What is a Plc?
What are the main features of Plc
How can Plc companies gain access to
Do they have limited or unlimited liability?
Public Limited Company
Have £50,000 to start up, have to produce
annual accounts, have to hold an AGM and
can sell shares on the stock market.
By selling more shares.
What type of structure does Diva Plc have?
What is the span of control for Joanna Diva?
How could Diva Plc change the structure of
They could operate without some of the
additional layers such as supervisors in the
production department so that it is a more
lean company where communication flows
How does Diva Plc make their shoes?
Name 2 features of the one production
process that they use.
Do you think the purchasing manager
should make use of overseas suppliers or
take advantage of economies of scale?
What are economies of scale?
Mainly use batch production but for special
orders they use job production.
Batch Production -Make lots of different
types and sizes of shoes in different colours.
Economies of scale as it is quite a large
company and buying in bulk will help with
What is a Trade Union? What does a Trade
Why are Health and Safety issues
How could Diva Plc motivate their workers?
How could Diva Plc improve communication
methods in the company?
Trade Unions are there to support the staff,
usually in pay negotiation and if there is a dispute
over wrongful dismissal.
Health and safety is important as it is law and they
could be sued .
Job rotation, enrichment, Maslow or McGregor.
By removing some of the layers and ensuring that
communication is clear to everyone.
Looking at resource sheet 1 where do you
think product I would be on the product life
Do you think that their marketing strategy is
appropriate? Explain your answer.
What are the main market segments of Diva
In the decline area
No because it is very basic and does not
allow for the company to reach other market
Women over 20 and men over 40!
Which location would you choose for the
factory shop from resource sheet 4 a and b?
Why does it concern Diva Plc that their
share price is falling?
Do you think Diva Plc should move
Can give any answer as long as you justify it
but site B would probably be the best.
This means not that many people will wish
to invest in the company in the future which
could lead to cash flow problems.
No it is costly as have to find premises, new
employees as well as paying redundancy to
workers in the UK.
Should Diva Plc open Diva retail shops in
major cities in the UK?
Should they merge or amalgamate with
another UK company?
What else could Diva Plc do?
Might enhance sales but also need to look
at expanding their product range.
This might be possible but may lose the
identity of the business and also eventually
full ownership if the other company is larger
Diva could look at other products and
diversifying the products that they make.
RESOURCE SHEET 2
What has happened to the sales revenue?
Which section has seen the largest growth
in sales revenue?
Which section has seen the largest decline
in sales revenue?
It has increased by £6m
Internet shopping doubling the sales
Independent shoe shops, department stores
and mail order have all seen a 5% decrease
in sales revenue.
RESOURCE SHEET 3
Do you think this is a good promotional
opportunity for Diva PLC?
Would you want to win on the scratch card?
What could Diva Plc have done differently to
promote their products?
No as it is very basic and the prizes are not
No as none of the prizes would appeal to
The products could be more up to date, the
competition could have better prizes and
need to attract a new market segment to
ensure that sales continue to increase.
RESOUCES SHEET 5
Do you think the cash flow forecast shows
that setting up a factory outlet shop is a
What would happen if the set up costs were
Would you agree to setting up the factory
outlet shop if you were on the board of
Generally yes as it looks like they hope to
generate a large profit by the end of the
There would be no profit being made by the
end of the year.
I would want to see more financial
information and break even forecasts before
making a decision.