(e) Briefly discuss FOUR initiatives that management might consider in order to further en

Question

(e) Briefly discuss FOUR initiatives that management might consider in order to further enhance profitability.

(4 marks)

Answer 1

正确答案：
(e) In order to enhance profitability management might take the following actions:
(i) Increase the maximum capacity of the circus.
(ii) Undertake a detailed review of operating costs which are budgeted at ￡239,200,000. Such a review might identify nonvalue
added costs which may be eliminated thereby increasing profitability.
(iii) Enter into a strategic arrangement with large hotels and travel agencies to offer travel and accommodation inclusive
arrangements for visitors to Cinola Island. This might help to increase the number of visitors to the zoo thereby increasing
profits.
(iv) Change the price structure and entitlement of tickets so that purchasers might visit Cinola Island on two separate days
in order to attend the zoo and circus. Additional revenues would arise as a consequence of the increased number of
visitors to the zoo, thereby increasing profitability.
(v) Hold prize draws for free tickets to the zoo for families on an ‘all-inclusive basis’, including restaurants, photographs,
souvenirs etc.
N.B. Only four initiatives were required to be discussed.