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Extra resources for ACCA P3 Business Analysis: Practice and Revision Kit

Example text

Co m AutoFone was established at the beginning of the mobile telephone boom by a dynamic CEO who still remains a major shareholder of the company. It brought two new concepts to the market. Firstly, it established retail shops where customers could handle the products and discuss options with trained sales people rather than directly contacting the telephone network provider. Secondly, AutoFone sold products and services from all four major network providers (customers were previously restricted to one network provider's range).

In 1990, AutoFone signed a thirty-year supply contract with each provider. The four network providers themselves had re-signed twenty-five year license deals with the government in 1995. Under the terms of these deals, licences will be restricted to the four current providers until their renewal date of 2020. com ial AutoFone now has 415 shops around the country located near (but not in) the main shopping area of the town they serve. AutoFone usually sign a fifty-year shop lease in return for low initial annual rental.

Ym a Egdon has laws concerning minimum wages and holidays. All employees at Frigate Ltd are only given the minimum holiday allocation. They have to use this allocation not only for holidays but also for events such as visiting the doctor, attending funerals and dealing with domestic problems and emergencies. Ron is particularly inflexible about holidays and work hours. He has even turned down requests for unpaid leave. In contrast, Ron is often away from work for long periods, sailing in various parts of the world.

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