Langridge, Lypton and Lawless, Solicitors.
Then do the exercise below.
Problem Identification
1.1 Leadership Mismatch
[1] The Path-Goal Theory suggests that it is a leader's job to assist his/her followers in attaining goals as
well as providing direction and support (Schermerhorn, Hunt and Osborn, 1994). [2] There are four types
of leader behaviour that can be used to affect a subordinates's motivation, but leadership behaviour which
is effective in one situation may not always be effective in another (Schermerhorn et al., 1994). [3]
According to the case study, Mrs Blakely, the staff supervisor, checks each piece of work with the WPC
staff before they do the job. [4] Since the workers are qualified for their work and well-trained, this leads to
annoyance and frustration. [5] According to Kathleen Pearce, Mrs. Blakely makes the WPC staff feel they
are still in school because of her constant supervision. [6] As pointed out by Bartol, Martin, Tein and
Matthews (1995:471), "using directive leadership to clarify task demands that are already clear will be
ineffectual; it might frustrate employees and reduce the work's intrinsic valence." [7] Workers do not need
a manager telling them how to do something they already know how to do because "redundant behaviour
by the leader will not help and may even hinder performance" (Schermerhorn et al., 1994:504). [8] Thus a
major problem in the WPC is that Mrs Blakely is too concerned with the work of her staff which results in
their frustration because they are not allowed to be independent and show initiative.
Complete the following table.
For each of the four stages listed below, identify:


the sentences that make up that stage, and
whether or not theory has been incorporated in that stage.
Stage
Sentences
Theory?
Correct Answers
Sentence 1
Sentence 2
Sentence 3
1. Introduction
Sentence 4
1-2 and Yes
Sentence 5
Sentence 6
Sentence 7
Sentence 8
Sentence 1
Sentence 2
Sentence 3
2. Case Evidence
Sentence 4
Sentence 5
Sentence 6
Sentence 7
Sentence 8
3-5 and Yes
Sentence 1
Sentence 2
Sentence 3
3. Commentary
Sentence 4
6-7 and Yes
Sentence 5
Sentence 6
Sentence 7
Sentence 8
Sentence 1
Sentence 2
Sentence 3
4. Conclusion
Sentence 4
8 and No
Sentence 5
Sentence 6
Sentence 7
Sentence 8
Using theory and evidence
Click on the highlighted text to see the comments.
This task is designed to give you further insight into the process of problem analysis by modelling how theory,
evidence, and commentary can be combined.
Read the following two student samples which discuss problems of motivation among the WPC staff. See if
you can identify which stage (Introduction, Case Evidence, Commentary, Conclusion) each sentence belongs
to.
Sample 1
[1] There are three major motivators which stimulate better work (Robbins, 2000, pg. 555). [2] The girls in
the WPC need to experience achievement. [3] They do this with their data entry and word processing, but
perhaps the girls have a stronger need to succeed through harder and more demanding tasks. [4] They
need to experience power. [5] The ability to make someone act in a different way or to be in control of
someone is a big motivator. [6] They need to feel a sense of affiliation with other employees, they need to
develop interpersonal relations with other staff (Robbins, 2000, pg. 555).
Complete the following table, trying to identify which sentence numbers belong to the four stages.
Stage
Sentence number(s)
Correct Answers
1. Introduction
2. Case Evidence
3. Commentary
4. Conclusion
Sentence 1
Sentence 2
Sentence 3
Sentence 4 1
Sentence 5
Sentence 6
Sentence 1
Sentence 2
Sentence 3
Sentence 4 ?
Sentence 5
Sentence 6
Sentence 1
Sentence 2
Sentence 3
Sentence 4 2, 3, 4, 5, and 6
Sentence 5
Sentence 6
Sentence 1
Sentence 2
Sentence 3
Sentence 4 None
Sentence 5
Sentence 6
Sample 2
[1] Carlopio et al. (1997, pp.232). . . observe that the result of being egalitarian and flexible in
communication is two-way communication. [2] This concept has not been able to evolve in the firm of
Lawton, Langbridge, Lypton, and Lawless Solicitors, since the WPC staff are not consulted about any
issues at the firm. [3] For example, one reason that may explain errors made in written reports could be
that solicitors have not taken the time to explain tasks in enough detail. [4] They assume that the staff
know exactly what they are doing . . . [5] As no two-way discussion has taken place at the firm,
agreement, the final attribute and by-product of discussion, cannot be reached. [6] Having said all this, it
becomes obvious that communication at the firm is extremely poor.
Complete the following table, trying to identify which sentence numbers belong to the four stages.
Stage
1. Introduction
Sentence number(s)
Correct Answers
Sentence 1
Sentence 2
Sentence 3
Sentence 4 1
Sentence 5
Sentence 6
2. Case Evidence
3. Commentary
4. Conclusion
Sentence 1
Sentence 2
Sentence 3
Sentence 4 ?
Sentence 5
Sentence 6
Sentence 1
Sentence 2
Sentence 3
Sentence 4 2, 3, 4, 5, and 6
Sentence 5
Sentence 6
Sentence 1
Sentence 2
Sentence 3
Sentence 4 None
Sentence 5
Sentence 6
Which is better - sample 1 or sample 2?
Referring to theory
Click on the highlighted text to see the comments.
When referring to theory in the Problem Identification section, you have the choice of using:


Direct quotation - the actual words of another writer contained in "quotation marks" and inserted
into your own sentence. A reference (citation) + page number(s) must also be supplied.
Indirect quotation - the use of another writer's ideas but using your own words (i.e. paraphrasing). A
citation must be supplied, but a page number is not necessary.
REMEMBER:
1. Indirect quotation is the usual way to report facts/information in academic writing.
2. Direct quotation is normally used only to emphasise:
o
o
o
o
definitions
viewpoints which are not your own
key information (i.e. first principles or statements of a theory)
information expressed in an original way
Note: NEVER use a direct quotation as a substitute for your own sentence. Instead, insert the quotation
(inside quotation marks) into your own sentence. An example follows:
As pointed out by Bartol, Martin, Tein and Matthews (1995:471), "using directive leadership
to clarify task demands that are already clear will be ineffectual; it might frustrate employees
and reduce the work's intrinsic valence."
Re-read the sample on Leader Mismatch below which contains four references to journal articles on
organisational behaviour. Then, do the exercises that follow to check your ability to recognise the use of
direct and indirect quotations, and the use of referencing.
Sample
1.1 Leadership Mismatch
[1] The Path-Goal Theory suggests that it is a leader's job to assist his/her followers in attaining goals as
well as providing direction and support (Schermerhorn, Hunt and Osborn, 1994). [2] There are four types
of leader behaviour that can be used to affect a subordinate's motivation, but leadership behaviour which
is effective in one situation may not always be effective in another (Schermerhorn et al., 1994). [3]
According to the case study, Mrs Blakely, the staff supervisor, checks each piece of work with the WPC
staff before they do the job. [4] Since the workers are qualified for their work and well-trained, this leads to
annoyance and frustration. According to Kathleen Pearce, Mrs. Blakely makes the WPC staff feel they are
still in school because of her constant supervision. [6] As pointed out by Bartol, Martin, Tein and
Matthews (1995:471), "using directive leadership to clarify task demands that are already clear will be
ineffectual; it might frustrate employees and reduce the work's intrinsic valence." [7] Workers do not need
a manager telling them how to do something they already know how to do because "redundant behaviour
by the leader will not help and may even hinder performance" (Schermerhorn et al., 1994:504). [ 8] Thus
a major problem in the WPC is that Mrs Blakely is too concerned with the work of her staff which results in
their frustration because they are not allowed to be independent and show initiative.
For each sentence (below), tick the description which best fits.
Sentence 1:
The Path-Goal Theory suggests that it is a leader's job to assist his/her followers in attaining goals as well
as providing direction and support (Schermerhorn, Hunt and Osborn, 1994).
Description
Answer
Feedback
contains a direct quote + full reference
No
contains a direct quote + abbreviated reference
No
contains an indirect quote + full reference
Yes
contains an indirect quote + abbreviated reference
No
Sentence 2:
There are four types of leader behaviour that can be used to affect a subordinate's motivation, but
leadership behaviour which is effective in one situation may not always be effective in another
(Schermerhorn et al., 1994).
Description
contains a direct quote + full reference
Answer
Feedback
No
contains a direct quote + abbreviated reference
No
contains an indirect quote + full reference
No
contains an indirect quote + abbreviated reference
Yes
Sentence 6:
As pointed out by Bartol, Martin, Tein and Matthews (1995:471), "using directive leadership to clarify task
demands that are already clear will be ineffectual; it might frustrate employees and reduce the work's
intrinsic valence."
Description
Answer
Feedback
contains a direct quote + full reference
Yes
contains a direct quote + abbreviated reference
No
contains an indirect quote + full reference
No
contains an indirect quote + abbreviated reference
No
Sentence 7:
Workers do not need a manager telling them how to do something they already know how to do because
"redundant behaviour by the leader will not help and may even hinder performance" (Schermerhorn et al.,
1994:504).
Description
Answer
Feedback
contains a direct quote + full reference
No
contains a direct quote + abbreviated reference
Yes
contains an indirect quote + full reference
No
contains an indirect quote + abbreviated reference
No
Alternative solutions
When generating and evaluating alternative solutions, it is important that this information is set out as clearly
and as economically as possible. This can be done through the use of:
a. Brief headings which present each alternative
b. Subsections based on an advantages/disadvantages structure
c. Bullets (or numbers) to enumerate each advantage and disadvantage
d. Concise use of language
The following extract from a student assignment describes the advantages of a specific solution in the form of
a paragraph. Read the extract and consider how it might be turned into a series of bullet points.
Sample 1
3.1 MOTIVATING THE WPC EMPLOYEES
3.1.1 Create different levels of data clerks
Creating different levels of data clerks would result in a work environment where the staff would be willing
to work harder in order to receive more interesting work tasks. Consequently, it would limit undisciplined
work behaviour. It would provide better efficiency and create fewer errors because in order to graduate to
the next level, the employees would need to perform their tasks correctly. It would also identify where the
errors are occurring. The clerks on the highest level would be capable of relieving the firm secretaries
during their holidays.
To turn the text into bullet points:
1.
2.
3.
4.
5.
Remove any unnecessary words or repetition
Break long statements into smaller chunks of information
Ensure each statement has the same verbal form as the previous one (where possible)
Group similar ideas together (clearer for the reader)
Make word choice as informative and as concise as possible
Sample 1 (bullet point style)
Advantages:






creates a challenging work environment
limits undisciplined work behaviour
identifies where errors are occurring
stimulates staff to work harder to receive more interesting tasks
stimulates staff to perform better to graduate to the next level
creates staff able to relieve the (firm's) secretaries during their holidays
Stating disadvantages
Click on the highlighted text to see the comments.
Now, see if you can develop disadvantages in bullet point form from the text below:
Sample 2
Nevertheless because staff are basically doing the same work everyday, work could still be considered
boring and this may still result in errors occurring. Different levels of data clerks may also create a working
atmosphere where animosities are present between the employees, because of the bureaucratic
environment. They may not solve the problem of the staff feeling isolated.
Disadvantages:





[1]
Check your answer
[1]
Task Feedback
Disadvantages:





staff may still basically do the same work everyday
work may still be considered boring
errors may still result
different staff levels may create animosities between employees because of the bureaucratic
environment
different staff levels may not solve the problem of staff isolation.
Combining advantages and disadvantages
Click on the highlighted text to see the comments.
Develop a list of both advantages and disadvantages in bullet point form from the following text.
Sample 3
3.1 MOTIVATING THE WPC EMPLOYEES
3.1.2 Appoint one WPC employee to two solicitors
Each data clerk should be appointed to two solicitors where possible. This would allow the WPC
employees to have increased contact with other people in the firm. Each WPC employee's work area
could be near the office of their designated solicitor. All data clerks on the same floor should be located
together. This would enable them to perform a greater number of activities instead of doing the same
thing all day. Consequently, this would improve their work skills and allow the WPC employees to show
greater initiative, establishing responsibility and loyalty. It would also provide better training for becoming
a relief secretary. Also the data clerks could meet as a group every week to discuss problems and issues.
However, WPC employee skills may not improve because the clerks could feel intimated by the solicitors.
It may be difficult to discipline the girls and prevent them from arriving late, talking and slacking off. They
may not be able to keep up with the extra workload and their skills may not improve.
Advantages:





Disadvantages:





[1]
Check your answer
[1]
Task 2 Feedback.
3.1 MOTIVATING THE WPC EMPLOYEES
3.1.1 Appoint one WPC employee to two solicitors
Advantages:





allows staff to have increased contact with other people in the firm
enables them to perform a greater number of activities
will improve their work skills
allows employees to show greater initiative and establish responsibility and loyalty
provides better training of relief secretaries
Disadvantages:





employee skills may not improve because staff could feel intimated by the solicitors
it may be difficult to discipline staff
it may be difficult to prevent old behaviours occurring (i.e. arriving late, talking, and 'slacking off')
staff may not be able to keep up with the extra workload
staff skills may not improve
Recommendations
In the Recommendations section, a manager is expecting to find a specific recommendation for each of the
problems presented in the case study. He or she will therefore expect those specific solutions to be clearly
stated. This is normally done in the Management case study using the following structure:



an overall heading (Motivation, Communication, etc.)
a subheading which summarises the recommendation in a clear, concise way
a section of text which justifies the specific recommendation by referring to specific theory
NB: The Recommendation text is structured in a similar way to the Problem Identification section.
The following tasks are designed to help you with the task of writing concisely - that is, conveying the
maximum amount of information in the minimum amount of words.
Creating recommendations
Click on the highlighted text to see the comments.
Compare the following two sets of recommendation headings. What are their possible strengths and
weaknesses?
Set A
Set B
4.1 Motivation - Provide attainable goals, recognise the WPC
clerks if they reach these goals, and reward them.
4.1 Motivation - Increase motivation
amongst the WPC employees.
4.2 Communication - Organise weekly meetings as well as
retrain Mrs. Blakely to ensure that the communication flow is
constant.
4.2 Communication - Increase
communication in the law firm.
4.3 Leadership - Retrain Mrs. Blakely.
4.3 Leadership - Create effective
leadership of the WPC.
[1]
Feedback
[1]
Feedback
The Set A recommendations are more informative than Set B. However, with the exception of 4.3, they are
too wordy to be effective subheadings. Set B, on the other hand, is too vaguely worded to be useful to a
manager looking for specific solutions. The ideal approach would be to combine the best features of both, i.e.
combine information with conciseness.
Creating subheadings
Click on the highlighted text to see the comments.
Now, try to create improved subheadings for Concepts 4.1 and 4.2, Motivation and Communication.
You can combine information, cut out what is unnecessary, and restructure and reword where
necessary.



make one key point in your subheading
focus on being concise - don't waste words
keep each subheading in parallel structure, i.e. make sure each one has the same grammatical form
as the next. (Hint: Each bullet point in this list has the same grammatical form as the next.)
4.3 Leadership has been done for you.
4.1 Motivation
4.2 Communication
4.3 Leadership
[1]
Check your answer
[1]
Feedback
4.1 Motivation
Provide attainable goals through recognition and/or rewards
4.2 Communication
Maintain a constant communication flow in the WPC through weekly meetings
4.3 Leadership
Create effective leadership of the WPC by retraining Mrs. Blakely
Other Management resources

Faculty of Business and Economics: Q Manual
<www.buseco.monash.edu.au/qmanual/qmanual.pdf>
Annotated assignments
These are three first-year students from the Management subject Managing People and Organisations. Use
the menu on the left to navigate through this tutorial, reading about their lecturer's expectations, and seeing
the assignments that they wrote for class. The annotated assignments and the writing approaches described
by students should not be seen as ideal models for you to copy. They are intended to be a general guide to
writing in your subject and to help you to reflect on your own approach.
Topic:
Management Case Study assignment




Lecturer's expectations <www.monash.edu/lls/llonline/writing/businesseconomics/management/3.1.1.xml> : Read what the lecturer wanted from this assignment.
Amy's sample assignment <www.monash.edu/lls/llonline/writing/businesseconomics/management/3.1.2.xml> : See Amy's assignment before she received feedback on it.
Amy's assignment and what the lecturer thought <www.monash.edu/lls/llonline/writing/businesseconomics/management/3.1.3.xml> : See the assignment along with comments explaining the
lecturer's thoughts.
Interview with Amy <www.monash.edu/lls/llonline/writing/businesseconomics/management/3.1.4.xml> : Listen to Amy talk about the writing process.
Topic:
Management Case Study assignment



Lecturer's expectations <www.monash.edu/lls/llonline/writing/businesseconomics/management/3.2.1.xml> : Read what the lecturer wanted from this assignment.
Angus's sample assignment <www.monash.edu/lls/llonline/writing/businesseconomics/management/3.2.2.xml> : See Angus's assignment before she received feedback on it.
Angus's assignment and what the lecturer thought <www.monash.edu/lls/llonline/writing/businesseconomics/management/3.2.3.xml> : See the assignment along with comments explaining the
lecturer's thoughts.
Topic:
Management Case Study assignment



Lecturer's expectations <www.monash.edu/lls/llonline/writing/businesseconomics/management/3.3.1.xml> : Read what the lecturer wanted from this assignment.
Cindy's sample assignment <www.monash.edu/lls/llonline/writing/businesseconomics/management/3.3.2.xml> : See Cindy's assignment before he received feedback on it.
Cindy's assignment and what the lecturer thought <www.monash.edu/lls/llonline/writing/businesseconomics/management/3.3.3.xml> : See the assignment along with comments explaining the
lecturer's thoughts.
Amy's assignment
Amy is a first-year Management student. The main assignment in the subject is a case study on a firm of
solicitors: Lawton, Langridge, Lypton and Lawless.
Assignment topic:
[1]Click
to view the assignment question
1. Look at the lecturer's expectations <www.monash.edu/lls/llonline/writing/businesseconomics/management/3.1.1.xml> of the assignment.
2. Next read Amy's assignment <www.monash.edu/lls/llonline/writing/businesseconomics/management/3.1.2.xml> .
o How well do you think the assignment responds to the topic?
o Do you think the assignment could be improved in any way?
3. Now read the lecturer's comments <www.monash.edu/lls/llonline/writing/businesseconomics/management/3.1.3.xml> about Amy's assignment.
4. Finally, listen to Amy <www.monash.edu/lls/llonline/writing/businesseconomics/management/3.1.4.xml> talk about how she wrote her assignment and read feedback
about how to overcome the difficulties she faced.
[1]
Assignment Questions
MGM 1300 INTRODUCTION TO MANAGEMENT
Semester One, 1996
CASE STUDY
Using the Case Study Method analyse the problems, generate solutions and make recommendations
for the following case.
DUE DATE: Tutorial, Week 11, Week Beginning May 20, 1996
Lawton, Langridge, Lypton and Lawless, Solicitors
Peter Lawless looked over his desk at Arthur Lawton and frowned. "Look, Arthur, I need a new secretary
now. I thought the idea of the Word Processing Centre was, that we recruited talented people and trained
them there, so they were ready and available when we need them. We spend a lot of money on the Centre
and I hear on the grapevine that the work is often sub standard, and now you're telling me that there is no
one there really qualified to be my new secretary. What's going wrong! I have had Kathleen Pearce
temporarily for the past two weeks, but if she is the best qualified person in the Centre, then it's not doing the
job. Her skills are fine, but she has no initiative and doesn't have much of a clue about what we do in this firm
- and she has worked here for 18 months! She is a nice girl, but she is not up to it."
Arthur Lawton sighed. "Obviously something is not working. We do recruit well trained, bright, young people
and hope that one to two years in the WPC will teach them all they need to know about our firm, and I believe
Kathleen Pearce is the best qualified there. I am afraid you will have to persevere with Kathleen. There's
nobody else."
Arthur Lawton and Peter Lawless are senior partners in the legal firm of Lawton, Langridge, Lypton and
Lawless. Arthur is also the Managing Partner responsible for handling the administration of the large firm
which consists of 25 partners and 48 employed solicitors, plus approximately 80 support staff working in the
Sydney office.
Twenty two of the support staff are data entry clerks who work in the Word Processing Centre. Their job is to
word process the large volumes of legal documents produced by the solicitors, together with their long
reports, etc. Only well qualified people are employed, usually with a TAFE diploma or Year 12 with good
passes in business subjects. When they join the firm they receive a week of training in the specialised legal
documents and extra training sessions are held regularly to ensure up to date knowledge of legal documents.
The firm occupies 10 floors of a new building in the centre of Sydney. The Word Processing Centre is located
on the 35th floor and has wonderful views around the city and harbour. The office is very well equipped with
modern, ergonomic furniture and equipment, excellent furnishings, and a very pleasant staff room. The firm is
able to attract good quality workers because it offers above average wages and many benefits such as a
superannuation scheme, health scheme, social club and other non salary benefits.
After his discussion with Peter Lawless, the Managing Partner, Mr Lawton, feels it is time to find out why the
centre is having problems, so he asks around the firm, having talks with other partners and solicitors. He
discovers that, although the centre is very productive, there are several concerns. Most solicitors feel they
must check each piece of work carefully because there are often errors made. Not necessarily typing errors,
but careless errors such as the wrong names or facts keyed into documents. As the clerks are well qualified
and trained by the firm, there is a belief that the error rate is unacceptable. None of the solicitors know the
workers in the Centre very well, but all praise the hard work and service provided by Mrs Blakely, the
supervisor, and suggest that there is something wrong "with young people today". Mr Lawton's personnel
records also suggest that the turnover rate in the centre is also unacceptable. Only three clerks in the Centre
have worked for the firm for more than eighteen months, with the majority staying only 12 months or so,
despite careful selection of excellent staff.
The partners of the firm each have their own secretary, and it is the firm's policy that these secretaries be
recruited from the Word Processing Centre workers. Three to five of these vacancies arise each year, with
workers from the Centre also relieving when the secretaries are on holidays. Although this opportunity for
promotion attracts new workers to the firm, it does not seem to keep many of them long enough to take up
the chance. There have also been complaints that, when a clerk has been used as a relief for a secretary,
they have proved unreliable if left to their own devices and they lacked initiative.
Mr Lawton then talks with Mrs Lorraine Blakely, the supervisor, about the Centre. She has worked with the
firm in various administrative capacities for over 20 years and is greatly liked and admired by all the partners
and lawyers in the firm. They found her very pleasant and helpful to deal with and always efficient in getting
their work through the centre in a short time. She enjoys her job, particularly dealing with the solicitors in the
firm, most of whom have worked with her for years. They believe that she is very efficient and they all like to
deal with her on a regular basis.
Mrs Blakely reacts a little angrily when Mr Lawton brings up the matter of the WPC's problems. She springs
to the defence of her "girls", saying that although there are errors made, they do get through a lot of work.
She does admit that, she believes not many of the clerks like their job very much as they find it boring, as
most of the work is simply keying in information into the forms provided on the firm's computer network. She
finds that they will come late to work, chat with each other at every opportunity, take long breaks and
generally "slack off". To stop this she keeps a firm eye on them, but on the other hand, she tells him, you
can't be too hard on them or they will leave quickly, and it is very hard to get good people to stay long. She
insists that she must keep her "girls" happy if they are to be productive and stay with the firm, and she doesn't
know what to do to keep them with the firm longer or help them to be better secretaries. She states that the
trouble is that young people these days don't want to work, but just want to have fun and there is nothing that
she can do about that.
Mrs Blakely explains the WPC's system to him. The work to be done in the Centre arrives from each solicitor
with a request sheet with details of what is required. Mrs Blakely then allocates work to the clerks each day.
To ensure they know what to do she is in the habit of going over each piece of work with them before they do
the job. There is often a need to clarify some issue with the solicitor. When this is the case, Mrs Blakely goes
to the solicitor herself and then passes the information on to the clerks. She collects the output when the
clerks have finished and returns it to the solicitors.
She emphasises again to Mr Lawton that she does keep a stern eye on the workers to ensure that they are
not wasting time. She insists that tea and lunch break times are strictly adhered to, and discourages chatting
during working hours, although as her job means she must be liaising with solicitors on other floors, she is not
in the Centre quite a lot. She agrees that the workers do not do very well when they relieve a secretary, but
feels it is all so strange to them, much more complex work than they have been used to, but her staff are the
best available, and the solicitors just need to put a bit of effort into helping them to learn the job. She says the
solicitors do not help their new secretaries enough and expect them to know everything straight away. She
suggests to Mr Lawton that she could check every piece of work before it leaves the centre, though this
would slow the turnaround time considerably.
When questioned about their job the clerks say they like working for the firm, would like to earn promotion,
but find it hard to stay interested in a job that is so repetitious and boring. Most say they get sick of seeing the
same faces every day as they are isolated in the WPC on the 35th Floor and have no contact with anyone
apart from each other and Mrs Blakely. Peter Lawless's temporary secretary, Kathleen Pearce, who is the
longest serving clerk, tells Mr Lawton that, although she loves working with so many people her own age, and
Mrs Blakely is a lovely boss, always friendly and helpful, she feels like she is still in school, with someone
always watching what you are doing and telling her what to do. She has stayed with the firm because the
conditions are good and she hopes to achieve promotion. She does, however, express doubts about her
ability as "eighteen months of straight keying have made me forget most of what I learned in TAFE and I don't
seem to have learnt much about what the solicitors do working in the WPC".
Mr Lawton decides to install a piped music system, believing this will add interest to their day's work and aid
concentration. The workers are very pleased with this and even say that it speeds up their work.
Unfortunately six months later the error rate has even increased, the turnover is still high, and Kathleen
Pearce, after six months as secretary to Peter Lawless is just beginning to show more confidence and
initiative in her job. Although Peter is happy with her now, he feels he has wasted a lot of time and energy in
helping her settle into the job and he tells Arthur Lawton that he believes the problems with the WPC would
not be solved by the piped music.
Mr Lawton has approached you, an external management consulting firm, to help them identify the real
problems, to suggest some possible solutions and make recommendations. Your brief is to examine and
analyse the case material and to produce a report, based on the problem solving case method, for Mr
Lawton.
Lecturer's expectations
In this section, one of your lecturers - Loretta Inglis - sets out what she expects from student
assignments on this topic.
I expect that you will read all the information that has been given in the subject outline to help you to write the
case study. There is a wealth of information there.
Ideally, I expect consistent quality throughout all the sections of the report. You need to leave enough time to
plan and write each section carefully.
I expect that your Problem Identification section will succinctly identify problems (not just repeat case
information), explain the problems using case evidence, and show how the theory relates to the problem.
Possible Solutions should have clear, concise headings and include advantages and disadvantages in bullet
point form.
The Recommendations should be very specific - showing who has which responsibility - and should be
justified using the theory.
The Implementation section should summarise the changes which need to be made as specifically as
possible, with someone responsible for seeing that they happen.
To do your best, I also expect that you attend tutorials over the weeks before the assignment is due. There
your tutor will work with you on practice case studies. Finally, a look at the information on this site will help
you to understand how you might tackle the demanding task of integrating problem identification with case
evidence and theoretical discussion - as well as the other challenging areas in the case study.
Notes on the case study method
The use of case studies is a widely accepted means of bringing theoretical concepts and practical situations
together. It is not possible to take a class into an organisation and observe the subject matter of management
or organisational behaviour in real life - hence a written case study outlining a real, or realistic, situation is the
best available alternative.
When reading and studying a case study it is possible to take two different approaches. The first of these is
the 'analytical' approach where a case structure is examined to try to understand what has happened and
why. In this approach you do not identify problems or attempt to develop solutions. The second approach is
the problem-oriented method. In this approach a case is analysed to identify the major problems that exist,
the causes of and possible solutions to the problems, and finally a recommendation as to the best solution to
implement.
In this course we mainly utilise a 'problem solving' case study method. As with most things in the
management area there is not 'one best way' to analyse or write up a case report. Everyone develops their
own methods of sorting and sifting through the information and presenting their findings. However, in this
subject we have a set format which we would like you to utilise when presenting your case reports. This
format is outlined briefly below.
Presentation of written material
The following notes are to be used as a guide to students preparing the case studies for assessment in firstyear Management.
Guidelines
A high standard of presentation is required. Typing, or word processing, of all is expected.
Work that is submitted in an illegible or untidy fashion may, at your tutor's discretion, be returned unmarked or
with marks deducted for poor presentation.
In no circumstances should an assignment be written/typed on both sides of the paper.
Work should be double or 1-1/2 spaced.
A margin of 30mm should be left on both sides of the page. This provides adequate room for examiner's
comments as well as creating an uncluttered presentation.
All quotations should be enclosed within inverted commas. The exception is quotations of two or more
sentences which run to four or more lines. These should be single-spaced and indented from the main body
of the text. In these cases inverted commas are unnecessary (see Q Manual).
Assignments should be bound firmly into a cover, such as a manilla folder, plastic folder, ring binder, etc.
Please do not use envelope folders or submit loose sheets. It should be possible to read every page without
undoing any fastenings.
Every assignment must be clearly identified. The following details must be on the front of all assignments:
Name:
Student Number:
Assignment Name:
Subject Code/Name:
Lecturer/Tutor:
Due Date:
Date Submitted:
It is recommended that students KEEP A COPY OF ALL WORK SUBMITTED. While it is extremely rare for
student work to be misplaced, it does sometimes occur. The onus is on you to prove that a piece of work was
submitted.
Grammar, spelling and punctuation are matters which should not be neglected. Failure to take care of these
matters causes confusion and ambiguity. Ask someone to read and comment critically on your work prior to
submitting it; can they understand what you are trying to say? If not, rewrite it!
Problem solving case format for presentation
1. Title Page
2. Table of Contents
3. Executive Summary
This section should comprise a brief overview of the case, giving a brief background and noting any important
assumptions made. (You will not have all the information you would like - so you may need to make some
assumptions). As well as this, you should give a synopsis of your case report, noting very briefly the major
problems identified and the recommended solutions. One page is enough.
4. Problem Identification and Analysis
In this section you should identify all the major problems in the case in behavioural terms, i.e. in
Management/OB related terms (it is not a marketing or an accounting case). Try to get to underlying causes
of problems, not just symptoms. Seek advice from your tutor on the layout of this information.
You should link each problem identified to relevant theory and also to actual evidence from the case.
Remember you MUST integrate theory and reference all non-original work.
5. Statement of Major Problems
In most case studies you will identify a number of problems - too many to actually 'solve' in the number of
words allowed. Hence it is crucial to make it very clear which are the major two or three problems or key
issues, that must be solved first. Therefore this section is just a short concise statement of what problems you
are going to solve in the remainder of the case. Half a page is adequate.
Having once identified the key problems, you can continually check back to ensure that you are actually
attempting to solve them and not some other minor problems you identified. This section is crucial to a good
case report.
6. Generation and Evaluation of Alternative Solutions
While most problems will have a very large number of possible solutions, it is your task to identify and
evaluate a number of the more appropriate (at least 2-3 for each major problem identified).
Each alternative solution should be briefly outlined and then evaluated in terms of its advantages and
disadvantages (strong and weak points). Note: You must evaluate alternatives. It is not necessary to make
a statement in this section as to which alternative is considered best - this is the next section. Do not
integrate theory in this section and do not recommend theory. Practical solutions to the problems are
required.
7. Recommendations
This section should state which of the alternative solutions (either singly or in combination) identified in
section six is recommended for implementation. You should briefly justify your choice, explaining how it will
solve the major problems identified in Section 6. Integration of relevant theory is appropriate here.
8. Implementation
In this section you should specifically explain how you will implement the recommended solutions. Theory
cannot be implemented; you must translate it into actions.
What should be done, by whom, when, in what sequence, what will it cost (rough estimates only) and other
such issues.
Remember if a recommended solution cannot be realistically implemented then it is no solution at all.
9. Appendices (if any)
10. Bibliography/References
This will contain an alphabetical list of all the references you have cited in the body of the report. Do not
include details of any sources you have not cited. Ensure the style used is correct and consistent.
Some general issues:




In a case study it is crucial that you integrate relevant theory from the course and evidence from the
case. Failure to attempt to integrate theory will lead to severe mark reduction or failure.
Referencing of all non-original material is essential. You will lose marks for poor referencing. The
Faculty of Business and Economics Q Manual should be used as a guide. This is available in the
library, for sale in the bookshop, and on the web. The Q Manual should also be used as a guide for
correct presentation of written material.
Check your completed work for internal consistency. For example make sure that you attempt to
solve the key issues you have identified. Don't say X is the major problem and then recommend a
solution to Y.
Try not to be overly descriptive. Remember you are trying to identify, analyse, and solve the
problems of the case using the relevant theories from the course - not just repeating what the text
book, or case information, has said.
Amy's sample assignment
Assignment topic:
[1]Click
to view the assignment topic
Assignment topic question 1
Internal Organisational Problems of
Lawton, Langridge, Lypton and Lawless, Solicitors
Prepared for Arthur Lawton
Managing Partner
By Effective Management Consultants
Table of contents
Executive Summary
1 Problem Identification and Analysis
1.1 The lack of motivation amongst the WPC employees
1.2 Mrs Blakely's leadership style
1.3 Insufficient communication at the firm
1.4 No teamwork exists in the WPC unit
2 Statement of Key Problems
3 Generation and Evaluation of a Range of Alternative Solutions
3.1 Solutions for motivating the WPC employees
3.1.1 Appoint a WPC employee to two solicitors
3.1.2 Have different levels of data clerks
3.1.3 Create goals for the WPC employee
3.2 Solutions for effective communication
3.2.1 Have regular meetings in each department and also between the different divisions
3.2.2 Have regular informal events for all employees
3.2.3 Develop non-identification questionnaires and discuss the findings
3.3 Solutions for providing effective leadership of the WPC employees
3.3.1 Fire Mrs Blakely
3.3.2 Have Mrs Blakely take a personal evaluation
3.3.3 Create a manager of the WPC
4 Recommendations
4.1 Increase Motivation amongst the WPC employees
4.2 Increase communication in the firm
4.3 Create effective leadership for the WPC employees
5 Implementation
5.1 Implementing motivation of the WPC employees
5.2 Implement effective communication in the firm
5.3 Implementing effective leadership of the WPC employees
References
Executive summary
The purpose of this report is to investigate the major problems that are prevalent at Lawton, Langridge,
Lypton and Lawless, Solicitors.
One of the major problems that the firm is experiencing, is that the data clerks possess a lack of motivation.
This is because they are isolated on the 35th floor and their work is monotonous. Also they are not given any
responsibility which then results in a lack of initiative. Furthermore they do not possess any goals. Another
major problem is that Mrs Blakely, the WPC unit supervisor, does not possess adequate leadership skills.
She does not encourage or inspire the girls, delegate simple tasks, or teach them. She also does not try to
solve the problem of data error. Lack of effective communication is also another problem that the firm suffers
from. Ineffective communication is present in the WPC unit and between the different divisions of the law firm.
This was illustrated when Mr Lawton held a meeting with the WPC employees. The girls told him that they
found the work boring and that they felt isolated. His solution was to install a sound system. He did not ask
them what was the best solution, hence no active listening was present, nor did he ask whether installing a
sound system was the best answer to their problem, hence not allowing feedback to occur.
It is recommended that if the law firm resolved the symptoms of ineffective communication, the lack of
motivation amongst the data clerks and Mrs Blakely's poor leadership style, then the two other problems, the
weak organisational culture and the lack of teamwork would also be eradicated. Therefore the solution to the
lack of motivation of the data clerks is to assign a WPC employee to a maximum of two solicitors, on the
same floor as the solicitors. This would then allow them to improve communication with the other employees
of the firm. Another solution is for goals to be set by individual employees and departments. This would
create a more motivated employee base that would possess clear objectives. Therefore solutions to the lack
of communication is to implement informal social events as well as regular meetings for each department,
and meetings for all the department heads. This would allow all the employees to communicate with one
another.
In regards to establishing better leadership skills in the WPC unit, it is recommended that Mrs Blakely should
undertake a work appraisal, which would identify to her and the organisation that she is not managing the
WPC unit very well. A manager should then be appointed to the WPC. Mrs Blakely could still remain as a
supervisor of the WPC unit and meet weekly with the new manager. In regards to the lack of motivation in the
WPC, it is suggested that as individuals and as groups they create goals. WPC employees working on the
same level could have their own work area. Consequently, this would increase their skills, sense of
responsibility and motivation.
1. Problem identification and analysis
1.1 The lack of motivation amongst the Word Processing Centre (WPC) employees
The WPC employees greatly suffer from a lack of motivation. Motivation is the willingness to exert high levels
of effort to reach organisational goals, conditioned by the efforts to satisfy some individual need (Robbins,
Bergman, Stagg and Coulter, 2000, p.549). Maslow's Hierarchy of Needs Theory identifies those symptoms,
which contribute to the WPC clerks' lack of motivation. The clerks state that they feel isolated on the 35th
floor and have contact only with one another and Mrs Blakely. Also there is a high turnover rate, with only
three clerks in the WPC having worked for the firm for more than eighteen months, with the majority staying
only about 12 months. As a result they do not possess the initiative for growth and achievement of their
potential. The clerks' esteem needs are also undermined because they perform the same monotonous
activities. They possess no autonomy as Mrs Blakely assigns the tasks. Moreover, they would like to earn a
promotion but find it hard to stay interested. Herzberg's Motivation-Hygiene Theory is also relevant. It
identifies the intrinsic factors, the motivators, that are related to job satisfaction and motivation, whereas
extrinsic factors, the hygiene factors, are associated with job dissatisfaction (Robbins et al., 2000, p.553). As
previously identified above, the ones that are relevant are supervision, relationship with the supervisor,
working conditions and relationship with peers (Robbins et al., 2000, p.553).
1.2 Mrs Blakely's Leadership style
Mrs. Blakely's leadership style is what the University of Iowa Studies has determined as autocratic: she is a
leader who tends to centralise authority, dictate work methods, make unilateral decisions and limit
subordinate participation (Robbins et al., 2000, p.596). She achieves this by allocating what is to be done by
the clerks each day instead of letting them decide. Also she limits their interaction with people from the other
levels by not allowing the clerks to clarify issues with the solicitors. Kathleen Pearce stated that she felt like
she was "in school, with someone watching what you are doing and telling you what to do" (Managing People
and Organisations Case Study, Semester 2, 2000, p.4.). The Ohio State studies (Robbins et al., 2000, p.596)
suggest that a successful style of leadership will provide initiating structure, the extent to which a leader is
likely to define and structure her role and those of subordinates, in search for goal attainment. Mrs Blakely is
aware that the clerks think their jobs are boring, but she has not established any goals. She lacks
interpersonal skills and she does not spend a great deal of time on the WPC level. She does not teach the
clerks how to do their job correctly because if she did, there would not be any errors. No feedback is provided
because she does not have enough time to check their work. Her statement to Mr Lawton "...that the trouble
is that young people these days don't want to work..." illustrates that she does not believe in her work unit.
She also does not possess discipline skills as she allows the clerks to arrive late and take long breaks.
1.3 Insufficient communication at the law firm
There is a lack of communication between the other levels of the law firm and the WPC unit. As mentioned
previously, the WPC clerks generally do not associate with the employees. Furthermore Mr Lawton did not
listen effectively to the clerks' grievances. If he had, he would have realised that installing a new music
system in the WPC, would not make the clerks work more productively. After speaking to Kathleen Pearce,
he should have realised that the girls' secretarial skills were deteriorating, and that Mrs Blakely does not give
them adequate training, preparing them for work as a solicitor's secretary. The solicitors do not know the
clerks very well but only know Mrs Blakely, as is suggested by Peter Lawless's remark, "and I hear on the
grapevine that a lot of work is sub-standard... ."
1.4 No teamwork exists in the WPC unit
There are nine characteristics that reflect whether a team is effective. Unfortunately, in regard to the WPC
unit, the group of data clerks and Mrs Blakley do not possess these. The data clerks have no clear goals. By
their arriving late and taking long work breaks illustrates they are uncommitted to their jobs. This then hinders
the opportunity to establish unified commitment amongst the WPC employees. They also do not possess the
relevant skills for being data clerks because they continually make mistakes. Because the organisation has a
weak culture they cannot develop any mutual trust. As previously mentioned, the organisation lacks good
communication, which then affects the WPC unit. The clerks also appear to lack negotiating skills because if
they had these, the WPC problems would probably have been fixed. Mr Lawton in his meeting with the data
clerks shows he lacks these skills too. As previously mentioned, Mrs Blakely does not possess the
appropriate leadership skill, to properly establish an effective team environment. She is not present a lot of
the time and she does not encourage group behaviour. In terms of the internal environment of the firm, the
isolation of the WPC employees also affects the development of team spirit.
2. Statement of key problems and issues
Although it is evident that Lawton, Langridge, Lypton and Lawless, Solicitors suffers from a number of
dilemmas, the major problems are the lack of communication and motivation amongst the WPC staff, and
Mrs Blakely's inappropriate leadership style. If the firm can eradicate these three problems, the other minor
ones will be fixed. If the WPC staff can gain a high degree of motivation, the different units of the firm
communicate effectively, and Mrs Blakely changes her leadership style, then a strong organisational culture
will be created and a positive teamwork environment.
3. Generation and evaluation of a range of alternative solutions
3.1 Solutions for Motivating the WPC Employees
3.1.1 Appoint a WPC employee to two solicitors
Each data clerk should be appointed to two solicitors where possible. This would allow the WPC employees
to have increased contact with other people in the firm. Each WPC employee's work area could be near the
office of their designated solicitor. All data clerks on the same floor should be located together. This would
enable them to perform a greater number of activities instead of doing the same thing all day. Consequently,
this would improve their work skills and allow the WPC employees to show greater initiative, establishing
responsibility and loyalty. It would also provide better training for becoming a relief secretary. Also the data
clerks could meet as a group every week to discuss problems and issues. However, WPC employee skills
may not improve because the clerks could feel intimated by the solicitors. It may be difficult to discipline the
girls and prevent them from arriving late, talking and slacking off. They may not be able to keep up with the
extra workload and their skills may not improve.
3.1.2 Have different levels of data clerks
This would create a work environment where the girls would be willing to work harder in order to receive more
interesting work tasks. Consequently, it would limit undisciplined work behaviour. It would provide better
efficiency and create fewer errors because in order to graduate to the next level, the employees would need
to perform their tasks correctly. It would also identify where the errors are occurring. The clerks on the highest
level would be the most capable of relieving the secretaries during their holidays. Nevertheless because the
girls are basically doing the same work everyday it could still be considered boring and still may result in
errors occurring. It may create a working atmosphere where animosities are present between the employees,
because of the bureaucratic environment. It does not solve the problem of the girls feeling isolated.
[Please note: for reasons of length, sections have been removed below.]
3.1.3 Create goals for the WPC unit
...
3.2 Solutions for Establishing Effective Communication
3.2.1 Have regular meetings in each department, and also between the different divisions.
...
3.2.2 Have regular informal events for all firm employees
...
3.2.3 Develop non-identification questionnaires and discuss the findings
...
3.3 Solutions for Providing Effective Leadership in the WPC
3.3.1 Fire Mrs Blakely
Firing Mrs. Blakely could increase the clerks' initiative because they could gain more responsibility. At
present, she does not give them enough responsibility nor does she respect them, although she genuinely
seems to care for them. She has not tried to motivate the girls even though she is aware that they find their
jobs boring. Further, she cannot discipline them. However Mrs Blakely is widely respected by the solicitors,
and she is efficient. Because she has worked for the firm for over twenty years it would be difficult to find a
replacement with the same amount of knowledge.
3.3.2 Have Mrs. Blakely undergo a work appraisal
It is evident that Mrs. Blakely has become complacent in carrying out the role of supervisor. By undertaking a
work appraisal evaluation she would be able to redefine her role in the firm. She could review and change her
ineffective leadership skills. It would also identify to the firm that Mrs. Blakely needs to improve her leadership
skills, as Mr Lawton would undertake the evaluation. However, the review may not be productive because the
firm already thinks very highly of her. It is evident that Mrs Blakely does not believe her leadership skills are
inadequate, so she may not benefit from the evaluation. The evaluation may not contain the correct questions
which identify that Mrs Blakley is largely an incompetent leader.
3.3.3 Create a manager of the WPC unit.
...
4. Recommendations
4.1 Increase motivation amongst the WPC employees
In order to reduce the lack of motivation amongst the WPC employees a combination of allocating them to
solicitors and setting individual goals should be implemented. Goal setting is very important as it will motivate
each individual to assess her role in the firm. Goals can be established for each WPC employee, the WPC
employees as a group, and also for the WPC senior staff and solicitors. By appointing a WPC employee to a
solicitor, each clerk can learn to recognise their needs, especially their esteem, social and self-actualisation
needs in the firm. Motivators such as achievement, recognition, responsibility, advancement and growth can
also be achieved (Robbins et al., 2000, p.553).
4.2 Increase communication in the firm.
There should be a combination of all three suggestions, the regular meetings in each division and with the
department heads, the informal events between the different departments, and the questionnaires. The
questionnaires could be administered every six months and the findings could be discussed at the meetings.
These channels are effective and would allow the firm to communicate more effectively because they permit
different methods of communication to be used including oral, non-verbal and written communication. The
meetings would encourage active listening and provide an opportunity for feedback.
4.3 Create effective leadership of the WPC employees
A combination of Mrs Blakely undergoing a work appraisal and appointing a manager to the WPC unit would
combat inadequate leadership skills there. Mrs Blakely should still remain as supervisor of the WPC unit;
however, there should be a manager present at all times with the WPC staff, who is able to discipline and
motivate them. With the presence of a manager, there is a high possibility that a more democratic style of
leadership would be adopted and an initiating structure created. This manager could then contact Mrs Blakely
if any problem occurs, given her knowledge. Mrs Blakely should take a personal evaluation because it would
identify both to her and the firm that she is unable to effectively lead the WPC unit.
5. Implementation
[Please note that the assignment table cannot be displayed on this screen because it is too complex.]
6. Referencing
Robbins, S., Bergman, R., Stagg, I. And Coulter, M., (2000), Management, Prentice Hall, (2nd edn), Sydney.
[1]
Assignment Topic
Case study summary
Lawton, Langridge, Lypton and Lawless is a large Sydney legal firm. Among its staff are 22 data entry clerks
who work in the Word Processing Centre (WPC). Their job is to process the large volume of legal documents
produced by the firm's solicitors. WPC clerks are carefully selected and must have a TAFE diploma or Year
12 with good passes in business subjects. When they join the firm they receive a week of training in
specialised legal documents, and extra training sessions are held regularly to ensure they keep their
knowledge up-to-date.
The firm occupies 10 floors of a new building in the centre of Sydney. The WPC is located on the 35th floor
and has wonderful views around the city and harbour. The centre is very well equipped with excellent
furnishings and a very pleasant staff room. The firm is able to attract good quality workers because it offers
above average wages and many other benefits. However, all is not well. Senior staff and solicitors have
complained to Arthur Lawton, the Managing Partner, that they need to check the work of WPC clerks who
work as relief secretaries, because of the frequent errors made. They also believe that these workers are
unreliable and lack initiative. Personnel records show that WPC staff do not stay with the firm for very long,
despite the opportunities for promotion.
None of the solicitors know the workers in the Centre very well, but all praise the hard work and service
provided by Mrs Blakely, the WPC supervisor, who has worked with the firm for over 20 years. Indeed, they
tend to see the problem as the result of something wrong "with young people today." When Mr Lawton raises
the matter of the WPC's problems, Mrs Blakely reacts a little angrily. She defends her clerks, saying that
despite the errors, they do complete a lot of work. She admits that many of them find the job boring, as it
mostly involves keying in information. The clerks also, often come to work late, chat at every opportunity, and
generally don't work too hard. To stop this, she keeps a firm eye on them but she believes she can't be too
hard or they will leave the firm.
Mrs Blakely then explains the WPC system. The work to be done arrives from each solicitor and is allocated
to the clerks on a daily basis. To ensure they know what to do, she goes over each piece of work with them
before they do the job. When information needs to be clarified, Mrs Blakely goes to the relevant solicitor
herself and then passes the information on to the clerks. She collects the output when the job is finished and
returns it to the solicitors.
Her job however, also means she liaises with solicitors on other floors, so she is often away from the Centre.
Mrs Blakely agrees that the workers do not perform very well as relief secretaries, but thinks this is because
the work is more complex than they are trained to do. She says the solicitors do not help the relief secretaries
enough and expect them to know everything straight away.
When questioned, the WPC clerks say they like working for the firm and would like to earn promotion, but find
it hard to stay interested in a job that is so repetitious and boring. Most say they get sick of seeing the same
faces everyday as they are isolated on the 35th floor and have no contact with other staff, except with each
other and Mrs Blakely. After trying to improve efficiency through the use of piped music - an experiment
which fails - Mr Lawton turns to you, as an external management consultant, for advice.
Amy's assignment and what her lecturer thought
Click on the highlighted text to see the comments.
Assignment topic question 1
Internal Organisational Problems of
Lawton, Langridge, Lypton and Lawless, Solicitors
Prepared for Arthur Lawton
Managing Partner
By Effective Management Consultants
Table of contents
Executive Summary
1 Problem Identification and Analysis
1.1 The lack of motivation amongst the WPC employees
1.2 Mrs Blakely's leadership style
1.3 Insufficient communication at the firm
1.4 No teamwork exists in the WPC unit
2 Statement of Key Problems
3 Generation and Evaluation of a Range of Alternative Solutions
3.1 Solutions for motivating the WPC employees
3.1.1 Appoint a WPC employee to two solicitors
3.1.2 Have different levels of data clerks
3.1.3 Create goals for the WPC employee
3.2 Solutions for effective communication
3.2.1 Have regular meetings in each department and also between the different divisions
3.2.2 Have regular informal events for all employees
3.2.3 Develop non-identification questionnaires and discuss the findings
3.3 Solutions for providing effective leadership of the WPC employees
3.3.1 Fire Mrs Blakely
3.3.2 Have Mrs Blakely take a personal evaluation
3.3.3 Create a manager of the WPC
4 Recommendations
4.1 Increase Motivation amongst the WPC employees
4.2 Increase communication in the firm
4.3 Create effective leadership for the WPC employees
5 Implementation
5.1 Implementing motivation of the WPC employees
5.2 Implement effective communication in the firm
5.3 Implementing effective leadership of the WPC employees
References
[IMG-1]
[1]Executive
summary
The purpose of this report is to investigate the major problems that are prevalent at Lawton, Langridge,
Lypton and Lawless, Solicitors.
One of the major problems that the firm is experiencing, is that the data clerks possess a lack of motivation.
This is because they are isolated on the 35th floor and their work is monotonous. Also they are not given any
responsibility which then results in a lack of initiative. Furthermore they do not possess any goals. Another
major problem is that Mrs Blakely, the WPC unit supervisor, does not possess adequate leadership skills.
She does not encourage or inspire the girls, delegate simple tasks, or teach them. She also does not try to
solve the problem of data error. Lack of effective communication is also another problem that the firm suffers
from. Ineffective communication is present in the WPC unit and between the different divisions of the law firm.
This was illustrated when Mr Lawton held a meeting with the WPC employees. The girls told him that they
found the work boring and that they felt isolated. His solution was to install a sound system. He did not ask
them what was the best solution, hence no active listening was present, nor did he ask whether installing a
sound system was the best answer to their problem, hence not allowing feedback to occur.
It is recommended that if the law firm resolved the symptoms of ineffective communication, the lack of
motivation amongst the data clerks and Mrs Blakely's poor leadership style, then the two other problems, the
weak organisational culture and the lack of teamwork would also be eradicated. Therefore the solution to the
lack of motivation of the data clerks is to assign a WPC employee to a maximum of two solicitors, on the
same floor as the solicitors. This would then allow them to improve communication with the other employees
of the firm. Another solution is for goals to be set by individual employees and departments. This would
create a more motivated employee base that would possess clear objectives. Therefore solutions to the lack
of communication is to implement informal social events as well as regular meetings for each department,
and meetings for all the department heads. This would allow all the employees to communicate with one
another.
In regards to establishing better leadership skills in the WPC unit, it is recommended that Mrs Blakely should
undertake a work appraisal, which would identify to her and the organisation that she is not managing the
WPC unit very well. A manager should then be appointed to the WPC. Mrs Blakely could still remain as a
supervisor of the WPC unit and meet weekly with the new manager. In regards to the lack of motivation in the
WPC, it is suggested that as individuals and as groups they create goals. WPC employees working on the
same level could have their own work area. Consequently, this would increase their skills, sense of
responsibility and motivation.
1. Problem identification and analysis
1.1 The lack of motivation amongst the Word Processing Centre (WPC) employees
The WPC employees greatly suffer from a lack of motivation. Motivation is the willingness to exert high levels
of effort to reach organisational goals, conditioned by the efforts to satisfy some individual need (Robbins,
Bergman, Stagg and Coulter, 2000, p.549).
[IMG-2]
[2]Maslow's
Hierarchy of Needs Theory identifies those symptoms, which contribute to the WPC clerks' lack of
motivation. The clerks state that they feel isolated on the 35th floor and have contact only with one another
and Mrs Blakely. Also there is a high turnover rate, with only three clerks in the WPC having worked for the
firm for more than eighteen months, with the majority staying only about 12 months. As a result they do not
possess the initiative for growth and achievement of their potential. The clerks' esteem needs are also
undermined because they perform the same monotonous activities. They possess no autonomy as Mrs
Blakely assigns the tasks. Moreover, they would like to earn a promotion but find it hard to stay interested.
Herzberg's Motivation-Hygiene Theory is also relevant. It identifies the intrinsic factors, the motivators, that
are related to job satisfaction and motivation, whereas extrinsic factors, the hygiene factors, are associated
with job dissatisfaction (Robbins et al., 2000, p.553). As previously identified above, the ones that are
relevant are supervision, relationship with the supervisor, working conditions and relationship with peers
(Robbins et al., 2000, p.553).
1.2 Mrs Blakely's Leadership style
Mrs. Blakely's leadership style is what the University of Iowa Studies has determined as autocratic: she is a
leader who tends to centralise authority, dictate work methods, make unilateral decisions and limit
subordinate participation (Robbins et al., 2000, p.596). She achieves this by allocating what is to be done by
the clerks each day instead of letting them decide. Also she limits their interaction with people from the other
levels by not allowing the clerks to clarify issues with the solicitors. Kathleen Pearce stated that she felt like
she was "in school, with someone watching what you are doing and telling you what to do" (Managing People
and Organisations Case Study, Semester 2, 2000, p.4.).
[IMG-3]
[3]The
Ohio State studies (Robbins et al., 2000, p.596) suggest that a successful style of leadership will
provide initiating structure, the extent to which a leader is likely to define and structure her role and those of
subordinates, in search for goal attainment. Mrs Blakely is aware that the clerks think their jobs are boring,
but she has not established any goals. She lacks interpersonal skills and she does not spend a great deal of
time on the WPC level. She does not teach the clerks how to do their job correctly because if she did, there
would not be any errors. No feedback is provided because she does not have enough time to check their
work. Her statement to Mr Lawton "...that the trouble is that young people these days don't want to work..."
illustrates that she does not believe in her work unit. She also does not possess discipline skills as she allows
the clerks to arrive late and take long breaks.
1.3 Insufficient communication at the law firm
There is a lack of communication between the other levels of the law firm and the WPC unit. As mentioned
previously, the WPC clerks generally do not associate with the employees.
[IMG-4]
[4]Furthermore
Mr Lawton did not listen effectively to the clerks' grievances. If he had, he would have realised
that installing a new music system in the WPC, would not make the clerks work more productively. After
speaking to Kathleen Pearce, he should have realised that the girls' secretarial skills were deteriorating, and
that Mrs Blakely does not give them adequate training, preparing them for work as a solicitor's secretary. The
solicitors do not know the clerks very well but only know Mrs Blakely, as is suggested by Peter Lawless's
remark, "and I hear on the grapevine that a lot of work is sub-standard... ."
1.4 No teamwork exists in the WPC unit
There are nine characteristics that reflect whether a team is effective. Unfortunately, in regard to the WPC
unit, the group of data clerks and Mrs Blakley do not possess these. The data clerks have no clear goals. By
their arriving late and taking long work breaks illustrates they are uncommitted to their jobs. This then hinders
the opportunity to establish unified commitment amongst the WPC employees. They also do not possess the
relevant skills for being data clerks because they continually make mistakes. Because the organisation has a
weak culture they cannot develop any mutual trust. As previously mentioned, the organisation lacks good
communication, which then affects the WPC unit. The clerks also appear to lack negotiating skills because if
they had these, the WPC problems would probably have been fixed. Mr Lawton in his meeting with the data
clerks shows he lacks these skills too. As previously mentioned, Mrs Blakely does not possess the
appropriate leadership skill, to properly establish an effective team environment. She is not present a lot of
the time and she does not encourage group behaviour. In terms of the internal environment of the firm, the
isolation of the WPC employees also affects the development of team spirit.
[IMG-5]
[5]2.
Statement of key problems and issues
Although it is evident that Lawton, Langridge, Lypton and Lawless, Solicitors suffers from a number of
dilemmas, the major problems are the lack of communication and motivation amongst the WPC staff, and
Mrs Blakely's inappropriate leadership style. If the firm can eradicate these three problems, the other minor
ones will be fixed. If the WPC staff can gain a high degree of motivation, the different units of the firm
communicate effectively, and Mrs Blakely changes her leadership style, then a strong organisational culture
will be created and a positive teamwork environment.
3. Generation and evaluation of a range of alternative solutions
3.1 Solutions for Motivating the WPC Employees
[IMG-6]
[6]
3.1.1 Appoint a WPC employee to two solicitors
Each data clerk should be appointed to two solicitors where possible. This would allow the WPC employees
to have increased contact with other people in the firm. Each WPC employee's work area could be near the
office of their designated solicitor. All data clerks on the same floor should be located together. This would
enable them to perform a greater number of activities instead of doing the same thing all day. Consequently,
this would improve their work skills and allow the WPC employees to show greater initiative, establishing
responsibility and loyalty. It would also provide better training for becoming a relief secretary. Also the data
clerks could meet as a group every week to discuss problems and issues. However, WPC employee skills
may not improve because the clerks could feel intimated by the solicitors. It may be difficult to discipline the
girls and prevent them from arriving late, talking and slacking off. They may not be able to keep up with the
extra workload and their skills may not improve.
3.1.2 Have different levels of data clerks
This would create a work environment where the girls would be willing to work harder in order to receive more
interesting work tasks. Consequently, it would limit undisciplined work behaviour. It would provide better
efficiency and create fewer errors because in order to graduate to the next level, the employees would need
to perform their tasks correctly. It would also identify where the errors are occurring. The clerks on the highest
level would be the most capable of relieving the secretaries during their holidays. Nevertheless because the
girls are basically doing the same work everyday it could still be considered boring and still may result in
errors occurring. It may create a working atmosphere where animosities are present between the employees,
because of the bureaucratic environment. It does not solve the problem of the girls feeling isolated.
[Please note: for reasons of length, sections have been removed below.]
3.1.3 Create goals for the WPC unit
...
3.2 Solutions for Establishing Effective Communication
3.2.1 Have regular meetings in each department, and also between the different divisions
...
3.2.2 Have regular informal events for all firm employees
...
3.2.3 Develop non-identification questionnaires and discuss the findings
...
3.3 Solutions for Providing Effective Leadership in the WPC
3.3.1 Fire Mrs Blakely
Firing Mrs. Blakely could increase the clerks' initiative because they could gain more responsibility. At
present, she does not give them enough responsibility nor does she respect them, although she genuinely
seems to care for them. She has not tried to motivate the girls even though she is aware that they find their
jobs boring. Further, she cannot discipline them. However Mrs Blakely is widely respected by the solicitors,
and she is efficient. Because she has worked for the firm for over twenty years it would be difficult to find a
replacement with the same amount of knowledge.
3.3.2 Have Mrs. Blakely undergo a work appraisal
It is evident that Mrs. Blakely has become complacent in carrying out the role of supervisor. By undertaking a
work appraisal evaluation she would be able to redefine her role in the firm. She could review and change her
ineffective leadership skills. It would also identify to the firm that Mrs. Blakely needs to improve her leadership
skills, as Mr Lawton would undertake the evaluation. However, the review may not be productive because the
firm already thinks very highly of her. It is evident that Mrs Blakely does not believe her leadership skills are
inadequate, so she may not benefit from the evaluation. The evaluation may not contain the correct questions
which identify that Mrs Blakley is largely an incompetent leader.
3.3.3 Create a manager of the WPC unit
...
4. Recommendations
[IMG-7]
[7]
4.1 Increase motivation amongst the WPC employees
In order to reduce the lack of motivation amongst the WPC employees a combination of allocating them to
solicitors and setting individual goals should be implemented.
[IMG-8]
[8]Goal
setting is very important as it will motivate each individual to assess her role in the firm. Goals can be
established for each WPC employee, the WPC employees as a group, and also for the WPC senior staff and
solicitors. By appointing a WPC employee to a solicitor, each clerk can learn to recognise their needs,
especially their esteem, social and self-actualisation needs in the firm. Motivators such as achievement,
recognition, responsibility, advancement and growth can also be achieved (Robbins et al., 2000, p.553).
[IMG-9]
[9]
4.2 Increase communication in the firm.
There should be a combination of all three suggestions, the regular meetings in each division and with the
department heads, the informal events between the different departments, and the questionnaires. The
questionnaires could be administered every six months and the findings could be discussed at the meetings.
These channels are effective and would allow the firm to communicate more effectively because they permit
different methods of communication to be used including oral, non-verbal and written communication. The
meetings would encourage active listening and the opportunity to for feedback.
4.3 Create effective leadership of the WPC employees
A combination of Mrs Blakely undergoing a work appraisal and appointing a manager to the WPC unit would
combat inadequate leadership skills there. Mrs Blakely should still remain as supervisor of the WPC unit;
however, there should be a manager present at all times with the WPC staff, who is able to discipline and
motivate them. With the presence of a manager, there is a high possibility that a more democratic style of
leadership would be adopted and an initiating structure created. This manager could then contact Mrs Blakely
if any problem occurs, given her knowledge. Mrs Blakely should take a personal evaluation because it would
identify both to her and the firm that she is unable to effectively lead the WPC unit.
[IMG-10]
[10]5.
Implementation
[Please note that the assignment table cannot be displayed on this screen because it is too complex.]
6. Referencing
Robbins, S., Bergman, R., Stagg, I. & Coulter, M. (2000). Management (2nd ed.). Sydney: Prentice Hall.
[1]
Too much detail
There is much too much detail here for an Executive Summary. Ideally, you should aim for a half-page
summary of your whole report. State your purpose, the main problems, and the recommendations. The detail
is presented in the rest of the report. A good example of an Executive Summary can be found in Cindy's
report.
[2]
Discuss theory in more detail
The student has not outlined the symptoms Maslow describes in his Hierarchy of Needs theory. Without this
detail, it is impossible for the reader to see how the theory relates to the situation and symptoms in the WPC.
The student needs to summarise this information so that the reader can follow her analysis. Her discussion of
Herzberg's theories in the section that follows is much more effective.
[3]
Evidence unrelated to theory
The evidence presented (symptoms) does not support the theory given (the Ohio State studies). Think
through what you are writing and make sure that the theory explains the evidence, or vice versa.
[4]
Focus on the organisation
The student needs to focus on the systemic/organisational problems at the law firm rather than apportioning
blame to individuals (i.e. Mrs Blakely). Ensure that you discuss theory in relation to the symptoms noted. The
point of the Problem Identification section is to demonstrate your understanding of theory by showing and
analysing the links between theory and evidence.
[5]
Outline and reference this information
Don't assume too much about the reader's knowledge. As in Section 1.1 above, the student needs to outline
the characteristics of effective teamwork and provide a reference. Without this summarised information, the
reader cannot judge whether the analysis of the WPC's problems is justified.
[6]
Good, but use bullet point form
The student has made some good points in this section but point form would have made the whole section
much more direct and readable. The Alternative Solutions section needs to be crisp and precise, so:


Ensure solutions are stated clearly. Specify who is responsible for performing an action and whom
the action affects.
Organise supporting points as bullets under the subheadings of 'Advantages' and 'Disadvantages'.
Look at Cindy's essay for an example of organising points as bullets under subheadings.
[7]
Make subheadings more focussed
Make sure each subheading states the recommendation clearly and concisely. Specify who is responsible for
performing an action and whom the action affects.
See Skills for Writing in Management - Recommendations section.
[8]
Good, but...
Solid, detailed account of the goal-setting approach. However, the student should have focused on
'motivators' with the same depth.
[9]
Recommendations require specific theory
The student needs to provide a specific theory for each specific recommendation. References, of course,
must also be provided. Unlike the theory used in Problem Identification section which emphasises larger
concepts (Motivation, Communication, Leadership, etc.), the theory in the Recommendations section focuses
on specific solutions to specific problems.
Although concepts like 'goal setting' (4.1) and 'active listening' (4.2) may not be directly associated with a
particular "researcher", they are still elements in communication theory, and therefore require discussion. The
textbook provides good justification of these ideas, so start there as a source of information.
[10]
State specific goals
The Implementation section is very specific because it is meant to change behaviour. Therefore, avoid any
vague wording of implementation goals. Make them as specific and as concise as possible, with no wasted
words. To be effective, one person in the organisation needs to be made responsible for the goals to be
delivered.
Amy's comments
Support in VCE and first year <www.monash.edu/lls/llonline/writing/businesseconomics/management/3.1.4.xml#audioDiv>
I think that in Year 12 you received a lot of help, in that you were able to contact teacher whenever you
wanted, and that they would help you; and that you were able to give them drafts and that they corrected your
work and they gave you their opinion on your work; whereas at Uni you don't receive that sort of attention,
and it's very much individual like, and that even at Uni you don't make friends that you can rely upon and see
every day and say oh, can you help me; 'cause sometimes you sit in a tute and you don't know anyone; so
you really have to work all by yourself.
How I approached the topic <www.monash.edu/lls/llonline/writing/businesseconomics/management/3.1.4.xml#audioDiv>
The first thing I did was I read the case study and then I reread it and then I reread it and I think the third time
I even got out my highlighter, started highlighting the major parts of the essay which corresponded with the
major issues such as motivation, and I just basically kept on rereading it in reference to the major issues.
Looking up sources <www.monash.edu/lls/llonline/writing/businesseconomics/management/3.1.4.xml#audioDiv>
Okay, because it was Management and because it was a case study, we didn't have to do any extra
research, we didn't have to go to the library - all the information was in our management book, and also the
case study handout. So what I did as I sort of answered the last question, I read the case study, and then
identified one of the major issues – say, motivation – so then I read the case study again just into motivation,
in reference to motivation, and then I opened up my case book in the chapter on motivation, and read
everything on motivation, and then correlated that onto a separate piece of paper, and then typed it up; and
then I repeated that for leadership, and I repeated that for communications.
My effectiveness <www.monash.edu/lls/llonline/writing/businesseconomics/management/3.1.4.xml#audioDiv>
I thought that my approach was quite effective. First I discussed it with individuals, classmates and things,
and just determined whether I was on the correct track. And then I thought that I was able to identify the
issues properly and analyze them in accordance with the theories. I thought that my word count was...I mean
I was very much over the word count about 1000 words; which put pressure on me to try to maintain the
analysis correctly.
Lecturer help <www.monash.edu/lls/llonline/writing/businesseconomics/management/3.1.4.xml#audioDiv>
For about four weeks prior to handing in the assignment, we went through similar case studies, and they just
taught us how to set it out, and how to identify the issues. Our lecturer told us that there were five major
issues, which was easy for us, because basically it's always motivation and leadership. So we – yes, they did.
And we could go up and talk to tutors if we were having problems with it.
Dealing with unit requirements <www.monash.edu/lls/llonline/writing/businesseconomics/management/3.1.4.xml#audioDiv>
It's sort of standard now that your essay is 3000 words, and just different types of writing for example in this
essay it was a case study, but in the last...In our last assignment for this subject it was a normal report and in
another you have different types of Arts format. You have all these different formats, and even referencing –
like, you can fail a subject if you don't reference correctly. I tend to find that with an Arts subject it does
require more research, because you have to develop your arguments more, and there's more emphasis on
your arguments and your opinion on a subject, whereas with a business subject, it really just tends to be
regurgitated information on other people's opinions, whilst with an Arts subject, you really have to develop
your own...
Download the full interview with Amy (mp3, 2.54 MB).
<www.monash.edu/lls/llonline/assets/utilities/download.php?file=assets/audio/amy/amy-all.mp3>
Angus's assignment
Angus is a first-year Management student. The main assignment in the subject is a case study on a firm of
solicitors: Lawton, Langridge, Lypton and Lawless.
Assignment topic:
[1]Click
to view the assignment topic
1. Look at the lecturer's expectations <www.monash.edu/lls/llonline/writing/businesseconomics/management/3.2.1.xml> of the assignment.
2. Next read Angus's assignment <www.monash.edu/lls/llonline/writing/businesseconomics/management/3.2.2.xml> .
o How well do you think the assignment responds to the topic?
o Do you think the assignment could be improved in any way?
3. Now read the lecturer's comments <www.monash.edu/lls/llonline/writing/businesseconomics/management/3.2.3.xml> about Angus's assignment.
[1]
Assignment Questions
MGM 1300 INTRODUCTION TO MANAGEMENT
Semester One, 1996
CASE STUDY
Using the Case Study Method analyse the problems, generate solutions and make recommendations
for the following case.
DUE DATE: Tutorial, Week 11, Week Beginning May 20, 1996
Lawton, Langridge, Lypton and Lawless, Solicitors
Peter Lawless looked over his desk at Arthur Lawton and frowned. "Look, Arthur, I need a new secretary
now. I thought the idea of the Word Processing Centre was, that we recruited talented people and trained
them there, so they were ready and available when we need them. We spend a lot of money on the Centre
and I hear on the grapevine that the work is often sub standard, and now you're telling me that there is no
one there really qualified to be my new secretary. What's going wrong! I have had Kathleen Pearce
temporarily for the past two weeks, but if she is the best qualified person in the Centre, then it's not doing the
job. Her skills are fine, but she has no initiative and doesn't have much of a clue about what we do in this firm
- and she has worked here for 18 months! She is a nice girl, but she is not up to it."
Arthur Lawton sighed. "Obviously something is not working. We do recruit well trained, bright, young people
and hope that one to two years in the WPC will teach them all they need to know about our firm, and I believe
Kathleen Pearce is the best qualified there. I am afraid you will have to persevere with Kathleen. There's
nobody else."
Arthur Lawton and Peter Lawless are senior partners in the legal firm of Lawton, Langridge, Lypton and
Lawless. Arthur is also the Managing Partner responsible for handling the administration of the large firm
which consists of 25 partners and 48 employed solicitors, plus approximately 80 support staff working in the
Sydney office.
Twenty two of the support staff are data entry clerks who work in the Word Processing Centre. Their job is to
word process the large volumes of legal documents produced by the solicitors, together with their long
reports, etc. Only well qualified people are employed, usually with a TAFE diploma or Year 12 with good
passes in business subjects. When they join the firm they receive a week of training in the specialised legal
documents and extra training sessions are held regularly to ensure up to date knowledge of legal documents.
The firm occupies 10 floors of a new building in the centre of Sydney. The Word Processing Centre is located
on the 35th floor and has wonderful views around the city and harbour. The office is very well equipped with
modern, ergonomic furniture and equipment, excellent furnishings, and a very pleasant staff room. The firm is
able to attract good quality workers because it offers above average wages and many benefits such as a
superannuation scheme, health scheme, social club and other non salary benefits.
After his discussion with Peter Lawless, the Managing Partner, Mr Lawton, feels it is time to find out why the
centre is having problems, so he asks around the firm, having talks with other partners and solicitors. He
discovers that, although the centre is very productive, there are several concerns. Most solicitors feel they
must check each piece of work carefully because there are often errors made. Not necessarily typing errors,
but careless errors such as the wrong names or facts keyed into documents. As the clerks are well qualified
and trained by the firm, there is a belief that the error rate is unacceptable. None of the solicitors know the
workers in the Centre very well, but all praise the hard work and service provided by Mrs Blakely, the
supervisor, and suggest that there is something wrong "with young people today". Mr Lawton's personnel
records also suggest that the turnover rate in the centre is also unacceptable. Only three clerks in the Centre
have worked for the firm for more than eighteen months, with the majority staying only 12 months or so,
despite careful selection of excellent staff.
The partners of the firm each have their own secretary, and it is the firm's policy that these secretaries be
recruited from the Word Processing Centre workers. Three to five of these vacancies arise each year, with
workers from the Centre also relieving when the secretaries are on holidays. Although this opportunity for
promotion attracts new workers to the firm, it does not seem to keep many of them long enough to take up
the chance. There have also been complaints that, when a clerk has been used as a relief for a secretary,
they have proved unreliable if left to their own devices and they lacked initiative.
Mr Lawton then talks with Mrs Lorraine Blakely, the supervisor, about the Centre. She has worked with the
firm in various administrative capacities for over 20 years and is greatly liked and admired by all the partners
and lawyers in the firm. They found her very pleasant and helpful to deal with and always efficient in getting
their work through the centre in a short time. She enjoys her job, particularly dealing with the solicitors in the
firm, most of whom have worked with her for years. They believe that she is very efficient and they all like to
deal with her on a regular basis.
Mrs Blakely reacts a little angrily when Mr Lawton brings up the matter of the WPC's problems. She springs
to the defence of her "girls", saying that although there are errors made, they do get through a lot of work.
She does admit that, she believes not many of the clerks like their job very much as they find it boring, as
most of the work is simply keying in information into the forms provided on the firm's computer network. She
finds that they will come late to work, chat with each other at every opportunity, take long breaks and
generally "slack off". To stop this she keeps a firm eye on them, but on the other hand, she tells him, you
can't be too hard on them or they will leave quickly, and it is very hard to get good people to stay long. She
insists that she must keep her "girls" happy if they are to be productive and stay with the firm, and she doesn't
know what to do to keep them with the firm longer or help them to be better secretaries. She states that the
trouble is that young people these days don't want to work, but just want to have fun and there is nothing that
she can do about that.
Mrs Blakely explains the WPC's system to him. The work to be done in the Centre arrives from each solicitor
with a request sheet with details of what is required. Mrs Blakely then allocates work to the clerks each day.
To ensure they know what to do she is in the habit of going over each piece of work with them before they do
the job. There is often a need to clarify some issue with the solicitor. When this is the case, Mrs Blakely goes
to the solicitor herself and then passes the information on to the clerks. She collects the output when the
clerks have finished and returns it to the solicitors.
She emphasises again to Mr Lawton that she does keep a stern eye on the workers to ensure that they are
not wasting time. She insists that tea and lunch break times are strictly adhered to, and discourages chatting
during working hours, although as her job means she must be liaising with solicitors on other floors, she is not
in the Centre quite a lot. She agrees that the workers do not do very well when they relieve a secretary, but
feels it is all so strange to them, much more complex work than they have been used to, but her staff are the
best available, and the solicitors just need to put a bit of effort into helping them to learn the job. She says the
solicitors do not help their new secretaries enough and expect them to know everything straight away. She
suggests to Mr Lawton that she could check every piece of work before it leaves the centre, though this
would slow the turnaround time considerably.
When questioned about their job the clerks say they like working for the firm, would like to earn promotion,
but find it hard to stay interested in a job that is so repetitious and boring. Most say they get sick of seeing the
same faces every day as they are isolated in the WPC on the 35th Floor and have no contact with anyone
apart from each other and Mrs Blakely. Peter Lawless's temporary secretary, Kathleen Pearce, who is the
longest serving clerk, tells Mr Lawton that, although she loves working with so many people her own age, and
Mrs Blakely is a lovely boss, always friendly and helpful, she feels like she is still in school, with someone
always watching what you are doing and telling her what to do. She has stayed with the firm because the
conditions are good and she hopes to achieve promotion. She does, however, express doubts about her
ability as "eighteen months of straight keying have made me forget most of what I learned in TAFE and I don't
seem to have learnt much about what the solicitors do working in the WPC".
Mr Lawton decides to install a piped music system, believing this will add interest to their day's work and aid
concentration. The workers are very pleased with this and even say that it speeds up their work.
Unfortunately six months later the error rate has even increased, the turnover is still high, and Kathleen
Pearce, after six months as secretary to Peter Lawless is just beginning to show more confidence and
initiative in her job. Although Peter is happy with her now, he feels he has wasted a lot of time and energy in
helping her settle into the job and he tells Arthur Lawton that he believes the problems with the WPC would
not be solved by the piped music.
Mr Lawton has approached you, an external management consulting firm, to help them identify the real
problems, to suggest some possible solutions and make recommendations. Your brief is to examine and
analyse the case material and to produce a report, based on the problem solving case method, for Mr
Lawton.
Lecturer's expectations
In this section, one of your lecturers - Loretta Inglis - sets out what she expects from student assignments on
this topic.
I expect that you will read all the information that has been given in the subject outline to help you to write the
case study. There is a wealth of information there.
Ideally, I expect consistent quality throughout all the sections of the report. You need to leave enough time to
plan and write each section carefully.
I expect that your Problem Identification section will succinctly identify problems (not just repeat case
information), explain the problems using case evidence, and show how the theory relates to the problem.
Possible Solutions should have clear, concise headings and include advantages and disadvantages in bullet
point form.
The Recommendations should be very specific - showing who has which responsibility - and should be
justified using the theory.
The Implementation section should summarise the changes which need to be made as specifically as
possible, with someone responsible for seeing that they happen.
To do your best, I also expect that you attend tutorials over the weeks before the assignment is due. There
your tutor will work with you on practice case studies. Finally, a look at the information on this site will help
you to understand how you might tackle the demanding task of integrating problem identification with case
evidence and theoretical discussion - as well as the other challenging areas in the case study.
Notes on the case study method
The use of case studies is a widely accepted means of bringing theoretical concepts and practical situations
together. It is not possible to take a class into an organisation and observe the subject matter of management
or organisational behaviour in real life - hence a written case study outlining a real, or realistic, situation is the
best available alternative.
When reading and studying a case study it is possible to take two different approaches. The first of these is
the 'analytical' approach where a case structure is examined to try to understand what has happened and
why. In this approach you do not identify problems or attempt to develop solutions. The second approach is
the problem-oriented method. In this approach a case is analysed to identify the major problems that exist,
the causes of and possible solutions to the problems, and finally a recommendation as to the best solution to
implement.
In this course we mainly utilise a 'problem solving' case study method. As with most things in the
management area there is not 'one best way' to analyse or write up a case report. Everyone develops their
own methods of sorting and sifting through the information and presenting their findings. However, in this
subject we have a set format which we would like you to utilise when presenting your case reports. This
format is outlined briefly below.
Presentation of written material
The following notes are to be used as a guide to students the case studies for assessment in first-year
Management.
Guidelines
A high standard of presentation is required. Typing, or word processing, of all is expected.
Work that is submitted in an illegible or untidy fashion may, at your tutor's discretion, be returned unmarked or
with marks deducted for poor presentation.
In no circumstances should an assignment be written/typed on both sides of the paper.
Work should be double or 1-1/2 spaced.
A margin of 30mm should be left on both sides of the page. This provides adequate room for examiner's
comments as well as creating an uncluttered presentation.
All quotations should be enclosed within inverted commas. The exception is quotations of two or more
sentences which run to four or more lines. These should be single-spaced and indented from the main body
of the text. In these cases inverted commas are unnecessary (see Q Manual).
Assignments should be bound firmly into a cover, such as a manilla folder, plastic folder, ring binder, etc.
Please do not use envelope folders or submit loose sheets. It should be possible to read every page without
undoing any fastenings.
Every assignment must be clearly identified. The following details must be on the front of all assignments:
Name:
Student Number:
Assignment Name:
Subject Code/Name:
Lecturer/Tutor:
Due Date:
Date Submitted:
It is recommended that students KEEP A COPY OF ALL WORK SUBMITTED. While it is extremely rare for
student work to be misplaced, it does sometimes occur. The onus is on you to prove that a piece of work was
submitted.
Grammar, spelling and punctuation are matters which should not be neglected. Failure to take care of these
matters causes confusion and ambiguity. Ask someone to read and comment critically on your work prior to
submitting it; can they understand what you are trying to say? If not, rewrite it!
Problem solving case format for presentation
1. Title Page
2. Table of Contents
3. Executive Summary
This section should comprise a brief overview of the case, giving a brief background and noting any important
assumptions made. (You will not have all the information you would like - so you may need to make some
assumptions). As well as this, you should give a synopsis of your case report, noting very briefly the major
problems identified and the recommended solutions. One page is enough.
4. Problem Identification and Analysis
In this section you should identify all the major problems in the case in behavioural terms, i.e. in
Management/OB related terms (it is not a marketing or an accounting case). Try to get to underlying causes
of problems, not just symptoms. Seek advice from your tutor on the layout of this information.
You should link each problem identified to relevant theory and also to actual evidence from the case.
Remember you MUST integrate theory and reference all non-original work.
5. Statement of Major Problems
In most case studies you will identify a number of problems - too many to actually 'solve' in the number of
words allowed. Hence it is crucial to make it very clear which are the major two or three problems or key
issues, that must be solved first. Therefore this section is just a short concise statement of what problems you
are going to solve in the remainder of the case. Half a page is adequate.
Having once identified the key problems, you can continually check back to ensure that you are actually
attempting to solve them and not some other minor problems you identified. This section is crucial to a good
case report.
6. Generation and Evaluation of Alternative Solutions
While most problems will have a very large number of possible solutions, it is your task to identify and
evaluate a number of the more appropriate (at least 2-3 for each major problem identified).
Each alternative solution should be briefly outlined and then evaluated in terms of its advantages and
disadvantages (strong and weak points). Note: You must evaluate alternatives. It is not necessary to make
a statement in this section as to which alternative is considered best - this is the next section. Do not
integrate theory in this section and do not recommend theory. Practical solutions to the problems are
required.
7. Recommendations
This section should state which of the alternative solutions (either singly or in combination) identified in
section six is recommended for implementation. You should briefly justify your choice, explaining how it will
solve the major problems identified in Section 6. Integration of relevant theory is appropriate here.
8. Implementation
In this section you should specifically explain how you will implement the recommended solutions. Theory
cannot be implemented; you must translate it into actions.
What should be done, by whom, when, in what sequence, what will it cost (rough estimates only) and other
such issues.
Remember if a recommended solution cannot be realistically implemented then it is no solution at all.
9. Appendices (if any)
10. Bibliography/References
This will contain an alphabetical list of all the references you have cited in the body of the report. Do not
include details of any sources you have not cited. Ensure the style used is correct and consistent.
Some general issues:




In a case study it is crucial that you integrate relevant theory from the course and evidence from the
case. Failure to attempt to integrate theory will lead to severe mark reduction or failure.
Referencing of all non-original material is essential. You will lose marks for poor referencing. The
Faculty of Business and Economics Q Manual should be used as a guide. This is available in the
library, for sale in the bookshop, and on the web. The Q Manual should also be used as a guide for
correct presentation of written material.
Check your completed work for internal consistency. For example make sure that you attempt to
solve the key issues you have identified. Don't say X is the major problem and then recommend a
solution to Y.
Try not to be overly descriptive. Remember you are trying to identify, analyse, and solve the
problems of the case using the relevant theories from the course - not just repeating what the text
book, or case information, has said.
Angus's sample assignment
Click on the highlighted text to see the comments.
Assignment topic:
[1]View
the assignment topic
Case study report
Contents
Executive Summary
Problem Identification and Analysis
Statement of Major Problems
Generation and Evaluation of Alternative Solutions
Recommendations
Implementation
Bibliography
Executive summary
Lawton, Langridge, Lypton, and Lawless Solicitors
The company is a large firm consisting of 25 partners, 48 employed solicitors and 80 support staff. As the
company has grown it has developed new initiatives to keep, train and develop systems to promote staff. One
of its initiatives was to set up the Word Processing Centre (WPC).
The WPC has been in operation for only a few years and the concept behind it was to employ high quality
staff that the firm could train and promote to be secretaries for the partners and solicitors. The staff in the
WPC are employed to word process the large volumes of legal documents produced by the solicitors,
together with their long reports etc. Unfortunately the WPC has not been working as it was hoped.
Those that have been promoted to secretarial positions have not been able to carry out tasks as well as they
probably should have, and just as importantly have not shown any forward thinking or initiative. Other staff,
still working in the WPC are producing sloppy, substandard work, display a no-care attitude and have no real
idea about what the firm is out to achieve. The senior partners having witnessed this first hand through their
new secretaries, and complaints from solicitors, now want to know why.
This report will set out to find why. It will do this through firstly identifying the major problems, offer solutions,
form recommendations on how to fix the problems and then show how to implement these recommendations.
Some of the major problems that the Centre has are that the staff in the WPC are not motivated, they do not
seem to enjoy their work for various reasons. They need to be stimulated. They also need to be given more
opportunity to voice their opinions and concerns.
Problem identification and analysis
The Lawton, Langbridge, Lypton and Lawless Solicitor firm has many problems that need to be worked
through. The problems that have been identified are:

The staff in the WPC suffer from a lack of job satisfaction. This is shown through a number of
behaviours. Firstly, the work that is produced by the staff is of a poor standard. Secondly, the workers
find the work they are required to do boring and uninspiring. As satisfaction is linked to motivation,
Maslow's hierarchy of needs can provide an insight into this reaction by the workers. Robbins et al.
(1997, pp. 535) shows the hierarchy of needs in a way that resembles a pyramid. Maslow stated that
within every human there exists five needs. As each need is satisfied the next need higher in the
pyramid becomes more dominant. Maslow states that the lowest need for workers is physiological
(food, clothing, shelter). Workers then work their way up the pyramid through safety needs
(protection from harm), up to social needs (belongingness), then on to esteem needs (self-respect
and achievement) before reaching self-actualisation needs which is the highest of all the needs.
The staff in the WPC are achieving the first three needs but they are not able to reach their esteem
needs. Esteem needs are satisfied through internal and external factors. Internal factors such as selfrespect, autonomy and achievement and external factors such as status, recognition and attention
have not been provided from their boring and repetitive work. Therefore they have not achieved their
esteem needs. Having not achieved their esteem needs they cannot achieve their self-actualization
needs (Robbins et al., 1997).

The communication between the management and the staff of the WPC only goes one way. One of
the reasons this may have been was that they were not provided with the opportunity to ask
questions and learn about the business that they were working in. Carlopio et al., (1997, Chapter 5,
pp 231-232) observe that communication has four main attributes. It must be egalitarian, flexible,
two-way, and based on an agreement.
Taking an egalitarian stance is treating the employees as worthwhile, competent and insightful. A
manager taking this tact emphasises joint decision making rather than projecting a superior position.
The management of this firm appears to be taking the superior position. One worker recently
promoted from the WPC feels that the workers are treated like they are in school, with someone
constantly watching over them and telling them what to do. Carlopio et al., (1997, pp. 232) discuss
the attribute of flexibility in communication. Flexibility in communication is the willingness of the
manager to realise and accept that other ideas do exist, and that other individuals apart from
themselves may be able to make significant contributions.
Carlopio et al., (1997, pp. 232) then observe that the result of being egalitarian and flexible in
communication is two-way communication. This concept has not been able to evolve in the firm of
Lawton, Langbridge, Lypton and Lawless solicitors, since the staff in the WPC are not consulted
about any issues at the firm. For example, one reason that may explain errors made in written reports
could be that solicitors have not taken the time to explain tasks in enough detail. They assume that
the staff in the WPC know exactly what they are doing and hence only need to provide brief notes.
Then when mistakes are made they don't provide feedback to address these problems. The same
mistakes will then be made time and time again. The only feedback given is in the form of a
complaint to a senior partner or Mrs Blakely, the staff supervisor of the WPC.
As no two-way discussion has taken place at the firm, an agreement, the final attribute and by
product of discussion, cannot be reached. Having said all this it becomes obvious that
communication at the firm is extremely poor.

The WPC staff know little about the staff above them (Management and Solicitors) and how the firm
works. Staff are being left in the dark as to where the firm is trying to go, how it is going to get there,
and how the staff in the WPC will help it to get there. As David McClelland states in his three-need
theory, all workers have a need for achievement, a need for power and a need for affiliation. In this
instance, the workers are not able to satisfy their need for affiliation which means that they are not
able to form relationships with the workers around them and so restricting their ability to learn and
grow in the firm (Robbins et al., 1997).
Apart from the week of training at the beginning of their employment, the staff employed to work at
the WPC do not receive any additional training. As Peter Critten states (1992, pp. 83-90), it is
important for a worker to want to learn and be trained and for them to see training as a continual allyear-round process that can improve skills in areas that need improvement. Likewise it is important
for workers to want this of their employees and see it as an opportunity to improve staff and the
business. The company, Lawton, Langbridge, Lypton and Lawless, have not been provided any
learning opportunities and even Peter Lawless' new secretary stated that all she had learnt at TAFE
had been forgotten in the 18 months that she had been at the firm. She learnt nothing except the
skills that she was required to do each day so she was always going to find it difficult to move from
the job she was doing at the WPC to the secretarial job that she received a promotion to.

The management at the firm doesn't feel it is necessary to delegate responsibility on to the staff of
the WPC. It appears that the management knowingly or unknowingly has prescribed to McGregor's
theory X view of a worker (Robbins et al., 1997).
McGregor stated that managers view their workers in two distinct ways. Firstly there is the negative
view, theory X. Under this theory managers hold 4 assumptions: 1) workers dislike work and
therefore will attempt to avoid work wherever possible; 2) because of this dislike they must be
threatened with punishment to achieve goals; 3) workers will take no initiative and will avoid
responsibility wherever possible; 4) workers will possess no ambition and require security above all
else. Then there is the positive view, theory Y, the view which the management at the firm do not
seem to have taken. Under this theory, the manager also holds four main assumptions. Those
assumptions are; 1) workers see work as a natural part of life; 2) workers can be trusted to be self
motivated and able to achieve objectives on there own; 3) the average worker seeks responsibility; 4)
workers believe that it is not just the responsibility of the managers to make decisions, they too can
provide useful input.
This theory X view held by the partners has restricted the way the staff in the WPC have developed.
It has meant that the workers now do not know how to take responsibility or show initiative. The likely
reason for this could be the fact that the firm does not promote this sort of forward thinking when the
staff begin working at the firm.
Statement of major problems
The study of this case has produced two main problems. The study has found those two main problems to be
communication and job satisfaction.
Communication is the essence of good management and the only way to implement good company policy
and procedures is through effective communication. One important aspect of effective communication of
managers is the extent to which they provide feedback to their employees and the extent to which they offer
them opportunities to provide feedback so that the employees feel that they are being supported (Carlopio et
al., 1997, p 244). The firm of Lawton, Langridge, Lypton and Lawless do not provide this aspect of
communication.
Job satisfaction too is important, as the workers need to feel that work is an enjoyable place that provides
some intrinsic and extrinsic rewards. They should be able to take more responsibility and feel that they can
be left to deal with situations themselves. No worker likes being watched over the whole time they are
working. It is an incredible boost of a worker's self-esteem to be given responsibility and the trust that they
can be given a task and not have to be watched over while it is being done.
Generation and evaluation of alternative solutions
Three possible solutions the firm could use to improve communication between staff of all levels have been
listed below.
1) Regular appraisals
Allows workers to meet with management and discuss their needs. If needs cannot be met there and then,
ways have to be developed to meet those needs. It is also an opportunity for the manager to provide
feedback to staff on how they are going, and for staff to speak honestly and openly about how they think they
are going.
Disadvantages of appraisals are that in firms of this size it would take a long period of time to provide every
staff member with an appraisal. Also in this company some senior management may not know the staff in the
WPC, therefore leaving appraisals up to lower or middle management. They may not be able to deal with the
staffs' problems and may dismiss them, not passing them on to the partners.
2) Open door management
Open door management provides the opportunity for staff from the WPC to go and see one of the partners
about problems at any time. It would show that the management is friendly and willing to listen to the
concerns of its employees. It is whether or not anything is done about these concerns as to whether this
solution will be effective.
This solution may not be viable as the partners may be dealing with complaints all day long if workers have a
lot of concerns. This would allow no time for work and instead their offices could become just a form of a
complaints box. This is probably not likely, but could occur to some extent.
3) Regular company meetings
Staff meetings are vital to all businesses and this firm is no exception. A meeting is a chance for all staff that
work in the WPC to congregate and voice their concerns with all levels of management. Meetings could be
held weekly or every two weeks and different solicitors and different partners could attend each meeting. It is
vital too, that the meetings are conducted by the same person, or persons so that some form of consistency
is maintained.
The second major issue that needs to be dealt with is to increase job satisfaction. Some solutions have been
provided to solve these issues and they have been listed below.
1) Reward quality work
Staff at the Centre are presenting work to the solicitors that is of a poor standard. Peter Lawless wants to
know why. At the moment the workers do not seem to care whether or not the work that they do is correct or
not. It is necessary for the company to reward staff when they do a good job. Monthly staff awards could be
presented to the staff member who has the best month work wise or team rewards could be given if the
whole WPC has a good month.
A downfall of these types of rewards are that they can produce unhealthy competition which could lead to
discontent within the Centre. This may provide even less willingness to work.
2) Be given more responsibility
The partners should feel that they are able to provide the staff at the WPC with tasks that involve a greater
amount of responsibility. They may be able to give the staff work that they may not have time to do, or work
that would provide a valuable learning experience for them. This would give the staff more of an insight into
the workings of the company and would also help with the integration for the staff when promoted.
The only disadvantage of doing this would be that the partners may spend too much time explaining or fixing
work done by their staff in the WPC.
3) Provide Training
To keep workers learning and aid integration between the WPC and secretarial roles, training in various
aspects of the business could be given to the staff.
Recommendations
The major problems that needed to be solved at the firm of Lawton, Langbridge, Lypton and Lawless were
communication and a distinct lack of job satisfaction. Recommendations will now be made as to how the firm
can combat these problems.
Companies with the highest morale and the least turnover are the ones that keep their people informed about
goals and policies and listen to them. Employees should be able to talk, and the senior partners should listen
to them (LeBoeuf, 1988, pp 82). In my opinion, the staff at the WPC have no voice in the company at all. This
needs to be remedied.
To attack this problem the firm will need to hear the concerns of the staff. It should hold regular meetings with
the staff of the WPC and seek to fix problems that arise out of these meetings. The meetings should be held
weekly by one of the senior partners and at least one meeting should be attended by all of the partners
during the course of a month. As Raymond Smith stated in an interview in Kanter (1990, pp. 79) "partners
should be seen to be leading the way and if they are asking everyone to work together they should be seen
to be doing the same." Meetings will provide an outlet for the staff of the WPC and make them feel that they
are a part of the firm. At the moment they feel they are stuck up on the 35'h floor where no one can see or
hear them.
Regular appraisals also should be held. It would be good to hold one every six months however time
restraints may not mean that this is possible, so policy should be made that staff receive an appraisal yearly.
This will provide direct feedback to all staff and give staff that may not be as open as some their chance to
have a voice. Appraisals should be held with both the WPC supervisor and one of the partners.
Lack of job satisfaction has also been identified as a problem. This is reflected through little responsibility
given to the workers and little reward also given. As a result of this work standard is poor and no initiative is
displayed.
No encouragement is given to staff of the WPC from anyone higher than the WPC supervisor. There is no
intrinsic motivation for working to a good standard. If senior partners became more visible to the staff, if they
are seen to be socialising and more importantly encouraging the workers then the workers will become more
motivated as it doesn't seem as far to the top.
Also the company needs to integrate the staff into the firm a lot more. The staff need to know more about the
firm and how it works. This could be done by giving them tasks that management don't have time to do, or
that can provide learning opportunities for them. It can also be done through providing training. Computer
training, time management, and organisational management would benefit the staff. This training would
benefit both the individual and the company.
Implementation
To implement these solutions will not require a huge outlay of funds. It will require written policy so that the
staff of the WPC can see that changes have been made. Staff as well as partners and solicitors should be
involved in the writing up of policy.
Firstly a staff meeting should be held. Everyone who works at the WPC should be in attendance, partners too
should be there. This meeting will outline the changes that are going to be made. It will be at this meeting that
the dates for the weekly meetings will be set and also an announcement of who will head these meetings.
The senior partner, in consultation with the WPC supervisor will write up an agenda for these meetings.
The WPC supervisor will then set dates for each staff member's appraisal. A date for each employer will
reinforce that the company is making changes and that it wants to hear the opinions of the staff right away.
Training could be provided either internally or externally. Courses that focus on computer skills, management
skills, and organisational skills would be a good start for the employees. Training is essential so that skills
already leant at TAFE or other schooling do not wane. The cost of the training should be built into, but on top
of, staff salary.
Bibliography
Andrewartha, G., Armstrong, H., Carlopio, J., (1997), Developing management Skills, Addison Wesley
Longman Australia
Bergmann, R., Robbins, S.P., Stagg, I., (1997), Management, Prentice Hall Australia
Critten, Peter (1 993), Butterworth-Heinemann Ltd, Linaere House, Jordan House, Oxford
Kanter, Rosabeth Moss (1990), On the Frontiers of Management, Henry Holt and Co. and James Lee Burke
LeBoeuf, M. (1988), How to Motivate People, The Garden City Press, Letchworth, Hertfordshire
[1]
Assignment topic
Case study summary
Lawton, Langridge, Lypton and Lawless is a large Sydney legal firm. Among its staff are 22 data entry clerks
who work in the Word Processing Centre (WPC). Their job is to process the large volume of legal documents
produced by the firm's solicitors. WPC clerks are carefully selected and must have a TAFE diploma or Year
12 with good passes in business subjects. When they join the firm they receive a week of training in
specialised legal documents, and extra training sessions are held regularly to ensure they keep their
knowledge up-to-date.
The firm occupies 10 floors of a new building in the centre of Sydney. The WPC is located on the 35th floor
and has wonderful views around the city and harbour. The centre is very well equipped with excellent
furnishings and a very pleasant staff room. The firm is able to attract good quality workers because it offers
above average wages and many other benefits. However, all is not well. Senior staff and solicitors have
complained to Arthur Lawton, the Managing Partner, that they need to check the work of WPC clerks who
work as relief secretaries, because of the frequent errors made. They also believe that these workers are
unreliable and lack initiative. Personnel records show that WPC staff do not stay with the firm for very long,
despite the opportunities for promotion.
None of the solicitors know the workers in the Centre very well, but all praise the hard work and service
provided by Mrs Blakely, the WPC supervisor, who has worked with the firm for over 20 years. Indeed, they
tend to see the problem as the result of something wrong "with young people today." When Mr Lawton raises
the matter of the WPC's problems, Mrs Blakely reacts a little angrily. She defends her clerks, saying that
despite the errors, they do complete a lot of work. She admits that many of them find the job boring, as it
mostly involves keying in information. The clerks also, often come to work late, chat at every opportunity, and
generally don't work too hard. To stop this, she keeps a firm eye on them but she believes she can't be too
hard or they will leave the firm.
Mrs Blakely then explains the WPC system. The work to be done arrives from each solicitor and is allocated
to the clerks on a daily basis. To ensure they know what to do, she goes over each piece of work with them
before they do the job. When information needs to be clarified, Mrs Blakely goes to the relevant solicitor
herself and then passes the information on to the clerks. She collects the output when the job is finished and
returns it to the solicitors.
Her job however, also means she liaises with solicitors on other floors, so she is often away from the Centre.
Mrs Blakely agrees that the workers do not perform very well as relief secretaries, but thinks this is because
the work is more complex than they are trained to do. She says the solicitors do not help the relief secretaries
enough and expect them to know everything straight away.
When questioned, the WPC clerks say they like working for the firm and would like to earn promotion, but find
it hard to stay interested in a job that is so repetitious and boring. Most say they get sick of seeing the same
faces everyday as they are isolated on the 35th floor and have no contact with other staff, except with each
other and Mrs Blakely. After trying to improve efficiency through the use of piped music - an experiment
which fails - Mr Lawton turns to you, as an external management consultant, for advice.
Angus's assignment and what his lecturer thought
Click on the highlighted text to see the comments.
Case study report
Contents
Executive summary
Problem identification and analysis
Statement of major problems
Generation and evaluation of alternative solutions
Recommendations
Implementation
Bibliography
Executive summary
[IMG-1]
[1]
Lawton, Langridge, Lypton, and Lawless Solicitors
The company is a large firm consisting of 25 partners, 48 employed solicitors and 80 support staff. As the
company has grown it has developed new initiatives to keep, train and develop systems to promote staff. One
of its initiatives was to set up the Word Processing Centre (WPC).
The WPC has been in operation for only a few years and the concept behind it was to employ high quality
staff that the firm could train and promote to be secretaries for the partners and solicitors. The staff in the
WPC are employed to word process the large volumes of legal documents produced by the solicitors,
together with their long reports etc. Unfortunately the WPC has not been working as it was hoped.
Those that have been promoted to secretarial positions have not been able to carry out tasks as well as they
probably should have, and just as importantly have not shown any forward thinking or initiative. Other staff,
still working in the WPC are producing sloppy, substandard work, display a no-care attitude and have no real
idea about what the firm is out to achieve. The senior partners having witnessed this first hand through their
new secretaries, and complaints from solicitors, now want to know why.
[IMG-2]
[2]This
report will set out to find why. It will do this through firstly identifying the major problems, offer
solutions, form recommendations on how to fix the problems and then show how to implement these
recommendations. Some of the major problems that the Centre has are that the staff in the WPC are not
motivated, they do not seem to enjoy their work for various reasons. They need to be stimulated. They also
need to be given more opportunity to voice their opinions and concerns.
Problem identification and analysis
The Lawton, Langbridge, Lypton and Lawless Solicitor firm has many problems that need to be worked
through. The problems that have been identified are:

The staff in the WPC suffer from a lack of job satisfaction. This is shown through a number of
behaviours. Firstly, the work that is produced by the staff is of a poor standard. Secondly, the workers
find the work they are required to do boring and uninspiring.
[IMG-3]
[3]As
satisfaction is linked to motivation, Maslow's hierarchy of needs can provide an insight into this
reaction by the workers. Robbins et al. (1997, pp. 535) shows the hierarchy of needs in a way that
resembles a pyramid. Maslow stated that within every human there exists five needs. As each need
is satisfied the next need higher in the pyramid becomes more dominant. Maslow states that the
lowest need for workers is physiological (food, clothing, shelter). Workers then work their way up the
pyramid through safety needs (protection from harm), up to social needs (belongingness), then on to
esteem needs (self-respect and achievement) before reaching self-actualisation needs which is the
highest of all the needs.

The staff in the WPC are achieving the first three needs but that are not able to reach their esteem
needs. Esteem needs are satisfied through internal and external factors. Internal factors such as selfrespect, autonomy and achievement and external factors such as status, recognition and attention
have not been provided from their boring and repetitive work. Therefore they have not achieved their
esteem needs. Having not achieved their esteem needs they cannot achieve their self-actualization
needs (Robbins et al., 1997).
The communication between the management and the staff of the WPC only goes one way. One of
the reasons this may have been was that they were not provided with the opportunity to ask
questions and learn about the business that they were working in. Carlopio et al., (1997, Chapter 5,
pp 231-232) observe that communication has four main attributes. It must be egalitarian, flexible,
two-way, and based on an agreement.
Taking an egalitarian stance is treating the employees as worthwhile, competent and insightful. A
manager taking this tact emphasises joint decision making rather than projecting a superior position.
The management of this firm appears to be taking the superior position. One worker recently
promoted from the WPC feels that the workers are treated like they are in school, with someone
constantly watching over them and telling them what to do. Carlopio et al., (1997, pp. 232) discuss
the attribute of flexibility in communication. Flexibility in communication is the willingness of the
manager to realise and accept that other ideas do exist, and that other individuals apart from
themselves may be able to make significant contributions.
Carlopio et al., (1997, pp. 232) then observe that the result of being egalitarian and flexible in
communication is two-way communication. This concept has not been able to evolve in the firm of
Lawton, Langbridge, Lypton and Lawless solicitors, since the staff in the WPC are not consulted
about any issues at the firm. For example, one reason that may explain errors made in written reports
could be that solicitors have not taken the time to explain tasks in enough detail. They assume that
the staff in the WPC know exactly what they are doing and hence only need to provide brief notes.
Then when mistakes are made they don't provide feedback to address these problems. The same
mistakes will then be made time and time again. The only feedback given is in the form of a
complaint to a senior partner or Mrs Blakely, the staff supervisor of the WPC.
[IMG-4]
[4]As
no two-way discussion has taken place at the firm, an agreement, the final attribute and by
product of discussion, cannot be reached. Having said all this it becomes obvious that
communication at the firm is extremely poor.

The WPC staff know little about the staff above them (Management and Solicitors) and how the firm
works. Staff are being left in the dark as to where the firm is trying to go, how it is going to get there,
and how the staff in the WPC will help it to get there. As David McClelland states in his three-need
theory, all workers have a need for achievement, a need for power and a need for affiliation. In this
instance, the workers are not able to satisfy their need for affiliation which means that they are not
able to form relationships with the workers around them and so restricting their ability to learn and
grow in the firm (Robbins et al., 1997).
Apart from the week of training at the beginning of their employment, the staff employed to work at
the WPC do not receive any additional training. As Peter Critten states (1992, pp. 83-90), it is
important for a worker to want to learn and be trained and for them to see training as a continual allyear-round process that can improve skills in areas that need improvement. Likewise it is important
for workers to want this of their employees and see it as an opportunity to improve staff and the
business. The company, Lawton, Langbridge, Lypton and Lawless, have not been provided any
learning opportunities and even Peter Lawless' new secretary stated that all she had learnt at TAFE
had been forgotten in the 18 months that she had been at the firm. She learnt nothing except the
skills that she was required to do each day so she was always going to find it difficult to move from
the job she was doing at the WPC to the secretarial job that she received a promotion to.

The management at the firm doesn't feel it is necessary to delegate responsibility on to the staff of
the WPC. It appears that the management knowingly or unknowingly has prescribed to McGregor's
theory X view of a worker (Robbins et al., 1997).
McGregor stated that managers view their workers in two distinct ways. Firstly there is the negative
view, theory X. Under this theory managers hold 4 assumptions: 1) workers dislike work and
therefore will attempt to avoid work wherever possible; 2) because of this dislike they must be
threatened with punishment to achieve goals; 3) workers will take no initiative and will avoid
responsibility wherever possible; 4) workers will possess no ambition and require security above all
else. Then there is the positive view, theory Y, the view which the management at the firm do not
seem to have taken. Under this theory, the manager also holds four main assumptions. Those
assumptions are; 1) workers see work as a natural part of life; 2) workers can be trusted to be self
motivated and able to achieve objectives on there own; 3) the average worker seeks responsibility; 4)
workers believe that it is not just the responsibility of the managers to make decisions, they too can
provide useful input.
This theory X view held by the partners has restricted the way the staff in the WPC have developed.
It has meant that the workers now do not know how to take responsibility or show initiative. The likely
reason for this could be the fact that the firm does not promote this sort of forward thinking when the
staff begin working at the firm.
Statement of major problems
The study of this case has produced two main problems. The study has found those two main problems to be
communication and
[IMG-5]
[5]job
satisfaction.
Communication is the essence of good management and the only way to implement good company policy
and procedures is through effective communication. One important aspect of effective communication of
managers is the extent to which they provide feedback to their employees and the extent to which they offer
them opportunities to provide feedback so that the employees feel that they are being supported (Carlopio et
al., 1997, p 244). The firm of Lawton, Langridge, Lypton and Lawless do not provide this aspect of
communication.
Job satisfaction too is important, as the workers need to feel that work is an enjoyable place that provides
some intrinsic and extrinsic rewards. They should be able to take more responsibility and feel that they can
be left to deal with situations themselves. No worker likes being watched over the whole time they are
working. It is an incredible boost of a worker's self-esteem to be given responsibility and the trust that they
can be given a task and not have to be watched over while it is being done.
Generation and evaluation of alternative solutions
Three possible solutions the firm could use to improve communication between staff of all levels have been
listed below.
[IMG-6]
[6]
1) Regular appraisals
Allows workers to meet with management and discuss their needs. If needs cannot be met there and then,
ways have to be developed to meet those needs. It is also an opportunity for the manager to provide
feedback to staff on how they are going, and for staff to speak honestly and openly about how they think they
are going.
Disadvantages of appraisals are that in firms of this size it would take a long period of time to provide every
staff member with an appraisal. Also in this company some senior management may not know the staff in the
WPC, therefore leaving appraisals up to lower or middle management. They may not be able to deal with the
staffs' problems and may dismiss them, not passing them on to the partners.
2) Open door management
Open door management provides the opportunity for staff from the WPC to go and see one of the partners
about problems at any time. It would show that the management is friendly and willing to listen to the
concerns of its employees. It is whether or not anything is done about these concerns as to whether this
solution will be effective.
This solution may not be viable as the partners may be dealing with complaints all day long if workers have a
lot of concerns. This would allow no time for work and instead their offices could become just a form of a
complaints box. This is probably not likely, but could occur to some extent.
3) Regular company meetings
Staff meetings are vital to all businesses and this firm is no exception. A meeting is a chance for all staff that
work in the WPC to congregate and voice their concerns with all levels of management. Meetings could be
held weekly or every two weeks and different solicitors and different partners could attend each meeting. It is
vital too, that the meetings are conducted by the same person, or persons so that some form of consistency
is maintained.
The second major issue that needs to be dealt with is to increase job satisfaction. Some solutions have been
provided to solve these issues and they have been listed below.
1) Reward quality work
Staff at the Centre are presenting work to the solicitors that is of a poor standard. Peter Lawless wants to
know why. At the moment the workers do not seem to care whether or not the work that they do is correct or
not. It is necessary for the company to reward staff when they do a good job. Monthly staff awards could be
presented to the staff member who has the best month work wise or team rewards could be given if the
whole WPC has a good month.
A downfall of these types of rewards are that they can produce unhealthy competition which could lead to
discontent within the Centre. This may provide even less willingness to work.
2) Be given more responsibility
The partners should feel that they are able to provide the staff at the WPC with tasks that involve a greater
amount of responsibility. They may be able to give the staff work that they may not have time to do, or work
that would provide a valuable learning experience for them. This would give the staff more of an insight into
the workings of the company and would also help with the integration for the staff when promoted.
The only disadvantage of doing this would be that the partners may spend too much time explaining or fixing
work done by their staff in the WPC.
3) Provide Training
To keep workers learning and aid integration between the WPC and secretarial roles, training in various
aspects of the business could be given to the staff.
Recommendations
The major problems that needed to be solved at the firm of Lawton, Langbridge, Lypton and Lawless were
communication and a distinct lack of job satisfaction. Recommendations will now be made as to how the firm
can combat these problems.
Companies with the highest morale and the least turnover are the ones that keep their people informed about
goals and policies and listen to them. Employees should be able to talk, and the senior partners should listen
to them (LeBoeuf, 1988, pp 82). In my opinion, the staff at the WPC have no voice in the company at all. This
needs to be remedied.
To attack this problem the firm will need to hear the concerns of the staff. It should hold regular meetings with
the staff of the WPC and seek to fix problems that arise out of these meetings. The meetings should be held
weekly by one of the senior partners and at least one meeting should be attended by all of the partners
during the course of a month. As Raymond Smith stated in an interview in Kanter (1990, pp. 79) "partners
should be seen to be leading the way and if they are asking everyone to work together they should be seen
to be doing the same." Meetings will provide an outlet for the staff of the WPC and make them feel that they
are a part of the firm. At the moment they feel they are stuck up on the 35'h floor where no one can see or
hear them.
Regular appraisals also should be held. It would be good to hold one every six months however time
restraints may not mean that this is possible, so policy should be made that staff receive an appraisal yearly.
This will provide direct feedback to all staff and give staff that may not be as open as some their chance to
have a voice. Appraisals should be held with both the WPC supervisor and one of the partners.
[IMG-7]
[7]Lack
of job satisfaction has also been identified as a problem. This is reflected through little responsibility
given to the workers and little reward also given. As a result of this work standard is poor and no initiative is
displayed.
No encouragement is given to staff of the WPC from anyone higher than the WPC supervisor. There is no
intrinsic motivation for working to a good standard. If senior partners became more visible to the staff, if they
are seen to be socialising and more importantly encouraging the 'workers' then the workers will become more
motivated as it doesn't seem as far to the top.
Also the company needs to integrate the staff into the firm a lot more. The staff need to know more about the
firm and how it works. This could be done by giving them tasks that management don't have time to do, or
that can provide learning opportunities for them. It can also be done through providing training. Computer
training, time management, and organisational management would benefit the staff. This training would
benefit both the individual and the company.
Implementation
[IMG-8]
[8]To
implement these solutions will not require a huge outlay of funds. It will require written policy so that the
staff of the WPC can see that changes have been made. Staff as well as partners and solicitors should be
involved in the writing up of policy.
Firstly a staff meeting should be held. Everyone who works at the WPC should be in attendance, partners too
should be there. This meeting will outline the changes that are going to be made. It will be at this meeting that
the dates for the weekly meetings will be set and also an announcement of who will head these meetings.
The senior partner, in consultation with the WPC supervisor will write up an agenda for these meetings.
The WPC supervisor will then set dates for each staff member's appraisal. A date for each employer will
reinforce that the company is making changes and that it wants to hear the opinions of the staff right away.
Training could be provided either internally or externally. Courses that focus on computer skills, management
skills, and organisational skills would be a good start for the employees. Training is essential so that skills
already leant at TAFE or other schooling do not wane. The cost of the training should be built into, but on top
of, staff salary.
[IMG-9]
[10]Bibliography
[IMG-10]
[9]Andrewartha,
G., Armstrong, H. & Carlopio, J. (1997). Developing management skills. South Melbourne:
Longman.
Bergmann, R., Robbins, S.P. & Stagg, I. (1997). Management. Prentice Hall Australia
[IMG-11]
[11]Critten,
P. (1993). Oxford: Butterworth-Heinemann.
[IMG-12]
[12]Kanter,
R. M. (1990). On the frontiers of management. Henry Holt and Co.
LeBoeuf, M. (1988). How to motivate people. Letchworth, Hertfordshire: The Garden City Press.
[1]
Unnecessary repetition of case material
The manager reading the report is usually the person who commissions the report (case study). As he or she
is familiar with the problems being identified, there is no need to repeat background details from the case
such as the facilities offered by the firm, number of personnel, etc.
[2]
Outline these briefly here
In the Executive Summary in a report or case study, state 1) the purpose of the report, 2) the main problems
identified, 3) your recommendations and the expected outcomes. Key aspects of the case should be very
briefly summarised. Length should be no more than half a page to a page. A good example of an executive
summary can be found in Cindy's report.
[3]
Write all authors' names the first time
When citing a source for the first time, write all the authors' names, e.g. Robbins, Bergmann and Stagg
(1997, p. 535). For a second or third reference to the same authors, use the "et al." form, eg. Robbins et al.
(1997).
[4]
A very good section overall, but where is 'Leadership'?
Theory has been very well integrated throughout the Problem Identification section. Each writer's concepts
has been briefly introduced by outlining them and these ideas have then been linked to evidence from the
case study. The section on Carlopio et al. in regard to two-way communication is particularly well done.
Leadership as a concept, however, is not covered in this section, but is an essential element in the problem
situation.
Refer to Skills for Writing in Management - Problem Identification for advice on how to incorporate and
discuss theory in your writing.
[5]
"Motivation", not job satisfaction!
"Job satisfaction" is an aspect of motivation but it cannot substitute for the whole concept. Recognising the
differences between the everyday meanings of a word and the more specialised academic meanings is part
of the learning task in this subject.
[6]
Improve headings and formatting
The Alternative Solutions section needs to be crisp and precise, so:
1. Ensure headings are quite clear. Specify who is responsible for performing an action and whom the
action affects (e.g. a heading like "Regular Appraisals" does not tell the reader who is to be
appraised). Formatting could also be improved by using major headings such as "Solutions for
Improving Communication" and "Solutions for Improving Motivation" rather than "Job Satisfaction".
2. Organise supporting points as bullets under the subheadings of "Advantages" and "Disadvantages".
For advice on writing subheadings, refer to Skills for Writing in Management - Recommendations.
[7]
Lacks theoretical justification.
It's a pity to throw away marks just because you are near the end! All recommendations should be equally
covered which means providing the relevant theoretical discussion for each recommendation.
[8]
Very vague. Practical steps are missing!
The Implementation section needs to make the maximum impact in the most effective way. The best way of
doing this is to table the relevant information, focusing on the practical steps needed. Use headings such as
Who? What ? When? Where? How much? Clear headings are essential so the reader can follow the advice.
As this section is a summary of the changes that need to be made in the problem situation, avoid any vague
wording of implementation goals. Instead, make them as specific and as concise as possible, with no wasted
words.
The Implementation section in Cindy's assignment provides a good example.
[9]
Referencing problems
Carlopio, J., Andrewartha, G. & Armstrong, H. (1997). Developing management skills. South
Melbourne: Longman.
Primary author to be listed first.
Robbins, S.P., Bergman, R. & Stagg, I. (1997). Management. Sydney: Prentice Hall.
Primary author to be listed first, place of publication should be the city and be listed before the publisher.
[10]
In APA Style this is called References.
[11]
Add missing title information in italics.
[12]
Add missing place of publication.
Cindy's assignment
Cindy is a first-year Management student. The main assignment in the subject is a case study on a firm of
solicitors: Lawton, Langridge, Lypton and Lawless.
Assignment topic:
[1]Click
to view the assignment topic
1. Look at the lecturer's expectations <www.monash.edu/lls/llonline/writing/businesseconomics/management/3.3.1.xml> of the assignment.
2. Next read Cindy's assignment <www.monash.edu/lls/llonline/writing/businesseconomics/management/3.3.2.xml> .
o How well do you think the assignment responds to the topic?
o Do you think the assignment could be improved in any way?
3. Now read the lecturer's comments <www.monash.edu/lls/llonline/writing/businesseconomics/management/3.3.3.xml> about Cindy's assignment.
[1]
Assignment questions
MGM 1300 INTRODUCTION TO MANAGEMENT
Semester One, 1996
CASE STUDY
Using the Case Study Method analyse the problems, generate solutions and make recommendations
for the following case.
DUE DATE: Tutorial, Week 11, Week Beginning May 20, 1996
Lawton, Langridge, Lypton and Lawless, Solicitors
Peter Lawless looked over his desk at Arthur Lawton and frowned. "Look, Arthur, I need a new secretary
now. I thought the idea of the Word Processing Centre was, that we recruited talented people and trained
them there, so they were ready and available when we need them. We spend a lot of money on the Centre
and I hear on the grapevine that the work is often sub standard, and now you're telling me that there is no
one there really qualified to be my new secretary. What's going wrong! I have had Kathleen Pearce
temporarily for the past two weeks, but if she is the best qualified person in the Centre, then it's not doing the
job. Her skills are fine, but she has no initiative and doesn't have much of a clue about what we do in this firm
- and she has worked here for 18 months! She is a nice girl, but she is not up to it."
Arthur Lawton sighed. "Obviously something is not working. We do recruit well trained, bright, young people
and hope that one to two years in the WPC will teach them all they need to know about our firm, and I believe
Kathleen Pearce is the best qualified there. I am afraid you will have to persevere with Kathleen. There's
nobody else."
Arthur Lawton and Peter Lawless are senior partners in the legal firm of Lawton, Langridge, Lypton and
Lawless. Arthur is also the Managing Partner responsible for handling the administration of the large firm
which consists of 25 partners and 48 employed solicitors, plus approximately 80 support staff working in the
Sydney office.
Twenty two of the support staff are data entry clerks who work in the Word Processing Centre. Their job is to
word process the large volumes of legal documents produced by the solicitors, together with their long
reports, etc. Only well qualified people are employed, usually with a TAFE diploma or Year 12 with good
passes in business subjects. When they join the firm they receive a week of training in the specialised legal
documents and extra training sessions are held regularly to ensure up to date knowledge of legal documents.
The firm occupies 10 floors of a new building in the centre of Sydney. The Word Processing Centre is located
on the 35th floor and has wonderful views around the city and harbour. The office is very well equipped with
modern, ergonomic furniture and equipment, excellent furnishings, and a very pleasant staff room. The firm is
able to attract good quality workers because it offers above average wages and many benefits such as a
superannuation scheme, health scheme, social club and other non salary benefits.
After his discussion with Peter Lawless, the Managing Partner, Mr Lawton, feels it is time to find out why the
centre is having problems, so he asks around the firm, having talks with other partners and solicitors. He
discovers that, although the centre is very productive, there are several concerns. Most solicitors feel they
must check each piece of work carefully because there are often errors made. Not necessarily typing errors,
but careless errors such as the wrong names or facts keyed into documents. As the clerks are well qualified
and trained by the firm, there is a belief that the error rate is unacceptable. None of the solicitors know the
workers in the Centre very well, but all praise the hard work and service provided by Mrs Blakely, the
supervisor, and suggest that there is something wrong "with young people today". Mr Lawton's personnel
records also suggest that the turnover rate in the centre is also unacceptable. Only three clerks in the Centre
have worked for the firm for more than eighteen months, with the majority staying only 12 months or so,
despite careful selection of excellent staff.
The partners of the firm each have their own secretary, and it is the firm's policy that these secretaries be
recruited from the Word Processing Centre workers. Three to five of these vacancies arise each year, with
workers from the Centre also relieving when the secretaries are on holidays. Although this opportunity for
promotion attracts new workers to the firm, it does not seem to keep many of them long enough to take up
the chance. There have also been complaints that, when a clerk has been used as a relief for a secretary,
they have proved unreliable if left to their own devices and they lacked initiative.
Mr Lawton then talks with Mrs Lorraine Blakely, the supervisor, about the Centre. She has worked with the
firm in various administrative capacities for over 20 years and is greatly liked and admired by all the partners
and lawyers in the firm. They found her very pleasant and helpful to deal with and always efficient in getting
their work through the centre in a short time. She enjoys her job, particularly dealing with the solicitors in the
firm, most of whom have worked with her for years. They believe that she is very efficient and they all like to
deal with her on a regular basis.
Mrs Blakely reacts a little angrily when Mr Lawton brings up the matter of the WPC's problems. She springs
to the defence of her "girls", saying that although there are errors made, they do get through a lot of work.
She does admit that, she believes not many of the clerks like their job very much as they find it boring, as
most of the work is simply keying in information into the forms provided on the firm's computer network. She
finds that they will come late to work, chat with each other at every opportunity, take long breaks and
generally "slack off". To stop this she keeps a firm eye on them, but on the other hand, she tells him, you
can't be too hard on them or they will leave quickly, and it is very hard to get good people to stay long. She
insists that she must keep her "girls" happy if they are to be productive and stay with the firm, and she doesn't
know what to do to keep them with the firm longer or help them to be better secretaries. She states that the
trouble is that young people these days don't want to work, but just want to have fun and there is nothing that
she can do about that.
Mrs Blakely explains the WPC's system to him. The work to be done in the Centre arrives from each solicitor
with a request sheet with details of what is required. Mrs Blakely then allocates work to the clerks each day.
To ensure they know what to do she is in the habit of going over each piece of work with them before they do
the job. There is often a need to clarify some issue with the solicitor. When this is the case, Mrs Blakely goes
to the solicitor herself and then passes the information on to the clerks. She collects the output when the
clerks have finished and returns it to the solicitors.
She emphasises again to Mr Lawton that she does keep a stern eye on the workers to ensure that they are
not wasting time. She insists that tea and lunch break times are strictly adhered to, and discourages chatting
during working hours, although as her job means she must be liaising with solicitors on other floors, she is not
in the Centre quite a lot. She agrees that the workers do not do very well when they relieve a secretary, but
feels it is all so strange to them, much more complex work than they have been used to, but her staff are the
best available, and the solicitors just need to put a bit of effort into helping them to learn the job. She says the
solicitors do not help their new secretaries enough and expect them to know everything straight away. She
suggests to Mr Lawton that she could check every piece of work before it leaves the centre, though this
would slow the turnaround time considerably.
When questioned about their job the clerks say they like working for the firm, would like to earn promotion,
but find it hard to stay interested in a job that is so repetitious and boring. Most say they get sick of seeing the
same faces every day as they are isolated in the WPC on the 35th Floor and have no contact with anyone
apart from each other and Mrs Blakely. Peter Lawless's temporary secretary, Kathleen Pearce, who is the
longest serving clerk, tells Mr Lawton that, although she loves working with so many people her own age, and
Mrs Blakely is a lovely boss, always friendly and helpful, she feels like she is still in school, with someone
always watching what you are doing and telling her what to do. She has stayed with the firm because the
conditions are good and she hopes to achieve promotion. She does, however, express doubts about her
ability as "eighteen months of straight keying have made me forget most of what I learned in TAFE and I don't
seem to have learnt much about what the solicitors do working in the WPC".
Mr Lawton decides to install a piped music system, believing this will add interest to their day's work and aid
concentration. The workers are very pleased with this and even say that it speeds up their work.
Unfortunately six months later the error rate has even increased, the turnover is still high, and Kathleen
Pearce, after six months as secretary to Peter Lawless is just beginning to show more confidence and
initiative in her job. Although Peter is happy with her now, he feels he has wasted a lot of time and energy in
helping her settle into the job and he tells Arthur Lawton that he believes the problems with the WPC would
not be solved by the piped music.
Mr Lawton has approached you, an external management consulting firm, to help them identify the real
problems, to suggest some possible solutions and make recommendations. Your brief is to examine and
analyse the case material and to produce a report, based on the problem solving case method, for Mr
Lawton.
Lecturer's expectations
In this section, one of your lecturers - Loretta Inglis - sets out what she expects from student assignments on
this topic.
I expect that you will read all the information that has been given in the subject outline to help you to write the
case study. There is a wealth of information there.
Ideally, I expect consistent quality throughout all the sections of the report. You need to leave enough time to
plan and write each section carefully.
I expect that your Problem Identification section will succinctly identify problems (not just repeat case
information), explain the problems using case evidence, and show how the theory relates to the problem.
Possible Solutions should have clear, concise headings and include advantages and disadvantages in bullet
point form.
The Recommendations should be very specific - showing who has which responsibility - and should be
justified using the theory.
The Implementation section should summarise the changes which need to be made as specifically as
possible, with someone responsible for seeing that they happen.
To do your best, I also expect that you attend tutorials over the weeks before the assignment is due. There
your tutor will work with you on practice case studies. Finally, a look at the information on this site will help
you to understand how you might tackle the demanding task of integrating problem identification with case
evidence and theoretical discussion - as well as the other challenging areas in the case study.
Notes on the case study method
The use of case studies is a widely accepted means of bringing theoretical concepts and practical situations
together. It is not possible to take a class into an organisation and observe the subject matter of management
or organisational behaviour in real life - hence a written case study outlining a real, or realistic, situation is the
best available alternative.
When reading and studying a case study it is possible to take two different approaches. The first of these is
the 'analytical' approach where a case structure is examined to try to understand what has happened and
why. In this approach you do not identify problems or attempt to develop solutions. The second approach is
the problem-oriented method. In this approach a case is analysed to identify the major problems that exist,
the causes of and possible solutions to the problems, and finally a recommendation as to the best solution to
implement.
In this course we mainly utilise a 'problem solving' case study method. As with most things in the
management area there is not 'one best way' to analyse or write up a case report. Everyone develops their
own methods of sorting and sifting through the information and presenting their findings. However, in this
subject we have a set format which we would like you to utilise when presenting your case reports. This
format is outlined briefly below.
Presentation of written material
The following notes are to be used as a guide to students the case studies for assessment in first-year
Management.
Guidelines
A high standard of presentation is required. Typing, or word processing, of all is expected.
Work that is submitted in an illegible or untidy fashion may, at your tutor's discretion, be returned unmarked or
with marks deducted for poor presentation.
In no circumstances should an assignment be written/typed on both sides of the paper.
Work should be double or 1-1/2 spaced.
A margin of 30mm should be left on both sides of the page. This provides adequate room for examiner's
comments as well as creating an uncluttered presentation.
All quotations should be enclosed within inverted commas. The exception is quotations of two or more
sentences which run to four or more lines. These should be single-spaced and indented from the main body
of the text. In these cases inverted commas are unnecessary (see Q Manual).
Assignments should be bound firmly into a cover, such as a manilla folder, plastic folder, ring binder, etc.
Please do not use envelope folders or submit loose sheets. It should be possible to read every page without
undoing any fastenings.
Every assignment must be clearly identified. The following details must be on the front of all assignments:
Name:
Student Number:
Assignment Name:
Subject Code/Name:
Lecturer/Tutor:
Due Date:
Date Submitted:
It is recommended that students KEEP A COPY OF ALL WORK SUBMITTED. While it is extremely rare for
student work to be misplaced, it does sometimes occur. The onus is on you to prove that a piece of work was
submitted.
Grammar, spelling and punctuation are matters which should not be neglected. Failure to take care of these
matters causes confusion and ambiguity. Ask someone to read and comment critically on your work prior to
submitting it; can they understand what you are trying to say? If not, rewrite it!
Problem solving case format for presentation
1. Title Page
2. Table of Contents
3. Executive Summary
This section should comprise a brief overview of the case, giving a brief background and noting any important
assumptions made. (You will not have all the information you would like - so you may need to make some
assumptions). As well as this, you should give a synopsis of your case report, noting very briefly the major
problems identified and the recommended solutions. One page is enough.
4. Problem Identification and Analysis
In this section you should identify all the major problems in the case in behavioural terms, i.e. in
Management/OB related terms (it is not a marketing or an accounting case). Try to get to underlying causes
of problems, not just symptoms. Seek advice from your tutor on the layout of this information.
You should link each problem identified to relevant theory and also to actual evidence from the case.
Remember you MUST integrate theory and reference all non-original work.
5. Statement of Major Problems
In most case studies you will identify a number of problems - too many to actually 'solve' in the number of
words allowed. Hence it is crucial to make it very clear which are the major two or three problems or key
issues, that must be solved first. Therefore this section is just a short concise statement of what problems you
are going to solve in the remainder of the case. Half a page is adequate.
Having once identified the key problems, you can continually check back to ensure that you are actually
attempting to solve them and not some other minor problems you identified. This section is crucial to a good
case report.
6. Generation and Evaluation of Alternative Solutions
While most problems will have a very large number of possible solutions, it is your task to identify and
evaluate a number of the more appropriate (at least 2-3 for each major problem identified).
Each alternative solution should be briefly outlined and then evaluated in terms of its advantages and
disadvantages (strong and weak points). Note: You must evaluate alternatives. It is not necessary to make
a statement in this section as to which alternative is considered best - this is the next section. Do not
integrate theory in this section and do not recommend theory. Practical solutions to the problems are
required.
7. Recommendations
This section should state which of the alternative solutions (either singly or in combination) identified in
section six is recommended for implementation. You should briefly justify your choice, explaining how it will
solve the major problems identified in Section 6. Integration of relevant theory is appropriate here.
8. Implementation
In this section you should specifically explain how you will implement the recommended solutions. Theory
cannot be implemented; you must translate it into actions.
What should be done, by whom, when, in what sequence, what will it cost (rough estimates only) and other
such issues.
Remember if a recommended solution cannot be realistically implemented then it is no solution at all.
9. Appendices (if any)
10. Bibliography/References
This will contain an alphabetical list of all the references you have cited in the body of the report. Do not
include details of any sources you have not cited. Ensure the style used is correct and consistent.
Some general issues:


In a case study it is crucial that you integrate relevant theory from the course and evidence from the
case. Failure to attempt to integrate theory will lead to severe mark reduction or failure.
Referencing of all non-original material is essential. You will lose marks for poor referencing. The
Faculty of Business and Economics Q Manual should be used as a guide. This is available in the
library, for sale in the bookshop, and on the web. The Q Manual should also be used as a guide for
correct presentation of written material.


Check your completed work for internal consistency. For example make sure that you attempt to
solve the key issues you have identified. Don't say X is the major problem and then recommend a
solution to Y.
Try not to be overly descriptive. Remember you are trying to identify, analyse, and solve the
problems of the case using the relevant theories from the course - not just repeating what the text
book, or case information, has said.
Cindy's sample assignment
Assignment topic:
[1]Click
to view the assignment topic
Executive Summary
1. Problem Identification
1.1 Lack of Motivation
1.2 Communication Problems
1.3 Leadership Problems
1.4 Employees Lack of Interpersonal Skills
1.5 Lack of Initiative
2. Statement of Major Problems
3. Generation and Evaluation of Alternative Solutions
3.1 Motivation
3.1.1 Rewards and Recognition
3.1.2 Recognition
3.1.3 Attainable Goals
3.2 Communication Problems
3.2.1 Weekly Meetings 3.2.2 Consultation 3.2.3 Retrain Mrs. Blakely 3.2.4 Informal Communication
3.3 Leadership Problems
3.3.1 Retrain Mrs. Blakely
3.3.2 Re-delegation
4. Recommendation
4.1 Motivation
4.2 Communication
4.3 Leadership
5. Implementation
6. References
Executive summary
The following report is based on a case study of Lawton, Langridge, Lipton and Lawless, Solicitors. The main
problems that have been identified are major problems of staff motivation, lack of communication (informal),
and Mrs. Blakely's lack of leadership skills.
A recommendation for the motivation problem is that Mrs. Blakely set attainable goals for the employees and
reward and recognize the clerks when they have achieved their goals.
For the problem of lack of communication, it has been recommended in this report that weekly meetings be
held and that Mrs. Blakely be retrained both for development of communication skills and leadership skills.
The reward program is expected to cost the company approximately $450.00 per month whilst the setting of
attainable goals is not expected to cost the company anything. Because Mrs. Blakely will have to read 22
documents per month in order to recognize the employees appropriately, she will need to be paid extra for
this work i.e. overtime pay. Assuming it will take half an hour to read one document, there will be
approximately eleven hours spent on reading. It has been assumed that Mrs. Blakely earns $18.00 per hour
while the clerks earn $15.00.
Therefore, approximately, it will cost the firm $500.00 per week for ten weeks. The weekly meetings will be
run one hour before the end of the working day, beginning at 4:00 pm. and ending at 5:00 pm. eliminating the
need to pay overtime.
1. Problem identification
1.1 Lack of Motivation
There is much evidence pointing towards a severe lack of motivation in the WPC department, these being the
employees' constantly running late to get to work, a high error-rate through carelessness and also a high
turnover rate.
Mrs. Blakely views her employees from the 'theory x' perspective as defined by Douglas McGregor (Robbins
et al., 1997). Mrs. Blakely assumes that her employees dislike their work and makes statements such as
"there is something wrong with young people today", that her employees "slack off" and that " the trouble is
that young people these days don't want to work, but just want to have fun". Although there is evidence that
this kind of motivation can successfully work in some organizations, it is evident that it is not successful in the
WPC department.
Although the WPC department offers its employees excellent facilities such as the location, excellent
furnishings and equipment which satisfy their hygiene factors, these are not a motivator (Robbins et al.,
1997). There is an opportunity for growth in the work itself which is in fact, a motivator; however, the
monotonous and boring nature of the work at the WPC, and the lack of achievement, recognition and
responsibility means that the motivating factors are not enough to satisfy the employees.
1.2 Communication Problems
It is evident that there is a lack of informal communication in the WPC as a result of Mrs. Blakely emphasizing
that she does not want employees in the department to chat during working hours.
Mrs. Blakely also seems unaware of why the employees are so unhappy in their position and doesn't know
what to do to keep them with the firm longer. This is because she does not consult with the staff about the
problems they may be having with the organisation.
Mrs. Blakely only communicates with the "girls" on a formal level; she only communicates what is expected of
them. However, it is apparent that Mrs. Blakely does not provide them with feedback, neither positive nor
negative, so it is not really possible for the employees to know exactly where they are going wrong and then
proceed to correct their mistakes. This may be because she is afraid of offending the "girls" or dealing with
their defensiveness which is a common problem for many managers (Robbins, Bergman and Stagg, 1997).
1.3 Leadership Problems
Mrs. Blakely is lacking in real leadership skills and fails to consult with her staff. Rather she tells them what to
do, and how, where and when to do the various tasks. In terms of Hershey and Blanchard's Situational
Leadership Model, this is defined as being high task and low relationship (Robbins et al., 1997). Hershey and
Blanchard also discuss the maturity level of followers. The clerks employed in the WPC department are all
talented people, usually well qualified with a TAFE or year 12 certificate with good pass levels in business
subjects. So it is evident that in defining the level of maturity, the staff of the WPC would be viewed as being
at level M3 i.e. people whom are able, but unwilling, to do what the leader wants (Robbins et al., 1997). As a
result of this mixture, there is understandably going to be resistance from both parties. This leads onto the
evidence of a lack in employee empowerment leading to employee unhappiness. The employees are given
orders rather than being left to their own devices: every step is outlined and is expected to be followed to the
'dot', instead of letting the girls develop their own way of 'tackling' the problem.
1.4 Employees' Lack of Interpersonal Skills
Although the staff of the WPC department know how to do their jobs and at the same time make plenty of
careless mistakes, this is not because they lack the technical skills that are required in that specific
department. There are other underlying causes for the carelessness. However, the clerks are expected to be
able to undertake secretarial roles when positions become vacant. Mrs. Blakely is always the middle person
communicating between the clerks and the solicitors, and the employees complain that they have no contact
with anyone else in the organisation bar the other clerks in the WPC department and Mrs. Blakely. It is
therefore understandable that the clerks are going to find it difficult to deal with other people in the
organisation such as the solicitors and partners of the firm. Their lack of interpersonal skills to a large extent
are a result of this seclusion.
1.5 Lack of Initiative
Due to the lack of empowerment of the clerks in the WPC department, the clerks have learnt to simply obey
orders. By the time the clerks have the opportunity to work as a secretary for one of the partners of the firm,
they find it difficult to do anything else but follow rules, rather than understand the tasks at hand, and to use
their own initiative to solve the problems and tasks.
The initial identification of problems only deals with five major problems. This is because the other problems
such as high turnover rates and the clerks making careless mistakes are simply symptoms of much larger (or
major) problems in the firm.
2. Statement of major problems
Three major problems have been identified:
2.1 Lack of Motivation
2.2 Communication Problems
2.3 Leadership Problems
These problems must be solved first before the other problems. The WPC department will likely find that
once these problems are solved the other problems will possibly disappear.
3. Generation and evaluation of alternative solutions
3.1 Motivation
3.1.1 Rewards and Recognition

A reward program which consists of monetary bonuses when each clerk produces work with less
errors. As well there should be a team award if a certain number of documents by the WPC as a
team, go through as correct.
Advantages:





The advantage of setting up a reward program would be an increase in motivation for the clerks. It
gives them attainable goals, because the clerks are very capable of doing their job. It's just their lack
of motivation which results in the carelessness evident in their work.
Will result in job enrichment for the clerks.
Clerks will be happier to work harder if they know that they will gain from such efforts.
The organisation will benefit from the lower error rates, particularly the solicitors.
Improved image of the law firm as a result of the release of more professional documentation from
the WPC department.
Disadvantages:


It will cost more for the firm in terms of the monetary rewards going out to each successful employee.
Takes time for the work to be assessed. For instance, Mrs. Blakely would most likely be the one
reading each document in order to grant the award, and this will increase the length of time for the
papers to pass through the WPC.
3.1.2 Recognition

Require Mrs. Blakely to verbally recognize each clerk's efforts and good work.
Advantages:





easy to implement
lifts staff morale
doesn't cost anything
improves clerks' self confidence
improves quality of work as clerks will be encouraged by the recognition, and the staff will be likely to
display this in an improvement in their work.
Disadvantages:

Mrs. Blakely may resist recognizing the employees.
3.1.3 Attainable Goals

Create attainable goals. For instance, insisting on 100% accuracy in the typing up of documents may
be asking for too much, instead of finding a reasonable accuracy rate that the clerks can aim for.
Advantages




Gives staff focus
Can improve the quality of work
Does not cost anything
Creates teamwork
Disadvantages




Resistance to goals
Inconsistent participation
Participating employees may find it incongruous and may view it as manipulative and therefore be
turned off
If goals are viewed as unattainable staff may be turned off.
3.2 Communication Problems
3.2.1 Weekly Meetings

Organise weekly meetings that all WPC clerks will attend as well as Mrs. Blakely, to encourage flow
of information and so clerks can voice their concerns. Arthur Lawton will hold the meeting himself,
acting as a mediator.
Advantages



Open communication
Both parties can listen to each other
Invites feedback
Disadvantages



Arthur Lawton may not have time to be in charge
Mrs. Blakely may not listen
Clerks may not attend or may resist attending
3.2.2 Consultation

Organise one-on-one consultations with Mrs. Blakely where clerks can voice their concerns in
privacy, and vice-versa.
Advantages



Makes Mrs. Blakely aware of the situation
It is individual and one-on-one
Increases feedback and creates open communication
Disadvantages


Time consuming (one-on-one)
Mrs. Blakely may be unwilling to listen or to change.
3.2.3 Retrain Mrs. Blakely

Retrain Mrs. Blakely in order to improve her interpersonal communication skills. This will allow her to
find out where she has gone wrong and improve her communication skills.
Advantages


Improvement in communication skills.
Increase in employee happiness
Disadvantages


Costs money
Mrs. Blakely may not change
3.2.4 Informal Communication

Encourage informal communication during tea breaks ie. the tearoom could be designed in a way to
encourage communication. For instance, the layout could be open rather than people hiding behind
walls and sitting in corners.
Advantages


Clerks are able to vent their need to chatter in the right environment rather than during work time.
Encourages a friendly environment
Disadvantages:


Mrs. Blakely may resist this as an implementation.
Clerks may still talk a lot during work time anyway.
3.3 Leadership Problems
3.3.1 Retrain Mrs. Blakely

Retrain Mrs. Blakely, i.e. formally train Mrs. Blakely in order to improve her leadership skills.
Advantages


Improvement in leadership
Happier employees
Disadvantages


Costs money
Mrs. Blakely may not improve or she may resist training altogether
3.3.2 Re-delegation

Re-delegation of Mrs. Blakely to another job and appointment of a new supervisor.
Advantages



Quicker than re-training
Increase in employee satisfaction
Increase in efficiency
Disadvantages



Whoever else is put in charge, may be just as bad
Insulting to Mrs. Blakely
Creates resistance to change
4.1 Motivation
Provide employees with attainable goals, then recognize the clerks if they reach the goals and reward them
accordingly.
In terms of Herzberg's Motivation - Hygiene theory, the clerks in the WPC department have their hygiene
factors satisfied (Robbins et al., 1997). The clerks have excellent working conditions; i.e. ergonomic furniture,
great views of the city, excellent furnishings and a pleasant staff room. Although these hygiene factors have
been satisfied, motivation factors such as achievement, recognition, the work itself and responsibility are not
satisfied, and therefore according to this theory, the clerks are not motivated. Recognition is theorized by
Herzberg to be a major element as a motivator, and by recognizing the employees, they will feel a sense of
achievement. Goal incentives have yielded an approximate 16% increase in productivity and a reward
program consisting of a monetary incentive, can dramatically improve productivity by an estimated 30%
(Robbins et al., 1997).
When Mrs. Blakely recognizes employees for their achievements she is sending the message out that she
doesn't view them from a "Theory X" perspective, as proposed by theorist Douglas McGregor, which is a
rather negative view, for instance, that the clerks dislike their work, are lazy and that they avoid responsibility
and must be coerced to perform. Recognition encourages a more positive approach, "Theory Y", which
assumes employees are creative when left to their own devices and seek responsibility and can exercise
their own sense of direction (Robbins et al., 1997).
According to Maslow's Hierarchy of Needs theory ,as one need is satisfied, ie. a "safety need", the next level
of needs, for instance, "social needs," needs to be satisfied. The employees in the WPC have most of their
needs satisfied up until the esteem needs. By recognizing the employees for their achievement in reaching
the set goals, the organisation will in turn be satisfying their "esteem needs" (Robbins et al., 1997). Arthur
Lawton assumes that by playing music he could perhaps solve the low motivational problems, and although it
was initially assumed that it did in fact help the employees work, it failed after a few months. This is because
as Maslow points out, once a need is substantially satisfied, it no longer motivates. The physiological needs
have been more than satisfied by the conditions of the work environment and there is no complaint about the
salary. The music was only an added physiological factor, and therefore no longer has a motivating impact.
4.2 Communication
Organise weekly meetings as well as retrain Mrs. Blakely. The weekly meetings will ensure that the
communication flow is constant.
The weekly meetings will solve the problem of lack of feedback by providing an environment where there is a
mediator, Arthur Lawton, Mrs. Blakely and the clerks. The set up is informal, as there is a lack of this kind of
communication. The clerks and Mrs. Blakely would be able to communicate both positive and negative
feedback on the performance of the parties involved.
Mrs. Blakely will be retrained in terms of communication along with development of her interpersonal skills.
Through training, her skills in communication would improve and she will become more aware of the needs of
employees. Currently, Mrs. Blakely spends a majority of her time in networking and conducting traditional
management roles and significantly less time communicating with the clerks and participating in human
resource management. As Fred Luthan theorized, the best way for a manager to be an effective manager is
to spend 44% of their time in communicating, 26% in human resource management, 11% of their time in
networking and 19% of their time taking part in traditional management activities (Robbins et al. 1997) . Mrs.
Blakely is effectively managing opposite to the way she should be in order to be effective.
4.3 Leadership

Retrain Mrs. Blakely.
In terms of Hershey and Blanchard's theory (Robbins et al., 1997), Mrs. Blakely is at the stage of simply
telling her staff what to do. With significant training, it is hoped that Mrs. Blakely will develop the skills to sell
her ideas to the clerks, or even include the clerks in decision-making processes.
5. Implementation
[Please note that the assignment table cannot be displayed on this screen.]
References
Robbins, S.P., Bergman, R and Stagg, I. (1997), Management, (1st edn), Prentice Hall, Australia.
[1]
Assignment topic
Case study summary
Lawton, Langridge, Lypton and Lawless is a large Sydney legal firm. Among its staff are 22 data entry clerks
who work in the Word Processing Centre (WPC). Their job is to process the large volume of legal documents
produced by the firm's solicitors. WPC clerks are carefully selected and must have a TAFE diploma or Year
12 with good passes in business subjects. When they join the firm they receive a week of training in
specialised legal documents, and extra training sessions are held regularly to ensure they keep their
knowledge up-to-date.
The firm occupies 10 floors of a new building in the centre of Sydney. The WPC is located on the 35th floor
and has wonderful views around the city and harbour. The centre is very well equipped with excellent
furnishings and a very pleasant staff room. The firm is able to attract good quality workers because it offers
above average wages and many other benefits. However, all is not well. Senior staff and solicitors have
complained to Arthur Lawton, the Managing Partner, that they need to check the work of WPC clerks who
work as relief secretaries, because of the frequent errors made. They also believe that these workers are
unreliable and lack initiative. Personnel records show that WPC staff do not stay with the firm for very long,
despite the opportunities for promotion.
None of the solicitors know the workers in the Centre very well, but all praise the hard work and service
provided by Mrs Blakely, the WPC supervisor, who has worked with the firm for over 20 years. Indeed, they
tend to see the problem as the result of something wrong "with young people today." When Mr Lawton raises
the matter of the WPC's problems, Mrs Blakely reacts a little angrily. She defends her clerks, saying that
despite the errors, they do complete a lot of work. She admits that many of them find the job boring, as it
mostly involves keying in information. The clerks also, often come to work late, chat at every opportunity, and
generally don't work too hard. To stop this, she keeps a firm eye on them but she believes she can't be too
hard or they will leave the firm.
Mrs Blakely then explains the WPC system. The work to be done arrives from each solicitor and is allocated
to the clerks on a daily basis. To ensure they know what to do, she goes over each piece of work with them
before they do the job. When information needs to be clarified, Mrs Blakely goes to the relevant solicitor
herself and then passes the information on to the clerks. She collects the output when the job is finished and
returns it to the solicitors.
Her job however, also means she liaises with solicitors on other floors, so she is often away from the Centre.
Mrs Blakely agrees that the workers do not perform very well as relief secretaries, but thinks this is because
the work is more complex than they are trained to do. She says the solicitors do not help the relief secretaries
enough and expect them to know everything straight away.
When questioned, the WPC clerks say they like working for the firm and would like to earn promotion, but find
it hard to stay interested in a job that is so repetitious and boring. Most say they get sick of seeing the same
faces everyday as they are isolated on the 35th floor and have no contact with other staff, except with each
other and Mrs Blakely. After trying to improve efficiency through the use of piped music - an experiment
which fails - Mr Lawton turns to you, as an external management consultant, for advice.
Cindy's assignment and what her lecturer thought
Click on the highlighted text to see the comments.
Executive summary
1. Problem Identification
1.1 Lack of Motivation
1.2 Communication Problems
1.3 Leadership Problems
1.4 Employees Lack of Interpersonal Skills
1.5 Lack of Initiative
2. Statement of Major Problems
3. Generation and Evaluation of Alternative Solutions
3.1 Motivation
3.1.1 Rewards and Recognition
3.1.2 Recognition
3.1.3 Attainable Goals
3.2 Communication Problems
3.2.1 Weekly Meetings 3.2.2 Consultation 3.2.3 Retrain Mrs. Blakely 3.2.4 Informal Communication
3.3 Leadership Problems
3.3.1 Retrain Mrs. Blakely
3.3.2 Re-delegation
4. Recommendation
4.1 Motivation
4.2 Communication
4.3 Leadership
5. Implementation
6. References
Executive summary
The following report is based on a case study of Lawton, Langridge, Lipton and Lawless, Solicitors. The main
problems that have been identified are major problems of staff motivation, lack of communication (informal),
and Mrs. Blakely's lack of leadership skills.
A recommendation for the motivation problem is that Mrs. Blakely set attainable goals for the employees and
reward and recognize the clerks when they have achieved their goals.
For the problem of lack of communication, it has been recommended in this report that weekly meetings be
held and that Mrs. Blakely be retrained both for development of communication skills and leadership skills.
The reward program is expected to cost the company approximately $450.00 per month whilst the setting of
attainable goals is not expected to cost the company anything. Because Mrs. Blakely will have to read 22
documents per month in order to recognize the employees appropriately, she will need to be paid extra for
this work i.e. overtime pay. Assuming it will take half an hour to read one document, there will be
approximately eleven hours spent on reading. It has been assumed that Mrs. Blakely earns $18.00 per hour
while the clerks earn $15.00.
Therefore, approximately, it will cost the firm $500.00 per week for ten weeks. The weekly meetings will be
run one hour before the end of the working day, beginning at 4:00 pm. and ending at 5:00 pm. eliminating the
need to pay overtime.
1. Problem identification
1.1 Lack of Motivation
There is much evidence pointing towards a severe lack of motivation in the WPC department, these being the
employees' constantly running late to get to work, a high error-rate through carelessness and also a high
turnover rate.
Mrs. Blakely views her employees from the 'theory x' perspective as defined by Douglas McGregor (Robbins
et al., 1997). Mrs. Blakely assumes that her employees dislike their work and makes statements such as
"there is something wrong with young people today", that her employees "slack off" and that " the trouble is
that young people these days don't want to work, but just want to have fun".
[IMG-1]
[1]Although
there is evidence that this kind of motivation can successfully work in some organizations, it is
evident that it is not successful in the WPC department.
[IMG-2]
[2]Although
the WPC department offers its employees excellent facilities such as the location, excellent
furnishings and equipment which satisfy their hygiene factors, these are not a motivator [3](Robbins et al.,
1997). There is an opportunity for growth in the work itself which is in fact, a motivator; however, the
monotonous and boring nature of the work at the WPC, and the lack of achievement,
[IMG-3]
recognition and responsibility means that the motivating factors are not enough to satisfy the employees.
1.2 Communication Problems
It is evident that there is a lack of informal communication in the WPC as a result of Mrs. Blakely emphasizing
that she does not want employees in the department to chat during working hours.
Mrs. Blakely also seems unaware of why the employees are so unhappy in their position and doesn't know
what to do to keep them with the firm longer. This is because she does not consult with the staff about the
problems they may be having with the organisation.
Mrs. Blakely only communicates with the "girls" on a formal level; she only communicates what is expected of
them. However, it is apparent that Mrs. Blakely does not provide them with feedback, neither positive nor
negative, so it is not really possible for the employees to know exactly where they are going wrong and then
proceed to correct their mistakes. This may be because she is afraid of offending the "girls" or dealing with
their defensiveness which is a common problem for many managers (Robbins, Bergman and Stagg, 1997).
1.3 Leadership Problems
Mrs. Blakely is lacking in real leadership skills and fails to consult with her staff. Rather she tells them what to
do, and how, where and when to do the various tasks. In terms of Hershey and Blanchard's Situational
Leadership Model, this is defined as being high task and low relationship (Robbins et al., 1997).
[IMG-4]
[4]Hershey
and Blanchard also discuss the maturity level of followers. The clerks employed in the WPC
department are all talented people, usually well qualified with a TAFE or year 12 certificate with good pass
levels in business subjects. So it is evident that in defining the level of maturity, the staff of the WPC would be
viewed as being at level M3 i.e. people whom are able, but unwilling, to do what the leader wants (Robbins et
al., 1997). As a result of this mixture, there is understandably going to be resistance from both parties. This
leads onto the evidence of a lack in employee empowerment leading to employee unhappiness. The
employees are given orders rather than being left to their own devices: every step is outlined and is expected
to be followed to the 'dot', instead of letting the girls develop their own way of 'tackling' the problem.
1.4 Employees' Lack of Interpersonal Skills
[IMG-5]
[5]Although
the staff of the WPC department know how to do their jobs and at the same time make plenty of
careless mistakes, this is not because they lack the technical skills that are required in that specific
department. There are other underlying causes for the carelessness. However, the clerks are expected to be
able to undertake secretarial roles when positions become vacant. Mrs. Blakely is always the middle person
communicating between the clerks and the solicitors, and the employees complain that they have no contact
with anyone else in the organisation bar the other clerks in the WPC department and Mrs. Blakely. It is
therefore understandable that the clerks are going to find it difficult to deal with other people in the
organisation such as the solicitors and partners of the firm. Their lack of interpersonal skills to a large extent
are a result of this seclusion.
1.5 Lack of Initiative
Due to the lack of empowerment of the clerks in the WPC department, the clerks have learnt to simply obey
orders. By the time the clerks have the opportunity to work as a secretary for one of the partners of the firm,
they find it difficult to do anything else but follow rules, rather than understand the tasks at hand, and to use
their own initiative to solve the problems and tasks.
The initial identification of problems only deals with five major problems. This is because the other problems
such as high turnover rates and the clerks making careless mistakes are simply symptoms of much larger (or
major) problems in the firm.
2. Statement of major problems
Three major problems have been identified:
2.1 Lack of Motivation
2.2 Communication Problems
2.3 Leadership Problems
These problems must be solved first before the other problems. The WPC department will likely find that
once these problems are solved the other problems will possibly disappear.
3. Generation and evaluation of alternative solutions
3.1 Motivation
[IMG-6]
[6]
3.1.1 Rewards and Recognition

A reward program which consists of monetary bonuses when each clerk produces work with less
errors. As well there should be a team award if a certain number of documents by the WPC as a
team, go through as correct.
Advantages:





The advantage of setting up a reward program would be an increase in motivation for the clerks. It
gives them attainable goals, because the clerks are very capable of doing their job. It's just their lack
of motivation which results in the carelessness evident in their work.
Will result in job enrichment for the clerks.
Clerks will be happier to work harder if they know that they will gain from such efforts.
The organisation will benefit from the lower error rates, particularly the solicitors.
Improved image of the law firm as a result of the release of more professional documentation from
the WPC department.
Disadvantages:


It will cost more for the firm in terms of the monetary rewards going out to each successful employee.
Takes time for the work to be assessed. For instance, Mrs. Blakely would most likely be the one
reading each document in order to grant the award, and this will increase the length of time for the
papers to pass through the WPC.
3.1.2 Recognition

Require Mrs. Blakely to verbally recognize each clerk's efforts and good work.
Advantages:





easy to implement
lifts staff morale
doesn't cost anything
improves clerks' self confidence
improves quality of work as clerks will be encouraged by the recognition, and the staff will be likely to
display this in an improvement in their work.
Disadvantages:

Mrs. Blakely may resist recognizing the employees.
3.1.3 Attainable Goals
[IMG-7]

[7]Create
attainable goals. For instance, insisting on 100% accuracy in the typing up of documents
may be asking for too much, instead of finding a reasonable accuracy rate that the clerks can aim for.
Advantages




Gives staff focus
Can improve the quality of work
Does not cost anything
Creates teamwork
Disadvantages




Resistance to goals
Inconsistent participation
Participating employees may find it incongruous and may view it as manipulative and therefore be
turned off
If goals are viewed as unattainable staff may be turned off.
3.2 Communication Problems
3.2.1 Weekly Meetings

Organise weekly meetings that all WPC clerks will attend as well as Mrs. Blakely, to encourage flow
of information and so clerks can voice their concerns. Arthur Lawton will hold the meeting himself,
acting as a mediator.
Advantages



Open communication
Both parties can listen to each other
Invites feedback
Disadvantages



Arthur Lawton may not have time to be in charge
Mrs. Blakely may not listen
Clerks may not attend or may resist attending
3.2.2 Consultation

Organise one-on-one consultations with Mrs. Blakely where clerks can voice their concerns in
privacy, and vice-versa.
Advantages



Makes Mrs. Blakely aware of the situation
It is individual and one-on-one
Increases feedback and creates open communication
Disadvantages


Time consuming (one-on-one)
Mrs. Blakely may be unwilling to listen or to change.
3.2.3 Retrain Mrs. Blakely

Retrain Mrs. Blakely in order to improve her interpersonal communication skills. This will allow her to
find out where she has gone wrong and improve her communication skills.
Advantages


Improvement in communication skills.
Increase in employee happiness
Disadvantages


Costs money
Mrs. Blakely may not change
3.2.4 Informal Communication

Encourage informal communication during tea breaks ie. the tearoom could be designed in a way to
encourage communication. For instance, the layout could be open rather than people hiding behind
walls and sitting in corners.
Advantages


Clerks are able to vent their need to chatter in the right environment rather than during work time.
Encourages a friendly environment
Disadvantages:


Mrs. Blakely may resist this as an implementation.
Clerks may still talk a lot during work time anyway.
3.3 Leadership Problems
3.3.1 Retrain Mrs. Blakely

Retrain Mrs. Blakely, i.e. formally train Mrs. Blakely in order to improve her leadership skills.
Advantages


Improvement in leadership
Happier employees
Disadvantages


Costs money
Mrs. Blakely may not improve or she may resist training altogether
3.3.2 Re-delegation

Re-delegation of Mrs. Blakely to another job and appointment of a new supervisor.
Advantages



Quicker than re-training
Increase in employee satisfaction
Increase in efficiency
Disadvantages



Whoever else is put in charge, may be just as bad
Insulting to Mrs. Blakely
Creates resistance to change
[IMG-8]
[8]
4.1 Motivation
Provide employees with attainable goals, then recognize the clerks if they reach the goals and reward them
accordingly.
In terms of Herzberg's Motivation - Hygiene theory, the clerks in the WPC department have their hygiene
factors satisfied (Robbins et al., 1997). The clerks have excellent working conditions; i.e. ergonomic furniture,
great views of the city, excellent furnishings and a pleasant staff room. Although these hygiene factors have
been satisfied, motivation factors such as achievement, recognition, the work itself and responsibility are not
satisfied, and therefore according to this theory, the clerks are not motivated. Recognition is theorized by
Herzberg to be a major element as a motivator, and by recognizing the employees, they will feel a sense of
achievement. Goal incentives have yielded an approximate 16% increase in productivity and a reward
program consisting of a monetary incentive, can dramatically improve productivity by an estimated 30%
(Robbins et al., 1997).
When Mrs. Blakely recognizes employees for their achievements she is sending the message out that she
doesn't view them from a "Theory X" perspective, as proposed by theorist Douglas McGregor, which is a
rather negative view, for instance, that the clerks dislike their work, are lazy and that they avoid responsibility
and must be coerced to perform. Recognition encourages a more positive approach, "Theory Y", which
assumes employees are creative when left to their own devices and seek responsibility and can exercise
their own sense of direction (Robbins et al., 1997).
[IMG-9]
[9]According
to Maslow's Hierarchy of Needs theory, as one need is satisfied, ie. a "safety need", the next
level of needs, for instance, "social needs," needs to be satisfied. The employees in the WPC have most of
their needs satisfied up until the esteem needs. By recognizing the employees for their achievement in
reaching the set goals, the organisation will in turn be satisfying their "esteem needs" (Robbins et al., 1997).
Arthur Lawton assumes that by playing music he could perhaps solve the low motivational problems, and
although it was initially assumed that it did in fact help the employees work, it failed after a few months. This
is because as Maslow points out, once a need is substantially satisfied, it no longer motivates. The
physiological needs have been more than satisfied by the conditions of the work environment and there is no
complaint about the salary. The music was only an added physiological factor, and therefore no longer has a
motivating impact.
4.2 Communication
Organise weekly meetings as well as retrain Mrs. Blakely. The weekly meetings will ensure that the
communication flow is constant.
The weekly meetings will solve the problem of lack of feedback by providing an environment where there is a
mediator, Arthur Lawton, Mrs. Blakely and the clerks. The set up is informal, as there is a lack of this kind of
communication. The clerks and Mrs. Blakely would be able to communicate both positive and negative
feedback on the performance of the parties involved.
Mrs. Blakely will be retrained in terms of communication along with development of her interpersonal skills.
Through training, her skills in communication would improve and she will become more aware of the needs of
employees. Currently, Mrs. Blakely spends a majority of her time in networking and conducting traditional
management roles and significantly less time communicating with the clerks and participating in human
resource management. As Fred Luthan theorized, the best way for a manager to be an effective manager is
to spend 44% of their time in communicating, 26% in human resource management, 11% of their time in
networking and 19% of their time taking part in traditional management activities (Robbins et al. 1997) . Mrs.
Blakely is effectively managing opposite to the way she should be in order to be effective.
4.3 Leadership

Retrain Mrs. Blakely.
[IMG-10]
[10]In
terms of Hershey and Blanchard's theory (Robbins et al., 1997), Mrs. Blakely is at the stage of simply
telling her staff what to do. With significant training, it is hoped that Mrs. Blakely will develop the skills to sell
her ideas to the clerks, or even include the clerks in decision-making processes.
5. Implementation
[Please note that the assignment table cannot be displayed on this screen.]
[IMG-11]
[11]
References
Robbins, S.P., Bergman, R. & Stagg, I. (1997). Management (1st ed.). Sydney: Prentice Hall.
[1]
Reference missing
The student's sentence contains a paraphrase of information coming from another writer. Therefore, a
reference is needed. Although the student has used her own words instead of quoting, the same referencing
rule applies to both situations.
[2]
Discuss theory
The information here is important. The student needs to introduce and discuss the origin of these concepts
(e.g. Herzberg's Motivation-Hygiene Theory; positive/negative feedback, empowerment, etc.). Don't forget to
provide a correct reference when referring to a source reported in a second source (See next comment).
[3]
Referencing problems
The concept of motivators comes from Herzberg, although Robbins et al. is the source. When referring to a
source quoted in a second source, reference as follows:
... (Herzberg, cited in Robbins et al., 1997.)
[4]
Good use of theory
The student has followed through from the theory provided earlier from Hershey and Blanchard and applied it
to the situation in the WPC. This is precisely what is meant "by applying and interpreting the literature".
[5]
Symptoms not major problems!
The student has not provided any theory here or direct links to the management problem areas. Both these
sections, 1.4 (Lack of interpersonal skills) and 1.5 (Lack of initiative), describe symptoms of poor
communication and poor motivation. They should be discussed under those headings.
Apart from these two sections, the overall section contains some good ideas. However, it is very brief
considering that the Problem Identification section is worth 25% of the total assignment marks.
[6]
Very thorough!
Alternative solutions have been well defined here. The advantages and disadvantages are clearly set out, are
specific to the situation, and are presented objectively.
[7]
Rewrite more concisely
Some of the solutions presented in this section could be expressed in a shorter, more concise way. For
example, 3.1.3 could be written as follows:
3.1.3 Set Attainable Goals
Create attainable goals which encourage a reasonable level of typing accuracy.
Refer to Topic 2: 'Generate Solutions' in the Skills for Writing in Management section of the
module.
[8]
Reference missing
Even though Maslow's name is mentioned, the student still needs to include a date after this writer's name in
the reference, i.e. Maslow (1954, cited in Robbins et al., 1997). Note that this information will tell the reader
that Maslow's theory predates the source given.
[9]
Good use of theory
The student pinpoints the precise element of the theory which is relevant to this part of the case study.
[10]
Too brief
Just because the student has nearly finished does not mean she should skimp on the information needed, as
this can lose marks overall. A much better impression would be made if she dealt with each point at the same
length she has treated similar points.
[11]
Inadequate references
Referring to just the main textbook is not sufficient. The student needs to show that she has consulted
several different sources. This is a critical part of the research and writing task at university.
Marketing assignment
This tutorial contains information about writing based on materials from the first-year subjects Marketing
Theory and Practice, Introduction to Marketing, and Tourism Marketing. You will also find much of the
information to be useful for your other Marketing subjects. Navigate through the tutorial using the Table of
Contents on the left. The tutorial's three main sections are outlined below.
Lecturer's advice <www.monash.edu/lls/llonline/writing/businesseconomics/marketing/1.xml>
Get information from the lecturer about what is required for Marketing assignments.
Skills for writing in Marketing <www.monash.edu/lls/llonline/writing/businesseconomics/marketing/2.xml>
Learn to write better assignments through interactive tasks.
Annotated assignments <www.monash.edu/lls/llonline/writing/businesseconomics/marketing/3.xml>
View samples of student work with lecturer and student comments.
Lecturer's advice
In this section, one of your lecturers - Ian Walker - answers Frequently Asked
Questions (FAQs) about researching and writing of reports in first-year Marketing.
FAQs: Click on those topic areas that are of interest to you, or that you need to know more about.
1. What should I be aiming at in a first-year Marketing report? <www.monash.edu/lls/llonline/#faq1>
2. How are Marketing assignments evaluated? <www.monash.edu/lls/llonline/#faq2>
3. What are the main difficulties first-year students have with writing Marketing assignments?
<www.monash.edu/lls/llonline/#faq3>
4. How much reading should I do? <www.monash.edu/lls/llonline/#faq4>
5. Is the approach to writing different from VCE? <www.monash.edu/lls/llonline/#faq5>
6. How can I be "original" in Marketing assignments? <www.monash.edu/lls/llonline/#faq6>
7. What is "critical thinking" in first-year Marketing? <www.monash.edu/lls/llonline/#faq7>
8. What can I use as "evidence" in Marketing? <www.monash.edu/lls/llonline/#faq8>
9. How should I be using the theory in my assignment? <www.monash.edu/lls/llonline/#faq9>
10. What's a good overall approach to researching and writing marketing assignments?
<www.monash.edu/lls/llonline/#faq10>
1. What should I be aiming at in a first-year Marketing report?
Summary:



Using theory to understand practice
Researching carefully
Presenting clearly
Students should aim to start thinking about the marketing theory they have been learning and to begin using
that marketing perspective to better understand specific industries/organisations that are operating in the
marketplace. These can be profit-oriented organisations, nonprofit, large, small, local, or international.
Students should gain a recognition of the role marketing can and does fulfil, and also see that there is a wide
range of information available from a range of sources that can be used by organisations for analysis. In
writing the report students should understand the need for a concise, clear, well-argued, and well-presented
document that identifies the main issues which, in the real world, can be used by management to make
decisions.
Back to top <www.monash.edu/lls/llonline/#faqs>
2. How are Marketing assignments evaluated?
Summary: Markers look at the quality of your




understanding
research
analysis
presentation
A good assignment should demonstrate an understanding of the terminology and how the various
forces/influences impact an industry and an organisation.
In a good assignment, the student identifies and analyses the main issues asked for in the question. These
issues are well-presented and concise; they are appropriately referenced, and the information is supported by
the referenced sources of information used. Finally, the analysis is supported by the data and material is
presented as a business report not an essay.
The unit outline provides a detailed list of expectations and information that is expected at each grade level
and what differentiates each grade.
Back to top <www.monash.edu/lls/llonline/#faqs>
3. What are the main difficulties first-year students have with writing Marketing
assignments?
Summary: Students may not realise what they themselves need to do to find out what's required







Not knowing where to start: starting the assignment too late and therefore rushing to finish it on time
Not reading the instructions in the unit outline detailing what is required in the assignment
Not asking questions of their tutor/lecturer about the assignment
Not realising that a business report is quite different from much of what they've previously done,
especially in secondary school
Not understanding how to reference information used or the importance of that referencing from an
academic perspective
Presenting a view they may have of something, rather than a logical, well-developed argument based
on analysis of the information
Not understanding the function of the executive summary section: i.e. it is not an introduction but a
summary of the main points and findings/recommendations of the report
Back to top <www.monash.edu/lls/llonline/#faqs>
4. How much reading should I do?
Summary: Relevant parts of the text book, plus relevant items in reports, magazines, and media
The basic reading required is the text which provides the initial perspective for this assignment. The next
sources of information are current reports (both print-based and electronic) available through the library that
provide much of the information about different industries and the macroenvironment (IBIS reports, statistical
information, economic analysis, and forecasts). Additional information is often found in business magazines
and the business press. The amount of reading does not have to be excessive. Relevance is important, as
not all macroenvironmental factors are equally important or relevant to all industries/organisations. Students
should be guided in their selection of reference material by 1) recommendations on the unit web site, 2)
suggestions found in the unit guide, and 3) specific recommendations from the lecturer/tutor and librarians.
Though they'll actually read more than this, students who do well commonly have 8+ sources in their
reference lists.
If students can't find much material on their second product or the marketing mix of the companies, they can
seek advice from their tutor and/or lecturer. In most cases information is available or it can be sourced for
most industries/organisations.
At this introductory stage we are not expecting students to be finding "weaknesses" as such in
theories/readings. It's good if they can check out the relevance of the theory to a particular
industry/organisation and see how using that theory might have an impact on its operations.
Back to top <www.monash.edu/lls/llonline/#faqs>
5. Is the approach to writing different from VCE?
Summary: A business report has a specific structure, its content is research-based, and it uses specialised
language
The business report is less likely to have been used in VCE so students are unlikely to be familiar with its
format. A business report is concise but with sufficient detail to allow those reading it (management) to use it
to make decisions. It should also have data and information that support the conclusions/recommendations of
the report. This is not so much a report based on opinions but on the evidence and information collected by
students during their research. Students need to develop analysis skills and become familiar with the sort of
analysis seen in the business press and business publications.
A good starting point is to read the business section of newspaper such as The Age, The Australian, or their
equivalent in other countries ( The South China Morning Post, The Straits Times, etc.). Also read business
magazines such as the Business Review Weekly (local Australia) or its equivalent in other countries ( Far
Eastern Economic Review, Asian Retailer, etc).
Back to top <www.monash.edu/lls/llonline/#faqs>
6. How can I be "original" in Marketing assignments?
Summary: Students can be original in their perspective, their choice and use of sources, their insight into
circumstances
This is a difficult one as originality may be many things, such as:



the perspective that the student provides through their analysis of the information they collect
their use of references that may add to their understanding
the insight and interpretation of the circumstances facing an industry or organisation they provide
Originality must always be supported by the data and information and not just thrown in because it sounds
good. Creative examples include such things as:



presenting the information in graphs and/or diagrams that clearly show the main point of that data,
and using a clear explanation of the graph/diagram
identifying an emerging - less obvious - issue that may/will impact the industry/organisation
providing insight/understanding about the forces and influences that impact organisations and
industries
Back to top <www.monash.edu/lls/llonline/#faqs>
7. What is "critical thinking" in first-year Marketing?
Summary: Thinking about who is putting forward the information, identifying what's important, thinking of
future implications
Not accepting anything at face value. Asking questions. Challenging information, its reliability and relevance.
For example when analysing the information researched, being able to identify the more appropriate and
important influences that relate to their industry/organisation. Making judgements based on the data that can
lead to a particular strategy or direction for an organisation.
Back to top <www.monash.edu/lls/llonline/#faqs>
8. What can I use as "evidence" in Marketing?
Summary: Statistics, company data, information about economic and demographic trends
There is a variety of things students can use for evidence. Reference information from reliable sources such
as the ABS (Australian Bureau of Statistics) data about economic or demographic trends. IBIS database
(available through the library) trends and information. Whilst newspapers and magazines are less reliable,
they can provide information about industries, economic and demographic trends, and influences, etc. that
can support generalisations.
Back to top <www.monash.edu/lls/llonline/#faqs>
9. How should I be using the theory in my assignment?
Summary: The theory provides the framework and the definitions
The theory provides the framework from which to look at and understand the assignment question and to
provide a perspective for examining the research data. The text provides the basic theory about marketing
and the terms used such as an explanation of the marketing environment and specifically the
macroenvironment.
Back to top <www.monash.edu/lls/llonline/#faqs>
10. What's a good overall approach to researching and writing Marketing assignments?



Begin your research EARLY; don't leave it until the last minute.
Ask questions of your lecturer/tutor.
Try to relate some of the marketing theory to yourself (this helps provide some insight, understanding
and relevance).
Back to top <www.monash.edu/lls/llonline/#faqs>
Skills for writing in Marketing
In this section, you have a chance to practise skills to help you with your report writing for Marketing.
The materials cover three broad topics and include a range of practice tasks. Some of these tasks introduce
advice and comments from Helen, Amanda, Briohny, and Troy, the four students whose assignments you'll
find under Annotated Assignments. Select those topics you'd like to work on.
Topics:



Research <www.monash.edu/lls/llonline/writing/business-economics/marketing/2.1.xml> From researching to writing
Structure <www.monash.edu/lls/llonline/writing/business-economics/marketing/2.2.xml> Structuring the report
Using sources <www.monash.edu/lls/llonline/writing/business-economics/marketing/2.3.xml>
- Using sources in your writing
Research
In order to move quickly into the research for the major assignment, you need to think very practically about:


the topic area (product/target market) you want to investigate
the two companies you want to investigate
Talk to other students, ask your tutor and make use of tutorials.
How to decide on a topic?
Get real
As soon as you get the assignment, mentally evaluate which topics are most viable. To make
sure it was possible to get info on the coffee market, I searched for the topic on Dow Jones
interactive database. Plenty of articles (200+) were found. If there were not enough, I would
have changed my topic.
Once you have found there are enough resources, you know you'll be OK. Don't download them all though.
Get a life
I thought I'd focus on the Consumer Services area, specifically the fast-food industry - I'm
more interested in services and also I work at McDonald's. I would be able to relate the
macroenvironmental forces to this, making it easier for me as I could picture examples.
Trying to relate life to work and vice versa is always good. It makes you more motivated for both.
Get lucky
Choosing the topic market was one of the hardest parts. If you made a bad decision, it would
have made things very tricky.
If you start early enough, you can change your mind if need be. You can also email/call on your tutor to check
it with him/her.
Making the best use of class discussion
The class discussion clarifies the purpose of the assignment
Ask as many questions as possible. Don't worry about sounding "dumb". Ask any question
you can think of, no matter how silly it may sound.
The tutor would make a point of saying that some things were important for the assignment.
Immediately I would make a note at the top of the page for late reference. But by Week 9,
because I hadn't yet chosen an industry, I was at a little disadvantage: I couldn't ask topicspecific questions and get some input from the tutor.
What is research?
Is it:
1.
2.
3.
4.
Looking up sources of information?
Looking up sources of information to see which are most relevant?
Looking up sources of information to see which are most relevant and skim-reading them?
Looking up sources of information to see which are most relevant, skim-reading them, then
identifying the most important points for your assignment?
The first three are information gathering and are thus an important component of research. "Research"
covers the whole process spelled out in number 4.
Note that identifying the most important points can involve:



just highlighting
some notetaking
a rough plan
What does research for first-year marketing involve?
Marketing may be the first subject where you get your first real experience of what it's like to do university
research.
Researching is an art which requires practice. Don't be disheartened if your mark is not as high as you'd
hoped. It's a learning experience - don't leave yourself too little time to learn.
I quickly skimmed content of articles and found those most appropriate to the two areas to be
discussed - macroenvironment and coffee market; and marketing mix of two companies. A
very tedious task! But necessary. I read through my final chosen articles (about 15) and
highlighted segments of particular interest. I found an industry report on the IBIS World
database. It was 50+ pages so I used the computer to search for the word "coffee" to direct
me to the important areas.
Amanda describes her searching as "tedious" and, yes, it is routine. Notice that, at each point in the process,
she's exercising her judgement, making decisions, working out strategic short cuts.
The more you research and the more you read the better understanding you get
You do need to be realistic about what you will need - and use - for a 3,000 word report. It's expected that
you'll cite around five sources minimum of whatever kind for your assignment.
Finding time
Click on the highlighted text to see the comments.
In a survey of first-year Marketing students after completing Assignment 2, 65% said they should have
started work on it sooner.
As you'll find out, one of the first skills for writing a good Marketing report is figuring out how much time you'll
need to complete each task and subtask.
How long do you think it would take you to research the major assignment?
Examine the following time chart showing how three students spent their time in the four weeks
before the assignment was due. How effectively do you think each one has used their time?
Amanda
Week 8
Looked up product on Dow Jones
database and skimmed articles found
Briohny
...waited...
Troy
...waited...
Drafted Part 1
Week 9
Borrowed books from
Library
Visited supermarket and looked on
product web site for Part 2.
Quickly looked on
internet
...waited...
Drafted Part 2
Read books and
searched internet further
Week 10
Reworked report (four drafts in total)
Waited a day, then finalised it
SUBMITTED
Wrote plan, and one
third of report
...waited...
Week 11 Report due
Looked up books in
library
Looked on internet for
organisations
Did two thirds of report
on PC
...waited...
Did final third and
proofread
SUBMITTED
Did plan and Part 1 on
PC
Did Part B
Reread research and
instructions
Proofread
SUBMITTED
[1]
Feedback
[1]
While the three students used their time rather differently there seem to be four things they did in common:
Activities
A. Looking up the
product/organisation
On database(s)
On www
On library catalogue
On site 1
B. Reading
Hard copy 2
On screen
C. Writing Plan
Two of the three students wrote a plan
Both wrote plan and Part 1 simultaneously
D. Drafting/writing report
Students took 1-3 weeks to complete report
Only one student produced a number of separate
drafts 3
1.
2.
3.
Looking up a product in the supermarket
For this assignment, the three students did more highlighting text than notetaking (note that this is not the best method for
every assignment)
This student - who started drafting earliest and spent most time on the drafting - received the highest mark
So, while the activities (A-D) were common, and some of the methods were standard, there were still some
variations in approach. The student who started first did the best.
In first year for most subjects you need to do more research than you did in Year 12. This
takes more time than you might expect. There's no teacher at your side saying "You should
have finished looking up books and articles by the end of this week!!"
Locating sources
So many sources. So little time.
What to do?
Which sources would be appropriate to use for this assignment? Tick the appropriate boxes.
Books
Encyclopedia articles
Journal articles
Magazine articles
Newspaper articles
Press releases
Product web sites
Product sites (e.g. supermarkets, department stores)
Product labels
Advertisements
Click on the highlighted text to see the comments.
[1]
Check your answer
How would you go about locating these sources?
[2]
Check your answer
[1]
Appropriate sources are:
Part 1





books
journal articles, magazine articles, newspaper articles (many available electronically)
industry reports (many available electronically)
product web sites
product sites (e.g. supermarkets, department stores)
Part 2







Books
journal articles, magazine articles, newspaper articles (many available electronically)
industry reports (many available electronically)
product web sites
product sites (e.g. supermarkets, department stores)
product labels
media advertisements: hoardings (posters), TV, radio, magazines
[2]
Appropriate locations are:







Monash Library's Voyager Catalogue
IBIS World database
ABI Inform database
Dow Jones interactive
Internet sites
Product outlets/retailers
TV, radio
Once you start looking, you find information all over the place: on the side of trams, at railway
stations, talking to people. I visited the supermarket to choose my two coffee companies.
There were many more resources I could have used - like the CDs - but time was not
permitting. It's easy to leave things to the last minute now there's no required draft, and noone is checking up on you.
Probably the best resource to help you identify what you need to do for your research is the Monash Virtual
Librarian site and the Marketing Subject Guide. This covers:






Before you start
Books
Using databases
Journals
Internet
Other useful information
Research is something I always tend to underestimate, and find myself running out of time.
Either that or all the good stuff has already been taken. Memo to self: must go in at least four
weeks early when fewer people are thinking about the assignment; that way all the books
should be there.
What happens then is that you need more time to integrate all the different info: I used a lot
of subheadings in my planning for the different aspects of the marketing mix to organise my
information. That way I would not neglect any area that had to be dealt with.
Structure
Click on the highlighted text to see the comments.
Some guidelines for structuring the [1]major assignment.
Executive
Summary
Outline the major sections of the report, saying what your main findings were.
Table of
Contents
Introduction
Choose industry - DEFINE IT. Briefly outline purpose, scope (what you're going to
cover), and any background needed to understand the industry.
Part 1
Macro forces - what are they, how does each one affect your topic area? Name them
all; don't leave any out. As you examine each one, add in more detail for most
important ones. Include positive and negative impacts, actual or possible effects
(short-term, long-term).
Sum up.
Part 2
Marketing mix - define. Choose two companies, discuss differences.
Company 1: how positioned in the market, primary target markets; marketing mix
(4/7Ps).
Company 2: how positioned in the market, primary target markets; marketing mix
(4/7Ps).
Comparison
Sum up the major points of comparison between the two companies. Where are they
similar, where different?
Conclusion
Briefly overview the industry, highlighting most significant elements of macro forces
discussion for Part 1, and then assess the position of the two companies, comparing
marketing mix and other important differences for Part 2.
Reference List
List only those references you cite in the report.
Be sure you use informative headings to guide your reader throughout the report.
Drafting
Most students do their first draft straight on to the computer. One student, Briohny, feels more comfortable
writing first, then word-processing later:
Hand writing helps me think more clearly in the early stages of planning and writing an
assignment. I can write more quickly than I can type. I can carry my paper around and jot
things down as I think of them.
How do you prefer to work? How might this impact on your effectiveness?
I keep my references handy so I can keep reminding myself, for example, what "macro
forces" are as I write.
I do further research during the writing process - that was because I found areas that needed
further investigation.
>Before printing it off, I quickly checked through the assignment to check for any mistakes. I
don't like doing this and usually don't do it in great detail which is one of my faults - I'd rather
not see the problem than have to fix it. This is another reason why I should start my
assignments early - so I have an extra day to go through and perfect them.
[1]
Assignment 2
Select a specific product/target market from within the broad areas identified below and:
1. Discuss how the macroenvironmental variables have had an impact on this market making
sure you show that you understand all the macroenvironmental variables that are likely to
have an impact.
2. Identify two different marketing mixes used by two different companies to target the market
you have identified.
Use examples to support your discussion where appropriate.
Method of structuring
Click on the highlighted text to see the comments.
There is a limited number of ways you can structure a report. For Part 2 of the Marketing report, there are at
least two ways you can think about structuring it:
Method 1
Company A
Target Market
Market Positioning
Marketing Mix (application of marketing mix to the target market)
Company B
Target Market
Market Positioning
Marketing Mix (application of marketing mix to the target market)
Comparison
Conclusion
Method 2
Target Market - Company A, Company B
Market Positioning - Company A, Company B
Marketing Mix - Company A, Company B







Product - Company A, Company B
Price - Company A, Company B
Promotion - Company A, Company B
Place - Company A, Company B
People - Company A, Company B
Process - Company A, Company B
Physical Evidence - Company A, Company B
Conclusion
What might be the advantages and disadvantages of each?
[1]
Check your answer
[1]
With Method 1, you give yourself a very clear-cut approach: you can see how much you're writing on each
and you can, to a certain extent, imply comparison throughout the Company B section. You do need to be
careful to write a fairly thorough and explicit Comparison section before your conclusion, though.
With Method 2, you run the risk of getting yourself a little confused trying to coordinate your information for
the two companies throughout. If it's well done, this can still be a good approach. You won't necessarily need
a Comparison section, because you have been comparing all the way through.
Writing the introduction
Click on the highlighted text to see the comments.
The introduction and the conclusion are key elements in the structure of your report. They are the bookends
that stop the bits in the middle collapsing, if you like.
There are some important things you need to do in the introduction:




You need to define what you are going to talk about. Otherwise your marker can't tell if you've
talked about it meaningfully or not.
You need to show your marker what you are trying to do with your topic - your direction.
You need to show your marker what you are going to cover (and what you're not, if need be).
You need to give your marker background information necessary to their understanding.
The following sample introduction has both strengths and weaknesses. Read it and see where you
think the strengths and weaknesses lie.
Introduction 1
1.1 Purpose
The purpose of this report is to identify how Westpac Banking Corporation and ANZ Banking Group use
the marketing mix to attract their specific target market.
1.2 Background
Over the past 20 years, the banking industry in Australia has experienced significant pressures from a
number of areas that have changed "and continue to change the landscape of the banking industry" (Ibis
Report). The de-regulation of the financial system in the1980s has arguably had the greatest impact on
the banking industry; however, the ever-increasing influence of technology also cannot be over-stated.
The four major banks collectively control 73% of industry assets (Ibis World). The market segments
comprise individual clients (53%) and the commercial sector (35%), with governments and financial
intermediaries having a lesser influence (Ibis Report)
[1]
Feedback
Do the same with this sample introduction.
Introduction 2
Pre-mixed drinks were introduced in response to the demand of a segment in the alcoholic beverage
market, especially by the younger age group who did not like the taste of stronger alcoholic drinks. In
general, the pre-mixed alcoholic beverage industry includes wine coolers and spirit-based products. For a
while they were also called the "alcopops" which were also tagged "New Age drinks" (Simpson, 2000,
p.16).
For the purposes of this assignment, the focus will be on the pre-mixed alcoholic beverage industry in
Australia, concentrating on one of the older products, and one of the newest, Bacardi Breezers, with
regard to differing marketing mixes.
[2]
Feedback
[1]
Introduction 1
1.1 Purpose
The purpose of this report is to identify how Westpac Banking
Corporation and ANZ Banking Group use the marketing mix to
attract their specific target market.
1.2 Background
Over the past 20 years, the banking industry in Australia has
experienced significant pressures from a number of areas that
have changed "and continue to change the landscape of the
banking industry" (Ibis Report). The de-regulation of the financial
system in the1980s has arguably had the greatest impact on the
banking industry; however, the ever-increasing influence of
technology also cannot be over-stated.
The four major banks collectively control 73% of industry assets
(Ibis World). The market segments comprise individual clients
(53%) and the commercial sector (35%), with governments and
financial intermediaries having a lesser influence (Ibis Report)
[2]
A definition of the banking industry would
have been useful. It is helpful to outline
the overall purpose of your report.
As above, while it is useful to have
background - and the background here is
good - you do not have to use numbered
sections unless you want to.
The student has clearly done useful
research. It would also help the reader to
have the scope of the report spelled out
in the introduction. The three references
to Ibis World should have been more
specific
Introduction 2
Pre-mixed drinks were introduced in response to the demand of a
segment in the alcoholic beverage market, especially by the
younger age group who did not like the taste of stronger alcoholic
drinks. In general, the pre-mixed alcoholic beverage industry
includes wine coolers and spirit-based products. For a while they
were also called the "alcopops" which were also tagged "New Age
drinks" (Simpson, 2000, p.16).
This introduction jumps too quickly into
the background: you need to orient your
reader to the nature of the report and its
focus at the outset. Defining the
industry would be useful.
Good use of reference here - gives
added understanding of the industry.
For the purposes of this assignment, the focus will be on the premixed alcoholic beverage industry in Australia, concentrating on
Very clear presentation of the scope.
one of the older products, and one of the newest, Bacardi Breezers,
with regard to differing marketing mixes.
Writing the conclusion
Click on the highlighted text to see the comments.
When you finish writing, leave yourself time to stand back from your report so you can get some perspective
on it. Read the whole thing through again, making notes before you start the conclusion.
There are some important things you need to do in the conclusion:




You need to link it to the rest of your report.
You need to highlight the significant elements from your report (from both parts).
You need to draw out the main points you want to make about the topic - and make them at a
general level.
You need to avoid introducing new material.
Read the following sample conclusion. Note how it is organised and see where you think the
strengths and weaknesses lie.
Conclusion 1
It can be seen then that differences do exist between Coca-Cola and Pepsi Cola. This can be seen in the
marketing variables which are the basis for segmentation such as age and geographic variables. In a
competitive market, both companies must identify and target different market segments in order to remain
at the cutting edge. Differences between the companies are evident with respect to product, pricing, place
and promotion. Coca-cola relies heavily on value: quality is more than something we see or taste.
(http://www.coca-cola.com). Pepsi, on the other hand, relies on its success resulting from superior
products and high standards of performance (http://www.pepsico.com).
[1]
Feedback
Now do the same with this conclusion.
Conclusion 2
Organisations in our era are extremely sensitive - as they must be - to demographic, political,
technological and economic developments. Environmental changes most affect strategic perspective.
With respect to the marketing mix, quality in the biscuit industry is a key factor. For example, Arnott's uses
its Sunshine brand to compete at the budget end of the market, but promotes its own brand on the basis
of quality at the upper end. Competition with non-biscuit products such a snack food and confectionery is
partly on the basis of packaging. Even though the two companies have different specialities, the price,
distribution and promotion are very similar. It can be seen that Arnott's have a stronger market share than
Nabisco due to stronger promotion, more variety of products and brand loyalty.
An effective marketing program brings together all of the elements of the marketing mix to achieve the
organisation's marketing objectives by delivering to customers what they want and need. Thus, the most
successful companies will be those that can meet these needs most effectively
[2]
Feedback
[1]
Conclusion 1
Good - refers back to
the comparison.
It can be seen then that differences do exist between Coca-Cola and Pepsi Cola.
This can be seen in the marketing variables which are the basis for segmentation
such as age and geographic variables. In a competitive market, both companies
must identify and target different market segments in order to remain at the cutting
edge. Differences between the companies are evident with respect to product,
pricing, place and promotion. Coca-cola relies heavily on value: quality is more than
something we see or taste. (http://www.coca-cola.com). Pepsi, on the other hand,
relies on its success resulting from superior products and high standards of
performance (http://www.pepsico.com).
Needs more explicit
focus on most
significant macro
forces from Part 1
Sums up main points.
Highlights significant
features from Part 2.
This section is
sounding too much
like a promo from the
sites.
[2]
Conclusion 2
Good attempt to raise the
significant elements from Part
1.
Organisations in our era are extremely sensitive - as they must be - to
demographic, political, technological and economic developments.
Environmental changes most affect strategic perspective. With respect to the
marketing mix, quality in the biscuit industry is a key factor. For example,
Arnott's uses its Sunshine brand to compete at the budget end of the market,
but promotes its own brand on the basis of quality at the upper end.
Competition with non-biscuit products such a snack food and confectionery is
partly on the basis of packaging. Even though the two companies have
different specialities, the price, distribution and promotion are very similar. It
can be seen that Arnott's have a stronger market share than Nabisco due to
stronger promotion, more variety of products and brand loyalty.
This is a little too specific for a
conclusion: the student needs
to focus on drawing out main
points at a general level.
Some of this could have been
positioned earlier in the report
rather than in the conclusion.
Good here - gets back on the
track of the significant
similarities and differences.
An effective marketing program brings together all of the elements of the
Good general level of
marketing mix to achieve the organisation's marketing objectives by
discussion here, though could
delivering to customers what they want and need. Thus, the most successful
be referring to the industry.
companies will be those that can meet these needs most effectively
Using sources
"Originality is the art of concealing your sources."
Malcolm McLaren, philosopher and manager of the Sex Pistols
It is likely that your university lecturer will not agree with Malcolm McLaren.
One of the main difficulties identified by first-year Marketing students is how to integrate source material
without running the danger of plagiarising.
At school, the main sources you consulted were textbooks. At university, it is important to consult a range of
sources, and so you will be faced with an array of different text types.
As a Marketing student, you are expected to:



research your topic
come to an opinion or view about the topic area
use marketing theory to frame your response
Thus, you are not simply putting forward a lot of information about your topic. You are producing your own
original piece of research with your own interpretation.
How to do this? To start with, it's important to realise that much of the material you read for the marketing
report is often not the best model for how you are expected to write as a Marketing student.
Why? Let's begin by considering how textbooks and other sources actually function. Textbooks are works
written especially for students, and thus they attempt to present a body of knowledge in a coherent form for
general consumption. But you are not expected to write as if you were writing a Marketing textbook.
Some other sources you can read and model your writing on include the following:


works of original scholarly research, presenting knowledge that other researchers can build upon
other types of texts which disseminate or pass on information.
Types of sources
Which of the following are about research ("knowledge generating") and which are about passing on
information?
Type
Answer
journal articles
magazine articles
newspaper articles
industry reports
product web sites
Magazines and academic journals
Magazine and academic journal articles have some very different features. If you want to model your writing
on the style of academic journals, you should study the features of research writing so you can begin to use
them in your own writing.
Read the following extracts and try to decide which are from a magazine and which come from an academic
journal. How can you tell? What differences are there between them?
(You may come across some unfamiliar expressions in these passages. Just make a guess at the general
meaning and keep on reading, as you would for any academic research.)
The first example is done for you:
Example extract
The Hispanic Consumer Panel had its origins about five years ago. "We saw a need to understand what
Hispanics were purchasing", Greenberg says. "There was nothing really available that fully captured
Hispanic purchasing behaviour. Some services just included acculturated Hispanics, others were not
capturing urban consumers and, in many cases, the information was not continuous, so you couldn't
compare households from one year to another."
Your answer:
Journal
Magazine
Magazine
The writer does not source the information. The opinion quoted is presented in direct speech and we have no
way of checking up if that person said what he is reported to have said.
Let's see what the passage might have been like if it appeared in an academic journal:
The Hispanic Consumer Panel had its origins about five years ago (Greenberg 1998). It was conceived
with the intention of exploring Hispanics' purchasing behaviour, as there was a dearth of research on the
topic. There were problems with the research which had previously been conducted: much of it had been
limited to acculturated Hispanics; or did not capture urban consumers; or did not lend itself to longitudinal
studies (Greenberg, 1998, p. 10).
Now complete the remaining task questions.
Extract 1
Strack (1992) argues that people may engage in a judgement correction process subsequent to forming
their initial judgement about a product. This correction process may occur when people perceive that
potentially biasing influences may have affected their initial judgements (Martin and Achee 1992).
Your answer:
Journal
Magazine
Extract 2
E-commerce is creating some unlikely bedfellows in South Korea. The country's chaebols, or family-run
business groups, are going on-line, but they are hamstrung in the rapidly morphing market by their lack of
flexibility. Meanwhile many of the nation's dotcoms are going broke as the money bubble bursts. The
result? A blossoming of alliances between the two that could signal a fundamental change to the
chaebols' monopolistic ways.
Your answer:
Journal
Magazine
Extract 3
In the drug business, marketing is now as important as science.
Most people in the pharmaceutical industry firmly believe that successful drugs are the result of
breakthrough science. Drug companies have notoriously high R and D budgets, and the output of their
new product development tends to be prolific. The Swiss drug giant, Novartis, for example, has 166
projects under development. Indeed, a large proportion of the recent M and A activity in pharmaceuticals
has been driven by a desire to expand the R and D pipeline.
R and D = research and development
Your answer:
Journal
Magazine
Extract 4
Every day, U.S. consumers are exposed to no less than 1000 commercial messages (Kotler 1997).
Regardless of their content and the techniques they employ, most messages share a common final goal:
persuading target consumers to adopt a particular product, service or idea.
Your answer:
Journal
Magazine
Extract 5
Figure 1 summarises the key issues in addressing information assymetry about product quality, which
occurs for "experience products" (Nelson 1974), that is, products whose quality can be evaluated only
after purchase. Quality-sensitive buyers are unsure about the true quality of the seller's product.
Note: Information assymetry occurs where the parties have differing amounts of information regarding the
transaction.
Your answer:
Journal
Magazine
First-year standards
Click on the highlighted text to see the comments.
Although the assignments had deadlines, they're still a lot broader than for Year 12 and so
you need to make the effort to clarify things with the tutor, lecturer, or past students. There
are a lot more resources and materials to get lost in - that's why research needs to be started
a lot earlier.
You will find the better models for the kind of writing you need to produce as a student in the academic
journals such as the Journal of Marketing, the Journal of Marketing Research, the Journal of Consumer
Research. In first year, you read text books (such as Kotler) and a range of other information sources. Only a
few of these are likely to be research journals, so you need to read these carefully. Pay attention to the style
of academic journals so that your own academic writing style can develop.
When you are in the workforce, your writing styles will need to change again. By that stage, the kind of writing
that is appropriate in that context may be much more like that of the industry reports and trade magazines
you use frequently now! So all your academic and professional writing is interlinked throughout your life. But it
is important to be very aware of which kind of writing is appropriate when.
Consider the following excerpts from three satisfactory Year 12 Business Management reports. Because the
subject is Business Management and thus is similar in that it is also a business report, you might think at first
that the same kind of writing is acceptable in first-year Marketing, but it is not.
In what ways do you think these Year 12 reports might not be satisfactory for first-year Marketing?
Excerpt 1
My personal objectives were to understand how an organisation responds to pressures for policy change
and see how the company's Training and Development policy could succeed in addressing those areas in
need of improvement.
The information required will involve an examination of the previous Training and Development policy,
including the pressures faced by management in regard to change, and a detailed account of the policy
response to the pressures. An assessment of the comprehensiveness of the company's policy response,
and its effect on structures and activities must be addressed. I will also need to establish appropriate
criteria for evaluating the policy response, as well as provide an assessment of the policy with regard to
these criteria. Finally, an explanation of the organisation's likely management response to Training and
Development in the future will be provided.
[1]
Feedback
Excerpt 2
Arnott's Ltd. is the organisation from which a policy response was gained. Arnott's is the largest biscuit
manufacturer in Australia, as well as the 7th largest in the world. Every year, Arnott's turns over 26,000
tonnes of biscuit and makes $900 million in sales revenue. A continued emphasis on International
Competitiveness (IC) is essential in keeping Arnott's at the forefront of biscuit manufacturing.
Central to Arnott's policy response was the introduction of the Quality Enterprise Philosophy (QEP), which
was a bridge to make Arnott's more IC. The theoretical basis of the QEP was for Arnott's to become
customer driven in cost, quality, and service 1 Other characteristics of the QEP are:





Responsibility for managing the worksite allocated to those doing the work
Flexible production systems based on short cycle times and zero defects
Team approach with flexible, skilled resources
Strong reciprocal obligations defining relationships
Decisions and actions based on facts (data).
1. Arnott's information pamphlet.
[2]
Feedback
Excerpt 3
Blockbuster Music's main competitors are Brash's and Homeshow, both of which are also situated on
Chapel Street. Blockbuster Music has a competitive edge over their competitors mainly due to the size of
their store and the amount of stock and variety.
Blockbuster Music also has the well publicised policy of guaranteeing that if they don't have the CD you
are looking for, they will take five dollars off the price for you when they get it in.
Blockbuster Music is one of the few stores that actually allows the consumer to try a product before they
purchase it. This is the case with both CDs and video games. This policy is especially important at the
moment due to the recent release of the Nintendo 64. With many people looking to buy the latest in
electronic multimedia, retailers of this ilk are focussing heavily on the sale of the new unit and are after
any competitive advantage they can get.
[3]
Feedback
[1]
Excerpt 1
My personal objectives were to understand how an
organisation responds to pressures for policy change and see
how the company's Training and Development policy could
succeed in addressing those areas in need of improvement.
Personal objectives, outlined to fulfil criteria
for Year 12 writing tasks, are usually not
expected in a university assignment.
The information required will involve an examination of the
previous Training and Development policy, including the
pressures faced by management in regard to change, and a
These sentences could be taken from a
detailed account of the policy response to the pressures. An
university-level report.
assessment of the comprehensiveness of the company's policy
response, and its effect on structures and activities must be
addressed.
I will also need to establish appropriate criteria for evaluating
the policy response, as well as provide an assessment of the
policy with regard to these criteria. Finally, an explanation of
the organisation's likely management response to Training and
Development in the future will be provided.
This sentence reverts to the personal
involvement of Paragraph 1. Because the
approach in university writing, while
responding to task requirements, is largely
self-directed, you would say something like:
"Criteria will be established and policy
assessed..."
[2]
Excerpt 2
Arnott's Ltd. is the organisation from which a policy
response was gained.
Arnott's is the largest biscuit manufacturer in
Australia, as well as the 7th largest in the world.
At university, this statement would require a
reference.
Every year, Arnott's turns over 26,000 tonnes of
biscuit and makes $900 million in sales revenue.
This one would, too.
This observation sounds like general knowledge, but
A continued emphasis on International
perhaps there are some companies for whom this
Competitiveness (IC) is essential in keeping Arnott's would not be the case. That means it would be
at the forefront of biscuit manufacturing.
someone's opinion; hence at university a reference
would be needed.
This statement could be regarded as introducing the
next statement which is referenced, but there are two
Central to Arnott's policy response was the
problems with this: The "bridge" sounds as if it's taken
introduction of the Quality Enterprise Philosophy
from somewhere so it should be paraphrased; and
(QEP), which was a bridge to make Arnott's more IC.
"Arnott's information pamphlet" may not be enough
The theoretical basis of the QEP was for Arnott's to
(maybe Arnott's has a lot of information pamphlets).
become customer driven in cost, quality, and service
Note that the reference is presented as a footnote and
1.
so is not done according to the Harvard (in-text) style
required for Marketing assignments.
Other characteristics of the QEP are:





Responsibility for managing the worksite
allocated to those doing the work
Flexible production systems based on short
This is obviously coming from somewhere; even if it's
cycle times and zero defects
from the same pamphlet, another citation should be
Team approach with flexible, skilled
given.
resources
Strong reciprocal obligations defining
relationships
Decisions and actions based on facts (data).
1. Arnott's information pamphlet.
[3]
Excerpt 3
Blockbuster Music's main competitors are Brash's and
Homeshow, both of which are also situated on Chapel Street.
At university, you would need a reference for
Blockbuster Music has a competitive edge over their
this - or evidence and also a reference.
competitors mainly due to the size of their store and the
amount of stock and variety.
Blockbuster Music also has the well publicised policy of
guaranteeing that if they don't have the CD you are looking
for, they will take five dollars off the price for you when they
get it in.
This does not require a reference as this is
something that can be observed (in the real
world). Note, though, that for your first-year
Marketing report, you will often not be relying
on real world observation. Where you are
not, a reference is required.
Blockbuster Music is one of the few stores that actually allows
the consumer to try a product before they purchase it. This is
the case with both CDs and video games. This policy is
especially important at the moment due to the recent release
As above.
of the Nintendo 64. With many people looking to buy the
latest in electronic multimedia, retailers of this ilk are
focussing heavily on the sale of the new unit and are after any
competitive advantage they can get.
Reference list
At the end of your report you will have a list of the references you CITED in the course of your report. When
you are proof-reading, you should be able to cross-reference each text on the list with a mention - or citation in your report.
Click on the highlighted text to see the comments.
What should the reference list look like?
There are quite specific conventions according to the referencing style generally used in your discipline which your tutor will expect you to familiarise yourself with. These conventions are quite tricky to remember at
first, but if you keep by you a model such as the one below - where the student has been very consistent - it
becomes easier. Look at the sample entries below and notice their differences and similarities.
Use the dropdown list to indicate the type of source that each reference comes from:

book



newspaper article
organisational web site
database item
Reference
Your
answer
Assael, H., Reed, P. and Patton, M. (1995) Marketing: Principles and Strategy HarcourtBrace, Sydney.
Foster's News Release (2000) World-first a winner at Carlton and United
Breweries,www.fosters.com.au/media_or acle.asp, accessed 15/08/2004
Gentle, N. (2000), "Light Beer To Cost More Under Bill To Scrap Subsidy", Canberra Times,
25 May 2000, p.1-2.
IBIS World (2000), G5123 Liquor Retailing, http://www.ibisworld.com.au/industry/Defi
nition.asp?industry_id=39, accessed 17/08/04.
Kotler, P., Armstrong, G., Brown, L., Chandler, S. A. (1998), Marketing, (4th edn), Prentice
Hall, Sydney.
Lamb, W., Hair, J., McDaniel, C. (1998), Marketing, (4th edn), South-Western College
Publishing, Cincinatti.
Lloyd, S. (1999), "Liquor Companies Find A Pre-Mixed Blessing", Business Review Weekly,
20 August, p.1-2.
Oey, P. (1998), "Asia on the Fast Track", Drug and Cosmetic Industry, 22 May, p.2.
Port, J. (1999), "Creative License", Business Review Weekly, 26 October, p.1-2.
Simpson, W. (2000), "Sweet Surrender", Sydney Morning Herald, 2 February, p.16.
How could the student reference list below be improved?
Comparing it with the sample list above, see if you can find at least three mistakes.
Bibliography 1
1. Kotler, P., (1998), Marketing, (4th ed.), Prentice Hall, Australia
2. Kotler, P., (1998), Marketing Management - analysis planning implementation and control, (9th ed.),
Prentice Hall, Australia
3. ABIX - Australian Business Intelligence: Retail World
4. Australian Financial Review, 28/8/00
5. Sunday Star Times, 13/8/00
6. Red Bull GmbH, www.redbull.com
7. Frucor Ltd, www.frucor.com
8. IBIS Reports, www.ibisworld.com
9. Dow Jones International, www.dowjones.com
Your answer:
[1]
Check your answer
See if you can find at least three mistakes with this reference list as well.
Bibliography 2
Assail H., Reed P., and Patton M, "Marketing: principles and strategy", Harcourt Brace, Australia,
1995.
Jain S. "Marketing Planning and Strategy", (4th ed), South Western Publishing Co, USA 1993.
Keegan W., Moriarty S., and Duncan, T, "Marketing", Prentice Hall, USA, 1992.
Keegan W., Moriarty S., and Duncan, T, "Marketing", (2nd ed), Prentice Hall, USA, 1995.
Kotler, P, "Marketing Management" (8th ed), Prentice Hall, Australia, 1994.
Kotler, Armstrong, Brown, Adam, Chandler, "Marketing", Prentice Hall, Australia, 1998
Zikmund W. and D'amico M. "Marketing", (3rd ed), John Wiley and Sons, USA 1989
Web Sites
http://www.corporateinformation.com/ausector.html
http://www.natfoods.com.au/
Your answer:
[2]
Check your answer
[1]
The problems are as follows:





Entries are numbered (unnecessarily)
Periodical titles should also be italicised (not just books)
Place of publication for all books is not given (it's usually possible to be quite specific as to the city
where the book was published)
Web sites do not have names and date accessed
For the two databases, there is not enough information about the precise source
[2]
The problems are as follows:





Titles are bold and in quotation marks, not italicised as they should be
Date should be after the names of authors, not at end
Place of publication for all books is not given (it's usually possible to be quite specific as to the city
where the book was published)
Third and fourth references: no need to include two editions of the same book.
Second last book: authors' initials are not given


There should be no division for web sites: they are included alphabetically in list as for books,
articles, etc.
Web sites do not have names and date accessed
Citing and referencing
Another term for referencing is citation - i.e. you are citing the work of someone else.
How do I know when to acknowledge something from another source?
This depends to a large extent on what is understood to be the given information in a particular field or
discipline. For example, in Marketing it is accepted that there are macroeconomic forces which act on the
microenvironment. You would not need to cite a reference in support of that.
In the following extracts from student assignments, where should a reference to a source be
included? Click on the Task Feedback at the end.
Extract
Your
answers
REF1
Demographic factors which influence
segmentation include, for example, age, family
size, income and occupation. REF1? These
variables are very important to Ford when
determining a target market as they are factors
which are very closely linked to the specific
needs and wants of customers. REF2? Age is
an important factor taken into consideration by
Ford in determining target markets. REF3?
The Falcon is typically targeted at middle-aged
men and women with children. REF4?
Yes
No
REF2
Yes
No
REF3
Yes
No
REF4
Yes
No
Correct Answer
REF1: No
Understanding that there is a range of
demographic factors or variables is a
"given" in Marketing; thus, there is no
need to reference
REF2: No
The fact that Ford makes use of these
variables in determining their target
market is hardly surprising - it is part of
the given understanding in the
discipline. No need to reference.
REF3: Yes
Why should age be of particular
importance? The student must have got
this piece of information from
somewhere: thus, it needs to be
referenced.
REF4: Yes
Why should this particular group be
Ford's target market? A reference is
needed to support the claim.
REF1
The common pricing strategy for the Ford
Explorer is value pricing, a strategy that
attempts to offer customers the perfect
combination of good service at an acceptable
price for their specific needs. REF1? This
strategy has been used considerably by Ford
for most of its other product lines, and the
trend is catching on around the automobile
industry, as there is growing customer
demand. REF2? However, other pricing
strategies are often implemented in
combination with value pricing. REF3?
Yes
No
REF2
Yes
No
REF3
Yes
No
REF1: No
It could be argued that this is a specific
policy adopted by Ford and thus would
need to be referenced. However, the
point would be understood by anybody
who stopped to think for a moment
about how that type of car would be
priced. Hence a reference is not
necessary, only optional.
REF2: Yes
The notion of there being "growing
demand" needs documented evidence.
REF3: No
If this were the end of the paragraph,
this may need supporting evidence.
However, in the original student
assignment, as there was a sentence
following giving an example, the
reference was included at that point.
REF1
The Smith's company targets Australian
families of all ages who have high incomes.
REF1? The marketing mix elements are used
to help the company produce the response it
wants from its target market. REF2? The
marketing mix is the specific combination of
interrelated and interdependent marketing
activities engaged in by an organisation.
REF3? The basic elements of the marketing
mix are product, price, place and promotion.
REF4? These elements are also referred to as
marketing's controllable variables. REF5?
Yes
No
REF2
Yes
No
REF3
REF1 Yes
This is special knowledge which must
have come from some source.
REF2: No
The fact that Smith's makes use of the
marketing mix elements is not
unexpected - it is part of the given
understanding in the discipline. No need
to reference.
Yes
No
REF4
Yes
No
REF5
Yes
REF3: Yes
This is a definition which would have
come from a source; thus, it needs a
reference.
REF4: No
Although, this is a separate sentence
from the next, it is referring to the same
thing and thus REF5 can apply to both.
No
REF5: Yes
A reference is required to cover this and
the preceeding sentence - referring to a
key marketing definition.
REF1
Promotion is also an integral part of Qantas as
they are Australia's leading airline brand.
REF1? The kangaroo represents a proud
history focused on reliability, safety,
engineering excellence and customer service.
REF2? Qantas has launched a new television
advertising campaign using some of the
world's most spectacular landmarks as the
backdrop and featuring more than 200
members of the Australian choir. REF3? This
was done as Qantas supports more than 240
individual sporting organisations throughout
Australia and the world. REF4? Through this,
they are creating a strong world-wide brand
name. REF5?
Yes
No
REF2
Yes
No
REF3
Yes
No
REF4
Yes
No
REF5
Yes
No
REF1: No
This is probably accepted widely
enough not to require a reference.
REF2: Yes
This sounds rather as if it is from
Qantas advertising and thus would
require a reference.
REF3: No
This is evident from everyday
observation.
REF4: Yes
This is specific information, requiring a
reference.
REF5: No
This is arguably a reasonable
representation of common opinion, so
probably doesn't need a reference.
Defining and discussing
Click on the highlighted text to see the comments.
For Part 1, it is important to develop your ability to define and discuss. What does this mean? Examine the
following examples to see how these students define, then begin to discuss:
Example 1
The economic environment consists of "factors that affect consumer purchasing power and spending
patterns" (Kotler et al, 1998, p.113). There are numerous factors in the economic environment that may
influence and potentially have a profound impact on the banking industry. The most obvious of these are
cyclical fluctuations in the level of economic activity...
Student defines by making a statement, quoting from a reference and citing the source. He then moves from
the general to the specific to discuss in terms of his chosen industry.
Example 2
Demography may be defined as the "statistical study of human population and its distribution" (Stanton,
Miller and Layton, 1991, p. 23), measured in terms of age, sex, density, location, race, occupation, etc. If
the baking industry is to prosper, they must be able to identify the changes and trends in their
demographic environment and cater their services to meet or respond to these changes...
Student gives the definition, quoting from a reference and citing the source. She then moves from the general
to the specific to discuss in terms of her chosen industry.
Example 3
Fifield (1998, p. 33) defines promotion as "the whole array of methods and procedures by which the
organisation communicates with its target market". Promotion can be accomplished using a number of
different methods...
Student gives the name and reference of the author presenting the definition, quoting it and then moving from
the general to the specific to discuss in terms of his chosen industry.
It is good to present definitions in different ways to make your writing more interesting for your reader. In
general, you should try to paraphrase your sources, but for definitions, for obvious reasons, it is difficult not
to use direct quotation.
Identify the problem with the following examples.
Example 1
Demographic Environment
Demographically, the world is not what it used to be. Australia today is very different from what it was a
generation ago. According to the Australian Bureau of Statistics (ABS), in 1998 nearly 12% of the
population was aged over the age of 65...
Example 2
Natural Environment
The natural environment and the consumers' love for it have seen an emergence of specialist "outdoortourism" companies over the past ten to fifteen years. An even newer development in this field of tourism
has been that of "eco-tourism"...
Example 3
Technological Environment
Technology is making the airlines industry more efficient and competitive, as more accurate information is
available to consumers and more competitive distribution to producers. It seems inevitable that advances
in technology will continue to have major impacts on the airline industries.
[1]
Task feedback
[1]
In each case, the student begins discussing before they have defined the macroenvironmental force.
Sometimes you should quote directly, but mostly you need to quote indirectly - paraphrasing your sources.
To paraphrase, you need to:

Understand the original - there's no point including something you do not understand. Check a
dictionary if you need to.





Work out the main idea you want to include: make sure it's relevant to your line of argument
Include words to indicate the original author's attitude, if that is relevant
Check that you have not distorted the original author's meaning
Use quotation marks if you are using specialist words/phrases from the original
Cite your source accurately
Paraphrasing
Identify the problems with the following:
Sample 1
The over-heated share-markets are unblinking in their admiration for the internet and the opportunities of
e-business...
Sample 2
The kangaroo symbol [of Qantas] represents a proud history focused on reliability, safety, engineering
excellence and customer service.
[2]
Task feedback
[2]
There are expressions in both of these which are clearly derived from sources: "unblinking in their
admiration", "a proud history". Even when it's not so clear that the wording comes from a source, remember
that your marker is very familiar with all the textbooks on the subject and marks hundreds of assignments
each year.
In the case of these two examples, the expressions are not so important that they should have been quoted
directly, so the students would have been better off paraphrasing, e.g.:
Share markets may in time regret their current excessive enthusiasm for the possibilities of e-commerce
(Bloggs, 2000).
The kangaroo image links Qantas to all that is thought to be best about Australia: this includes qualities
such as reliability and safety, high-quality engineering and service (Smith, 1999).
Annotated assignments
Covering the first-year subjects:
Marketing Theory and Practice
Introduction to Marketing
Tourism Marketing
The examples used in this tutorial reflect the assessment requirements for the Marketing assignment in a
given year, but are still relevant to current assignments.
Topic:
Australian Automative Industry Report




Lecturer's expectations <www.monash.edu/lls/llonline/writing/businesseconomics/marketing/3.1.1.xml> : Read what the lecturer expected from this report.
Helen's report <www.monash.edu/lls/llonline/writing/business-economics/marketing/3.1.2.xml> : See
Helen's assignment before she received feedback on it.
Helen's report and what the lecturer thought <www.monash.edu/lls/llonline/writing/businesseconomics/marketing/3.1.3.xml> : Read the lecturer's comments on this report.
Interview with helen <www.monash.edu/lls/llonline/writing/business-economics/marketing/3.1.4.xml>
: Listen to Helen talk about the writing process.
Topic:
Instant Coffee Industry Report

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

Lecturer's expectations <www.monash.edu/lls/llonline/writing/businesseconomics/marketing/3.2.1.xml> : Read what the lecturer expected from this report.
Amanda's report <www.monash.edu/lls/llonline/writing/business-economics/marketing/3.2.2.xml> :
See Amanda's assignment before she received feedback on it.
Amanda's report and what the lecturer thought <www.monash.edu/lls/llonline/writing/businesseconomics/marketing/3.2.3.xml> : Read the lecturer's comments on this report.
Interview with Amanda <www.monash.edu/lls/llonline/writing/businesseconomics/marketing/3.2.4.xml> : Listen to Amanda talk about the writing process.
Topic:
Fast Food Industry Report



Lecturer's expectations <www.monash.edu/lls/llonline/writing/businesseconomics/marketing/3.3.1.xml> : Read what the lecturer expected from this report.
Briohny's report <www.monash.edu/lls/llonline/writing/business-economics/marketing/3.3.2.xml> :
See Briohny's assignment before she received feedback on it.
Briohny's report and what the lecturer thought <www.monash.edu/lls/llonline/writing/businesseconomics/marketing/3.3.3.xml> : Read the lecturer's comments on this report.
Topic:
Fast Food Industry Report



Lecturer's expectations <www.monash.edu/lls/llonline/writing/businesseconomics/marketing/3.4.1.xml> : Read what the lecturer expected from this report.
Troy's report <www.monash.edu/lls/llonline/writing/business-economics/marketing/3.4.2.xml> : See
Troy's assignment before he received feedback on it.
Troy's report and what the lecturer thought <www.monash.edu/lls/llonline/writing/businesseconomics/marketing/3.4.3.xml> : Read the lecturer's comments on this report.
The annotated assignments and the writing approaches described by students should not be seen as ideal
models for you to copy. They are intended to be a general guide to writing in your subject and to help you to
reflect on your own approach.
Helen's assignment
Helen is a first-year Marketing student. For her first assignment in the subject, Helen chose to focus on the
Australian Automotive Industry.
Report topic:
Select a specific product/target market from within the broad areas identified below and:
1. Discuss how the macroenvironmental variables have had an impact on this market making
sure you show that you understand all the macroenvironmental variables that are likely to
have an impact.
2. Identify two different marketing mixes used by two different companies to target the market
you have identified.
Use examples to support your discussion where appropriate.
1. Look at the lecturer's expectations <www.monash.edu/lls/llonline/writing/businesseconomics/marketing/3.1.1.xml> of the assignment.
2. Next read Helen's report <www.monash.edu/lls/llonline/writing/businesseconomics/marketing/3.1.2.xml> .
o How well do you think the report responds to the topic?
o Do you think the report could be improved in any way?
3. Now read the lecturer's comments <www.monash.edu/lls/llonline/writing/businesseconomics/marketing/3.1.3.xml> about Helen's report.
4. Finally, listen to Helen <www.monash.edu/lls/llonline/writing/businesseconomics/marketing/3.1.4.xml> talk about how she wrote her assignment and read feedback about
how to overcome the difficulties she faced.
Lecturer's expectations
In this section, one of your lecturers - Ian Walker - sets out what he expects from student assignments on this
topic.
Assignment 1 - Report topic:
"The marketing environment... consists of the actors and forces outside marketing that affect
marketing management's ability to develop and maintain successful transactions with its target
customers." Kotler et al (1998) pg 100
In this assignment you are required to choose one industry from the two in your stream and identify
and discuss the actors and forces currently active in that industry AND the likely effect/impact
that these actors/forces will have on that industry in the next 12 months.
What the lecturer expects
Guidelines
Try to answer the following questions:
Who are the major competitors in the industry?



Is the sector expanding, contacting, remaining stagnant?
Are there changes occurring (such as new taxes) likely to affect the industry? What are they?
What effect/impact will these changes have?
Your assignment will therefore be a report in three parts:
1. General discussion of the industry
2. Microenvironmental forces and likely effects
3. Macroenvironmental forces and likely effects
Additional notes
1. This assignment is to be done on an INDIVIDUAL basis. (They are not GROUP assignments.)
The work submitted must be your own. You must acknowledge the sources of your information.
2. The assignment must be typed, and well presented. Because it is intended to prepare you for the
final examination, it must be written in business REPORT format/style. You may, however, use
subheadings and bullet-points where appropriate within the report. You may also incorporate graphs,
tables, diagrams, and figures into the body of the report if you wish. (If lengthy, material of this kind
may be attached as appendices.)
3. In Assignment 2 you MUST include a bibliography. This should be on a separate page. FULL
details are required - name and initials of all authors, full title, publisher, place, and date of
publication. At this level of study, you must get these details right!
See the Faculty's Q Manual (http://www.buseco.monash.edu.au/publications/qmanual/)
<www.buseco.monash.edu.au/publications/qmanual/> or any of the other good style guides in the libraries.
4. The word limit for the first assignment is 2,000 words. You will not be penalised for exceeding
these limits - within reason (say 10%) - provided that there is no repetitiveness, irrelevance, or
"padding". Similarly, you will not be penalised for being under the word limit, provided that the
question has been fully and satisfactorily answered.
5. Although you are encouraged to seek a greater understanding of the issues raised in this assignment
by discussing them with business practitioners of your personal acquaintance, you are NOT
permitted to make unsolicited contact with business organisations to obtain information.
Assignment and exam assessment criteria
High Distinction 80 - 100%
The student demonstrates the competencies in Distinction standard, and in addition






uses creative examples, possible extensions, and applications of theory
demonstrates originality
makes defensible generalisations
draws conclusions which lend themselves to further research
writes to a publishable standard
is aware of limitations
Distinction 70 - 79%
The student demonstrates the competencies in Credit standard, and in addition







provides evidence of analysis and critical thinking
demonstrates an ability to evaluate
develops a progressive, convincing, and clear argument throughout the work
demonstrates selectivity and uses judgement in determining the importance of readings and ideas
shows evidence of wide reading and synthesis of ideas
utilises additional material to supplement information provided
produces writing which is of a high literacy standard (structure, style, and referencing)
Credit 60 - 69%
The student demonstrates the competencies in Pass standard, and in addition











demonstrates the understanding of concepts, theories, and issues
is able to identify strengths and weaknesses in theories/readings and use these as a basis for
evaluation
is able to apply information to practices/situations
develops a clear argument with rationale for assumptions
integrates writing and demonstrates links between components
will rarely, if ever show evidence of original work
will tend to bring material to closure (tidy it up and make it fit a neat conclusion)
provides a structured, sourced, and referenced work
expresses him-/herself concisely and clearly and exhibits relatively error-free writing
may rely heavily on the the text and assigned readings
may sometimes lapse into description rather than providing analysis and evaluation
Pass 50 - 59%
The student:

essentially demonstrates an understanding of concepts, theories, and issues









but will tend to restate rather than evaluate
does not transform data in terms of structure, synthesis ,or application
relies extensively on text, or text and limited readings
may demonstrate coverage which is sparse in places
provides little or no evidence of critical analysis
provides little or no evidence of research
tends to use one limited approach
possibly a narrow focus
provides an acceptably sourced and referenced work but improvement may be necessary in structure
and grammar
Fail 0 - 49%
The student may demonstrate some or all of the following









failure to answer the question
misinterpretation of the question
failure to demonstrate understanding of the theory and concepts required
failure to identify the problems or issues
failure to provide evidence of reading the minimum requirements
does not write to acceptable academic standards (structure and grammar require extensive
improvement)
sourcing and referencing may not be present or are very confused
is not typed
is not handed in on time
Helen's report
Report topic:
Select a specific product/target market from within the broad areas identified below and:
1. Discuss how the macroenvironmental variables have had an impact on this market making
sure you show that you understand all the macroenvironmental variables that are likely to
have an impact.
2. Identify two different marketing mixes used by two different companies to target the market
you have identified.
Use examples to support your discussion where appropriate.
Executive summary:
This Minor Assignment - Stream 1 is based on a business formulated report discussing the Australian
Automotive Industry, and includes a general description of the industry, such as production details, major
players, etc. This report will also attempt to identify and cover the microenvironmental and
macroenvironmental forces affecting the industry and the likely consequences as a result of these forces. It is
hoped that through this minor assignment and by investigating the automotive industry, a broad knowledge of
the industry mentioned will be gained, an understanding of how the micro and macroenvironmental forces
can and might affect the industry and thus enhance, improve and build my marketing skills. The aim of this
assignment is also to provide an insight into how marketing can impact and influence us, in turn how we as
the public community can influence others both now and in the future.
Contents
Executive Summary
1. Introduction
2. Industry Description
2.1. Sales
2.2. Production
2.3. Automotive Trade (Imports and Exports)
TABLE: 1 - Major Importers to Australia
TABLE: 2 - Major Exports of Australian Vehicles and Automotive components
2.4. Employment
2.5. Research and Development
3. Micro-macroenvironments
3.1. Microenvironment
3.1.1. Consumers/Customers
3.1.2. Suppliers
3.1.3. Competition
GRAPH: 1 - Major Players
3.2 Macroenvironment
3.2.1 Economic Pressures
3.2.2 Technological Changes
3.2.3 Demographic Forces
4. Conclusion
Bibliography
Motor vehicle industry
1. Introduction:
The Motor Vehicle Industry is a large and complex enterprise which not only consists of the manufacture and
sales of passenger vehicles, but also the manufacture and sales of commercial vehicles, trucks, buses,
planes, motor vehicle components, vehicle body manufacturing, automotive electrical/instrument
manufacturing, engines and motor cycles. This vast industry produces, sells, imports and exports motor
vehicles from passenger vehicles to vans, sports and luxury cars. It also comprises services ranging from
repairs and safety tests to insurance, design, research and development. The major market segmentation
includes private buyers, government fleet purchasers, business fleet purchasers and buyers of heavy
industrial vehicles. This industry, however, is affected and influenced by many factors outside the control of
the industry. These factors include the micro and macroenvironments.
2. Industry description:
2.1. Sales:
Currently the Australian automotive industry has grown significantly over the years, with a 12% increase in
vehicle sales, totalling 807,669 units in 1998 compared to 85,000 units in 1997. Within this 12% there was an
increase of 23% in commercial vehicles, 35% in wagons, and passenger vehicles increased 8% (10% of
passenger vehicles was due to an increase in small cars, and 9% due to increase in the upper medium
sector). This was significant as the passenger motor vehicle manufacturing segment represents 78% of
Australia's key product segment, with the other 22% being represented by the freight bus manufacturing
segment.
2.2. Production:
Production in the motor vehicle industry occurs nation-wide, with Victoria producing and manufacturing
47.3%, NSW 14.3%, Queensland 18.8%, SA 8.9% WA 9.8% and the Northern Territory producing 0.9%.
However, the market size for the Australian motor vehicle manufacturing industry only consists of 80
organizations, of which less than 24% of people employed in the manufacturing sector produce automotive
equipment.
2.3. Automotive trade (import and exports):
Imports of vehicles and components occur nationally, with major importers being Japan, Republic of Korea,
Germany and the United Stated. In the year ending 1999, imports had risen 7.9% as a result of strong
demand for imported vehicles (6% increase in the demand for imported vehicles domestically). However,
there was only a 0.9% increase in production of motor vehicle and automotive parts locally. The Australian
motor vehicle industry also exports motor vehicles and automotive components, some of the major exporters
being New Zealand, Republic of Korea, the United States of America, the United Arab Emirates and South
Africa.
TABLE 1: - Major Importers to Australia
Country
Percentage
Japan
57.0 %
Republic of Korea
11.1 %
Germany
10.6 %
United States of America
6.0 %
TABLE 2: - Major Exports of Australian vehicles and automotive
components
Country
United States of America
Percentage
19.0 %
New Zealand
18.8 %
Republic of Korea
17.8 %
United Arab Emirates
17.8 %
South Africa
2.2 %
2.4. Employment:
The Australian Motor Vehicle Industry manufacturing segmentation employs around 55,000 people in total.
Within the manufacturing market segment, approximately 20,000 people are employed by the motor vehicle
manufacturing sector, 11,000 employed by the motor vehicle body manufacturing division, 10,000 by the
automotive electrical and instrument manufacturing portion and the remaining estimated 4,000 employees
are employed by the automotive component sector. Thousands more people are employed in car retailing,
research and development, insurance, fuel and petrol segments, management and administration of both
manufacturing and service motor vehicle organizations. The government also employs thousands of people
in their government departments, which monitor and regulate motor vehicle laws, e.g. employees governing
registration, drivers' licensing, industrial relations, etc.
2.5. Research and development:
The automotive industry also includes a research and development segment, which researches areas such
as air pollution, gas emissions and road-worthiness of cars, and tries to develop solution to these problems.
For example, Holden has researched and developed a prototype car called the Hybrid, which will reduce gas
emissions, air pollution, fuel consumption and resources, by running on smaller amounts of petrol and more
on electricity. The research and development segment also researches to design up-market cars, which excel
in luxury, prestige, and market these to a niche sector. For example, Mitsubishi Technas and the
aXcessAustralia Hybrid Concept car is designed and aimed to provide the world with an innovative vision of
cars in the next century.
3. Micro-macroenvironments:
The microenvironment is defined as forces affecting and influencing the organization's growth, production,
function and direction, which are close to and directly impact the organization. Some of these forces include
consumers/customers, suppliers, competition and marketing firm channels. The macroenvironment refers to
the forces which extend beyond the organization's direct interaction and are out of their control, but determine
the long-term survival of that organization. These macroenvironmental forces include economic, legal,
political, social, international, technological, education and demographic pressures.
3.1. Microenvironment:
3.1.1. Consumers/Customers:
Consumers/customers are the lifeblood of the industry as they directly affect it and determine if it is to
succeed and grow. Without the customers purchasing and supporting the demand for products and services
provided by the industry, there wouldn't be a market for the automotive industry's existence. With the goods
and services tax to be introduced in July 2000, the expected drop in prices has led to customers postponing
purchases of motor vehicles; thus there isn't the expected growth in the industry as hoped several years ago.
The increase in fuel prices has also hampered the growth of the petroleum and fuel sector, as customers feel
that they must seek cheaper alternatives to transport. Within the automotive industry, the car-retailing sector
has implemented a strategy to increase sales, through heavy discounting on cars now instead of waiting till
July 2000. This in turn has improved the industry's growth and reduced a large amount of impact on overall
sales. Once the GST is introduced, customers will hopefully resume the purchasing of vehicles without the
heavy discounting; thus the industry will continue to grow at a steady rate.
3.1.2. Suppliers:
Suppliers largely dominate the automotive industry, whether they provide raw goods to other sectors within
the industry itself or are suppliers providing raw goods to the general public. The fuel and petroleum segment
of the motor vehicle industry has recently increased fuel prices, which have directly affected the automotive
industry as customers are reluctant to fully refill their engines, thus reducing the amount of fuel purchased. It
has also affected the industry's image, as customers and sectors within the industry are not pleased and are
expressing anger to some extent towards the increase. The GST (goods and services tax) to be introduced
has affected the production plans of manufacturing organizations. This is due to the reduced demand for
vehicles from the general public; therefore there is the need to produce vast quantities of body parts,
components, engines or vehicles. Again this restriction to the quantity of vehicles and components
manufacture will undoubtedly continue once the GST has taken effect.
3.1.3. Competition:
There are major competitors (accounting for 65.3% of manufacturing turnover) in the motor vehicle industry
that manufacture, sell, export and import vehicles and components, and these include the Ford motor
company of Australia, Toyota Motor Sales Australia Ltd, Mitsubishi Motor Australia Ltd and Holden Ltd. Mack
Trucks Australia Pty Ltd is also another major player in the motor vehicle industry, which deals with the truck
and buses sector, accounting for 34.7% of industry turnover. Over the past year, competition in the industry
has increased due to the abolition of quotas on imports, thus allowing unlimited imports of vehicles into the
country. In turn, this has put pressure on both organizations in the industry and the government to increase
the standard/level of quality, efficiency and lower vehicle prices. Further pressure on competition has risen
due to the fact that imports now account for 42% of sales made. Competitors must strive to improve the
quality and technology of vehicles in the new century, as many competitors such as Holden and Toyota have
now released a Hybrid model, which is cost-efficient, environmentally-friendly (reduces air pollution) and
reserves resources, such as gas, petrol, etc. It is expected that competition will continue to rise as the GST
will lower vehicle prices further, and more imports will allow customers more options when purchasing
vehicles, thus the design, features and cost must be more appealing to the market than what other
competitors are offering.
GRAPH 1:
3.2. Macroenvironment:
3.2.1. Economic pressures:
There are many economic pressures which plague the motor vehicle industry which include inflation, the level
of interest rates, the type of taxation, increase minimum wages, and level of international competitiveness.
Currently the motor vehicle industry is seen as a mature industry where the domestic and world economic
cycles are strongly influencing the growth and turnovers in the industry. As mentioned previously, the
introduction to the goods and services tax (GST) has so far had a devastating effect on the industry as sale
and turnover figures indicate that customers are postponing purchases, therefore creating difficulties for
manufacturers and car retailing organizations. Another downside to the GST is that used/second-hand cars
will incur the extra 10% GST into the total price of the vehicle; thus it will be more expensive to purchase a
second-hand car after July, 2000. However these pressures can bring about positive benefits. For example,
tariffs on vehicle parts have been lowered, consequently reducing the cost of inputs and applying pressure on
local supplier for better, more efficient performance. But some customers will still be reluctant to follow this
expected trend, as the full input tax credit won't occur until July 2002.
3.2.2. Technological changes:
Technology in the automotive industry is advancing at a rapid rate, in that we now see electronic maps, TV
sets, CD players, etc, being built into cars for the sake of entertainment. But there have also been pressures
placed on the automotive industry to improve the standards of their vehicles, engines and components to
reduce the amount of gas emissions, use of resources and fossil fuels, and to provide a better quality of life
through better engineering of cars that are/will be more environmentally friendly. Holden and Toyota are one
of the first organizations to take the steps to meeting these goals, they have both designed, research and
developed a Hybrid concept car, which has been built to reduce air pollution, fuel consumption and preserve
resources. Test dummies and safety are also another form of technological pressure as organizations must
continually upgrade and improve the standards of their cars so to meet the safety requirements set by
government bodies. Organizations must ensure that the cars will not only meet these requirements, but strive
to produce a car which is the 'safest' and one which will provide customers with peace of mind.
3.2.3. Demographic forces:
Demographic factors/forces must be taken into account by all sectors and segments in the automotive
industry, as this information will aid in the marketing, research, development, design, etc of current and future
cars. Currently statistics and trends indicate that the slowing of population growth and the increase in the
number of elderly people in the community will reduce the demand for vehicles. This will reduce demand for
other, if not all motor vehicle related services, as this group of people are not likely to use or replace their
cars. However statistics have also indicated that the majority of the population are seeking more
independence and less dependence on the traditional family (father, mother and 2.3 children; where the
parents are the income earners, and provide the income structure for the family), therefore we should see an
increase in sales of vehicles made and automotive services used.
4. Conclusion:
In conclusion, the motor vehicle industry involves more than just producing and purchasing vehicle, it involves
many sectors which interconnect, and when influenced by the macro or microenvironments, they cause a
ripple effect which affects the whole industry. The outlook for the future within the next 12 to 24 months
seems to be brighter than currently. The confusion with the GST will hopefully, if not cease, be reduced and
customers reassured, thereby the "postponing of purchasing vehicles phase" will be over and sales and
production may resume. The industry overall will face many competitors and the industry will be more
competitive than it has ever been before, as we will see a fall in vehicle prices and an increase in the number
of imports. Local automotive organizations must at least maintain or better yet improve standards in both
quality and customer relations, so to strive in the near future. We will see an introduction to a whole new set
of vehicles designed for the next generation, advanced in technology, comfort, cost efficient and
environmentally-friendly Hybrids which will run on electricity. Before you know it, they'll be running on water, if
not the air pollution which they once generated!
It's a bright, but competitive future for the motor vehicle industry
Word count: 2129 words
BIBLIOGRAPHY:
1. Kolter, P., Armstrong, G., Brown, L. and Adam, S. (1998) Marketing (4th Ed), Prentice Hall of
Australia: Sydney
2. Bradmore, D., Joy, S., Kimberly, C. and Walker, I. (1998) Marketing Visions: Readings in
Marketing (2nd Ed) , Prentice Hall of Australia: Sydney
3. Bradmore, D. (1990) Australian Marketing Dictionary, Macstyle Publishing Company: Melbourne
4. www.Autonet.com.au
5. www.Austrade.com.au
6. www.ABS.gov.au
7. www.automotiveworld.net
8. www.buseco.monash.edu.au/SUBJECTS/MKX/MKX1120 (links on web site home page)
9. Dow Jones Interactive (DJI) - articles and journals on motor vehicles, GST, impact, sales,
production, Hybrid, and technological.
10. IBIS World - C2811 Motor Vehicle Manufacturing
Helen's report and what her lecturer thought
Click on the highlighted text to see the comments.
Report topic:
Select a specific product/target market from within the broad areas identified below and:
1. Discuss how the macroenvironmental variables have had an impact on this market making
sure you show that you understand all the macroenvironmental variables that are likely to
have an impact.
2. Identify two different marketing mixes used by two different companies to target the market
you have identified.
Use examples to support your discussion where appropriate.
Executive summary:
[IMG-1]
[1]This
Minor Assignment - Stream 1 is based on a business formulated report discussing the Australian
Automotive Industry, and includes a general description of the industry, such as production details, major
players, etc. This report will also attempt to identify and cover the microenvironmental and
macroenvironmental forces affecting the industry and the likely consequences as a result of these forces. It is
hoped that through this minor assignment and by investigating the automotive industry, a broad knowledge of
the industry mentioned will be gained, an understanding of how the micro and macroenvironmental forces
can and might affect the industry and thus enhance, improve and build my marketing skills. The aim of this
assignment is also to provide an insight into how marketing can impact and influence us, in turn how we as
the public community can influence others both now and in the future.
Contents
Executive Summary
1. Introduction
2. Industry Description
2.1. Sales
2.2. Production
2.3. Automotive Trade (Imports and Exports)
TABLE: 1 - Major Importers to Australia
TABLE: 2 - Major Exports of Australian Vehicles and Automotive components
2.4. Employment
2.5. Research and Development
3. Micro-macroenvironments
3.1. Microenvironment
3.1.1. Consumers/Customers
3.1.2. Suppliers
3.1.3. Competition
GRAPH: 1 - Major Players
3.2 Macroenvironment
3.2.1 Economic Pressures
3.2.2 Technological Changes
3.2.3 Demographic Forces
4. Conclusion
Bibliography
Motor vehicle industry
1. Introduction:
[IMG-2]
[2]The
Motor Vehicle Industry is a large and complex enterprise which not only consists of the manufacture
and sales of passenger vehicles, but also the manufacture and sales of commercial vehicles, trucks, buses,
planes, motor vehicle components, vehicle body manufacturing, automotive electrical/instrument
manufacturing, engines and motor cycles. This vast industry produces, sells, imports and exports motor
vehicles from passenger vehicles to vans, sports and luxury cars. It also comprises services ranging from
repairs and safety tests to insurance, design, research and development. The major market segmentation
includes private buyers, government fleet purchasers, business fleet purchasers and buyers of heavy
industrial vehicles. This industry, however, is affected and influenced by many factors outside the control of
the industry. These factors include the micro and macroenvironments.
2. Industry description:
2.1. Sales:
[IMG-3]
Currently the Australian automotive industry has grown significantly over the years, [3]with a 12% increase in
vehicle sales, totalling 807,669 units in 1998 compared to 85,000 units in 1997. Within this 12% there was an
increase of 23% in commercial vehicles, 35% in wagons, and passenger vehicles increased 8% (10% of
passenger vehicles was due to an increase in small cars, and 9% due to increase in the upper medium
sector). This was significant as the passenger motor vehicle manufacturing segment represents 78% of
Australia's key product segment, with the other 22% being represented by the freight bus manufacturing
segment.
2.2. Production:
Production in the motor vehicle industry occurs nation-wide, with Victoria producing and manufacturing
47.3%, NSW 14.3%, Queensland 18.8%, SA 8.9% WA 9.8% and the Northern Territory producing 0.9%.
However, the market size for the Australian motor vehicle manufacturing industry only consists of 80
organizations, of which less than 24% of people employed in the manufacturing sector produce automotive
equipment.
2.3. Automotive trade (import and exports):
Imports of vehicles and components occur nationally, with major importers being Japan, Republic of Korea,
Germany and the United Stated. In the year ending 1999, imports had risen 7.9% as a result of strong
demand for imported vehicles (6% increase in the demand for imported vehicles domestically). However,
there was only a 0.9% increase in production of motor vehicle and automotive parts locally. The Australian
motor vehicle industry also exports motor vehicles and automotive components, some of the major exporters
being New Zealand, Republic of Korea, the United States of America, the United Arab Emirates and South
Africa.
[IMG-4]
[4]TABLE
1: - Major Importers to Australia
Country
Percentage
Japan
57.0 %
Republic of Korea
11.1 %
Germany
10.6 %
United States of America
6.0 %
TABLE 2: - Major Exports of Australian vehicles and automotive
components
Country
Percentage
United States of America
19.0 %
New Zealand
18.8 %
Republic of Korea
17.8 %
United Arab Emirates
17.8 %
South Africa
2.2 %
2.4. Employment:
The Australian Motor Vehicle Industry manufacturing segmentation employs around 55,000 people in total.
Within the manufacturing market segment, approximately 20,000 people are employed by the motor vehicle
manufacturing sector, 11,000 employed by the motor vehicle body manufacturing division, 10,000 by the
automotive electrical and instrument manufacturing portion and the remaining estimated 4,000 employees
are employed by the automotive component sector. Thousands more people are employed in car retailing,
research and development, insurance, fuel and petrol segments, management and administration of both
manufacturing and service motor vehicle organizations. The government also employs thousands of people
in their government departments, which monitor and regulate motor vehicle laws, e.g. employees governing
registration, drivers' licensing, industrial relations, etc.
2.5. Research and development:
The automotive industry also includes a research and development segment, which researches areas such
as air pollution, gas emissions and road-worthiness of cars, and tries to develop solution to these problems.
[IMG-5]
[5]For
example, Holden has researched and developed a prototype car called the Hybrid, which will reduce
gas emissions, air pollution, fuel consumption and resources, by running on smaller amounts of petrol and
more on electricity. The research and development segment also researches to design up-market cars, which
excel in luxury, prestige, and market these to a niche sector. For example, Mitsubishi Technas and the
aXcessAustralia Hybrid Concept car is designed and aimed to provide the world with an innovative vision of
cars in the next century.
3. Micro-macroenvironments:
[IMG-6]
[6]The
microenvironment is defined as forces affecting and influencing the organization's growth, production,
function and direction, which are close to and directly impact the organization. Some of these forces include
consumers/customers, suppliers, competition and marketing firm channels. The macroenvironment refers to
the forces which extend beyond the organization's direct interaction and are out of their control, but determine
the long-term survival of that organization. These macroenvironmental forces include economic, legal,
political, social, international, technological, education and demographic pressures.
3.1. Microenvironment:
3.1.1. Consumers/Customers:
Consumers/customers are the lifeblood of the industry as they directly affect it and determine if it is to
succeed and grow. Without the customers purchasing and supporting the demand for products and services
provided by the industry, there wouldn't be a market for the automotive industry's existence. With the goods
and services tax to be introduced in July 2000,
[IMG-7]
[7]the
expected drop in prices has led to customers postponing purchases of motor vehicles; thus there isn't
the expected growth in the industry as hoped several years ago. The increase in fuel prices has also
hampered the growth of the petroleum and fuel sector, as customers feel that they must seek cheaper
alternatives to transport. Within the automotive industry, the car-retailing sector has implemented a strategy
to increase sales, through heavy discounting on cars now instead of waiting till July 2000. This in turn has
improved the industry's growth and reduced a large amount of impact on overall sales. Once the GST is
introduced, customers will hopefully resume the purchasing of vehicles without the heavy discounting; thus
the industry will continue to grow at a steady rate.
3.1.2. Suppliers:
Suppliers largely dominate the automotive industry, whether they provide raw goods to other sectors within
the industry itself or are suppliers providing raw goods to the general public. The fuel and petroleum segment
of the motor vehicle industry has recently increased fuel prices, which have directly affected the automotive
industry as customers are reluctant to fully refill their engines, thus reducing the amount of fuel purchased. It
has also affected the industry's image, as customers and sectors within the industry are not pleased and are
expressing anger to some extent towards the increase. The GST (goods and services tax) to be introduced
has affected the production plans of manufacturing organizations. This is due to the reduced demand for
vehicles from the general public; therefore there is the need to produce vast quantities of body parts,
components, engines or vehicles. Again this restriction to the quantity of vehicles and components
manufacture will undoubtedly continue once the GST has taken effect.
3.1.3. Competition:
There are major competitors (accounting for 65.3% of manufacturing turnover) in the motor vehicle industry
that manufacture, sell, export and import vehicles and components, and these include the Ford motor
company of Australia, Toyota Motor Sales Australia Ltd, Mitsubishi Motor Australia Ltd and Holden Ltd. Mack
Trucks Australia Pty Ltd is also another major player in the motor vehicle industry, which deals with the truck
and buses sector, accounting for 34.7% of industry turnover. Over the past year, competition in the industry
has increased due to the abolition of quotas on imports, thus allowing unlimited imports of vehicles into the
country. In turn, this has put pressure on both organizations in the industry and the government to increase
the standard/level of quality, efficiency and lower vehicle prices. Further pressure on competition has risen
due to the fact that imports now account for 42% of sales made. Competitors must strive to improve the
quality and technology of vehicles in the new century, as many competitors such as Holden and Toyota have
now released a Hybrid model, which is cost-efficient, environmentally-friendly (reduces air pollution) and
reserves resources, such as gas, petrol, etc. It is expected that competition will continue to rise as the GST
will lower vehicle prices further, and more imports will allow customers more options when purchasing
vehicles, thus the design, features and cost must be more appealing to the market than what other
competitors are offering.
GRAPH 1:
3.2. Macroenvironment:
3.2.1. Economic pressures:
There are many economic pressures which plague the motor vehicle industry which include inflation, the level
of interest rates, the type of taxation, increase minimum wages, and level of international competitiveness.
Currently the motor vehicle industry is seen as a mature industry where the domestic and world economic
cycles are strongly influencing the growth and turnovers in the industry.
[IMG-8]
[8]As
mentioned previously, the introduction to the goods and services tax (GST) has so far had a devastating
effect on the industry as sale and turnover figures indicate that customers are postponing purchases,
therefore creating difficulties for manufacturers and car retailing organizations. Another downside to the GST
is that used/second-hand cars will incur the extra 10% GST into the total price of the vehicle; thus it will be
more expensive to purchase a second-hand car after July, 2000. However these pressures can bring about
positive benefits. For example, tariffs on vehicle parts have been lowered, consequently reducing the cost of
inputs and applying pressure on local supplier for better, more efficient performance. But some customers will
still be reluctant to follow this expected trend, as the full input tax credit won't occur until July 2002.
3.2.2. Technological changes:
Technology in the automotive industry is advancing at a rapid rate, in that we now see electronic maps, TV
sets, CD players, etc, being built into cars for the sake of entertainment. But there have also been pressures
placed on the automotive industry to improve the standards of their vehicles, engines and components to
reduce the amount of gas emissions, use of resources and fossil fuels, and to provide a better quality of life
through better engineering of cars that are/will be more environmentally friendly. Holden and Toyota are one
of the first organizations to take the steps to meeting these goals, they have both designed, research and
developed a Hybrid concept car, which has been built to reduce air pollution, fuel consumption and preserve
resources. Test dummies and safety are also another form of technological pressure as organizations must
continually upgrade and improve the standards of their cars so to meet the safety requirements set by
government bodies. Organizations must ensure that the cars will not only meet these requirements, but strive
to produce a car which is the 'safest' and one which will provide customers with peace of mind.
3.2.3. Demographic forces:
Demographic factors/forces must be taken into account by all sectors and segments in the automotive
industry, as this information will aid in the marketing, research, development, design, etc of current and future
cars. Currently statistics and trends indicate that the slowing of population growth and the increase in the
number of elderly people in the community will reduce the demand for vehicles.
[IMG-9]
[9]This
will reduce demand for other, if not all motor vehicle related services, as this group of people are not
likely to use or replace their cars. However statistics have also indicated that the majority of the population
are seeking more independence and less dependence on the traditional family (father, mother and 2.3
children; where the parents are the income earners, and provide the income structure for the family),
therefore we should see an increase in sales of vehicles made and automotive services used.
4. Conclusion:
In conclusion, the motor vehicle industry involves more than just producing and purchasing vehicle, it involves
many sectors which interconnect, and when influenced by the macro or microenvironments, they cause a
ripple effect which affects the whole industry. The outlook for the future within the next 12 to 24 months
seems to be brighter than currently. The confusion with the GST will hopefully, if not cease, be reduced and
customers reassured, thereby the "postponing of purchasing vehicles phase" will be over and sales and
production may resume. The industry overall will face many competitors and the industry will be more
competitive than it has ever been before, as we will see a fall in vehicle prices and an increase in the number
of imports. Local automotive organizations must at least maintain or better yet improve standards in both
quality and customer relations, so to strive in the near future. We will see an introduction to a whole new set
of vehicles designed for the next generation, advanced in technology, comfort, cost efficient and
environmentally-friendly Hybrids which will run on electricity. Before you know it, they'll be running on water, if
not the air pollution which they once generated!
It's a bright, but competitive future for the motor vehicle industry
Word count: 2129 words
[IMG-10]
[10]
[Lecturer's overall comment]
[IMG-11]
[11]BIBLIOGRAPHY:
1. Kotler, P., Armstrong, G., Brown, L. & Adam, S. (1998). Marketing (4th ed.). Sydney: Prentice
Hall.
2. Bradmore, D., Joy, S., Kimberly, C. & Walker, I. (1998). Marketing visions: Readings in marketing
(2nd ed.). Sydney: Prentice Hall.
3. Bradmore, D. (1990). Australian marketing dictionary. Melbourne: Macstyle Publishing Company.
[IMG-12]
[12]
4.
5.
6.
7.
8.
www.Autonet.com.au
www.Austrade.com.au
www.ABS.gov.au
www.automotiveworld.net
www.buseco.monash.edu.au/SUBJECTS/MKX/MKX1120 (links on web site home page)
[IMG-13]
9.
[13]
Dow Jones Interactive (DJI) - articles and journals on motor vehicles, GST, impact, sales,
production, Hybrid, and technological.
[IMG-14]
10.
[14]
IBIS World - C2811 Motor Vehicle Manufacturing
[1]
More of an intro than an abstract
While an abstract (or executive summary) may trace the structure of a report, its central function is to provide
a summary of the main findings. It should not outline the contents, nor should it deal with the task aims or
expected benefits for the student. These are accepted features of some Year 12 assignments - e.g. Business
Management - but are not necessary for first-year Business subjects
[2]
Good - recognises complexity
While it is not explicitly tackling the terms of the question, this is a promising introduction as it gives a
thorough account of the activities in the industry, recognising the complexity of the industry from a range of
perspectives. This suggests to the marker that the report will be comprehensive and strong on detail.
[3]
Be careful when using stats
Statistics are very useful, particularly in the early stages of the report to give a broad and objective picture.
However, they must not be misquoted (see Example 1), what you are showing must be clear (see Example
2), and the significance of what you are pointing out must be clear (Example 3).
[4]
Source?
Unless you have created them yourself from raw data, all material - even tables and graphs (see later in
report) - need to be sourced.
[5]
Good example
As well as the more "tangible" elements of an industry, it is important to remember areas such as "R and D",
as an investigation of their activities may yield some truly interesting and significant examples of how an
industry is responding to internal and external forces.
[6]
Source?
Reports require definitions of key areas: inevitably these will come from a source. Your marker will be familiar
with these, and - if there are variations according to different commentators - will actually be interested to see
which definition you choose to use. You need to name your sources.
[7]
Evidence?
An assertion such as this requires a source. But before we even get to that, it first needs to present the
evidence on which the statement is based. It sounds like a likely thing to be happening, but how do we know
it is?
[8]
As above...
...only more so: How "devastating" is it? What was previously only lack of growth has now become
"difficulties" for manufacturers and retailers.
[9]
Evidence, source?
Can we assume all "elderly" people are in the same financial position and have the same needs and wants?
Maybe this is one of the sorts of assumptions which the study of marketing will lead us to question. What is
the source of these "statistics"? The paragraph introduces the kinds of evidence that should be included
under "demographic forces", but the source needs to be named so the persuasiveness of the evidence (e.g.
the magnitude of a trend) can be examined.
[10]
Lecturer's overall comment
This report received a Credit. The assignment demonstrates a reasonable understanding of the industry,
segmentation, and a range of forces that influence the industry. A significant shortcoming is the lack of
appropriate referencing of sources, tables, and other claims/statements. Much of this material cannot be
verified, and as a consequence the report lacks weight and strength.
Discussion of all the macro factors - including the political, legal, and natural environments - would also have
improved the assignment.
[11]
In APA Style this is called References.
[12]
Listing only the website is not sufficient. Follow the APA format for websites: Author/editor surname,
Author/editor initial(s). (Year, month day of last update, or copyright year). Title of the page/document.
Retrieved Month day, year, from URL.
[13]
Articles and journals to be listed individually. For electronic journals, the following information is required:
Surname, Initial(s). (Year). Title of article. Journal title, number. Retrieved from.
[14]
IBISWorld. (Year, Month Day). Motor vehicle manufacturing (C28 11). Retrieved from IBISWorld database.
(Include the date and the database it was retrieved from)
Helen's comments
Researching the assignment (1) - Using the subject website
<www.monash.edu/lls/llonline/writing/business-economics/marketing/3.1.4.xml#audioDiv>
I would suggest go to the website and whatever addresses you think might exist on the Internet. You type
them in and see whether they can actually open information, but also go to things like Dow Jones and IBIS
World, which will provide you not only with articles but also other links to important websites; to try and talk to,
probably, fellow students: they can give you all the helpful advice on where to go, and what sort of
information is contained, they can give you suggestions on sorts of problems they have had, or experienced,
and the sort of ways they've solved those problems. There is also the Q Manual, which gives you information
on how to report, how to write down the sorts of information, categorise them and organise them, so that you
can incorporate all that information into your report. The subject website provides a lot of information. The
website has a section where you - basically it tells you what sort of outline, and the things that need to be
incorporated inside the assignment. It has a section which is called Bulletin which also provides information
on how to solve problems. It's an actual link to where students type in the sorts of problems they've had, and
they wait for a reply from other students or the lecturer. The website also provides other links to direct
website addresses which contain a lot of information on the subject topic that you are doing.
Researching the assignment (2) - Using the library
<www.monash.edu/lls/llonline/writing/business-economics/marketing/3.1.4.xml#audioDiv>
I started off with the librarian, and I asked whether there was any particular sort of way I should approach my
research. The librarian gave me helpful hints on going to tours, which were really helpful. These tours
contained a lot of information and handouts on the specific subject that I was doing. It showed me where to
go in the library, what sort of information I should expect and hope to find. It showed me how - what sort of
words and phrases I should type into the Internet, or the Voyager [= the library catalogue], so that I could get
the most information from that topic that was the most relevant. It also showed me the sorts of CD ROMs and
what sort of things like IBIS and Dow Jones, sort of, programmes that were available for me, and he told me
that those contained not only abstracts, but actual full-content articles on my topic.
Managing the writing process (1) <www.monash.edu/lls/llonline/writing/businesseconomics/marketing/3.1.4.xml#audioDiv>
Writing the report - I actually kind of postponed it. I found that there was so many problems and questions
that needed to be answered, that I planned - I might have planned to do the report a bit each day, but I ended
up leaving it to the last two days before the actual report was due. There was actual problems in that I might
have written one sentence that I didn't actually know how to follow up on that sentence, so what I did was -
that also caused problems, so I actually stopped. I took a break, and whenever an idea came up I jotted down
to a note pad, and come back to the report, maybe a couple of hours later, maybe a half-day later.
Managing the writing process (2) <www.monash.edu/lls/llonline/writing/businesseconomics/marketing/3.1.4.xml#audioDiv>
As for writing up the essay, what I did was that I went from writing the Executive Summary, and then what I
did was that I wrote the Introduction, and each point that I made I linked with the topic, and linked so that the
next paragraph would be connected.
The structure of the report <www.monash.edu/lls/llonline/writing/businesseconomics/marketing/3.1.4.xml#audioDiv>
Strictly informational, but also in a sense that we needed to incorporate graphs and statistics, so that the
whole essay flowed. I also needed to understand that the report writing involved subject headings, which also
needed to be included inside the graph - er, inside the report. And I also needed to know that within the report
there are certain formats required; like, I had to number each, sort of, section as I went along, and this sort of
thing; I needed an Executive Summary, and things like that, which actually told me that - or, told the person
who was reading it that - I needed to explain what, sort of, the report was about, and give them a hint; so that
instead of reading the whole report, and finding out the whole report was based on the motor vehicle industry,
I had to write a paragraph or so on that at the start of the essay.
Deciding on a style <www.monash.edu/lls/llonline/writing/businesseconomics/marketing/3.1.4.xml#audioDiv>
Writing sorts of styles, they all contain different sort of words at the start of paragraph. But a good thing is to
out find whether the assignment that you're writing requires a definite statement at the start of the paragraph,
then lead through the ideas that you've got and explain them with examples or not or with graphs and things
like that. I didn't really know whether I needed to do it in that format, or whether I should write it so that the
actual language used was simple language or really complex corporate language, whether a word that I may
have used in the report really needed to be defined or not.
Using graphical material <www.monash.edu/lls/llonline/writing/businesseconomics/marketing/3.1.4.xml#audioDiv>
Graphs, statistics, tables, diagrams are all important in a report format. However, you've got to realise that
when you use anything of that sort, that you have to explain it – why you are using it, what sort of important
information and what you are trying illustrate to the reader. So the best thing is, probably, include a sentence
or two which talks about the actual information that's in the diagram. Then what you should do is that with the
formatting of the graph, you have to make sure that it's clear, logical, and that there is a number associated to
the diagram which is also stated inside the contents pa- - on the contents page. You also should write
probably - sort of, a caption underneath the diagram which has a brief sentence saying what the diagram is
showing; like, "This graph indicates something in regards or relation to another" - sort of thing. With the graph
you also have to be careful that you are not including too much into the body of the report, because graphs,
yes, they are good, they illustrate things clearly, but too much of it, you may run the risk of not explaining
properly. So that was also a problem, in that I wasn't told exactly how many graphs or things I should include,
whether I should put them in the Appendix or not. As for actually explaining it, what I did was, I basically
explained it at the end of the paragraph; then I included the - I went to the next paragraph; and things like
that.
Plagiarism (1) <www.monash.edu/lls/llonline/writing/businesseconomics/marketing/3.1.4.xml#audioDiv>
I realised at a University level that plagiarism doesn't mean copying straight from the text. It could mean
rewording the text, and with summarising texts and incorporating statistics and sorts of information like that, I
have realised that any work, even my own words, could be a form of plagiarism, because rewording statistics
in the text is so close to, actually, plagiarism that I could be, in a sense, plagiarising but not intentionally
plagiarising. And the thing is that, because I can't give drafts the tutor, I've realised that I might be plagiarising
and I won't know it until the actual assignment is corrected and handed back to me; so that was a problem.
Maybe if students could read my work it would have been good, but the thing with that is, that if I gave my
work out to a student, I would run the risk of having them plagiarise my work.
Plagiarism (2) <www.monash.edu/lls/llonline/writing/businesseconomics/marketing/3.1.4.xml#audioDiv>
The plagiarism thing was completely different from High School, in that we were required to actually hand in
drafts to teachers, and that ideas were actually discussed in the tutorial classes, so that all students have the
option of getting information from both students and teachers. With University level, we can't hand in drafts,
and the tutorials are basically planned out well in advance so that we don't actually have time to brainstorm
and discuss ideas on the topic. Our tutorial was - the only tutorial we actually had that talked about the
assignment was basically running through the assignment - the sorts of things that - the criteria that we need;
but the criteria was brief, and we weren't able to talk about what sort of ideas we had in relation to the topic,
and students couldn't give us advice, or anything of that nature.
Checking the writing <www.monash.edu/lls/llonline/writing/businesseconomics/marketing/3.1.4.xml#audioDiv>
Our tutors could also help in that aspect, but as for drafts, we weren't actually allowed hand in a draft and get
that assessed, which was also a problem; so - probably - going to see a fellow-student, who could read the
essay and give you feedback - that would have been good as well.
Checking the assignment against the criteria
<www.monash.edu/lls/llonline/writing/business-economics/marketing/3.1.4.xml#audioDiv>
With the criteria, what I did was that, as I went along writing down the essay and typing up things on the
computer, what I did was I wrote questions on the sorts of material that I want to be written inside the report
and what I expected that the tutor and lecturer would be assessing me on. And so that what I did was that
after I finished reading and proof-reading my report, I basically assessed myself on the sorts of things that grading from 1-5 whether it was good or not, and then I corrected those. I wrote whether the tutor would be
expecting me to write specific things, and what sort of examples would be better used inside the report.
Assessing the final product <www.monash.edu/lls/llonline/writing/businesseconomics/marketing/3.1.4.xml#audioDiv>
I haven't got information on how my tutor or the lecturer is going to mark my work, so I don't really know what
sort of criteria I've got. I'm not actually completely pleased with my work, in that I didn't really know how to
write it at first. I had so many problems in writing it and getting ideas. I mean, the sorts of information
available was so broad, that the essay wasn't - didn't contain a lot of material that might have been relevant.
With the sort of things that - I mean, previously in CATs in High School, what we did was that we got a criteria
sheet which stated what was considered high, what was considered low, and we could actually correct our
work according to the criteria. With this assignment we weren't given anything of the sort, we weren't told
what the tutor or the lecturer was looking for. All we were told was that the assignment had to talk about a
particular industry, describe the general industry, talk about the macro/micro perspectives of it, and basically
had to be logical and clear. But I don't know what the tutors and the lecturer sees as clear and logical. It
doesn't have a definition in the Q Manual, and it doesn't have a definition of that in the subject guide.
Download the full interview with Helen (mp3, 8.85 MB).
<www.monash.edu/lls/llonline/assets/utilities/download.php?file=assets/audio/helen/helen-all.mp3>
Amanda's assignment
Amanda is a first-year Marketing student. For her first assignment in the subject, Amanda chose to focus on
the instant coffee industry.
Report topic:
Select a specific product/target market from within the broad areas identified below and:
1. Discuss how the macroenvironmental variables have had an impact on this market making
sure you show that you understand all the macroenvironmental variables that are likely to
have an impact.
2. Identify two different marketing mixes used by two different companies to target the market
you have identified.
Use examples to support your discussion where appropriate.
1. Look at the lecturer's expectations <www.monash.edu/lls/llonline/writing/businesseconomics/marketing/3.2.1.xml> of the assignment.
2. Next read Amanda's report <www.monash.edu/lls/llonline/writing/businesseconomics/marketing/3.2.2.xml> .
o How well do you think the report responds to the topic?
o Do you think the report could be improved in any way?
3. Now read the lecturer's comments <www.monash.edu/lls/llonline/writing/businesseconomics/marketing/3.2.3.xml> about Amanda's report.
4. Finally, listen to Amanda <www.monash.edu/lls/llonline/writing/businesseconomics/marketing/3.2.4.xml> talk about how she wrote her assignment and read feedback about
how to overcome the difficulties she faced.
Lecturer's expectations
In this section, one of your lecturers - Ian Walker - sets out what he expects from student assignments on this
topic.
Assignment 1 - Report topic:
"The marketing environment... consists of the actors and forces outside marketing that affect
marketing management's ability to develop and maintain successful transactions with its target
customers." Kotler et al (1998) pg 100
In this assignment you are required to choose one industry from the two in your stream and identify
and discuss the actors and forces currently active in that industry AND the likely effect/impact
that these actors/forces will have on that industry in the next 12 months.
What the lecturer expects
1. Assignment Topic Areas <www.monash.edu/lls/llonline/#topic>
2. Guidelines <www.monash.edu/lls/llonline/#guidelines>
3. Additional notes <www.monash.edu/lls/llonline/#additional-notes>
Assignment topic areas:
TOURISM
Product/Target Market: Backpackers, Retirees, Families
ELECTRONIC COMMERCE
Product/Target Market: Books, Wine, Music(MP3), Software
FAST MOVING CONSUMER GOODS
Product/Target Market: - Breakfast cereal for Children (under 12years)
CONSUMER SERVICES
Product/Target Market: - Movies, Consumer Banking
Word limit 3,000 words
Assessment for Assignment 2 (25%) divided equally between both parts of the assessment.
Guidelines
Part 1 asks you to:
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Briefly identify and explain the macro forces discussed by Kotler.
Then identify and discuss in more detail the macro forces that are most applicable to the
product/market area that you have selected.
You must explain why you think they are applicable, how they impact the product/market area, and
give appropriate examples to illustrate your understanding.
Part 2 asks you to:
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Select two organisations that operate in the product/target market that you have chosen.
Identify and detail the marketing mix (i.e. 4 and P's) they use to target this product/target market.
Discuss the differences and the similarities between the two organisations' marketing mixes. Why do
these differences exist or not exist? What other insight can you get into these organisations and how
they use marketing for this industry?
You are expected to develop the information yourself, being guided by whatever hard information you are
able to find. You should read widely in Kotler et al. and other texts about what is required in a theoretical way,
and you should observe closely what is actually happening with your chosen product(s) in the marketplace.
UNDER NO CIRCUMSTANCES ARE YOU TO CONTACT COMPANIES IN YOUR CHOSEN INDUSTRY
FOR INFORMATION.
Additional notes
1. This assignment is to be done on an INDIVIDUAL basis. (They are not GROUP assignments.)
The work submitted must be your own. You must acknowledge the sources of your information.
2. The assignment must be typed, and well presented. Because it is intended to prepare you for the
final examination, it must be written in business REPORT format/style. You may, however, use
subheadings and bullet-points where appropriate within the report. You may also incorporate graphs,
tables, diagrams, and figures into the body of the report if you wish. (If lengthy, material of this kind
may be attached as appendices.)
3. In Assignment 2 you MUST include a bibliography. This should be on a separate page. FULL
details are required - name and initials of all authors, full title, publisher, place, and date of
publication. At this level of study, you must get these details right!
See the Faculty's Q Manual (http://www.buseco.monash.edu.au/publications/qmanual/)
<www.buseco.monash.edu.au/publications/qmanual/> or any of the other good style guides in the libraries.
4. The word limit for the first assignment is 2,000 words. You will not be penalised for exceeding
these limits - within reason (say 10%) - provided that there is no repetitiveness, irrelevance, or
"padding". Similarly, you will not be penalised for being under the word limit, provided that the
question has been fully and satisfactorily answered.
5. Although you are encouraged to seek a greater understanding of the issues raised in this assignment
by discussing them with business practitioners of your personal acquaintance, you are NOT
permitted to make unsolicited contact with business organisations to obtain information.
Assignment and exam assessment criteria
High Distinction 80 - 100%
The student demonstrates the competencies in Distinction standard, and in addition
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



uses creative examples, possible extensions, and applications of theory
demonstrates originality
makes defensible generalisations
draws conclusions which lend themselves to further research
writes to a publishable standard
is aware of limitations
Distinction 70 - 79%
The student demonstrates the competencies in Credit standard, and in addition







provides evidence of analysis and critical thinking
demonstrates an ability to evaluate
develops a progressive, convincing, and clear argument throughout the work
demonstrates selectivity and uses judgement in determining the importance of readings and ideas
shows evidence of wide reading and synthesis of ideas
utilises additional material to supplement information provided
produces writing which is of a high literacy standard (structure, style, and referencing)
Credit 60 - 69%
The student demonstrates the competencies in Pass standard, and in addition











demonstrates the understanding of concepts, theories, and issues
is able to identify strengths and weaknesses in theories/readings and use these as a basis for
evaluation
is able to apply information to practices/situations
develops a clear argument with rationale for assumptions
integrates writing and demonstrates links between components
will rarely, if ever show evidence of original work
will tend to bring material to closure (tidy it up and make it fit a neat conclusion)
provides a structured, sourced, and referenced work
expresses him-/herself concisely and clearly and exhibits relatively error-free writing
may rely heavily on the the text and assigned readings
may sometimes lapse into description rather than providing analysis and evaluation
Pass 50 - 59%
The student:
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





essentially demonstrates an understanding of concepts, theories, and issues
but will tend to restate rather than evaluate
does not transform data in terms of structure, synthesis ,or application
relies extensively on text, or text and limited readings
may demonstrate coverage which is sparse in places
provides little or no evidence of critical analysis
provides little or no evidence of research



tends to use one limited approach
possibly a narrow focus
provides an acceptably sourced and referenced work but improvement may be necessary in structure
and grammar
Fail 0 - 49%
The student may demonstrate some or all of the following

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






failure to answer the question
misinterpretation of the question
failure to demonstrate understanding of the theory and concepts required
failure to identify the problems or issues
failure to provide evidence of reading the minimum requirements
does not write to acceptable academic standards (structure and grammar require extensive
improvement)
sourcing and referencing may not be present or are very confused
is not typed
is not handed in on time
Amanda's report
Report topic:
"The marketing environment... consists of the actors and forces outside marketing that affect
marketing management's ability to develop and maintain successful transactions with its target
customers." Kotler et al (1998) pg 100
In this assignment you are required to choose one industry from the two in your stream and identify
and discuss the actors and forces currently active in that industry AND the likely effect/impact
that these actors/forces will have on that industry in the next 12 months.
Table of contents
Market/Industry Definition
Macroenvironment
Demographic Environment
Economic Environment
Natural Environment
Technical Environment
Political Environment
Cultural Environment
The Marketing Mix: How two companies use it to target the Australian Instant Coffee Market
Nescafe
Robert Timms
Nescafe vs. Robert Timms
Conclusion
Reference List
Industry/Market definition
The Australian Coffee Industry comprises all the firms that offer products for sale that are derived from coffee
beans. There are pure coffee products, ie whole and ground coffee beans, and instant coffee products.
Each kind of product has its own target market. A market is "the set of all actual and potential buyers of a
product" (Kotler et al 1998, p885). The pure coffee market consists of all the actual and potential buyers of
whole or ground coffee beans. The instant coffee market consists of all the actual and potential buyers of
instant coffee.
For the purposes of this assignment, I will focus on the instant coffee market in Australia.
Part1
Macroenvironment
The marketing environment within which a company operates is dynamic. Its consists of a microenvironment,
and a macroenvironment. The microenvironment is "the forces close to the company that affect its ability to
serve its customers." The macroenvironment is "the larger societal forces that affect the whole
microenvironment," (Kotler et al 1998, pp885-886)
The macroenvironment consists of six types of forces: demographic, economic, natural, technological,
political and cultural forces. A company's marketing strategy must take into account changes and trends in
these environments that can present opportunities or pose threats. A successful firm is one that regularly
modifies it marketing mix and strategies to adapt to these changes (Czinkota et al 2000, p17).
Below I will outline the six macroenvironmental forces, and how they may affect the instant coffee market in
Australia.
Demographic environment
Demographics are the "study of human populations in terms of size, density, location, age, sex, race,
occupations and other statistics" (Kotler et al 1998, p105). The demographic environment consists of all the
aforementioned demographic variables, and their ability to affect the Australian instant coffee market. The
importance of the demographic environment lies in the fact that all demand for a product derives ultimately
from people (Cannon 1998, p41).
Kotler et al (1998, p113) noted that demographic developments have "transformed the Australian
marketplace from a mass market into more fragmented micro-markets differentiated by age, sex, geography,
lifestyle, ethic background, education and other factors." Recent demographic trends in Australia are a bettereducated and more white-collar population, increasing ethnic diversity, and changing age structures. The
implications of such changes are that organisations must now design products and marketing programs for
the specific micro-markets they wish to target.
While all demographic variables have the potential to affect the instant coffee market in Australia, the area of
particular significance is the emergence of ethnic micro-markets. Ethnic communities now make up a
significant - and growing - part of the Australian population, who have clear product and brand preferences
(Bradmore et al 1997, p88). Thus, there is now demand for a wider variety of coffee styles to suit ethnic
tastes, which requires the development of new products and marketing strategies. For example, since ninetyfive percent of all coffee drunk by Italians is espresso, (Barton 2000), many companies have developed
instant espresso products.
Economic environment
The economic environment consists of the "factors that affect consumer buying power and spending
patterns" (Kotler et al 1998, p113). Factor include income and employment levels, inflation levels, savings
and credit conditions, the value of the Australian dollar and so on.
This aspect of the macroenvironment is important to the Australian instant coffee market, as it is to any
market, because consumers must have the purchasing power to back up their desire for the products.
However, since non-price factors, such as branding, are a significant basis for competition for coffee products
(IBIS World 2000, p8), changes in retail coffee prices will not have a huge effect on the market share of any
one manufacturer.
Despite that, economic factors that do affect the Australian coffee market include the value of the Australian
dollar. Virtually all coffee beans are imported, and their prices vary with changes in the relative exchange
rates (IBIS World 2000, p15). A low value of the Australian dollar, as is the present case, drives up input
prices for manufacturers, which may be passed onto consumers.
Furthermore, the Association of Coffee Producing Countries, which accounts for three quarters of world
coffee-bean production, has announced plans to restrict the output of beans, which would mean it could
control prices (Crawford 2000, p1). The effect of this possible price control is not yet known, but it could drive
smaller manufacturers out of the market if the price increases are too high.
Also, another issue is the level of disposable income of Australians. With an increase in income, consumers
are increasingly likely to purchase higher quality products rather than to simply purchase more. Thus there is
a growing market for higher quality and priced instant coffee. As noted in the IBIS World Report for C2179
Food Manufacturing, "higher income facilitated the successful introduction of specialty...coffee products."
(IBIS World 2000, p7)
The GST is not applicable to coffee products, but GST on pure coffee products served at commercial
premises could increase the market potential for instant coffee.
Natural environment
The natural environment concerns the "natural resources that are needed as inputs by marketers or that are
affected by marketing activities" (Kotler et al 1998, p116). Today, there is a growing awareness of the need to
preserve our planet, and that includes the need to protect our natural environment from the potentially
harmful affects of industrial activities. Since coffee producers make use of the natural environment, there is a
potential for this aspect of the macroenvironment to be quite significant to the Australian coffee industry.
Consumers, more than ever, are beginning to boycott products that have been manufactured in such a way
as to damage the environment. This is putting pressure on manufactures to ensure all procedures are
environmentally friendly, or risk losing market share. Such issues that involve coffee manufacturing are the
use of pesticides and chemicals, pollution from manufacturing plants, excessive water use in the production
stage, and the effect of farming the land in regard to future erosion and depletion of natural minerals.
Also, the supply and price of coffee beans to the Australian Coffee market is at the mercy of the natural
elements. The IBIS World (2000, p27) Industry Report stated that "coffee bean prices are forecast to increase
sharply...(as)...the result of poor seasonal conditions in Central America and low stocks."
Technological environment
The technological environment is the "forces that affect new technologies, creating new product and market
opportunities" (Kotler et al 1998, p889). Since coffee was discovered in around 1000AD (Nescafé 2000), the
methods used to grow, harvest, process and manufacture coffee products has certainly evolved. The use of
irrigation systems, fertilisers, machinery in the harvest process, and the introduction of automated, computer
controlled equipment (in Australian processing plants) has raised efficiency and, in many cases, has also
improved product quality (IBIS World 2000, p25).
However, the most recent influential forces concern advances in manufacturing processes, and
developments of new coffee machines for home use.
New technologies had made it possible for Australian instant coffee manufacturers to produce a wider range
of products, of higher quality. For example, Nescafé have recently introduced a new instant Café Latte range,
and also new instant Espresso. Also, using freeze-dried technology, instant coffee has a significantly longer
shelf life than any product in the pure coffee market, which is a significant advantage.
However, over the past few decades, the development of inexpensive coffee perculators and plungers has
increased the attractiveness of pure coffee products, often at the expense of the instant coffee market. For
example, Melitta House of Coffee recently introduced a coffee maker that makes 10-15 cups of coffee as
quickly as boiling a jug.
Lastly, the advent Internet shopping is allowing consumers to make purchases on-line, and from foreign
suppliers, thus posing a threat to the size and profitability of the Australian coffee market.
Political environment
The political environment consists of the "laws, government agencies and pressure groups that influence and
limit various organisations and individuals in the society" (Kotler et al 1998, p887).
Like in all markets, organisations that operate in the Australian instant coffee market are subject to laws that
regulate virtually all aspects of their business, including such areas as food and health safety, pollution
emissions, and advertising and labelling requirements. However, the political environment does not have
large impact on the Australian coffee market.
Cultural environment
The cultural environment consists of the "institutions and forces that affect society's basic values, perceptions
and behaviours" (Kotler et al 1998, p882). Changes in Australian culture, and the emergence of varied subcultures can have a large impact on the instant coffee market in Australia. As Hugh Mackay, chairman of
Mackay Research Pty Ltd stated: "Anyone who is serious about communicating with contemporary
Australians...needs to understand the most contemporary trends in attitudes and behaviour." (Bradmore et al
1997, p62)
Recent trends in Australia that are having a particular affect on the instant coffee market are the redefinition
of health and associated anxieties about diet, fitness and stress, and the recent emergence of a young
Australian coffee culture.
Australians are, more than ever, concerned about their health. There is a wealth of research linking caffeine
to many ailments, and thus, this is increasing demand for the 'healthy' alternative - decaffeinated products.
There is also the threat the consumers could boycott coffee products all together, and switch to another
beverage, such as tea, which is well known for its positive health benefits.
In addition, the market for all types of coffee is benefiting from an "era of coffee in Australia...A real coffee
culture is growing." (Miller 2000, p3) People are not only drinking more coffee, but becoming coffee
connoisseurs. Coffee is no longer just a product, but a means of self-expression. As a society we are placing
the emphasis on quality, not quantity, and as such consumers are buying more "exotic" instant coffees
(Bannister 2000, p17).
There has also been an emergence of many different subcultures. A subculture is a "group of people with
shared value systems based on common life experiences or situations (Kotler et al 1998, p123). Today, there
is wide range of subcultures, particularly those based on nationalities, which is leading to demand for a wider
variety of products.
Part2
The marketing mix:
How it is used by two companies to target the australian instant coffee market
There are many organisations that operate within the instant coffee market in Australia. Each company
positions themselves with a unique marketing mix that is aimed at specific segments of the market.
Kotler et al (1998, p57) defines the marketing mix as "the set of controllable marketing variables that the
company blends to produce the response it wants in the target market." The variables of the marketing mix
are the 'four Ps':
Product: "the 'goods-and-service' combination the company offers to the target market" (Kotler et al 1998,
p57).
Price: "the amount of money customers have to pay to obtain the product" (Kotler et al 1998, p58).
Place (Distribution): "involves company logistics and marketing activities concerned with the making and
distributing the final product" (Kotler et al 1998, p58).
Promotion: the "activities that communicate the merits of the product and persuade the target customers to
buy it" (Kotler et al 1998, p58). This includes advertising, publicity, sales promotions, personal selling, direct
marketing and sponsorship.
I will focus on the marketing mix of Nescafé and of Robert Timms.
Nescafé
Nescafe products are produced by Nestle. Necafe holds a vary large share of the instant coffee market in
Australia.
Marketing mix outline
Product
There is a range of Nescafé products available (see Table 1 below).
Table 1: Nescafé Products and Price
STYLE
NESCAFÉ
BLENDS
DESCRIPTION
PRICE
($)
Espresso
Strong, dark roast
250g
150g
50g
9.51
6.72
2.51
Mild Roast
Full flavoured coffee with no
bitterness
150g
50g
6.72
2.64
Blend 43
Rich and full bodied coffee
1kg
500g
250g
150g
100g
50g
33.97
18.05
9.51
6.41
4.65
2.47
Kenjara
Smooth, full flavoured roast.
100g
50g
7.15
3.94
Cap Colombie
Medium roast, rich and subtle
100g
50g
7.15
3.94
Alta Rica
Deep and exotic high roast
100g
50g
7.15
3.94
Gold Blend
Rich and smooth. Made from the
best arabica beans
375g
200g
100g
50g
19.90
11.16
6.55
3.34
250g
100g
50g
11.38
5.63
3.11
100g
6.98
Latte Original
240g
4.88
Latte French
Vanilla
240g
4.88
Latte Mocha
240g
4.88
Decaf
Gold Decaf
NESCAFÉ LATTE
RANGE
SELLING
SIZE
Naturally Decaffeinated Coffee
Price
The prices of the Nescafé products have been listed in Table1: Nescafé products and price.
Place (Distribution)
The Nescafé product range is available in all large supermarket chains (Safeway, Coles etc). Smaller,
independent grocers or stockists generally have a smaller range that would include Nescafé Blend 43.
Promotion
a variety of promotional techniques. This includes:
Large scale advertising
They advertise their products in a wide variety of print, broadcast and display media. Their most recent nation
wide advertising campaigns were the "Open up with Nescafé" series, and the "Nescafé in the morning"
series.
Sales promotions
Nescafé regularly runs contests that coincide with new product launches or advertising campaigns. Recent
promotions were
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"win $1000 every morning for a month"
"Win the Nescafé Latte Lounge" - to promote the new latte range
Nescafé also use point of sale promotions, have cash-back offers, and have give-aways. Eg. a free Nescafé
mug was given away with every purchase of 500g of Blend 43. The mug was the same type as that used in
the 'Nescafé in the morning' advertisement series.
Sponsorship:
Nescafé sponsors the
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"Nescafé Big Break" competition which will give away $180,000 to young people (aged 16-21) with
original and achievable ideas.
"Nescafé Short Film Awards" - which offers a total of A$50,000 in cash awards to short film makers.
There is a student category in this competition.
Nescafé also has an Australian website (www.cafe43.com.au) where information on all products,
competitions and events can be accessed.
Marketing mix analysis
Nescafé's marketing mix is aimed at a large and varied segment of the instant coffee market. They could be
considered the 'Myer' of the instant coffee industry. The most obvious segments of the market they target are:
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Young adult café culture segment: They target this segment with their new latte range, along with the
advertising, sales promotion and the competition to win the lounge seen in the advertisements.
Upscale, quality driven, higher income consumers: Their Nescafé Gold range, and exotic tastes such
as Alta Rice are aimed towards such consumers, where the price and qaulity are higher than that of
the general blends.
Middle-class consumer (no age target): Nescafé targets such a large segment with their Blend 43,
Mild Roast and Espresso products. The consumer gets an economical benefit, as well as a quality
product.
Furthermore, Nescafé attempts to tap into the ethnic segment using their Espresso and exotic blends. In their
advertisements for espresso, they use local Italian actor, Nick Giannopoulos.
In general, since Nescafé has the largest range of instant coffee products in Australia, and has such a
powerful brand name, they have a consumer franchise - they gain brand recognition and demand consumer
loyalty. In particular, their most popular product, Nescafé Blend 43, is seen as the people's coffee. In their
advertisements, they use actors of varied age, gender, occupations and ethnicity.
Robert Timms:
Robert Timms is Australia's oldest coffee company. It is the leader in the coffee bean market (Bannister 2000,
p17), and has only entered the instant coffee market over the last couple of years.
Marketing mix outline
Product
Robert Timms offers coffee bags (which work in the same manner as a tea bag) in four styles:
Café Style Espresso
Italian Style Espresso
Mocha Kenya Style
Royal Special
The coffee bags are a mix of ground and instant coffee.
They also have:


Presmoto: Gourmet Freeze Dried Coffee.
Molto: Gourmet Granulated Coffee
Price
Robert Timms coffee bags are sold in:


packs of 8 for $2.35, or
packs of 18 for $4.83
I was not able to find the price of Presmoto and Molto soluble coffee as I could not find an outlet that stocks it.
Place
Robert Timms coffee bags are available in all large supermarket chains, but sporadically in independent
stores. I am not aware of where the gourmet soluble coffee can be purchased. It was not available in any
large supermarket I have visited.
Promotion
Robert Timms has only begun extensive promotion since early 2000, after remaining relatively low in profile.
They do not promote the coffee bags or gourmet instant coffee specifically, but rather they promote the brand
name. Promotional tools used by Robert Timms are:
Large scale advertising
Robert Timms most recent nation wide advertising campaign was the "Think it over with Robert Timms"
series, which is seen on broadcast, print and display media.
Sponsorship
Robert Timms is the official coffee supplier to the 2000 Olympic Games.
Robert Timms also has a web site (www.reoberttimms.com). It mainly has information on the history of the
company and it products.
Marketing mix analysis
Robert Timms positions itself in the instant coffee market as a provider of the very highest quality coffee
products. The company prides itself on its heritage. As it states on its web-site:
We are a dedicated group of Australians producing coffee, coffee related products and
services that are comparable to the very best in the world.
http://www.roberttimms.com/about/index.html
<www.roberttimms.com/about/index.html>
The company has targeted its instant coffee products to the high income, quality driven segment of the
instant coffee market. The quality of their products is reflected in the prices, which are expensive, and the
packaging, which uses the stylish combination of black and gold.
Furthermore, through their role as official coffee supplier to the Olympics, they are also associating
themselves with the pursuit of excellence and the Australian spirit.
Their promotional campaign "Think it Over...with Robert Timms™" creates a relaxed, yet sophisticated feel
about the company and their products. The premise behind the campaign is best summed up on their website:
Take some time out of your busy day to enjoy our coffee and you too can Think it Over...with
Robert Timms™' Reflect on the day, make the right decision at work or just decide to relax.
It's up to you.
http://www.roberttimms.com/think_it_over/index.html
<www.roberttimms.com/think_it_over/index.html>
Thus, while their marketing mix is targeted at high-income consumers who want high quality, they made sure
they did not exclude a large share of the market by appearing overly elitist.
Nescafé vs. Robert Timms
The marketing mix of Nescafé and the marketing mix of Robert Timms are quite different. These differences
reflect the different positioning of the two companies, and the segments of the market they were aiming to
capture.
Whereas Nescafe has targeted a larger percentage of the market, with quality but affordable products, Robert
Timms has targeted a narrower segment with gourmet, expensive products.
Generally, Robert Timms and Nescafé are no real direct threat to each other. While they do both compete in
the high quality, gourmet end of the instant coffee market, Robert Timms is clearly the highest quality
product, and consumers must pay for this. What Nescafé is offering is a more affordable alternative.
Conclusion
The instant coffee market in Australia is subject to the demographic, economic, political, cultural, natural and
technological forces of the wider macroenvironment that it operates within. Each of these forces has the
potential to change the marketing environment, and create opportunities and pose threats to the market and
those who operate within it. What companies must do is monitor these environments to adapt its marketing
mix accordingly.
In the Australian instant coffee market, different companies have quite different marketing mixes, as can be
seen when comparing Nescafé and Robert Timms. These differences do not mean that one is more effective
than the other, but rather they reflect the different marketing strategies adopted by each company to capture
the market segments they feel the company can best serve.
Reference list
Bannister Christine (2000), 'A coffee storm is brewing', ABIX Australasian Business Intelligence: Supermarket
Plus, July 24, p. 17
Barton, Warren (2000), "The long and short of it; Breaking new grounds", The Dominion, July 6, p15.
Cannon, T. (1998), Marketing: principles and practice (5th Ed), Cassell Publishers Ltd, London.
Crawford, Anne (2000), "Enjoy It While You Can Afford It", The Age (Today section), p1, June 12.
Czinkota M, Dickson P, Dunne P, Griffen A, Hoffman K, Hutt M, Lindgren J, Lusch R, Ronakainen I,
Rosenbloom B, Sheth J, Shimp T, Siguaw, Simpson P, Speh T, Urbany J (2000), Marketing Best Practices ,
The Dryden Press, Orlando.
IBIS World (2000), C2179 Food Manufacturing n.e.c Volume 8, http://203.173.101/iosrpt.asp?code=C2179
and sec=all, accessed 10/9/00
Kotler, Armstrong, Brown and Adam (1998), Marketing (4th Ed), Prentice Hall of Australia, Sydney.
Miller Nick (2000), 'Espresso Yourself', The West Australian, September 16, p3
Nescafé, Coffee People, www.nescafe.com, accessed 14/09/00.
Robert Timms, The House of Robert Timms, www.roberttimms.com, accessed 25/09/00.
Amanda's report and what her lecturer thought
Click on the highlighted text to see the comments.
Report topic:
"The marketing environment... consists of the actors and forces outside marketing that affect
marketing management's ability to develop and maintain successful transactions with its target
customers." Kotler et al (1998) pg 100
In this assignment you are required to choose one industry from the two in your stream and identify
and discuss the actors and forces currently active in that industry AND the likely effect/impact
that these actors/forces will have on that industry in the next 12 months.
[IMG-1]
[1]
[Executive summary?]
Table of contents
Market/Industry Definition
Macroenvironment
Demographic Environment
Economic Environment
Natural Environment
Technical Environment
Political Environment
Cultural Environment
The Marketing Mix: How two companies use it to target the Australian Instant Coffee Market
Nescafe
Robert Timms
Nescafe vs. Robert Timms
Conclusion
Reference List
Industry/Market definition
The Australian Coffee Industry comprises all the firms that offer products for sale that are derived from coffee
beans. There are pure coffee products, ie whole and ground coffee beans, and instant coffee products.
Each kind of product has its own target market. A market is "the set of all actual and potential buyers of a
product" (Kotler et al 1998, p885). The pure coffee market consists of all the actual and potential buyers of
whole or ground coffee beans. The instant coffee market consists of all the actual and potential buyers of
instant coffee.
For the purposes of this assignment, I will focus on the instant coffee market in Australia.
Part1
Macroenvironment
The marketing environment within which a company operates is dynamic. Its consists of a microenvironment,
and a macroenvironment. The microenvironment is "the forces close to the company that affect its ability to
serve its customers." The macroenvironment is "the larger societal forces that affect the whole
microenvironment," (Kotler et al 1998, pp885-886)
The macroenvironment consists of six types of forces: demographic, economic, natural, technological,
political and cultural forces. A company's marketing strategy must take into account changes and trends in
these environments that can present opportunities or pose threats. A successful firm is one that regularly
modifies it marketing mix and strategies to adapt to these changes (Czinkota et al 2000, p17).
Below I will outline the six macroenvironmental forces, and how they may affect the instant coffee market in
Australia.
Demographic environment
Demographics are the "study of human populations in terms of size, density, location, age, sex, race,
occupations and other statistics" (Kotler et al 1998, p105). The demographic environment consists of all the
aforementioned demographic variables, and their ability to affect the Australian instant coffee market. The
importance of the demographic environment lies in the fact that all demand for a product derives ultimately
from people (Cannon 1998, p41).
Kotler et al (1998, p113) noted that demographic developments have "transformed the Australian
marketplace from a mass market into more fragmented micro-markets differentiated by age, sex, geography,
lifestyle, ethic background, education and other factors." Recent demographic trends in Australia are a bettereducated and more white-collar population, increasing ethnic diversity, and changing age structures. The
implications of such changes are that organisations must now design products and marketing programs for
the specific micro-markets they wish to target.
While all demographic variables have the potential to affect the instant coffee market in Australia,
[IMG-2]
[2]the
area of particular significance is the emergence of ethnic micro-markets. Ethnic communities now make
up a significant - and growing - part of the Australian population, who have clear product and brand
preferences (Bradmore et al 1997, p88). Thus, there is now demand for a wider variety of coffee styles to suit
ethnic tastes, which requires the development of new products and marketing strategies. For example, since
ninety-five percent of all coffee drunk by Italians is espresso, (Barton 2000), many companies have
developed instant espresso products.
Economic environment
The economic environment consists of the "factors that affect consumer buying power and spending
patterns" (Kotler et al 1998, p113). Factor include income and employment levels, inflation levels, savings
and credit conditions, the value of the Australian dollar and so on.
This aspect of the macroenvironment is important to the Australian instant coffee market, as it is to any
market, because consumers must have the purchasing power to back up their desire for the products.
However, since non-price factors, such as branding, are a significant basis for competition for coffee products
(IBIS World 2000, p8), changes in retail coffee prices will not have a huge effect on the market share of any
one manufacturer.
Despite that, economic factors that do affect the Australian coffee market include the value of the Australian
dollar. Virtually all coffee beans are imported, and their prices vary with changes in the relative exchange
rates (IBIS World 2000, p15). A low value of the Australian dollar, as is the present case, drives up input
prices for manufacturers, which may be passed onto consumers.
Furthermore, the Association of Coffee Producing Countries, which accounts for three quarters of world
coffee-bean production, has announced plans to restrict the output of beans, which would mean it could
control prices (Crawford 2000, p1). The effect of this possible price control is not yet known, but it could drive
smaller manufacturers out of the market if the price increases are too high.
Also, another issue is the level of disposable income of Australians. With an increase in income, consumers
are increasingly likely to purchase higher quality products rather than to simply purchase more. Thus there is
a growing market for higher quality and priced instant coffee. As noted in the IBIS World Report for C2179
Food Manufacturing, "higher income facilitated the successful introduction of specialty...coffee products."
(IBIS World 2000, p7)
[IMG-3]
[3]The
GST is not applicable to coffee products, but GST on pure coffee products served at commercial
premises could increase the market potential for instant coffee.
Natural environment
The natural environment concerns the "natural resources that are needed as inputs by marketers or that are
affected by marketing activities" (Kotler et al 1998, p116). Today, there is a growing awareness of the need to
preserve our planet, and that includes the need to protect our natural environment from the potentially
harmful affects of industrial activities. Since coffee producers make use of the natural environment, there is a
potential for this aspect of the macroenvironment to be quite significant to the Australian coffee industry.
Consumers, more than ever, are beginning to boycott products that have been manufactured in such a way
as to damage the environment. This is putting pressure on manufactures to ensure all procedures are
environmentally friendly, or risk losing market share. Such issues that involve coffee manufacturing are the
use of pesticides and chemicals, pollution from manufacturing plants, excessive water use in the production
stage, and the effect of farming the land in regard to future erosion and depletion of natural minerals.
Also, the supply and price of coffee beans to the Australian Coffee market is at the mercy of the natural
elements. The IBIS World (2000, p27) Industry Report stated that "coffee bean prices are forecast to increase
sharply...(as)...the result of poor seasonal conditions in Central America and low stocks."
Technological environment
The technological environment is the "forces that affect new technologies, creating new product and market
opportunities" (Kotler et al 1998, p889). Since coffee was discovered in around 1000AD (Nescafé 2000), the
methods used to grow, harvest, process and manufacture coffee products has certainly evolved. The use of
irrigation systems, fertilisers, machinery in the harvest process, and the introduction of automated, computer
controlled equipment (in Australian processing plants) has raised efficiency and, in many cases, has also
improved product quality (IBIS World 2000, p25).
However, the most recent influential forces concern advances in manufacturing processes, and
developments of new coffee machines for home use.
New technologies had made it possible for Australian instant coffee manufacturers to produce a wider range
of products, of higher quality. For example, Nescafé have recently introduced a new instant Café Latte range,
and also new instant Espresso. Also, using freeze-dried technology, instant coffee has a significantly longer
shelf life than any product in the pure coffee market, which is a significant advantage.
However, over the past few decades, the development of inexpensive coffee perculators and plungers has
increased the attractiveness of pure coffee products, often at the expense of the instant coffee market. For
example, Melitta House of Coffee recently introduced a coffee maker that makes 10-15 cups of coffee as
quickly as boiling a jug.
Lastly, the advent Internet shopping is allowing consumers to make purchases on-line, and from foreign
suppliers, thus posing a threat to the size and profitability of the Australian coffee market.
Political environment
The political environment consists of the "laws, government agencies and pressure groups that influence and
limit various organisations and individuals in the society" (Kotler et al 1998, p887).
Like in all markets, organisations that operate in the Australian instant coffee market are subject to laws that
regulate virtually all aspects of their business, including such areas as food and health safety, pollution
emissions, and advertising and labelling requirements.
[IMG-4]
[4]However,
the political environment does not have large impact on the Australian coffee market.
Cultural environment
The cultural environment consists of the "institutions and forces that affect society's basic values, perceptions
and behaviours" (Kotler et al 1998, p882). Changes in Australian culture, and the emergence of varied subcultures can have a large impact on the instant coffee market in Australia. As Hugh Mackay, chairman of
Mackay Research Pty Ltd stated: "Anyone who is serious about communicating with contemporary
Australians...needs to understand the most contemporary trends in attitudes and behaviour." (Bradmore et al
1997, p62)
Recent trends in Australia that are having a particular affect on the instant coffee market are the redefinition
of health and associated anxieties about diet, fitness and stress, and the recent emergence of a young
Australian coffee culture.
Australians are, more than ever, concerned about their health. There is a wealth of research linking caffeine
to many ailments, and thus, this is increasing demand for the 'healthy' alternative - decaffeinated products.
There is also the threat the consumers could boycott coffee products all together, and switch to another
beverage, such as tea, which is well known for its positive health benefits.
In addition, the market for all types of coffee is benefiting from an "era of coffee in Australia...A real coffee
culture is growing." (Miller 2000, p3) People are not only drinking more coffee, but becoming coffee
connoisseurs. Coffee is no longer just a product, but a means of self-expression. As a society we are placing
the emphasis on quality, not quantity, and as such consumers are buying more "exotic" instant coffees
(Bannister 2000, p17).
There has also been an emergence of many different subcultures. A subculture is a "group of people with
shared value systems based on common life experiences or situations (Kotler et al 1998, p123). Today, there
is wide range of subcultures, particularly those based on nationalities, which is leading to demand for a wider
variety of products.
[IMG-5]
[5]Summary?
Part2
The marketing mix:
How it is used by two companies to target the australian instant coffee market
There are many organisations that operate within the instant coffee market in Australia. Each company
positions themselves with a unique marketing mix that is aimed at specific segments of the market.
Kotler et al (1998, p57) defines the marketing mix as "the set of controllable marketing variables that the
company blends to produce the response it wants in the target market." The variables of the marketing mix
are the 'four Ps':
Product: "the 'goods-and-service' combination the company offers to the target market" (Kotler et al 1998,
p57).
Price: "the amount of money customers have to pay to obtain the product" (Kotler et al 1998, p58).
Place (Distribution): "involves company logistics and marketing activities concerned with the making and
distributing the final product" (Kotler et al 1998, p58).
Promotion: the "activities that communicate the merits of the product and persuade the target customers to
buy it" (Kotler et al 1998, p58). This includes advertising, publicity, sales promotions, personal selling, direct
marketing and sponsorship.
I will focus on the marketing mix of Nescafé and of Robert Timms.
Nescafé
Nescafe products are produced by Nestle. Necafe holds a vary large share of the instant coffee market in
Australia.
Marketing mix outline
Product
[IMG-6]
[6]There
is a range of Nescafé products available (see Table 1 below).
Table 1: Nescafé Products and Price
STYLE
NESCAFÉ
BLENDS
DESCRIPTION
Strong, dark roast
250g
150g
50g
9.51
6.72
2.51
Mild Roast
Full flavoured coffee with no
bitterness
150g
50g
6.72
2.64
Blend 43
Rich and full bodied coffee
1kg
500g
250g
150g
100g
50g
33.97
18.05
9.51
6.41
4.65
2.47
Kenjara
Smooth, full flavoured roast.
100g
50g
7.15
3.94
Cap Colombie
Medium roast, rich and subtle
100g
50g
7.15
3.94
Alta Rica
Deep and exotic high roast
100g
50g
7.15
3.94
Gold Blend
Rich and smooth. Made from the
best arabica beans
375g
200g
100g
50g
19.90
11.16
6.55
3.34
250g
100g
50g
11.38
5.63
3.11
100g
6.98
Latte Original
240g
4.88
Latte French
Vanilla
240g
4.88
Latte Mocha
240g
4.88
Gold Decaf
Price
[IMG-7]
PRICE
($)
Espresso
Decaf
NESCAFÉ LATTE
RANGE
SELLING
SIZE
Naturally Decaffeinated Coffee
[7]The
prices of the Nescafé products have been listed in Table1: Nescafé products and price.
Place (Distribution)
The Nescafé product range is available in all large supermarket chains (Safeway, Coles etc). Smaller,
independent grocers or stockists generally have a smaller range that would include Nescafé Blend 43.
Promotion
a variety of promotional techniques. This includes:
Large scale advertising
They advertise their products in a wide variety of print, broadcast and display media. Their most recent nation
wide advertising campaigns were the "Open up with Nescafé" series, and the "Nescafé in the morning"
series.
Sales promotions
Nescafé regularly runs contests that coincide with new product launches or advertising campaigns. Recent
promotions were


"win $1000 every morning for a month"
"Win the Nescafé Latte Lounge" - to promote the new latte range
Nescafé also use point of sale promotions, have cash-back offers, and have give-aways. Eg. a free Nescafé
mug was given away with every purchase of 500g of Blend 43. The mug was the same type as that used in
the 'Nescafé in the morning' advertisement series.
Sponsorship:
Nescafé sponsors the


"Nescafé Big Break" competition which will give away $180,000 to young people (aged 16-21) with
original and achievable ideas.
"Nescafé Short Film Awards" - which offers a total of A$50,000 in cash awards to short film makers.
There is a student category in this competition.
Nescafé also has an Australian website (www.cafe43.com.au) where information on all products,
competitions and events can be accessed.
Marketing mix analysis
Nescafé's marketing mix is aimed at a large and varied segment of the instant coffee market. They could be
considered the 'Myer' of the instant coffee industry. The most obvious segments of the market they target are:


Young adult café culture segment: They target this segment with their new latte range, along with the
advertising, sales promotion and the competition to win the lounge seen in the advertisements.
Upscale, quality driven, higher income consumers: Their Nescafé Gold range, and exotic tastes such
as Alta Rice are aimed towards such consumers, where the price and qaulity are higher than that of
the general blends.

Middle-class consumer (no age target): Nescafé targets such a large segment with their Blend 43,
Mild Roast and Espresso products. The consumer gets an economical benefit, as well as a quality
product.
Furthermore, Nescafé attempts to tap into the ethnic segment using their Espresso and exotic blends. In their
advertisements for espresso, they use local Italian actor, Nick Giannopoulos.
[IMG-8]
[8]In
general, since Nescafé has the largest range of instant coffee products in Australia, and has such a
powerful brand name, they have a consumer franchise - they gain brand recognition and demand consumer
loyalty. In particular, their most popular product, Nescafé Blend 43, is seen as the people's coffee. In their
advertisements, they use actors of varied age, gender, occupations and ethnicity.
Robert Timms:
Robert Timms is Australia's oldest coffee company. It is the leader in the coffee bean market (Bannister 2000,
p17), and has only entered the instant coffee market over the last couple of years.
Marketing mix outline
Product
Robert Timms offers coffee bags (which work in the same manner as a tea bag) in four styles:
Café Style Espresso
Italian Style Espresso
Mocha Kenya Style
Royal Special
[IMG-9]
[9]The
coffee bags are a mix of ground and instant coffee.
They also have:


Presmoto: Gourmet Freeze Dried Coffee.
Molto: Gourmet Granulated Coffee
Price
Robert Timms coffee bags are sold in:


packs of 8 for $2.35, or
packs of 18 for $4.83
I was not able to find the price of Presmoto and Molto soluble coffee as I could not find an outlet that stocks it.
Place
Robert Timms coffee bags are available in all large supermarket chains, but sporadically in independent
stores. I am not aware of where the gourmet soluble coffee can be purchased. It was not available in any
large supermarket I have visited.
Promotion
Robert Timms has only begun extensive promotion since early 2000, after remaining relatively low in profile.
They do not promote the coffee bags or gourmet instant coffee specifically, but rather they promote the brand
name. Promotional tools used by Robert Timms are:
Large scale advertising
Robert Timms most recent nation wide advertising campaign was the "Think it over with Robert Timms"
series, which is seen on broadcast, print and display media.
Sponsorship
Robert Timms is the official coffee supplier to the 2000 Olympic Games.
Robert Timms also has a web site (www.reoberttimms.com). It mainly has information on the history of the
company and it products.
Marketing mix analysis
Robert Timms positions itself in the instant coffee market as a provider of the very highest quality coffee
products. The company prides itself on its heritage. As it states on its web-site:
We are a dedicated group of Australians producing coffee, coffee related products and
services that are comparable to the very best in the world.
http://www.roberttimms.com/about/index.html
<www.roberttimms.com/about/index.html>
The company has targeted its instant coffee products to the high income, quality driven segment of the
instant coffee market. The quality of their products is reflected in the prices, which are expensive, and the
packaging, which uses the stylish combination of black and gold.
Furthermore, through their role as official coffee supplier to the Olympics, they are also associating
themselves with the pursuit of excellence and the Australian spirit.
Their promotional campaign "Think it Over...with Robert Timms™" creates a relaxed, yet sophisticated feel
about the company and their products. The premise behind the campaign is best summed up on their website:
Take some time out of your busy day to enjoy our coffee and you too can Think it Over...with
Robert Timms™' Reflect on the day, make the right decision at work or just decide to relax.
It's up to you.
http://www.roberttimms.com/think_it_over/index.html
<www.roberttimms.com/think_it_over/index.html>
Thus, while their marketing mix is targeted at high-income consumers who want high quality, they made sure
they did not exclude a large share of the market by appearing overly elitist.
Nescafé vs. Robert Timms
The marketing mix of Nescafé and the marketing mix of Robert Timms are quite different. These differences
reflect the different positioning of the two companies, and the segments of the market they were aiming to
capture.
Whereas Nescafe has targeted a larger percentage of the market, with quality but affordable products, Robert
Timms has targeted a narrower segment with gourmet, expensive products.
[IMG-10]
[10]Generally,
Robert Timms and Nescafé are no real direct threat to each other. While they do both compete
in the high quality, gourmet end of the instant coffee market, Robert Timms is clearly the highest quality
product, and consumers must pay for this. What Nescafé is offering is a more affordable alternative.
Conclusion
The instant coffee market in Australia is subject to the demographic, economic, political, cultural, natural and
technological forces of the wider macroenvironment that it operates within. Each of these forces has the
potential to change the marketing environment, and create opportunities and pose threats to the market and
those who operate within it. What companies must do is monitor these environments to adapt its marketing
mix accordingly.
In the Australian instant coffee market, different companies have quite different marketing mixes, as can be
seen when comparing Nescafé and Robert Timms. These differences do not mean that one is more effective
than the other, but rather they reflect the different marketing strategies adopted by each company to capture
the market segments they feel the company can best serve.
[IMG-11]
[11]
[Lecturer's overall comment]
Reference list
Bannister, C. (2000, July 24). A coffee storm is brewing. ABIX Australasian Business Intelligence:
Supermarket Plus, p.17.
Barton, W. (2000, July 6). The long and short of it: Breaking new grounds. The Dominion, p.15.
Cannon, T. (1998). Marketing: Principles and practice (5th ed.). London: Cassell Publishers Ltd.
Crawford, A. (2000, June 12). Enjoy It While You Can Afford It. The Age (Today section), p.1.
[IMG-12]
[12]Czinkota.
M., Dickson, P., Dunne, P., Griffen, A., Hoffman, K., Hutt, M., Lindgren, J., Lusch, R.,
Ronakainen, I., Rosenbloom, B., Sheth, J., Shimp, T., Siguaw, Simpson, P., Speh, T., & Urbany J. (2000).
Marketing Best Practices. Orlando: The Dryden Press.
[IMG-13]
[13]IBIS
World (2000), C2179 Food Manufacturing n.e.c Volume 8, http://203.173.101/iosrpt.asp?code=C2179
and sec=all, accessed 10/9/00
Kotler, P., Armstrong, G., Brown, L. & Adam, S. (1998). Marketing (4th ed.). Sydney: Prentice Hall.
Miller, N. (2000, September 16). Espresso Yourself. West Australian, p.3.
Nescafe. (n.d.). Coffee People. Retrieved September 14, 2000, from www.nescafe.com
<www.nescafe.com>
Robert Timms. (n.d.). The House of Robert Timms. Retrieved September 25, 2000, from
www.roberttimms.com <www.roberttimms.com>
[1]
Executive summary
An executive summary needs to be included to summarise concisely the major findings/recommendations of
the report. It can include the following elements: purpose/method of study; results; conclusions.
[2]
Needs to expand here
Here, the student makes a good point about a significant development, but does not expand on what it is
specifically. Statistics are needed in support of this statement, together with some figures on growth and
trends. It's good to use examples (Italians and expresso), but more demonstration of the overall trends, such
as percentage increase in major groups, would provide more of a comprehensive picture.
[3]
Explain
The word limit should not prevent students from describing a point fully - to show they understand what they
are talking about. With this point, the student seems to be saying that, because the GST is applicable to
coffee which is served to customers, this could drive some customers to choose instant because of the price
difference; but it's not completely clear. Some justification for this statement is also needed - is it solely her
own opinion?
[4]
Current and future trends
With the macroenvironmental forces, it's important to think of them as a network, not as separate unrelated
agents. Because the political environment includes pressure groups, concerns about such things as the
environment and genetic engineering come into play, particularly as possible future trends. Brainstorming
points for the macro forces before writing is useful to make sure you include everything: for example,
deregulation of industry and/or political policy direction changes.
[5]
Summary here would help
The student is now moving on to the second part and needs to leave the reader with a forceful impression of
what has been covered in Part 1. A summary here of the macro forces' influence/impact would help clarify the
general and specific points made.
[6]
More required here
While the table demonstrates well the research the student has done, it is not sufficient simply to present
factual detail. The brand needs to be referred to: how significant is it (brand equity, etc.)? The table can be
introduced by making the point that each product is targeting a different taste, price, expectations, etc., thus
maximising the opportunity to demonstrate understanding.
[7]
More detail needed
Instead of just referring to the table, the student could have talked about how price is used as a strategic tool.
The brand image is influenced by the pricing strategy; discounts also play a role. It's important to make the
most of each of the variables, showing how you thought about each one.
[8]
Good coverage overall
The student draws her points together well. Some additional explanation and detail are required, but the
student demonstrates understanding of the marketing concepts and how they are applied in the marketplace.
[9]
Make differences clearer
Even though a comparison is expected at the end, the student could be using the opportunity here to make
clear distinctions between the two products. The Robert Timms product taps into the coffee bean drinker who
wants convenience. Good to point out the composition of the bags, but more could be made of this as
meaning potentially a new market segment.
[10]
Needs a bit more discusssion
The student makes some general points here which are valid, but it would be strengthened in the second
paragraph if some of the specific differences were touched on; and in the third paragraph by some more
discussion of how and why they are no direct threat to each other. The comparison section shows your
marker how well you can synthesise two separate bodies of information.
[11]
Lecturer's overall comment
This report received a High Distinction (in the lower range). Including the executive summary would have
resulted in an even better mark. The important thing about the assignment is that, while it is not perfect, the
student demonstrates understanding of the relevant marketing concepts and how they can be used/applied to
products in the marketplace to provide insight and understanding for marketers. Sometimes she could have
been a little more explicit, elaborating and explaining her points further.
[12]
Czinkota, M., Dickson, P., Dunne, P., Griffen, A., Hoffman, K., Hutt, M., et al. (2000). Marketing Best
Practices. Orlando: The Dryden Press.
(If there are more than 6 authors, after the sixth author type "et al." and omit the subsequent names)
[13]
IBISWorld. (2000, August 29). Tea, coffee and other food manufacturing in Australia (C21 79). Retrieved from
IBISWorld database.
(Apply correct punctuation style; italicise the title information, and include the database this was retrieved
from)
Amanda's comments
Writing in year 12 and first year <www.monash.edu/lls/llonline/writing/businesseconomics/marketing/3.2.4.xml#audioDiv>
In regards to University assignments in relation to Year 12 assignments, I think there is a lot of difference
between the two. For assignments that I've done this year, I've found that the depth required is a lot greater.
It requires more research; you will need to be more succinct in drawing the main points. Whereas Year 12
assignments, although need to be succinct and of a reasonable depth; it wasn't the same standard as
required in University. In relation to subjects, I found similarity between the marketing assignment and the
...which was a bio-social analyst, and the reasons that I found it similar was simply because of the kind of
research that was required and how you had to get a variety of different sources to draw it all together to put
the assignment together. In relation to University assignments and the criteria for assessment, most subjects
that I've had so far have spelt out the areas that are going to be assessed in assignments, how much they're
worth, but it hasn't necessary gone into detail of the criteria for each assignment that you got in Year 12 when
you had your case and you knew what you had to do for an A or a B. I think that you know the general
standard that's required to get a high mark, but for each assignment, you don't necessarily know what has to
be included, what has to be discussed to actually get the high marks. So, it's a lot broader and I think it's a lot
harder to work out what you...
Writing the conclusion <www.monash.edu/lls/llonline/writing/businesseconomics/marketing/3.2.4.xml#audioDiv>
In the second part of the assignment for the two Marketing lectures, after detailing the Marketing...for both
companies, I felt the need to have a contrasting section between Robert Timms and Nescafe. And the reason
for that was simply to spell out the differences in the Marketing...between the two companies, and how they
use the marketing...differently.
Comparing the two companies <www.monash.edu/lls/llonline/writing/businesseconomics/marketing/3.2.4.xml#audioDiv>
The conclusion of this assignment was pretty much a very succinct condensation of the whole assignment.
Basically, after writing the rest of the assignment, it was pretty easy to put together because I knew the main
points and I knew what needed to be included. The Conclusion of the assignment wasn't so much pulling out
the most important points, it was simply restating the variables of the macroenvironment, and how they can
have a general affect on the industry. And then just making a quick mention of how different companies within
the coffee market use their marketing mix to target different areas.
Structuring (part 2) <www.monash.edu/lls/llonline/writing/businesseconomics/marketing/3.2.4.xml#audioDiv>
The reason that I ended up doing it under sub-headings, for the different parts of the Marketing index, was
that that way I knew that I had addressed every part of the Marketing index and didn't miss anything. Also it
sort of helped myself just to make sure that I could compare the two easier.
Relevance of one's own opinion <www.monash.edu/lls/llonline/writing/businesseconomics/marketing/3.2.4.xml#audioDiv>
For the assignment, it wasn't really about putting your own opinion in. Although I think you did have to make a
few judgement calls on the areas that were important to the industry. Also you had to do a bit of your own
interpreting on how different parts of the macroenvironment were affecting the industry, because it wasn't
necessarily spelt out in some areas. So for example for the political environment I couldn't go anywhere and
find out what was happening in ...coffee industry, that I knew there would be areas such as regulations on
health and food safety that would have an impact, so that's the kind of thing that you need to make a
judgement call...
Problems with referencing (part 1) <www.monash.edu/lls/llonline/writing/businesseconomics/marketing/3.2.4.xml#audioDiv>
Personally my uncertainty with referencing comes from two parts: Firstly, "Have I got the right information for
the reference, such as the year it was made, the authors and so forth? The second area comes with:

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"Have I used it in the right spot?"
"Am I quoting the right part of the text?"
"Is it from that book or did they quote it from somewhere else?" and if so,
"How do I quote within another text?"
I think that when you're referencing, there is a grey area as to what is your view and what is the view in the
book that you're reading and if I use that view do I need to quote them? But I think what I needed to do was if
I was using an idea that had come from the book, I did quote and reference that because without having read
that, I don't think that may necessarily have been my opinion. So the ideas from the start came from the text
and so I think it needed to be referenced. For referencing, I use inverted commas when I've taken the words
straight out of the book, whereas I might just in other instances just paraphrase and then just reference the
whole area that I've put the paraphrase in. In deciding whether to paraphrase or directly quote, it depends on
how I've put the paragraph that's going together. And often I start with direct quoting, but then find it doesn't
flow and so I'll paraphrase that area and just...
Problems with referencing (part 2) <www.monash.edu/lls/llonline/writing/businesseconomics/marketing/3.2.4.xml#audioDiv>
When I was referencing, what I did was, I put the quote in or the paraphrase in. And as I was doing it, I'd
reference that straight away. I'd put in the book that it was from and the page and so forth; because what I
found was that if I leave it to the end and have to go back and find where was that quote from, which article,
what page, it's very time consuming, its frustrating and it's just so ...it's just so much easier just to do it
straight away.
Writing (part 1 and part 2) <www.monash.edu/lls/llonline/writing/businesseconomics/marketing/3.2.4.xml#audioDiv>
In writing the assignment, firstly what I did was the research part. And then once I'd found the research, I
moved onto the first part of the assignment, which was describing the macroenvironment of the industry and
what was happening. Basically what I did was I started with textbook definitions of each macroenvironment
variable, and then from that point I drew information from the articles on what was happening on each
environment. Then basically finished that first.
Once I'd done the first part of the assignment, I moved onto the second part, which was describing the
Marketing index of the two companies. What I did was just under headings of each part of the Marketing
Index: product, price, promotion, and place. I started describing the information that I'd found on each of
those variables and basically finished that, and then as a whole I read over it all, fixed up grammatical areas,
did a bit of structural re-working and then just pretty much finished after a few more drafts.
Approaching the tutor and other students <www.monash.edu/lls/llonline/writing/businesseconomics/marketing/3.2.4.xml#audioDiv>
While I was doing the assignment, I felt quite comfortable about approaching my tutor about it and getting a
bit of help. I went and saw her during her consulting times, just to bounce a few ideas off her about the
macroenvironment and just factors that were affecting the industry - just to get myself on the right track and
get a bit of feedback on how I was doing and how my thought process was sort of working on the assignment
to see if I was on the right track. And also I found that just talking to other people in my class and other
people that knew about how they were approaching their assignment. What area they were doing and what
kind of factors in the macroenvironment were they finding that were affecting, because possibly they might've
discovered something that was relevant to their industry which I may not have thought of, but still...
Using information <www.monash.edu/lls/llonline/writing/businesseconomics/marketing/3.2.4.xml#audioDiv>
Once I narrowed down the articles, what I did was go through and just with a highlighter, highlight the
important points and just keep a mental note of all the different information that I found out. Then what I did
was when I was writing the assignment, I just remembered those things and included the information in and
referred to the articles at that stage. I didn't make any hand-written notes up until that point.
Researching the report (part 1) <www.monash.edu/lls/llonline/writing/businesseconomics/marketing/3.2.4.xml#audioDiv>
The research that I got on the assignment was from going to the company's websites; from going to say Dow
Jones Interactive, and so what I ended up with was articles from industry publications, world reports on the
industry as whole, publications from say The Bulletin or Business Review Weekly, just a whole range of
articles, because that actual database combines more into one. So you just do your search and then it just
...more in. The quality of the information that I got from the database definitely varied, the industry reports
were very useful because they did give specific information about factors that were affecting the industry. The
information that I got say from articles from say Business Review Weekly was more general and wasn't as
specific, but it was still useful to give an overall trend or maybe little snippets on future events that were
occurring.
Researching the report (part 2) <www.monash.edu/lls/llonline/writing/businesseconomics/marketing/3.2.4.xml#audioDiv>
For the assignment, we were warned that you wouldn't be able to go to one book or one area to find all the
information you needed. So I already knew that I was going to have to do a fair bit of research for this
assignment, but I didn't really realize how many different places I would have to look. It wasn't that hard using
the databases of the library because there was advice given in the lecture that told us how to use it; and we
were also given a handout, but if you don't know what you're doing - when I tried to use it first semester I
didn't know what I was doing and I went round in circles. The difference in my research process the second
time using the databases was the fact that I had the librarian come and help us and give us a hand out and
basically said "If you want to search for something, go to this site, type it in here, press this press that." And
then you'd go off and narrow your search options a lot and find information
Researching the report (part 3) <www.monash.edu/lls/llonline/writing/businesseconomics/marketing/3.2.4.xml#audioDiv>
To decide what was relevant, I already had in my mind, the kind of information that I was looking for, and so
for each article I basically did a quick 'skim-read', looked for where coffee was written, read around those
areas - to see if they were to do with anything of macroenvironmental variables or anything to do with the
price of products, any kind of promotion that was going on in the industry. After starting the assignment, I
found there were areas that needed a bit more investigation and that weren't really coming up to scratch. So
at that point I had to go back and do a bit more specific research on different areas just to fill in the gaps.
Interpreting the question <www.monash.edu/lls/llonline/writing/businesseconomics/marketing/3.2.4.xml#audioDiv>
Interpreting both parts of the assignment, I think the first part was a lot more straight-forward in defining the
areas that affected new markets, such as all the macroenvironmental factors, but for the second part it was
definitely a lot harder to find information on and to interpret because you couldn't just go to one place and say
look up Nescafe and there they had their price and their products and all the information on it. So you had to
look at it and say, well, if I'm going to do this company can I find this information and do I know what it means.
Download the full interview with Amanda (mp3, 7.45 MB).
<www.monash.edu/lls/llonline/assets/utilities/download.php?file=assets/audio/amanda/amandaall.mp3>
Briohny's assignment
Briohny is a first-year Marketing student. For her first assignment in the subject, Briohny chose to focus on
the fast food industry.
Report topic:
Select a specific product/target market from within the broad areas identified below and:
1. Discuss how the macroenvironmental variables have had an impact on this market making
sure you show that you understand all the macroenvironmental variables that are likely to
have an impact.
2. Identify two different marketing mixes used by two different companies to target the market
you have identified.
Use examples to support your discussion where appropriate.
1. Look at the lecturer's expectations <www.monash.edu/lls/llonline/writing/businesseconomics/marketing/3.3.1.xml> of the assignment.
2. Next read Briohny's report <www.monash.edu/lls/llonline/writing/businesseconomics/marketing/3.3.2.xml> .
o How well do you think the report responds to the topic?
o Do you think the report could be improved in any way?
3. Now read the lecturer's comments <www.monash.edu/lls/llonline/writing/businesseconomics/marketing/3.3.3.xml> about Briohny's report.
Lecturer's expectations
In this section, one of your lecturers - Ian Walker - sets out what he expects from student assignments on this
topic.
Assignment 2 - Report topic:
"The marketing environment... consists of the actors and forces outside marketing that affect
marketing management's ability to develop and maintain successful transactions with its target
customers." Kotler et al (1998) pg 100
In this assignment you are required to choose one industry from the two in your stream and identify
and discuss the actors and forces currently active in that industry AND the likely effect/impact
that these actors/forces will have on that industry in the next 12 months.
What the lecturer expects
1. Assignment Topic Areas <www.monash.edu/lls/llonline/#topic>
2. Guidelines <www.monash.edu/lls/llonline/#guidelines>
3. Additional notes <www.monash.edu/lls/llonline/#additional-notes>
Assignment topic areas:
TOURISM
Product/Target Market: Backpackers, Retirees, Families
ELECTRONIC COMMERCE
Product/Target Market: Books, Wine, Music(MP3), Software
FAST MOVING CONSUMER GOODS
Product/Target Market: - Breakfast cereal for Children (under 12years)
CONSUMER SERVICES
Product/Target Market: - Movies, Consumer Banking
Word limit 3,000 words
Assessment for Assignment 2 (25%) divided equally between both parts of the assessment.
Guidelines
Part 1 asks you to:
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Briefly identify and explain the macro forces discussed by Kotler.
Then identify and discuss in more detail the macro forces that are most applicable to the
product/market area that you have selected.
You must explain why you think they are applicable, how they impact the product/market area, and
give appropriate examples to illustrate your understanding.
Part 2 asks you to:
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Select two organisations that operate in the product/target market that you have chosen.
Identify and detail the marketing mix (i.e. 4 and P's) they use to target this product/target market.
Discuss the differences and the similarities between the two organisations' marketing mixes. Why do
these differences exist or not exist? What other insight can you get into these organisations and how
they use marketing for this industry?
You are expected to develop the information yourself, being guided by whatever hard information you are
able to find. You should read widely in Kotler et al. and other texts about what is required in a theoretical way,
and you should observe closely what is actually happening with your chosen product(s) in the marketplace.
UNDER NO CIRCUMSTANCES ARE YOU TO CONTACT COMPANIES IN YOUR CHOSEN INDUSTRY
FOR INFORMATION.
Additional notes
1. This assignment is to be done on an INDIVIDUAL basis. (They are not GROUP assignments.)
The work submitted must be your own. You must acknowledge the sources of your information.
2. The assignment must be typed, and well presented. Because it is intended to prepare you for the
final examination, it must be written in business REPORT format/style. You may, however, use
subheadings and bullet-points where appropriate within the report. You may also incorporate graphs,
tables, diagrams, and figures into the body of the report if you wish. (If lengthy, material of this kind
may be attached as appendices.)
3. In Assignment 2 you MUST include a bibliography. This should be on a separate page. FULL
details are required - name and initials of all authors, full title, publisher, place, and date of
publication. At this level of study, you must get these details right!
See the Faculty's Q Manual (http://www.buseco.monash.edu.au/publications/qmanual/)
<www.buseco.monash.edu.au/publications/qmanual/> or any of the other good style guides in the libraries.
4. The word limit for the first assignment is 2,000 words. You will not be penalised for exceeding
these limits - within reason (say 10%) - provided that there is no repetitiveness, irrelevance, or
"padding". Similarly, you will not be penalised for being under the word limit, provided that the
question has been fully and satisfactorily answered.
5. Although you are encouraged to seek a greater understanding of the issues raised in this assignment
by discussing them with business practitioners of your personal acquaintance, you are NOT
permitted to make unsolicited contact with business organisations to obtain information.
Assignment and exam assessment criteria
High Distinction 80 - 100%
The student demonstrates the competencies in Distinction standard, and in addition
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uses creative examples, possible extensions, and applications of theory
demonstrates originality
makes defensible generalisations
draws conclusions which lend themselves to further research
writes to a publishable standard
is aware of limitations
Distinction 70 - 79%
The student demonstrates the competencies in Credit standard, and in addition
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
provides evidence of analysis and critical thinking
demonstrates an ability to evaluate
develops a progressive, convincing, and clear argument throughout the work
demonstrates selectivity and uses judgement in determining the importance of readings and ideas
shows evidence of wide reading and synthesis of ideas
utilises additional material to supplement information provided
produces writing which is of a high literacy standard (structure, style, and referencing)
Credit 60 - 69%
The student demonstrates the competencies in Pass standard, and in addition
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demonstrates the understanding of concepts, theories, and issues
is able to identify strengths and weaknesses in theories/readings and use these as a basis for
evaluation
is able to apply information to practices/situations
develops a clear argument with rationale for assumptions
integrates writing and demonstrates links between components
will rarely, if ever show evidence of original work
will tend to bring material to closure (tidy it up and make it fit a neat conclusion)
provides a structured, sourced, and referenced work
expresses him-/herself concisely and clearly and exhibits relatively error-free writing
may rely heavily on the the text and assigned readings
may sometimes lapse into description rather than providing analysis and evaluation
Pass 50 - 59%
The student:
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essentially demonstrates an understanding of concepts, theories, and issues
but will tend to restate rather than evaluate
does not transform data in terms of structure, synthesis ,or application
relies extensively on text, or text and limited readings
may demonstrate coverage which is sparse in places
provides little or no evidence of critical analysis
provides little or no evidence of research
tends to use one limited approach
possibly a narrow focus
provides an acceptably sourced and referenced work but improvement may be necessary in structure
and grammar
Fail 0 - 49%
The student may demonstrate some or all of the following
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failure to answer the question
misinterpretation of the question
failure to demonstrate understanding of the theory and concepts required
failure to identify the problems or issues
failure to provide evidence of reading the minimum requirements
does not write to acceptable academic standards (structure and grammar require extensive
improvement)
sourcing and referencing may not be present or are very confused
is not typed

is not handed in on time
Briohny's report
Report Topic:
"The marketing environment... consists of the actors and forces outside marketing that affect
marketing management's ability to develop and maintain successful transactions with its target
customers." Kotler et al (1998) pg 100
In this assignment you are required to choose one industry from the two in your stream and identify
and discuss the actors and forces currently active in that industry AND the likely effect/impact
that these actors/forces will have on that industry in the next 12 months.
EXECUTIVE SUMMARY
"Macroenvironmental forces The larger societal forces that affect the whole
microenvironment - demographic, economic, natural, technological, political and cultural
forces."
- Kotler et al
Macroenvironmental forces need to be studied by organisations as they can both provide opportunities and
pose threats.
The fast-food industry is a consumer service; two organisations that operate in the fast-food industry are
McDonald's and Hungry Jack's. McDonald's was chosen because it is the primary operator in this market and
holds the greatest market share. Hungry Jack's was chosen because the product they offer is the most
similar to McDonald's. I thought it would be interesting to compare marketing strategies of two organisations
that offer a fairly similar product.
McDonald's is the market leader both in Australia and throughout the world. Hungry Jack's is positioned more
as a market follower.
Companies use target marketing to tailor for specific markets. There are three components involved in target
marketing: market segmentation, market targeting and market positioning. McDonald's primary target markets
are seniors, adults and teenagers however the most heavily targeted segment is children. Hungry Jack's also
essentially segment their market using demographic variables.
The final step in target marketing is developing a marketing mix. These tools are also known as the four P's
and in the case of services, the seven P's. They are product, price, promotion, place, people, process and
physical evidence.
With the marketing mix of McDonald's compared to Hungry Jack's, the major difference is that McDonald's
promote their product using the marketing mix more evenly. Hungry Jack's use many elements of the
marketing mix similar to McDonald's, however they are not as heavily promoted and are more interested in
promoting the physical product.
TABLE OF CONTENTS
CONTENTS
Title Page
Executive Summary
1. Introduction
2. The Macroenvironment
2.1 Demographic forces
2.2 Economic Forces
2.3 Natural Forces
2.4 Technological Forces
2.5 Political Forces
2.6 Cultural Forces
3. Organisations Within the Fast-food Industry
3.1 Market Position
3.2 Target Markets
3.3 The Marketing Mix
3.1 3 Product
3.3.2 Price
3.3.3 Promotion
3.3.4 Place
3.3.5 People
3.3.6 Process
3.3.7 Physical Evidence
4. Conclusions
References
1. INTRODUCTION
"Marketed services (consumer services) - A market transaction by an enterprise of an
entrepreneur where the object of the market transaction is other than the transfer of
ownership (or title, if any) of a tangible commodity."
- M. Gabbott, G. Hogg
This assignment will focus specifically on the fast-food industry from within the consumer services area.
"Fast-food - Serving foods that can be prepared quickly, such as hamburgers, frankfurters
and fried chicken."
- C. L. Barnhart, R. K. Barnhart
The fast-food industry comprises both tangible and intangible components; for this reason the product/target
market sits directly in the center of the Product-Service Continuum. If we use McDonald's as an example, the
tangible component is the hamburger, fries or item which is purchased. While there is also an intangible
element, this is things like the expected level of service from the staff, the ability to have a hamburger cooked
"without pickles" if desired, the expected environment of the restaurant, etc.
2. THE MACROENVIRONMENT
"The larger societal forces that affect the whole microenvironment - demographic, economic,
natural, technological, political and cultural forces."
- Kotler et al.
2.1 Demographic Forces
"The study of human populations in terms of size, density, location, age, sex, race,
occupation and other statistics."
- Kotler et al.
The demographic environment is of great importance to marketers as it involves the study of people, and it is
people that make up markets. There are a number of demographic trends that are important to marketers.
Some of these include:
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The changing age structure of the population - In Australia, one of the major changes in the age
structure of the population is the decreasing birth rate and increase in the number of elderly people.
This means that marketers in the fast-food industry (and other industries) are having to market their
services and products at different target markets as many of the current markets are becoming
smaller and smaller. For example, McDonald's have recently started aiming advertising campaigns at
the elderly and offer free tea and coffee to the 60 plus age group.
The changing family - Another trend in the demographic environment is the characteristics of
families. No longer is mum, dad and 2.4 children the norm. The number of married couples with
children is declining while the number of one person and single parent households is continuing to
increase.
Geographic shifts in population - As the population grows it also expands and shifts geographically.
For fast-food services this means that they may need to shift location or open new stores to keep up
with demand.
Increasing ethnic diversity - Overseas immigration has led to an increase in not only population but
also the ethnic diversity of Australia. The impact this has on a market such as the fast-food industry
includes understanding different cultures and tastes; Hungry Jack's have introduced promotions like
the "Satay burger" to cater for Asian tastes.
2.2 Economic Forces
"Factors that affect consumer buying power and spending patterns"
- Kotler et al.
There are two key economic concerns for marketers; these are changes in income and changes in consumer
spending patterns. Changes in income may indicate trends and explain slumps in sales for the fast-food
industry. A drop in sales may be able to be explained by a depression in the market place, etc. Consumer
spending patterns refer to how household income is divided between food, housing, transportation, etc.
By monitoring changes in interest rates, unemployment, business and consumer confidence and retailing
expenditure using economic forecasting fast-food outlets are less likely to be surprised by economic
depressions or bursts of growth. Economic forces can be used to predict future sales rates and suggest the
required number of service staff to have working at anytime.
2.3 Natural Forces
"Natural resources that are needed as inputs by marketers or that are affected by marketing
activities."
- Kotler et al.
There are four major concerns within the natural environment. Not all affect consumer services; however they
can have an effect on the fast-food market as part of the product is tangible. These are:
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Shortages of raw materials - Many resources that once may have seemed to have an infinite supply
are now seen as precious and greater efforts are being made to find alternatives or cut down usage.
Some examples of these are: McDonald's use recycled paper to wrap their hamburgers, therefore
reducing the amount of forestland that is cut down.
Energy costs - As nonrenewable resources like oil and coal dwindle, prices of fast-food products are
likely to increase as things like transportation costs rise. Some fast-food outlets may have to look for
alternatives to how they cook their product; however, there should not be much effect on the service
elements of the market.
Increased pollution - Pollution has a major effect on how consumers view an organisation. These
days an 'environmentally aware' company is likely to be more popular than one that is not. Increased
pollution has already had effects on the fast-food market. In 1991 McDonald's changed its packaging
from polystyrene boxes to paper in response to consumer demands for a more 'environmentally
friendly' packaging. This makes up an important part of the 'service' element of the fast-food market;
consumers receive the peace of mind that the product they are eating has had minimal effect on the
environment.
Government intervention - There are now controls in place to make sure organisations are doing
minimal damage to the environment. Organisations in the fast-food industry can either oppose these
regulations or help develop them. McDonald's sponsors' days like "Clean-up Australia Day" which
also makes up an important part of the "service" element of the fast-food market, again showing that
McDonald's is environmentally aware.
2.4 Technological Forces
"Forces that affect new technologies, creating new product and market opportunities."
- Kotler et al.
Technology is often thought of as the greatest force affecting us now. It has allowed us to do things that were
once only dreamed about and has created a number of new markets and marketing opportunities. There are
a number of technological trends that should be monitored by marketers; these include:
The fast pace of change - It is important for organisations to keep up with the fast pace of change, otherwise
they will find they fall behind competition. A recent example of fast-food companies keeping up with
technology is McDonald's installing EFTPOS machines in their stores, this additional service provided by
McDonald's increases the value of the experience to the consumer.
High research and development budgets - The fast-food industry would not spend as much on R and D as
other organizations. Perhaps when McDonald's and Hungry Jack's, etc. were just starting out more funds
would have been spent on improving techniques. However these days the techniques for producing the
products and also the service has been perfected.
Focus on minor improvements - Most of the improvements that are made tend to be only minor. Rather than
gambling with big changes companies will only make small adjustments.
Increased regulation - The majority of the recent improvements in technology (especially in the fast-food
market) have been due to increases in regulations. Specific to the fast-food industry, an increase in health
regulations has caused safety standards to become stricter. This has been good for consumers as it means
they can enjoy the product knowing that the quality and service with which it is delivered is to the best
possible standard.
2.5 Political Forces
"Laws, government agencies and pressure groups that influence and limit various
organizations and individuals in a given society."
- Kotler et al.
The decisions made by marketers can be strongly affected by the political environment. Recent examples of
trends in the political environment include: increased regulation of business, the introduction of the GST
would have had an effect on the fast-food market as prices of fast-food increased while other food products
would remain the same. Due to this, fast-food outlets would place more emphasis on their service rather than
the product, stressing that 'you can't get service like this at home', etc. to differentiate themselves. There is
also a greater concern for ethics which companies have to be aware of.
2.6 Cultural Forces
"Institutions and other forces that affect society's basic values, perceptions, preferences and
behaviors."
- Kotler et al.
There are three major cultural forces that influence marketers: these are persistence of cultural values,
subcultures and shifts in secondary cultural values. Of these, secondary cultural values has the greatest
effect on the fast-food market. When the market is interested in convenience, they are more likely to buy fast
food; if the market's secondary values suddenly shift and become interested in fitness and health, they will be
less likely to buy fast food.
All these factors are important to the fast-food market within Australia, however some are more applicable
than others are. The demographic factors would have to be one of the most important factors, as stated
previously - studying the demographic forces involves the study of the people that make up the market, and if
you don't know your market you're in trouble. Technological factors are also fairly important to the fast-food
market. In today's 'age of technology' it is important for an organisation to monitor advances in technology so
it doesn't fall behind competitors. Technology is also a great tool to monitor all of the macroenvironmental
forces. Of all the macroenvironmental forces these are probably the most important two, however it is also
extremely important for fast-food organisations to be seen as environmentally responsible, ethically aware
and politically correct.
Part 2
3. ORGANISATIONS WITHIN THE FAST-FOOD INDUSTRY
The two organisations I have chosen to discuss which operate in the fast-food industry are McDonald's and
Hungry Jack's. I chose McDonald's because it is the primary operator in this market and holds the greatest
market share. I chose Hungry Jack's because the product they offer is the most similar to McDonald's and I
thought it would be interesting to compare marketing strategies of two organisations which offer a fairly
similar product.
3.1 Market Position
McDonald's market position both within Australia and throughout the world is the market leader.
" Market leader The firm with the largest market share in an industry; it usually leads other
firms in price changes, new product introductions, distribution coverage and promotion
spending."
- Kotler et al.
Hungry Jack's, however, is positioned more as a market follower.
" Market follower A runner-up firm in an industry that wants to hold its share without rocking
the boat."
- Kotler et al.
Some may argue that Hungry Jack's is more of a market challenger than a follower, and that it is fighting to
increase its market share. However, I feel that they don't really present any offers to challenge McDonald's,
for example when McDonald's was offering 2 dollar burgers Hungry Jack's did nothing to counter this.
3.2 Target Markets
"A set of buyers sharing common needs or characteristics that the company decides to
serve."
- Kotler et al.
Companies use target marketing to tailor for specific markets. There are three components involved in target
marketing that can be further broken down into six individual steps. These are:


Market segmentation 1. Identify bases for segmenting the market
2. Develop profiles of resulting segments
Market targeting -

3. Develop measures of segment attractiveness
4. Select the target segment(s)
Market positioning 5. Develop positioning for each target segment
6. Develop marketing mix for each target segment
- Kotler et al.
McDonald's has based its segmentation on demographic variables (this is why demographic forces are so
important to monitor). Most of the segments McDonald's targets are broken-down into age and lifestyle stage;
this is probably because they are easily identifiable and consumer needs and wants vary closely with
demographic variables. McDonald's primary target markets are seniors, adults and teenagers, but the most
heavily targeted segment is children.
Like McDonald's, Hungry Jack's essentially segment their market using demographic variables. They also
segment their market into seniors, adults, teenagers and children. However, unlike McDonald's, they primarily
target the teenagers and adults segments.
3.3 The Marketing Mix
The final step in target marketing is developing a marketing mix.
"Marketing Mix The set of controllable marketing variables that the company blends to
produce the response it wants in the target market."
- Kotler et al.
These tools are also known as the four P's and in the case of services, the seven P's. They are product,
price, promotion, place, people, process and physical evidence.
3.3.1 Product
Product is defined as anything that satisfies a need or want. It is not necessarily a physical object; products
can include goods, services, people, places and ideas (Walker. I., 2000, Marketing Theory and Practice,
lecture 1). Products enable a company to differentiate itself from competitors and gain competitive
advantage. Products can be positioned based on attributes, benefits offered, usage occasions, users, against
or away from competitors, or based on the products class (Walker. I., 2000, Marketing Theory and Practice,
lecture 6). Product is the most important element of the marketing mix. After all, if we didn't have the product
the company would have no basis to exist.
The products that McDonald's and Hungry Jack's sell are almost identical, therefore it is important for each
organisation to distinguish the differences between the products to separate themselves from each other.
Hungry Jack's uses the phrase "The burgers are better at Hungry Jack's" to suggest they have a superior
tasting product. While McDonald's put more emphasis on the service of their staff and the overall experience
not just the physical product.
3.3.2 Price
Price is defined as the sum of values consumers' exchange for the benefits of having or using a product
(Walker. I., 2000, Marketing Theory and Practice, lecture 9). Traditionally the major factor that affected buyer
choice was price. Recently non-price factors such as service, guarantees, give-aways, loyalty programs and
image have had a major influence. Price is a crucial part of the marketing mix as it is the only element that
produces revenue; all other elements create costs. The three general approaches to pricing are the costbased approach (the price is based on reaching a target profit), the value-based approach (where the price is
based on the buyer's perception of value) and the competitor-based approach (basing prices on competitors'
prices).
McDonald's constantly have "specials" such as the two-dollar burger which competitors find difficult to follow.
As they are the market leader they obtain the largest revenue, so can afford to have these specials.
McDonald's generally use a value-based approach to pricing, looking to give consumers the best value for
money. Hungry Jack's use a more competitor-based approach to pricing. Being a market follower they tend to
follow trends McDonald's set when they can afford to.
3.3.3 Promotion
This is defined as "the whole array of methods and procedures by which the organization communicates with
its target market" (Fifield, P.). Promotion can be accomplished using a number of different methods
(advertising, publicity and public relations, direct marketing, sales promotion, sponsorship and personal
selling). Promotion is used to achieve five objectives: build awareness, differentiate products and
organisations from competitors, communicate the benefits of a product, build and maintain the overall image
and reputation of an organisation, and persuade customers to buy a product.
McDonald's has one of the best promotion methods of any organisation. They use a number of different
methods to maintain high awareness and promote their image, including: advertising (television, radio,
billboards, etc.), sponsorship (AFL, local basketball, Ronald House), sales promotion (e.g. the two-dollar
burger), direct marketing (through birthday clubs, etc.) and publicity (McHappy Day). Hungry Jack's promotion
efforts are not quite as ferocious. They tend to just maintain awareness through television advertising and
billboards. They occasionally use sales promotion to persuade customers to try new products. Hungry Jack's
also use direct marketing through 'Kids' Clubs'.
3.3.4 Place
It is said that location is the key to attracting customers (Kotler et al). Looking at the location of a company
there are a number of factors taken into account. These include: Who is the target market? Are they easily
accessible from the location? Is the surrounding population likely to grow or decline? What is the surrounding
competition? Place also refers to a company's image in the consumer's mind. The image is built through
promotion and price, etc. The interior and exterior design of the store are also factors that help to build this
image.
McDonald's and Hungry Jack's have very similar "place" components. The locations and appearances of the
stores would be hard to differentiate without signs telling consumers who they are. McDonald's, howeve,r
holds a different place in the consumer's mind. This is due to the image built through promotion (price is fairly
similar). McDonald's is seen more as a fun place for children through tools such as Ronald Mc Donald, while
Hungry Jack's is seen more as merely a place to eat.
3.3.5 People
There are two important aspects to this element: service personnel (those who provide the product and do
the selling), and customers (those who purchase the product). "People" is an important component of the
fast-food industry as it is a service industry.
Both McDonald's and Hungry Jack's use their staff to emphasise a "friendly" environment and to promote the
:"service" element of the product. Staff adopt the ideal that "the customer is always right". People are
ultimately part of the product; therefore they must perform to customer expectations. This is an approach that
is constant throughout any service industry.
3.3.6 Process
Service marketers must examine processes involved in service delivery to identify ways in which a better
service may be provided to the customer (Callaghan, McColl, and Palmer). Two aspects of the process
element of the marketing mix are the degree of customer contact and quality control standards.
McDonald's is the most innovative in terms of production processes. Examples of this are the recent
installation of EFTPOS machines. Due to this Mc Donalds has been able to differentiate itself from
competitors like Hungry Jack's. Both organisations have processes such as Drive-thru that is seen as a
convenience and makes the product easier to consume.
3.3.7 Physical Evidence
Physical evidence involves looking at each aspect the customer uses to assess a product to evaluate its
position (Kotler et al).
Physical evidence in this case is more personal. As the fast-food industry involves a tangible product as well
as a service it is easier to judge. For McDonald's and Hungry Jack's a consumer is likely to judge aspects
such as the quality of burger or product they bought. Aspects such as the appearance of staff and the store
are also involved.
In comparing the marketing mix of McDonald's and Hungry Jack's, the major difference is that McDonald's
tend to promote its product through elements like service, price, people and process. They use the marketing
mix more evenly. While Hungry Jack's do have many elements of the marketing mix similar to McDonald's,
they are not as heavily promoted and are more interested in promoting just the product. The main reason for
this is to try to differentiate themselves from the market leader by showing they spend more time making sure
the consumer receives a better product.
4. CONCLUSIONS
Although all the forces in the macroenvironment have an effect on the fast-food market within Australia, some
are more relevant than others. We can see the demographic factors are perhaps the most important factor,
particularly for McDonald's and Hungry Jack's because their way of segmenting the market is based on
demographic variables. Technological forces are also seen as fairly important to the fast-food market. In an
'age of technology' it is important for organisations to monitor advances in technology so they don't fall behind
competitors, and are able to offer consumers the most current services. Technology is also a tool used to
monitor all of the macroenvironmental forces. These are the most important two of all the
macroenvironmental forces. It is also important for fast-food organisations to be seen as environmentally
responsible, McDonald's are excellent in using this as a marketing tool, by sponsoring events like "Clean up
Australia Day" the consumer sees them as a caring organisation. Hungry Jack's are not portrayed quite so
strongly.
When comparing McDonald's and Hungry Jack's marketing mix, the major difference is although Hungry
Jack's and McDonald's have similar elements of the marketing mix McDonald's use the marketing mix more
evenly. They promote their product through elements like service, price, people and process. Hungry Jack's
are not as heavily promoted and are more interested in promoting just the product. The reason for this is to
differentiate themselves from the McDonald's by showing more time is taken, making sure consumers receive
a higher quality product.
REFERENCES






Adam, S., Armstrong, G., Brown, L., Kotler, P., (1998), Marketing, (4th edn.), Prentice Hall, Australia.
Barnhart, C. L., Barnhart, R. K., The World Book Dictionary: A-K, (1988), World Book Inc., Sydney.
Bateson, J. E. G., Hoffman, K. D., Managing Services Marketing, (4th edn.), The Dryden Press,
London.
Callaghan, B., Mc Coll, R., Palmer, A., (1998), Services Marketing: A Managerial Perspective, The
Mc Graw-Hill Book Company, Australia.
Fifield, P., (1998), Marketing Strategy, (2nd edn.), Butterworth-Heinemann, Melbourne.
Gabbott, M., Hogg, G., (1997), Contemporary Services Marketing Management, The Dryden Press,
London.


Walker, I., (2000), Marketing Theory and Practice, lectures, Monash University, Caulfield.
McDonald's Corporate website, http://www.mcdonalds.com.au/
Briohny's report and what her lecturer thought
Click on the highlighted text to see the comments.
Report topic:
"The marketing environment... consists of the actors and forces outside marketing that affect
marketing management's ability to develop and maintain successful transactions with its target
customers." Kotler et al (1998) pg 100
In this assignment you are required to choose one industry from the two in your stream and identify
and discuss the actors and forces currently active in that industry AND the likely effect/impact
that these actors/forces will have on that industry in the next 12 months.
Executive summary
"Macroenvironmental forces The larger societal forces that affect the whole
microenvironment - demographic, economic, natural, technological, political and cultural
forces."
- Kotler et al
Macroenvironmental forces need to be studied by organisations as they can both provide opportunities and
pose threats.
The fast-food industry is a consumer service; two organisations that operate in the fast-food industry are
McDonald's and Hungry Jack's. McDonald's was chosen because it is the primary operator in this market and
holds the greatest market share. Hungry Jack's was chosen because the product they offer is the most
similar to McDonald's. I thought it would be interesting to compare marketing strategies of two organisations
that offer a fairly similar product.
McDonald's is the market leader both in Australia and throughout the world. Hungry Jack's is positioned more
as a market follower.
[IMG-1]
[1]Companies
use target marketing to tailor for specific markets. There are three components involved in
target marketing: market segmentation, market targeting and market positioning. McDonald's primary target
markets are seniors, adults and teenagers however the most heavily targeted segment is children. Hungry
Jack's also essentially segment their market using demographic variables.
The final step in target marketing is developing a marketing mix. These tools are also known as the four P's
and in the case of services, the seven P's. They are product, price, promotion, place, people, process and
physical evidence.
With the marketing mix of McDonald's compared to Hungry Jack's, the major difference is that McDonald's
promote their product using the marketing mix more evenly. Hungry Jack's use many elements of the
marketing mix similar to McDonald's, however they are not as heavily promoted and are more interested in
promoting the physical product.
Table of contents
CONTENTS
Title Page
Executive Summary
1. Introduction
2. The Macroenvironment
2.1 Demographic forces
2.2 Economic Forces
2.3 Natural Forces
2.4 Technological Forces
2.5 Political Forces
2.6 Cultural Forces
3. Organisations within the fast-food industry
3.1 Market Position
3.2 Target Markets
3.3 The Marketing Mix
3.1 3 Product
3.3.2 Price
3.3.3 Promotion
3.3.4 Place
3.3.5 People
3.3.6 Process
3.3.7 Physical Evidence
4. Conclusions
References
1. Introduction
"Marketed services (consumer services) - A market transaction by an enterprise of an
entrepreneur where the object of the market transaction is other than the transfer of
ownership (or title, if any) of a tangible commodity."
- M. Gabbott, G. Hogg
This assignment will focus specifically on the fast-food industry from within the consumer services area.
"Fast-food - Serving foods that can be prepared quickly, such as hamburgers, frankfurters
and fried chicken."
- C. L. Barnhart, R. K. Barnhart
The fast-food industry comprises both tangible and intangible components; for this reason the product/target
market sits directly in the center of the Product-Service Continuum. If we use McDonald's as an example, the
tangible component is the hamburger, fries or item which is purchased. While there is also an intangible
element, this is things like the expected level of service from the staff, the ability to have a hamburger cooked
"without pickles" if desired, the expected environment of the restaurant, etc.
2. The macroenvironment
"The larger societal forces that affect the whole microenvironment - demographic, economic,
natural, technological, political and cultural forces."
- Kotler et al.
2.1 Demographic forces
"The study of human populations in terms of size, density, location, age, sex, race,
occupation and other statistics."
- Kotler et al.
The demographic environment is of great importance to marketers as it involves the study of people, and it is
people that make up markets. There are a number of demographic trends that are important to marketers.
Some of these include:
[IMG-2]


[2]The
changing age structure of the population - In Australia, one of the major changes in the age
structure of the population is the decreasing birth rate and increase in the number of elderly people.
This means that marketers in the fast-food industry (and other industries) are having to market their
services and products at different target markets as many of the current markets are becoming
smaller and smaller. For example, McDonald's have recently started aiming advertising campaigns at
the elderly and offer free tea and coffee to the 60 plus age group.
The changing family - Another trend in the demographic environment is the characteristics of
families. No longer is mum, dad and 2.4 children the norm. The number of married couples with
children is declining while the number of one person and single parent households is continuing to
increase.

[IMG-3]
[3]Geographic

shifts in population - As the population grows it also expands and shifts geographically.
For fast-food services this means that they may need to shift location or open new stores to keep up
with demand.
Increasing ethnic diversity - Overseas immigration has led to an increase in not only population but
also the ethnic diversity of Australia. The impact this has on a market such as the fast-food industry
includes understanding different cultures and tastes; Hungry Jack's have introduced promotions like
the "Satay burger" to cater for Asian tastes.
2.2 Economic forces
"Factors that affect consumer buying power and spending patterns"
- Kotler et al.
There are two key economic concerns for marketers; these are changes in income and changes in consumer
spending patterns. Changes in income may indicate trends and explain slumps in sales for the fast-food
industry. A drop in sales may be able to be explained by a depression in the market place, etc. Consumer
spending patterns refer to how household income is divided between food, housing, transportation, etc.
By monitoring changes in interest rates, unemployment, business and consumer confidence and retailing
expenditure using economic forecasting fast-food outlets are less likely to be surprised by economic
depressions or bursts of growth. Economic forces can be used to predict future sales rates and suggest the
required number of service staff to have working at anytime.
2.3 Natural forces
"Natural resources that are needed as inputs by marketers or that are affected by marketing
activities."
- Kotler et al.
There are four major concerns within the natural environment. Not all affect consumer services; however they
can have an effect on the fast-food market as part of the product is tangible. These are:




Shortages of raw materials - Many resources that once may have seemed to have an infinite supply
are now seen as precious and greater efforts are being made to find alternatives or cut down usage.
Some examples of these are: McDonald's use recycled paper to wrap their hamburgers, therefore
reducing the amount of forestland that is cut down.
Energy costs - As nonrenewable resources like oil and coal dwindle, prices of fast-food products are
likely to increase as things like transportation costs rise. Some fast-food outlets may have to look for
alternatives to how they cook their product; however, there should not be much effect on the service
elements of the market.
Increased pollution - Pollution has a major effect on how consumers view an organisation. These
days an 'environmentally aware' company is likely to be more popular than one that is not. Increased
pollution has already had effects on the fast-food market. In 1991 McDonald's changed its packaging
from polystyrene boxes to paper in response to consumer demands for a more 'environmentally
friendly' packaging. This makes up an important part of the 'service' element of the fast-food market;
consumers receive the peace of mind that the product they are eating has had minimal effect on the
environment.
Government intervention - There are now controls in place to make sure organisations are doing
minimal damage to the environment. Organisations in the fast-food industry can either oppose these
regulations or help develop them. McDonald's sponsors' days like "Clean-up Australia Day" which
also makes up an important part of the "service" element of the fast-food market, again showing that
McDonald's is environmentally aware.
2.4 Technological forces
"Forces that affect new technologies, creating new product and market opportunities."
- Kotler et al.
Technology is often thought of as the greatest force affecting us now. It has allowed us to do things that were
once only dreamed about and has created a number of new markets and marketing opportunities. There are
a number of technological trends that should be monitored by marketers; these include:
The fast pace of change - It is important for organisations to keep up with the fast pace of change, otherwise
they will find they fall behind competition. A recent example of fast-food companies keeping up with
technology is McDonald's installing EFTPOS machines in their stores, this additional service provided by
McDonald's increases the value of the experience to the consumer.
High research and development budgets - The fast-food industry would not spend as much on R and D as
other organizations. Perhaps when McDonald's and Hungry Jack's, etc. were just starting out more funds
would have been spent on improving techniques. However these days the techniques for producing the
products and also the service has been perfected.
Focus on minor improvements - Most of the improvements that are made tend to be only minor. Rather than
gambling with big changes companies will only make small adjustments.
Increased regulation - The majority of the recent improvements in technology (especially in the fast-food
market) have been due to increases in regulations. Specific to the fast-food industry, an increase in health
regulations has caused safety standards to become stricter. This has been good for consumers as it means
they can enjoy the product knowing that the quality and service with which it is delivered is to the best
possible standard.
2.5 Political forces
"Laws, government agencies and pressure groups that influence and limit various
organizations and individuals in a given society."
- Kotler et al.
The decisions made by marketers can be strongly affected by the political environment. Recent examples of
trends in the political environment include: increased regulation of business, the introduction of the GST
would have had an effect on the fast-food market as prices of fast-food increased while other food products
would remain the same. Due to this, fast-food outlets would place more emphasis on their service rather than
the product, stressing that 'you can't get service like this at home', etc. to differentiate themselves. There is
also a greater concern for ethics which companies have to be aware of.
2.6 Cultural forces
"Institutions and other forces that affect society's basic values, perceptions, preferences and
behaviors."
- Kotler et al.
There are three major cultural forces that influence marketers: these are persistence of cultural values,
subcultures and shifts in secondary cultural values. Of these, secondary cultural values has the greatest
effect on the fast-food market. When the market is interested in convenience, they are more likely to buy fast
food; if the market's secondary values suddenly shift and become interested in fitness and health, they will be
less likely to buy fast food.
All these factors are important to the fast-food market within Australia, however some are more applicable
than others are. The demographic factors would have to be one of the most important factors, as stated
previously - studying the demographic forces involves the study of the people that make up the market, and if
you don't know your market you're in trouble. Technological factors are also fairly important to the fast-food
market. In today's 'age of technology' it is important for an organisation to monitor advances in technology so
it doesn't fall behind competitors. Technology is also a great tool to monitor all of the macroenvironmental
forces. Of all the macroenvironmental forces these are probably the most important two, however it is also
extremely important for fast-food organisations to be seen as environmentally responsible, ethically aware
and politically correct.
Part 2
3. Organisations Within The Fast-food Industry
The two organisations I have chosen to discuss which operate in the fast-food industry are McDonald's and
Hungry Jack's. I chose McDonald's because it is the primary operator in this market and holds the greatest
market share. I chose Hungry Jack's because the product they offer is the most similar to McDonald's and I
thought it would be interesting to compare marketing strategies of two organisations which offer a fairly
similar product.
3.1 Market position
McDonald's market position both within Australia and throughout the world is the market leader.
" Market leader The firm with the largest market share in an industry; it usually leads other
firms in price changes, new product introductions, distribution coverage and promotion
spending."
- Kotler et al.
Hungry Jack's, however, is positioned more as a market follower.
" Market follower A runner-up firm in an industry that wants to hold its share without rocking
the boat."
- Kotler et al.
[IMG-4]
[4]Some
may argue that Hungry Jack's is more of a market challenger than a follower, and that it is fighting to
increase its market share. However, I feel that they don't really present any offers to challenge McDonald's,
for example when McDonald's was offering 2 dollar burgers Hungry Jack's did nothing to counter this.
3.2 Target markets
"A set of buyers sharing common needs or characteristics that the company decides to
serve."
- Kotler et al.
Companies use target marketing to tailor for specific markets. There are three components involved in target
marketing that can be further broken down into six individual steps. These are:


Market segmentation 1. Identify bases for segmenting the market
2. Develop profiles of resulting segments
Market targeting -

3. Develop measures of segment attractiveness
4. Select the target segment(s)
Market positioning 5. Develop positioning for each target segment
6. Develop marketing mix for each target segment
- Kotler et al.
McDonald's has based its segmentation on demographic variables (this is why demographic forces are so
important to monitor). Most of the segments McDonald's targets are broken-down into age and lifestyle stage;
this is probably because they are easily identifiable and consumer needs and wants vary closely with
demographic variables. McDonald's primary target markets are seniors, adults and teenagers, but the most
heavily targeted segment is children.
[IMG-5]
[5]Like
McDonald's, Hungry Jack's essentially segment their market using demographic variables. They also
segment their market into seniors, adults, teenagers and children. However, unlike McDonald's, they primarily
target the teenagers and adults segments.
3.3 The marketing mix
The final step in target marketing is developing a marketing mix.
"Marketing Mix The set of controllable marketing variables that the company blends to
produce the response it wants in the target market."
- Kotler et al.
These tools are also known as the four P's and in the case of services, the seven P's. They are product,
price, promotion, place, people, process and physical evidence.
3.3.1 Product
Product is defined as anything that satisfies a need or want. It is not necessarily a physical object; products
can include goods, services, people, places and ideas (Walker. I., 2000, Marketing Theory and Practice,
lecture 1). Products enable a company to differentiate itself from competitors and gain competitive
advantage. Products can be positioned based on attributes, benefits offered, usage occasions, users, against
or away from competitors, or based on the products class (Walker. I., 2000, Marketing Theory and Practice,
lecture 6). Product is the most important element of the marketing mix. After all, if we didn't have the product
the company would have no basis to exist.
[IMG-6]
[6]The
products that McDonald's and Hungry Jack's sell are almost identical, therefore it is important for each
organisation to distinguish the differences between the products to separate themselves from each other.
Hungry Jack's uses the phrase "The burgers are better at Hungry Jack's" to suggest they have a superior
tasting product. While McDonald's put more emphasis on the service of their staff and the overall experience
not just the physical product.
3.3.2 Price
Price is defined as the sum of values consumers' exchange for the benefits of having or using a product
(Walker. I., 2000, Marketing Theory and Practice, lecture 9). Traditionally the major factor that affected buyer
choice was price. Recently non-price factors such as service, guarantees, give-aways, loyalty programs and
image have had a major influence. Price is a crucial part of the marketing mix as it is the only element that
produces revenue; all other elements create costs. The three general approaches to pricing are the costbased approach (the price is based on reaching a target profit), the value-based approach (where the price is
based on the buyer's perception of value) and the competitor-based approach (basing prices on competitors'
prices).
McDonald's constantly have "specials" such as the two-dollar burger which competitors find difficult to follow.
As they are the market leader they obtain the largest revenue, so can afford to have these specials.
McDonald's generally use a value-based approach to pricing, looking to give consumers the best value for
money. Hungry Jack's use a more competitor-based approach to pricing. Being a market follower they tend to
follow trends McDonald's set when they can afford to.
3.3.3 Promotion
This is defined as "the whole array of methods and procedures by which the organization communicates with
its target market" (Fifield, P.). Promotion can be accomplished using a number of different methods
(advertising, publicity and public relations, direct marketing, sales promotion, sponsorship and personal
selling). Promotion is used to achieve five objectives: build awareness, differentiate products and
organisations from competitors, communicate the benefits of a product, build and maintain the overall image
and reputation of an organisation, and persuade customers to buy a product.
[IMG-7]
[7]McDonald's
has one of the best promotion methods of any organisation. They use a number of different
methods to maintain high awareness and promote their image, including: advertising (television, radio,
billboards, etc.), sponsorship (AFL, local basketball, Ronald House), sales promotion (e.g. the two-dollar
burger), direct marketing (through birthday clubs, etc.) and publicity (McHappy Day). Hungry Jack's promotion
efforts are not quite as ferocious. They tend to just maintain awareness through television advertising and
billboards. They occasionally use sales promotion to persuade customers to try new products. Hungry Jack's
also use direct marketing through 'Kids' Clubs'.
3.3.4 Place
It is said that location is the key to attracting customers (Kotler et al). Looking at the location of a company
there are a number of factors taken into account. These include: Who is the target market? Are they easily
accessible from the location? Is the surrounding population likely to grow or decline? What is the surrounding
competition? Place also refers to a company's image in the consumer's mind. The image is built through
promotion and price, etc. The interior and exterior design of the store are also factors that help to build this
image.
McDonald's and Hungry Jack's have very similar "place" components. The locations and appearances of the
stores would be hard to differentiate without signs telling consumers who they are. McDonald's, howeve,r
holds a different place in the consumer's mind. This is due to the image built through promotion (price is fairly
similar). McDonald's is seen more as a fun place for children through tools such as Ronald Mc Donald, while
Hungry Jack's is seen more as merely a place to eat.
3.3.5 People
There are two important aspects to this element: service personnel (those who provide the product and do
the selling), and customers (those who purchase the product). "People" is an important component of the
fast-food industry as it is a service industry.
Both McDonald's and Hungry Jack's use their staff to emphasise a "friendly" environment and to promote the
:"service" element of the product. Staff adopt the ideal that "the customer is always right". People are
ultimately part of the product; therefore they must perform to customer expectations. This is an approach that
is constant throughout any service industry.
3.3.6 Process
Service marketers must examine processes involved in service delivery to identify ways in which a better
service may be provided to the customer (Callaghan, McColl, and Palmer). Two aspects of the process
element of the marketing mix are the degree of customer contact and quality control standards.
McDonald's is the most innovative in terms of production processes. Examples of this are the recent
installation of EFTPOS machines. Due to this Mc Donalds has been able to differentiate itself from
competitors like Hungry Jack's. Both organisations have processes such as Drive-thru that is seen as a
convenience and makes the product easier to consume.
3.3.7 Physical evidence
Physical evidence involves looking at each aspect the customer uses to assess a product to evaluate its
position (Kotler et al).
Physical evidence in this case is more personal. As the fast-food industry involves a tangible product as well
as a service it is easier to judge. For McDonald's and Hungry Jack's a consumer is likely to judge aspects
such as the quality of burger or product they bought. Aspects such as the appearance of staff and the store
are also involved.
In comparing the marketing mix of McDonald's and Hungry Jack's, the major difference is that McDonald's
tend to promote its product through elements like service, price, people and process. They use the marketing
mix more evenly. While Hungry Jack's do have many elements of the marketing mix similar to McDonald's,
they are not as heavily promoted and are more interested in promoting just the product. The main reason for
this is to try to differentiate themselves from the market leader by showing they spend more time making sure
the consumer receives a better product.
4. Conclusions
Although all the forces in the macroenvironment have an effect on the fast-food market within Australia, some
are more relevant than others. We can see the demographic factors are perhaps the most important factor,
particularly for McDonald's and Hungry Jack's because their way of segmenting the market is based on
demographic variables. Technological forces are also seen as fairly important to the fast-food market. In an
'age of technology' it is important for organisations to monitor advances in technology so they don't fall behind
competitors, and are able to offer consumers the most current services. Technology is also a tool used to
monitor all of the macroenvironmental forces. These are the most important two of all the
macroenvironmental forces. It is also important for fast-food organisations to be seen as environmentally
responsible, McDonald's are excellent in using this as a marketing tool, by sponsoring events like "Clean up
Australia Day" the consumer sees them as a caring organisation. Hungry Jack's are not portrayed quite so
strongly.
[IMG-8]
[8]When
comparing McDonald's and Hungry Jack's marketing mix, the major difference is although Hungry
Jack's and McDonald's have similar elements of the marketing mix McDonald's use the marketing mix more
evenly. They promote their product through elements like service, price, people and process. Hungry Jack's
are not as heavily promoted and are more interested in promoting just the product. The reason for this is to
differentiate themselves from the McDonald's by showing more time is taken, making sure consumers receive
a higher quality product.
[IMG-9]
[9]
[Lecturer's overall comment]
References
[IMG-10]
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[10]Adam,
S., Armstrong, G., Brown, L., Kotler, P., (1998), Marketing, (4th edn.), Prentice Hall,
Australia.
Barnhart, C.L. & Barnhart, R.K. (1998). The world book dictionary: A-K. Sydney: World Book Inc.
Bateson, J. E. G. & Hoffman, K. D. (1999). Managing services marketing (4th ed.). London: The
Dryden Press.
Callaghan, B., Mc Coll, R. & Palmer, A. (1998). Services marketing: A managerial perspective.
Sydney: The McGraw-Hill Book Company.
Fifield, P. (1998). Marketing strategy (2nd ed.). Melbourne: Butterworth-Heinemann.
Gabbott, M. & Hogg, G. (1997). Contemporary services marketing management. London: The
Dryden Press.
Walker, I. (2000). Marketing theory and practice [PowerPoint slides]. Retrieved from MGF1 100/2100,
Monash University Studies Online: https://my.monash.edu.au/muso/blackboard/login/
<www.monash.edu/lls/llonline/https://my.monash.edu.au/muso/blackboard/login/>
[IMG-11]
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[11]McDonald's
Corporate website, http://www.mcdonalds.com.au/
[1]
Needs to be more precise
This is probably the student's first attempt at an executive summary and as such is OK - but too like an
introduction. For a report of this length, a summary of around half a page would be expected. It's important to
remember that an executive summary may be the only part of the report that senior management reads; thus,
it needs to be direct and concise, stating clearly the report's findings. Statements about the process of writing
(e.g. why the student chose the companies) are not relevant here.
[2]
Good
This is actually an example of changing target markets with the aim to grow the whole market; but it's a nicely
chosen example, nonetheless - current and relevant.
[3]
Elaborate point
This point needs elaboration. Part of the skill being assessed is the student's ability to notice - and eventually
predict - trends. So, are new stores opening in the city, the suburbs; fewer in rural areas? Etc.
[4]
Evidence?
In an academic or professional report, your reader is not interested in feelings. The student needs to provide
more substantial evidence here. It's a large claim (which may well be correct) and requires something on a
larger scale - and from appropriate sources - to support it.
[5]
Ref?
If the reader is to appreciate that this is more than guesswork, the student needs to provide a reference for
the way the company segments its market. Note that a reference would not be required for the first point: that
they both use demographic variables.
[6]
But there are differences
What the student says may be true, but she should not waste the opportunity to consider what may be a
significant difference in product. The differences between the burgers would reflect target market differences,
e.g. positioning a burger as superior because it's flame grilled.
[7]
Good - but target market?
This is a carefully observed comment about the differences, but would have been strengthened by some
follow-up on the final point: how does the direct marketing relate to the target market?
[8]
More evenly?
This expression is not very helpful. It does not help explain the differences. It's important in a conclusion to
treat the major points of the report at a general level, but also not to sacrifice accuracy and significant
distinctions: the perceptive observations made in the course of the report should not be lost.
[9]
Lecturer's overall comment
This report received a Distinction.
The student has shown some good insight into marketing and how it is influenced by the macroenvironment.
This section would have been further improved by more specific examples from the fast food industry.
The two organisations are well chosen: Yes, there are many similarities as both of them two use similar
strategies (in terms of the 7 Ps); but more could be extracted from focusing on the differences between the
two.
Use specific examples - and relate to marketing theory.
[10]
Kotler, P., Armstrong, G., Brown, L. & Adam, S. (1998). Marketing (4th ed.). Sydney: Prentice Hall.
(Primary author to be listed first)
[11]
McDonald's. (n.d.). Retrieved Month Day,Year, from http://www.mcdonalds.com.au
<www.mcdonalds.com.au>
(Include date on the webpage/document where provided, otherwise type "n.d." to indicate no date was
available; also include date retrieved)
Troy's assignment
Troy is a first-year Marketing student. For his first assignment in the subject, Troy chose to focus on the fast
food industry.
Report topic:
Select a specific product/target market from within the broad areas identified below and:
1. Discuss how the macroenvironmental variables have had an impact on this market making
sure you show that you understand all the macroenvironmental variables that are likely to
have an impact.
2. Identify two different marketing mixes used by two different companies to target the market
you have identified.
Use examples to support your discussion where appropriate.
1. Look at the lecturer's expectations <www.monash.edu/lls/llonline/writing/businesseconomics/marketing/3.4.1.xml> of the assignment.
2. Next read Troy's report <www.monash.edu/lls/llonline/writing/businesseconomics/marketing/3.4.2.xml> .
o How well do you think the report responds to the topic?
o Do you think the report could be improved in any way?
3. Now read the lecturer's comments <www.monash.edu/lls/llonline/writing/businesseconomics/marketing/3.4.3.xml> about Troy's report.
Lecturer's expectations
In this section, one of your lecturers - Ian Walker - sets out what he expects from student assignments on this
topic.
Assignment 2 - Report topic:
"The marketing environment... consists of the actors and forces outside marketing that affect
marketing management's ability to develop and maintain successful transactions with its target
customers." Kotler et al (1998) pg 100
In this assignment you are required to choose one industry from the two in your stream and identify
and discuss the actors and forces currently active in that industry AND the likely effect/impact
that these actors/forces will have on that industry in the next 12 months.
What the lecturer expects
1. Assignment Topic Areas <www.monash.edu/lls/llonline/#topic>
2. Guidelines <www.monash.edu/lls/llonline/#guidelines>
3. Additional notes <www.monash.edu/lls/llonline/#additional-notes>
Assignment topic areas:
TOURISM
Product/Target Market: Backpackers, Retirees, Families
ELECTRONIC COMMERCE
Product/Target Market: Books, Wine, Music(MP3), Software
FAST MOVING CONSUMER GOODS
Product/Target Market: - Breakfast cereal for Children (under 12years)
CONSUMER SERVICES
Product/Target Market: - Movies, Consumer Banking
Word limit 3,000 words
Assessment for Assignment 2 (25%) divided equally between both parts of the assessment.
Guidelines
Part 1 asks you to:
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Briefly identify and explain the macro forces discussed by Kotler.
Then identify and discuss in more detail the macro forces that are most applicable to the
product/market area that you have selected.
You must explain why you think they are applicable, how they impact the product/market area, and
give appropriate examples to illustrate your understanding.
Part 2 asks you to:
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Select two organisations that operate in the product/target market that you have chosen.
Identify and detail the marketing mix (i.e. 4 and P's) they use to target this product/target market.
Discuss the differences and the similarities between the two organisations' marketing mixes. Why do
these differences exist or not exist? What other insight can you get into these organisations and how
they use marketing for this industry?
You are expected to develop the information yourself, being guided by whatever hard information you are
able to find. You should read widely in Kotler et al. and other texts about what is required in a theoretical way,
and you should observe closely what is actually happening with your chosen product(s) in the marketplace.
UNDER NO CIRCUMSTANCES ARE YOU TO CONTACT COMPANIES IN YOUR CHOSEN INDUSTRY
FOR INFORMATION.
Additional notes
1. This assignment is to be done on an INDIVIDUAL basis. (They are not GROUP assignments.)
The work submitted must be your own. You must acknowledge the sources of your information.
2. The assignment must be typed, and well presented. Because it is intended to prepare you for the
final examination, it must be written in business REPORT format/style. You may, however, use
subheadings and bullet-points where appropriate within the report. You may also incorporate graphs,
tables, diagrams, and figures into the body of the report if you wish. (If lengthy, material of this kind
may be attached as appendices.)
3. In Assignment 2 you MUST include a bibliography. This should be on a separate page. FULL
details are required - name and initials of all authors, full title, publisher, place, and date of
publication. At this level of study, you must get these details right!
See the Faculty's Q Manual (http://www.buseco.monash.edu.au/publications/qmanual/)
<www.buseco.monash.edu.au/publications/qmanual/> or any of the other good style guides in the libraries.
4. The word limit for the first assignment is 2,000 words. You will not be penalised for exceeding
these limits - within reason (say 10%) - provided that there is no repetitiveness, irrelevance, or
"padding". Similarly, you will not be penalised for being under the word limit, provided that the
question has been fully and satisfactorily answered.
5. Although you are encouraged to seek a greater understanding of the issues raised in this assignment
by discussing them with business practitioners of your personal acquaintance, you are NOT
permitted to make unsolicited contact with business organisations to obtain information.
Assignment and exam assessment criteria
High Distinction 80 - 100%
The student demonstrates the competencies in Distinction standard, and in addition
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uses creative examples, possible extensions, and applications of theory
demonstrates originality
makes defensible generalisations
draws conclusions which lend themselves to further research
writes to a publishable standard
is aware of limitations
Distinction 70 - 79%
The student demonstrates the competencies in Credit standard, and in addition
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provides evidence of analysis and critical thinking
demonstrates an ability to evaluate
develops a progressive, convincing, and clear argument throughout the work
demonstrates selectivity and uses judgement in determining the importance of readings and ideas
shows evidence of wide reading and synthesis of ideas
utilises additional material to supplement information provided
produces writing which is of a high literacy standard (structure, style, and referencing)
Credit 60 - 69%
The student demonstrates the competencies in Pass standard, and in addition
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demonstrates the understanding of concepts, theories, and issues
is able to identify strengths and weaknesses in theories/readings and use these as a basis for
evaluation
is able to apply information to practices/situations
develops a clear argument with rationale for assumptions
integrates writing and demonstrates links between components
will rarely, if ever show evidence of original work
will tend to bring material to closure (tidy it up and make it fit a neat conclusion)
provides a structured, sourced, and referenced work
expresses him-/herself concisely and clearly and exhibits relatively error-free writing
may rely heavily on the the text and assigned readings
may sometimes lapse into description rather than providing analysis and evaluation
Pass 50 - 59%
The student:
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essentially demonstrates an understanding of concepts, theories, and issues
but will tend to restate rather than evaluate
does not transform data in terms of structure, synthesis ,or application
relies extensively on text, or text and limited readings
may demonstrate coverage which is sparse in places
provides little or no evidence of critical analysis
provides little or no evidence of research
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tends to use one limited approach
possibly a narrow focus
provides an acceptably sourced and referenced work but improvement may be necessary in structure
and grammar
Fail 0 - 49%
The student may demonstrate some or all of the following
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failure to answer the question
misinterpretation of the question
failure to demonstrate understanding of the theory and concepts required
failure to identify the problems or issues
failure to provide evidence of reading the minimum requirements
does not write to acceptable academic standards (structure and grammar require extensive
improvement)
sourcing and referencing may not be present or are very confused
is not typed
is not handed in on time
Troy's report
Assignment 2 - Report topic:
"The marketing environment... consists of the actors and forces outside marketing that affect
marketing management's ability to develop and maintain successful transactions with its target
customers." Kotler et al (1998) pg 100
In this assignment you are required to choose one industry from the two in your stream and identify
and discuss the actors and forces currently active in that industry AND the likely effect/impact
that these actors/forces will have on that industry in the next 12 months.
Index
1 Cover page
2 Index page
3-8 Part 1 ' The macroenvironment
8-14 Part 2 ' The marketing mix
15 Bibliography
Inroduction
Within this report the macro-forces of an industry will be analysed, continuing on to compare the marketing
mix of two organisations within that industry. All organisations - with their suppliers, customers, competitors,
and publics - have a macroenvironment. This environment consists of macro forces that act on and affect the
organisation and are generally outside their control, as opposed to the micro forces which also affect the
organisation, but are generally under their control. The marketing mix is the term used to describe how an
organisation goes about developing a product and selling it to the market.
The industry chosen is soft drinks which industry falls into the category of fast-moving-consumable-goods
(FMCG's), as it is a product that is consumed, and is fast-moving. These won't sit in a supermarket or
convenient store for long, as they are constantly being purchased. Other examples of a 'FMCG' are canned
foods, ice cream, soup, cereal, potato chips and a whole lot more.
Part 1
There are six main macro forces making up the "macroenvironment." These are:
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The demographic environment - which is the study of human populations in terms of size, density,
location, age, sex, race, and occupation 1. Studies in this area, for example, can show the changing
age structure, which is necessary, as marketeers need to understand who makes up the market, thus
allowing them to make the most effective decisions for the marketing mix.
The economic environment ' which has an effect on consumer purchasing power and spending. For
example, if the average income drops, then there is likely to be less buying power 2.
The natural environment ' involves natural resources that are needed as inputs by marketers or which
are affected by marketing activities 3. An example of this is the non-renewable resource, where
companies will face increasing prices, as the shortage becomes more of a problem. Also natural
disasters can cause a sudden change in needs.
The technological environment ' this can create new markets and opportunities, as well as replace
older ones. It can be of great benefit to society, but also of great disaster e.g guns 4.
The political environment ' consists of laws, government agencies and pressure groups that influence
and limit organisations 5. An example of this is the new legislation passed that now products need to
label all information, including how they are made.
And the cultural environment ' which is made up of institutions and other forces that affect society's
basic values, perceptions, preferences, and behaviours 6. An example is of people who are patriotic
and may only buy products manufactured by their own country as they believe it's for the better.
An organisation must carefully watch and respond to changes in these forces as they all can shape
opportunities and also create threats.
The ways in which the macroenvironment may effect the soft drink industry will now be discussed with
reference to the above definition. It isn't necessary to assume that all these macro forces will have an obvious
effect on the industry, however it's more than likely most of them will.
Demography can and will affect the soft drink industry in several ways. Youths and young adults are definitely
the age group that makes up the majority of consumers in this industry. There has been a decline in the
young adults group during the 1990's as a result of the reduced fertility of the 1970's 7. The youth group (1019) dropped through the early 90's but will begin to increase again around the turn of the century. This is
important information for marketers, as they can understand why or why not sales are changing. The early
middle age group and older are also likely to purchase soft drinks. With the newer "diet" and "caffeine free"
products, more of these older groups are able to enjoy soft drinks. However these older groups don't make up
a great deal of the purchasing power for soft drinks.
The population is becoming more educated. Soft drinks aren't considered healthy, and as more and more
people learn of the problems associated with eating and drinking bad foods that rot teeth, it may be likely to
have an effect on the soft drink industry.
Within the soft drink industry is a range of products with varying prices. Although the cheap brands may be
only be a dollar cheaper, this can become much more attractive than the image brought with the more
expensive brands, in times of economic struggle. It is suggested that the average income through the 1990's
is slowly increasing 8. To make sense of this we would assume then that the middle socioeconomic class
would be able to afford the better brands, more so than in the past. However, will this affect soft drinks?
Where parents buy for their children it may, but also for the young adults who may be earning more, it may
not.
The natural environment has had an impact on what we do with the cans and bottles once they're finished
with, and that's recycling. This overcomes any worry that consumers may have for the environment,
especially seeing as concerns for the environment have been growing more and more. Manufacturers,
therefore, need to lend their support to recycling and show their care for the environment.
Over the past decade we have seen many variations of one flavour invented, and then many more flavours
too. Such ones include "diet" and "caffeine free" to attract the more healthy conscious, many fruity-flavoured
soft drinks, and many more. This is related to the technology environment, and what we see here is the
industry using the developments in technology to provide more variations to gain a greater market. There
have been many developments in the bottling, to suit image, such as Coca-Cola's slick shape, the different
sizes, which again give more variations, and the ability to recycle.
With computer technology we can now shop over the Internet. Some may choose to purchase soft drinks,
however this kind of technology is unlikely to boost sales significantly.
Products need to be practical and affordable, and technology processes allow for more efficient production of
packaging, and for them to be more practical, which relates back to the size and ability to recycle.
The political environment will have had little impact on the soft drink industry except in the area of legislation.
Such examples include the labelling of ingredients.
The growing concern for the environment also comes under the topic of cultures. For it is becoming a value
for the people of Australia, and also the world, to be more aware of the environment. However, cultures have
many more influences, like people's views about themselves, which can affect the industry. One of the bigger
organisations in the industry, Coca-Cola, promotes that there is an image associated with drinking their
product. People use products as a means of self-expression 9 so they buy what will make them feel good.
Buying a cheap brand cola may not allow someone to feel :"cool" or comfortable with the people around
them. Some, however, don't care about others' opinions on such an issue and will be comfortable drinking
cheap brand cola in public.
However, it is noted that this "me society"' is on the way out. Thus, indulging in all the good things is
becoming a less common thing and is changing to a "we society". However, this change may have no effect
on the soft drink industry but only increase the need to buy the better brands. One recent ad shows scenes
where huge groups of people are drinking their soft drink on the beach, which displays that it's a social drink.
Soft drink organisations are amongst some of the most common organisations that sponsor large events,
mainly sporting ones. These include Coca-Cola, Sprite, Pepsi, and many more. This encourages people's
view of the organisation to be positive, as people are expecting more from large organisations to help society.
So we can see that the macroenvironment for the soft drink industry has a lot of areas to cover - most of them
always relating back to the people, as it's the people who make up the markets. Also, although they are
macro forces, companies still take an environmental management perspective. That is, taking an aggressive
action to influence forces the way they want. In the soft drink industry these forces are mostly all positive and
therefore can benefit the consumers.
Part 2
The two organisations chosen to analyse their marketing mixes are Coca-Cola, and Pepsi, within the soft
drink industry. Coca-Cola is the leading manufacturer, marketer, and distributor of non-alcoholic beverages
with Pepsi Co following second.
Firstly, we will look at how Coca-Cola has used their marketing mix. The marketing mix is divided up into 4
parts; product, price, promotions and place.
Firstly, the product. The product (Coca-Cola soft drink) includes not just the liquid inside but also the
packaging. On the product-service continuum we see that a soft drink provides little service, apart from the
convenience. Soft drinks satisfy the need of thirst. However, people are always different, some want more
and others want less. Therefore Coca-Cola have made allowances for that by providing many sizes. We also
have particular tastes, and again they have provided several options. So, although thirst is what is needed to
be satisfied and that is the core benefit, we are receiving other benefits in the taste and size. This is all
related to the product line, which is a term used to describe a group of products that are closely related
because they function in a similar manner, are sold to the same customer groups, and marketed the same 10.
Coca-Cola has developed several different flavours and sizes as mentioned above, but also several brands
such as Sprite, Lift, Fanta and Diet Coke which increase the product line length, thus making full use of the
market to maximise sales.
Coca-Cola, however, also aims to create an image about the product. In this case they want it to be a social
drink, one that you would have when having a good time. So when we go and buy Coca-Cola, we are not
only relieving thirst but taking on an image and an idea. "We are going to a party ' we have to get Coca-Cola".
Through promotion people now have the idea that it's only cool to drink Coca-Cola, and to be seen with
anything else is cheap. One of their advertising campaigns highlighted the point of enjoying Coca-Cola, thus
displaying how the product is not just about satisfying thirst, but also you need to enjoy drinking it.
The product is convenient 11, that is - bought frequently, immediately, and with a minimum of comparison and
buying effort 12.
The appearance 13 of the product is eye catching with the bright red colour. It has a uniquely designed bottle
shape that fits in your hand better, and creates a nicer ' more futuristic look.
The quality of the soft drink is needed to be regularly high. Sealed caps ensure that none of the "fizz" is lost.
The bottles are light, with flexible packaging, so they won't crack or leak, and are not too heavy to casually
walk around with. The cans are also light and safe.
All these factors are a part of the product, from the drink to the image. And through promotions Coca-Cola
aims to create an attractiveness for this. Some of their advertisements show beach scenes, which allow the
viewer to relate Coca-Cola and fun together. They have immense advertisement schemes, always creating
new ideas and flooding the TV with Coca-Cola, mostly enhancing their image of being socially accepted and
fun.
Coca-Cola uses the "pull strategy" in their promotion. That is, they promote to the consumers to create the
want for their product which in turn creates a demand on the retailers and then back to them. For example, in
supermarkets and convenience stores Coca-Cola has their own fridge which contains only their products.
There is little personal selling, but that is made up for in public relations and corporate image. Coca-Cola
sponsors a lot of events including sports and recreational activities. All these are used to create awareness of
the product. They also use competitions, such as check under the lid for an instant prize, to encourage
consumers to buy their product over the competition's products. Coca-Cola promotions then create
knowledge and liking about the product through campaigns that show that it has the best taste, is the most
popular and is the one of the future, whilst appealing to a large range of audiences.
Coca-Cola floods all possible retailing stores in satisfying the third part, place. In supermarkets and
convenient stores Coca-Cola products are always easy to identify, and usually make up the greater
proportion of options to buy. This increases their market exposure 14 through effective use of the retailers. For
a FMCG it is important that they can be found and purchased easily. With the many automatic can machines
located in many sports stadiums and shopping malls, you don't even need to go to a store to buy a drink. This
greatly enhances the speed of purchase 15.
Pricing strategy is the last area of the marketing mix. Coca-Cola products would appear, on the shelf, to have
the most expensive range of soft drinks common to supermarkets, at almost double the cost of no name
brands. This can be for several reasons apart from just to cover the extra costs of promotions, for which no
name brands do without. It creates consumer perceptions and values. When people buy Coca-Cola they are
not just buying the beverage but also the image that goes with it, therefore to have the price higher reiterates
the fact that the product is of a better quality than the rest and that the consumer is not cheap. This is known
as value-based pricing and is used by many other industries in attracting consumers.
Now we can compare the above marketing mix to that of Pepsi Co. They both would use market
segmentation and positioning, however even before the marketing mix is analysed we can see differences
here.
Market segmentation is the term used to describe the first step organisations take in deciding who they are
going to sell the product too. The segmentation used by Pepsi and Coca-Cola is likely to be under the
psychographic section, using values and attitudes. This means that within the many different values and
attitudes that people have, Coca-Cola and Pepsi aim to choose a few and target their product towards them.
They both aim towards creating an image associated with their products, however they target different types.
For example, Coca-Cola is shown to be a more outgoing and group orientated image, whereas Pepsi focus
more on the individual and less outgoing. This is an example of market positioning. As trying to compete in
the exact same area will only result in fewer sales for each, they try to obtain their own part of the market
segment 16 .
Diagram 1: An example of market positioning.
Looking at the marketing mix, we will now compare how Pepsi go about it as opposed to Coca-Cola.
As they are both very similar, in that they are the two largest manufacturers of soft drink, they compete for
market share constantly, but in different ways. This is shown in the first section of the marketing mix ' product
as discussed above.
Just as Coca-Cola have aimed to create an image about their product that will encourage you to buy, so too
have Pepsi. However Pepsi have a different image associated with their product. As mentioned when talking
about market positioning, Pepsi look less to the outgoing groups, and focus on the individuals and also
introversive people. A lot of their campaigns in the past are associated with sports, many of which were
individual sports. They had promotions that showed men living on the edge and performing dangerous stunts.
This is certainly creating different personalities of their products compared to Coca-Cola. For the product
itself, flavours are very similar to Coca-Colas. Pepsi have also extended their product line to include other
flavours and brands for example, Mountain Dew and also many different sizes, just as their competitors, to
gain a greater portion of the market.
The appearances of Pepsi products are quite different from that of Coca-Cola. Where Coca-Cola goes for a
bright, fun look, Pepsi has a more futuristic look with the theme "the next generation." As the product is more
associated with sports and doing unusual things, such as stunts and extreme games, they have not worried
about creating a slick bottle shape like Coca-Cola, instead they've just made them slightly larger, to offer
more to the customer.
Pepsi have strongly associated themselves, through sponsorship, to extreme games, which includes
skateboarding, rollerblading, and many other dangerous individual sports. But at the same time with
advertisements, showing that it has a great taste, a can be used for a social drink. This is a very similar
approach to Coca-Cola, that is, by using events to create awareness and then through advertising, create
knowledge and liking to the product. However, they do it for a different target audience, as mentioned above,
that's why they sponsor different events and use different advertising campaigns.
Pepsi, just like Coca-Cola, flood the convenient stores with their products, and use their own fridges in
gaining consumers' attention, thus ensuring their market exposure, is as large as possible
Their pricing schemes follow along a similar line to Coca-Cola, in that they are at the more expensive end of
the market. However Pepsi have taken one extra step in creating a discount. That is, they offer sixty ml extra
for the same price. For many people who don't really know or care about the subtle differences in the tastes,
they will go for the one that provides more for less.
So again Pepsi have used the marketing mix to ensure their product is known, and attractive just as CocaCola has. The differences though, are stemming from their variance in how they position themselves in the
market.
Both organisations are very strong in the international market, and each have a strong hold on their target
markets through effective use of the marketing mix. However, with poor decisions or failing in one of these
four key areas of the marketing mix, either organisation could have caused their own downfall.
Bibliography
A. Buckley, The Essence of Marketing , Prentice Hall International, U.K, 1993
A. Hutchings, Marketing, a Resource Book, Pitman publishing, Great Britain, 1995
G. Lancaster and P Reynolds, Marketing , Macmillan Press Ltd, London, 1998
P. Kotler, G. Armstrong, L. Brown and S. Adam, Marketing, Prentice Hall, Australia, 1998
www.cocacola.com
www.pepsi.com
Footnotes:
1. Kotler et al (1998) Marketing p105
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
Kotler et al (1998) Marketing p113
Kotler et al (1998) Marketing p116
Kotler et al (1998) Marketing p118
Kotler et al (1998) Marketing p121
Kotler et al (1998) Marketing p123
Kotler et al (1998) Marketing p109
Kotler et al (1998) Marketing p115
Kotler et al (1998) Marketing p124
Kotler et al (1998) Marketing p372
A. Hutchings (1995) Marketing, A Resource Book p5
Kotler et al (1998) Marketing p350
A. Hutchings (1995) Marketing, A Resource Book p5
A. Hutchings (1995) Marketing, A Resource Book p5
A. Buckley (1993) The essence of marketing p32
Lancaster and Reynolds (1998) Marketing P40
Troy's report and what his lecturer thought
Click on the highlighted text to see the comments.
Assignment 2 - Report topic:
"The marketing environment... consists of the actors and forces outside marketing that affect
marketing management's ability to develop and maintain successful transactions with its target
customers." Kotler et al (1998) pg 100
In this assignment you are required to choose one industry from the two in your stream and identify
and discuss the actors and forces currently active in that industry AND the likely effect/impact
that these actors/forces will have on that industry in the next 12 months.
[IMG-1]
[1]
[Executive summary?]
Index
1 Cover page
2 Index page
3-8 Part 1 - The macroenvironment
8-14 Part 2 - The marketing mix
15 Bibliography
Introduction
Within this report the macro-forces of an industry will be analysed, continuing on to compare the marketing
mix of two organisations within that industry. All organisations - with their suppliers, customers, competitors,
and publics - have a macroenvironment. This environment consists of macro forces that act on and affect the
organisation and are generally outside their control, as opposed to the micro forces which also affect the
organisation, but are generally under their control. The marketing mix is the term used to describe how an
organisation goes about developing a product and selling it to the market.
The industry chosen is soft drinks which industry falls into the category of fast-moving-consumable-goods
(FMCG's), as it is a product that is consumed, and is fast-moving. These won't sit in a supermarket or
convenient store for long, as they are constantly being purchased. Other examples of a 'FMCG' are canned
foods, ice cream, soup, cereal, potato chips and a whole lot more.
Part 1
There are six main macro forces making up the "macroenvironment." These are:
[IMG-2]

[2]The
demographic environment - which is the study of human populations in terms of size, density,
location, age, sex, race, and occupation 1. Studies in this area, for example, can show the changing
age structure, which is necessary, as marketeers need to understand who makes up the market, thus
allowing them to make the most effective decisions for the marketing mix.

[IMG-3]
[3]The




economic environment - which has an effect on consumer purchasing power and spending. For
example, if the average income drops, then there is likely to be less buying power 2.
The natural environment - involves natural resources that are needed as inputs by marketers or
which are affected by marketing activities 3. An example of this is the non-renewable resource, where
companies will face increasing prices, as the shortage becomes more of a problem. Also natural
disasters can cause a sudden change in needs.
The technological environment - this can create new markets and opportunities, as well as replace
older ones. It can be of great benefit to society, but also of great disaster e.g guns 4.
The political environment - consists of laws, government agencies and pressure groups that influence
and limit organisations 5. An example of this is the new legislation passed that now products need to
label all information, including how they are made.
And the cultural environment - which is made up of institutions and other forces that affect society's
basic values, perceptions, preferences, and behaviours 6. An example is of people who are patriotic
and may only buy products manufactured by their own country as they believe it's for the better.
An organisation must carefully watch and respond to changes in these forces as they all can shape
opportunities and also create threats.
The ways in which the macroenvironment may effect the soft drink industry will now be discussed with
reference to the above definition. It isn't necessary to assume that all these macro forces will have an obvious
effect on the industry, however it's more than likely most of them will.
[IMG-4]
[4]Demography
can and will affect the soft drink industry in several ways. Youths and young adults are
definitely the age group that makes up the majority of consumers in this industry. There has been a decline in
the young adults group during the 1990's as a result of the reduced fertility of the 1970's 7. The youth group
(10-19) dropped through the early 90's but will begin to increase again around the turn of the century. This is
important information for marketers, as they can understand why or why not sales are changing. The early
middle age group and older are also likely to purchase soft drinks. With the newer "diet" and "caffeine free"
products, more of these older groups are able to enjoy soft drinks. However these older groups don't make up
a great deal of the purchasing power for soft drinks.
The population is becoming more educated. Soft drinks aren't considered healthy, and as more and more
people learn of the problems associated with eating and drinking bad foods that rot teeth, it may be likely to
have an effect on the soft drink industry.
Within the soft drink industry is a range of products with varying prices. Although the cheap brands may be
only be a dollar cheaper, this can become much more attractive than the image brought with the more
expensive brands, in times of economic struggle. It is suggested that the average income through the 1990's
is slowly increasing 8. To make sense of this we would assume then that the middle socioeconomic class
would be able to afford the better brands, more so than in the past. However, will this affect soft drinks?
Where parents buy for their children it may, but also for the young adults who may be earning more, it may
not.
The natural environment has had an impact on what we do with the cans and bottles once they're finished
with, and that's recycling. This overcomes any worry that consumers may have for the environment,
especially seeing as concerns for the environment have been growing more and more. Manufacturers,
therefore, need to lend their support to recycling and show their care for the environment.
Over the past decade we have seen many variations of one flavour invented, and then many more flavours
too. Such ones include "diet" and "caffeine free" to attract the more healthy conscious, many fruity-flavoured
soft drinks, and many more. This is related to the technology environment, and what we see here is the
industry using the developments in technology to provide more variations to gain a greater market. There
have been many developments in the bottling, to suit image, such as Coca-Cola's slick shape, the different
sizes, which again give more variations, and the ability to recycle.
With computer technology we can now shop over the Internet. Some may choose to purchase soft drinks,
however this kind of technology is unlikely to boost sales significantly.
Products need to be practical and affordable, and technology processes allow for more efficient production of
packaging, and for them to be more practical, which relates back to the size and ability to recycle.
The political environment will have had little impact on the soft drink industry except in the area of legislation.
Such examples include the labelling of ingredients.
The growing concern for the environment also comes under the topic of cultures. For it is becoming a value
for the people of Australia, and also the world, to be more aware of the environment. However, cultures have
many more influences, like people's views about themselves, which can affect the industry. One of the bigger
organisations in the industry, Coca-Cola, promotes that there is an image associated with drinking their
product. People use products as a means of self-expression 9 so they buy what will make them feel good.
Buying a cheap brand cola may not allow someone to feel :"cool" or comfortable with the people around
them. Some, however, don't care about others' opinions on such an issue and will be comfortable drinking
cheap brand cola in public.
However, it is noted that this "me society"' is on the way out. Thus, indulging in all the good things is
becoming a less common thing and is changing to a "we society". However, this change may have no effect
on the soft drink industry but only increase the need to buy the better brands. One recent ad shows scenes
where huge groups of people are drinking their soft drink on the beach, which displays that it's a social drink.
Soft drink organisations are amongst some of the most common organisations that sponsor large events,
mainly sporting ones. These include Coca-Cola, Sprite, Pepsi, and many more. This encourages people's
view of the organisation to be positive, as people are expecting more from large organisations to help society.
So we can see that the macroenvironment for the soft drink industry has a lot of areas to cover - most of them
always relating back to the people, as it's the people who make up the markets. Also, although they are
macro forces, companies still take an environmental management perspective. That is, taking an aggressive
action to influence forces the way they want. In the soft drink industry these forces are mostly all positive and
therefore can benefit the consumers.
Part 2
The two organisations chosen to analyse their marketing mixes are Coca-Cola, and Pepsi, within the soft
drink industry. Coca-Cola is the leading manufacturer, marketer, and distributor of non-alcoholic beverages
with Pepsi Co following second.
[IMG-5]
Firstly, we will look at how Coca-Cola has used their marketing mix. [5]The marketing mix is divided up into 4
parts; product, price, promotions and place.
[IMG-6]
[6]Firstly,
the product. The product (Coca-Cola soft drink) includes not just the liquid inside but also the
packaging. On the product-service continuum we see that a soft drink provides little service, apart from the
convenience. Soft drinks satisfy the need of thirst. However, people are always different, some want more
and others want less. Therefore Coca-Cola have made allowances for that by providing many sizes. We also
have particular tastes, and again they have provided several options. So, although thirst is what is needed to
be satisfied and that is the core benefit, we are receiving other benefits in the taste and size. This is all
related to the product line, which is a term used to describe a group of products that are closely related
because they function in a similar manner, are sold to the same customer groups, and marketed the same 10.
Coca-Cola has developed several different flavours and sizes as mentioned above, but also several brands
such as Sprite, Lift, Fanta and Diet Coke which increase the product line length, thus making full use of the
market to maximise sales.
Coca-Cola, however, also aims to create an image about the product. In this case they want it to be a social
drink, one that you would have when having a good time. So when we go and buy Coca-Cola, we are not
only relieving thirst but taking on an image and an idea. "We are going to a party - we have to get CocaCola". Through promotion people now have the idea that it's only cool to drink Coca-Cola, and to be seen
with anything else is cheap. One of their advertising campaigns highlighted the point of enjoying Coca-Cola,
thus displaying how the product is not just about satisfying thirst, but also you need to enjoy drinking it.
The product is convenient 11, that is - bought frequently, immediately, and with a minimum of comparison and
buying effort 12.
The appearance 13 of the product is eye catching with the bright red colour. It has a uniquely designed bottle
shape that fits in your hand better, and creates a nicer - more futuristic look.
The quality of the soft drink is needed to be regularly high. Sealed caps ensure that none of the "fizz" is lost.
The bottles are light, with flexible packaging, so they won't crack or leak, and are not too heavy to casually
walk around with. The cans are also light and safe.
All these factors are a part of the product, from the drink to the image. And through promotions Coca-Cola
aims to create an attractiveness for this. Some of their advertisements show beach scenes, which allow the
viewer to relate Coca-Cola and fun together. They have immense advertisement schemes, always creating
new ideas and flooding the TV with Coca-Cola, mostly enhancing their image of being socially accepted and
fun.
Coca-Cola uses the "pull strategy" in their promotion. That is, they promote to the consumers to create the
want for their product which in turn creates a demand on the retailers and then back to them. For example, in
supermarkets and convenience stores Coca-Cola has their own fridge which contains only their products.
There is little personal selling, but that is made up for in public relations and corporate image. Coca-Cola
sponsors a lot of events including sports and recreational activities. All these are used to create awareness of
the product. They also use competitions, such as check under the lid for an instant prize, to encourage
consumers to buy their product over the competition's products. Coca-Cola promotions then create
knowledge and liking about the product through campaigns that show that it has the best taste, is the most
popular and is the one of the future, whilst appealing to a large range of audiences.
Coca-Cola floods all possible retailing stores in satisfying the third part, place. In supermarkets and
convenient stores Coca-Cola products are always easy to identify, and usually make up the greater
proportion of options to buy. This increases their market exposure 14 through effective use of the retailers. For
a FMCG it is important that they can be found and purchased easily. With the many automatic can machines
located in many sports stadiums and shopping malls, you don't even need to go to a store to buy a drink. This
greatly enhances the speed of purchase 15.
Pricing strategy is the last area of the marketing mix. Coca-Cola products would appear, on the shelf, to have
the most expensive range of soft drinks common to supermarkets, at almost double the cost of no name
brands. This can be for several reasons apart from just to cover the extra costs of promotions, for which no
name brands do without. It creates consumer perceptions and values. When people buy Coca-Cola they are
not just buying the beverage but also the image that goes with it, therefore to have the price higher reiterates
the fact that the product is of a better quality than the rest and that the consumer is not cheap. This is known
as value-based pricing and is used by many other industries in attracting consumers.
Now we can compare the above marketing mix to that of Pepsi Co. They both would use market
segmentation and positioning, however even before the marketing mix is analysed we can see differences
here.
Market segmentation is the term used to describe the first step organisations take in deciding who they are
going to sell the product too. The segmentation used by Pepsi and Coca-Cola is likely to be under the
psychographic section, using values and attitudes. This means that within the many different values and
attitudes that people have, Coca-Cola and Pepsi aim to choose a few and target their product towards them.
They both aim towards creating an image associated with their products, however they target different types.
[IMG-7]
[7]For
example, Coca-Cola is shown to be a more outgoing and group orientated image, whereas Pepsi focus
more on the individual and less outgoing. This is an example of market positioning. As trying to compete in
the exact same area will only result in fewer sales for each, they try to obtain their own part of the market
segment 16.
Diagram 1: An example of market positioning.
Looking at the marketing mix, we will now compare how Pepsi go about it as opposed to Coca-Cola.
As they are both very similar, in that they are the two largest manufacturers of soft drink, they compete for
market share constantly, but in different ways. This is shown in the first section of the marketing mix - product
as discussed above.
[IMG-8]
[8]Just
as Coca-Cola have aimed to create an image about their product that will encourage you to buy, so too
have Pepsi. However Pepsi have a different image associated with their product. As mentioned when talking
about market positioning, Pepsi look less to the outgoing groups, and focus on the individuals and also
introversive people. A lot of their campaigns in the past are associated with sports, many of which were
individual sports. They had promotions that showed men living on the edge and performing dangerous stunts.
This is certainly creating different personalities of their products compared to Coca-Cola. For the product
itself, flavours are very similar to Coca-Colas. Pepsi have also extended their product line to include other
flavours and brands for example, Mountain Dew and also many different sizes, just as their competitors, to
gain a greater portion of the market.
The appearances of Pepsi products are quite different from that of Coca-Cola. Where Coca-Cola goes for a
bright, fun look, Pepsi has a more futuristic look with the theme "the next generation." As the product is more
associated with sports and doing unusual things, such as stunts and extreme games, they have not worried
about creating a slick bottle shape like Coca-Cola, instead they've just made them slightly larger, to offer
more to the customer.
Pepsi have strongly associated themselves, through sponsorship, to extreme games, which includes
skateboarding, rollerblading, and many other dangerous individual sports. But at the same time with
advertisements, showing that it has a great taste, a can be used for a social drink. This is a very similar
approach to Coca-Cola, that is, by using events to create awareness and then through advertising, create
knowledge and liking to the product. However, they do it for a different target audience, as mentioned above,
that's why they sponsor different events and use different advertising campaigns.
Pepsi, just like Coca-Cola, flood the convenient stores with their products, and use their own fridges in
gaining consumers' attention, thus ensuring their market exposure, is as large as possible
Their pricing schemes follow along a similar line to Coca-Cola, in that they are at the more expensive end of
the market. However Pepsi have taken one extra step in creating a discount. That is, they offer sixty ml extra
for the same price. For many people who don't really know or care about the subtle differences in the tastes,
they will go for the one that provides more for less.
So again Pepsi have used the marketing mix to ensure their product is known, and attractive just as CocaCola has. The differences though, are stemming from their variance in how they position themselves in the
market.
Both organisations are very strong in the international market, and each have a strong hold on their target
markets through effective use of the marketing mix. However, with poor decisions or failing in one of these
four key areas of the marketing mix, either organisation could have caused their own downfall.
[IMG-9]
[9]
[Lecturer's overall comment]
Bibliography
A. Buckley, The Essence of Marketing , Prentice Hall International, U.K, 1993
A. Hutchings, Marketing, a Resource Book, Pitman publishing, Great Britain, 1995
G. Lancaster and P Reynolds, Marketing , Macmillan Press Ltd, London, 1998
P. Kotler, G. Armstrong, L. Brown and S. Adam, Marketing, Prentice Hall, Australia, 1998
[IMG-10]
[10]www.cocacola.com
www.pepsi.com
Footnotes:
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
Kotler et al (1998) Marketing p105
Kotler et al (1998) Marketing p113
Kotler et al (1998) Marketing p116
Kotler et al (1998) Marketing p118
Kotler et al (1998) Marketing p121
Kotler et al (1998) Marketing p123
Kotler et al (1998) Marketing p109
Kotler et al (1998) Marketing p115
Kotler et al (1998) Marketing p124
Kotler et al (1998) Marketing p372
A. Hutchings (1995) Marketing, A Resource Book p5
Kotler et al (1998) Marketing p350
A. Hutchings (1995) Marketing, A Resource Book p5
A. Hutchings (1995) Marketing, A Resource Book p5
A. Buckley (1993) The essence of marketing p32
Lancaster and Reynolds (1998) Marketing P40
[1]
Executive summary
An executive summary is required for a report - to sum up objectives and identify the main findings.
[2]
Harvard system preferred
It should be noted that the Harvard or in-text system is the preferred referencing system for Marketing
(though other referencing systems are acceptable).
[3]
Not adequate
You need to show you understand the macro forces. Most of the definitions of the forces in this section are
very brief and the student then does not really discuss them. He does give examples - which is fine - but if the
definition is not clear and comprehensive, examples do not help. One can infer that he has come to grips with
the demographic environment, for instance, but it is difficult to see how much he comprehends about the
technological environment and others. Direct mention needs to be made of the impact of the macro forces on
the FMCG area.
[4]
Paragraph headings?
This appears to be where the first heading, "Demographic Forces", should go. There is no lead-in from the
previous paragraph, and it is only because the word "demography" appears that it can be guessed. Compare
this with the paragraph below which begins "Within the soft drink industry...". Presumably, this refers to the
economic environment, but it is even harder to tell.
[5]
"divided up"?
Talking about the "marketing mix" being divided up into parts creates a false impression The marketing mix is
a theory, not an observable feature in the world. It's more appropriate to talk along the following lines: "The
elements of the marketing mix are identified/described as...".
[6]
Difficult to follow
Problems arising here are a result of there being no headings to focus and direct the reader. The elements to
be discussed have been identified in the previous paragraph as "product, price, promotion and place". This
paragraph is about product, but without headings it is hard to see where the next topic starts. By listing the
topics at the outset, the writer sets up an expectation that the discussion will follow the same order: price
seems to be treated last of all, however.
[7]
Good
Perceptive example: shows the student is observing the promotional material carefully in relation to the target
markets.
[8]
New section
Headings again required. The student has switched to his second product without signalling it very
conspicuously to the reader. Again, there is no particular lead-in from the previous para. The reader has to
assume that the same elements of the marketing mix will be involved as they are not specified. Both "Pepsi"
and then "product" need to be signalled. The topics, "promotion" and "place", are difficult to find; "pricing"
seems to be treated last again.
[9]
Lecturer's overall comment
This report received a (low) Pass.
Overall, the report appears to lack structure - and topics need to be covered in more detail.
In Part 1, the student's treatment of the macroenvironment zeroes in on particular instances and examples
too quickly: The macro forces need to be covered more systematically - and it is not always easy to see
where one ends and another begins. This is made more difficult because he has not used headings; these
are essential in a report because a report asks you to address specific topics. If your reader cannot clearly
see where you are addressing these topics - even if you are including some discussion of them - it is
confusing to read and detracts from the efforts made. The paragraphing too should clearly support the
structuring provided by the headings.
[10]
www sites
Web sites should be treated alphabetically the same as the rest of the reference list, using author if there is
one, or the organisation name if not. Students should check the accepted ways of referencing web material.
See Skills for Writing - Using Sources - Reference List.
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