Part 1: Case study analysis Part 1 of this TMA will be marked out of 90 marks. After having read through the case studies below, answer the following questions.
Part 1 questions
Block 4 Note: Questions 1 and 2 should be answered using Case Study I (Sustainable and Eco-Friendly T-Shirt Printing – A.M. Custom Clothing).
Question 1 Describe the product that is being offered by Custom Clothing, using concepts from Block 4, Reading 31, and information from Case Study I. (20 marks)
Question 2 Discuss the societal marketing issues that relate to Custom Clothing, using concepts from Block 4, Reading 36, and information from the case study. Analyse the strategic choices that Custom Clothing has considered for responding to the societal challenges. (25 marks)
Block 5 Note: Questions 3 and 4 should be answered using Case Study II (The road to recovery: how the UK Government’s financial packages have helped Scottish firms hit by the COVID-19 pandemic come back after lockdown).
Question 3 Describe the types of fiscal policy, using concepts from Block 5, Reading 41. Identify the kind of fiscal policy that the UK Government has adopted to address the challenges of COVID-19, using concepts from Block 5, Reading 41 and evidence presented in Case Study II. (25 marks)
Question 4 Analyse the expected economic impacts of the UK Government’s fiscal support measures on the Scottish business sectors, using information from Case Study II and the different types of fiscal policies discussed in question 3. (20 marks)
Case Study I: Sustainable and Eco-Friendly T-Shirt Printing – A.M. Custom Clothing
You will agree that going green, sustainability and reducing your carbon footprint are huge trends nowadays. With an increase in awareness about the state of the environment, more people are looking for alternatives to products that are harmful to the environment. With increased awareness there is an increase in demand for eco-friendly products. Fortunately, A.M. Custom Clothing recognized the demand for eco-friendly t-shirt printing and are increasing their supply. A.M. Custom Clothing is a wholesale provider of quality printed and embroidered clothing for uniform, workwear and retail.
The company is the UK’s leading supplier of wholesale, custom-printed and embroidered clothing. They offer award-winning services and products. With sustainable and eco-friendly t-shirt printing from A.M. Custom Clothing you have the advantage of handmade products that leave a reduced impact on the environment. A.M.
Custom Clothing ensures that their t-shirt printing is leading in the fashion arena and they help stop exploiting animals and nature in the name of clothing products. Eco-friendly is definitely in, and now! Celebrities are encouraging the trend of using eco-friendly t-shirt printing as high fashion or just socially responsible […] As more and more people become aware of the fragile equilibrium of the environment, there is a natural desire to live their lives with a vision that is compatible with nature. A.M. Custom Clothing does not indulge in practices such as using harsh chemicals, artificial dyes, animal products and the use of materials that generate huge amounts of toxic wastes goes against such a vision. Using eco-friendly t-shirts helps create eco-consciousness that encourages people to wake up to the desire to protect the environment.
Many of these t-shirts carry meaningful messages that encourage people to think of their environment. These t-shirts are right for the skin as they are made of 100% cotton. Also, the dyes used on these materials are low impact dyes that have the least amount of effect on the environment and are gentle on the skin. About A.M. Custom Clothing A.M. Custom Clothing was founded in 2012 as a small start-up looking to make waves in the textiles industry. Currently they are one of the fastest growing wholesale providers of custom-printed and embroidered clothing. Many organisations and brands in the UK and worldwide now look to A.M. Custom Clothing as their trusted supplier. Source: A.M. Custom Clothing, 2020
Case Study II: The road to recovery: how the UK Government’s financial packages have helped Scottish firms hit by the COVID-19 pandemic come back after lockdown
The UK Government has given firms across Scotland vital support to protect jobs and help them weather the storm of the COVID-19 crisis. In March [2020] Chancellor Rishi Sunak announced a package of loans, grants and tax breaks to mitigate the fall-out from the pandemic, followed in July by the Plan for Jobs. As coronavirus spread, the hospitality sector was hit especially hard, and Ruth Sutherland, who runs the Carfraemill Hotel in the Lammermuir Hills, was soon seeing bookings cancelled. ‘It felt like it hit the restaurant and hotel trade quicker than it hit the general population,’ she says. With 40 staff to look after, the pressure was on. Over Mother’s Day weekend, Ruth sold 400 takeaway afternoon teas, but she realised that wasn’t going to be enough to sustain the hotel over the coming months. ‘It was so stressful for everyone – mum in particular,’ says Ruth.
‘She’d spent 23 years building up the business, and to watch it close in a matter of days was terrifying. We decided to shut before the furlough scheme was announced, so the most emotional thing was telling the staff, when we didn’t even know what we were going to do about their wages.’ So Ruth felt huge relief when the UK Government announced the Coronavirus Job Retention Scheme (CJRS), which allowed businesses to pay 80 per cent of wages until October. ‘We had something to turn to,’ she says. ‘
Being part of the local community, it’s the staff you care about.’ Now the hotel has reopened with social distancing in place, and Ruth has been able to bring her staff back. She’s also eligible for the £1,000 Job Retention Bonus [which is due to launch in] January [2021] for every employee she brings back from furlough, and has seen the restaurant buzzing again thanks to the recent Eat Out To Help Out scheme. It’s not just the hospitality industry that’s benefited from the package of financial support from the UK Government. John O’Malley, who runs a chain of estate agents, was also able to look after his 15 staff thanks to the CJRS when business slowed due to the pandemic. ‘It was worrying because salaries are a big part of our annual expenditure,’ he says. ‘
But I was impressed by how quickly the UK Government put their packages in place. I felt they really helped. The money came through a lot quicker than I expected too. We got it within three or four days.’ Now John’s been able to bring the staff back to work. ‘I felt that some of them were at their wits’ end, so when we opened the offices back up, with social distancing measures in place, they were more than happy to return,’ he says.
‘Without that UK Government support, I would likely have been faced with a downward spiral of cutting staff and closing offices,’ he adds. ‘I’d have had to take stock of what was going on and decide whether it was worth going forward with the bills and costs involved in running a business like this. It would have been a very hard time to come out of.
The UK Government schemes really allowed us to come back.’ Government help for workers: The UK Government is now supporting more than 930,000 jobs in Scotland – a third of the workforce. Furlough and self-employed schemes are part of an unprecedented UK Government package to help businesses and individuals across Scotland during the pandemic. The UK Government loaned more than £2.3billion to 65,000 Scottish businesses, deferred VAT bills and increased support to individuals through Universal Credit. £6.5billion of direct funding was allocated to the Scottish Government.
VAT was cut to 5 per cent to help restart tourism businesses. Over 3,100 restaurants in Scotland signed up for Eat Out To Help Out. A £2billion kick-start scheme will create thousands of high-quality jobs for young people. Source: Stirling Observer, 2020
