Business

AB is a private limited company owned and managed by A and his brother B. It was started by the brothers 10 years ago in country M. A manages the administration of the business while B focuses on employees and marketing. AB provides helicopter flights for business people who need to travel to meetings quickly. The price charged to these customers is high and demand is price inelastic as there are few competitors in this niche market.
However, there is a growing trend for business people to use video conferencing instead of meeting face to face. The brothers plan to expand AB and they could done either by attracting additional business customers or by targeting the tourist market. Country M has many tourists who visit the areas of natural beauty around Country M. The demand for helicopter flights from tourists to these areas is price elastic because there are competitors in this niche market.
A and B realise that working capital will become more important as the business expands to help avoid cash flow problems. In order to expand, AB will need another helicopter and another pilot. The total cost to train a pilot at college is RM20 000. If A employs a ready trained pilot the annual salary will be RM50,000. A is qualified to train pilots himself.
The brothers are considering the following two options for AB’s additional helicopter:
Option A: Purchase a small helicopter at a price of RM2.4m. The helicopter will carry up to 5 passengers and costs RM2 per km in fuel. A loan is available to purchase this helicopter, which can be repaid over 10 years with a low rate of interest.
Option B: Lease a medium sized helicopter. Lease arrangements are available over a period of 5 years at a total cost of RM5.5m. The helicopter will carry up to 9 passengers and costs RM3 per km in fuel.
Info A
Traveller Website Advisor comments for VeryGoodFlights, (VGF) – a competitor to AB
We had a fantastic trip!! VGF made sure we had the best experience possible. The price was only RM150 per passenger for the flight which lasted 30 minutes. We would recommend taking a helicopter flight as part of your holiday – you will find it a fantastic experience. You can recognise VGF’s helicopters by the distinctive red colour and logo on the side. A happy tourist.
Info B
Forecast price and cost information for expanding AB
Price – one hour business flight (per passenger)
RM1000
Price – one hour tourist flight (per passenger)
RM200
Average number of business flights per month
120
Average number of tourist flights per month
160
Average fuel costs per one hour flight at RM2 per km
RM200
Other costs per one hour flight (includes costs such as pilot, maintenance, loan repayment or lease payment and airfield fees)
RM700
Info C
Increasing concerns about the environmental impact of helicopter flights
Recent government reports show that helicopter flights are causing increasing damage to the environment. The government wants to reduce the number of flights taken by tourists and is introducing a new tax on all flights of RM1 per km per tourist. This is forecast to increase the price of the average tourist flight by 5%. Business passengers will not be charged this tax because the government wants to make sure business costs do not increase. It does not want to damage the competitiveness of businesses in country M.
Roundtable Discussion
1. Identify and explain two ways A and B could use the Internet to help them manage AB.
· Option 1
· Option 2
· Explanation for each
2. Identify and explain two reasons why working capital is important to AB.
· Reason 1
· Reason 2
· Explanation for each

My MasterPapers
Calculate your paper price
Pages (550 words)
Approximate price: -

Why Us

Outstanding Academic Writing Service

At MyMasterPapers.com, you are assured of professional essay writing help from the leading experts online. Quality comes at the forefront of our custom writing service to ensure that all our customers are satisfied with the work delivered. We value repeat customers. For this reason, we ensure that each task is completed to perfection for high scores.

Top Writers

Our hiring process is highly intensive. The writers are exposed to a strict selection procedure before hiring to ensure that we acquire the most qualified, well-educated and experienced writers. Our team of writers, professors, editors and researchers will ensure that you get incredible results.

Plagiarism-Free Papers

We highly discourage plagiarism. For this reason, we have trained our writers in such a way that all the papers are written from scratch and are free from plagiarism. We also pay attention to ensure that each paper is completed as per the instructions provided. Referencing and citations are done as per the paper format selected by the customer. These include: APA, MLA, Chicago, Harvard, Turabian among others.

24/7 Customer Support

You can contact our support team via the chat window at the bottom right corner. Alternatively, feel free to email us via our support email: support@mymasterpapers.com. Our team is available 24/7 to respond to your queries and guide you though where need be.

Swift Delivery & 100% Money Back Guarantee

Simply choose the desired deadline when placing the order. The task is assigned to the most qualified writer as soon as the order is successfully placed. All the papers are delivered to you within the deadline selected. In case a paper cannot be delivered within the deadline selected, we request for a deadline extension within the shortest time possible.

Free Unlimited Revisions

Our customers can always request for a revision in case they feel that something needs to be added or changed after the final paper has been delivered. We do not charge for revisions. However, we highly discourage our customers from misusing this policy.

Try it now!

Calculate the price of your order

Total price:
$0.00

How it works?

Follow these simple steps to get your paper done

Place your order

Fill in the order form and provide all details of your assignment.

Proceed with the payment

Choose the payment system that suits you most.

Receive the final file

Once your paper is ready, we will email it to you.

Our Services

Mymasterpapers.com specializes in custom essay writing for all level of students. Simply relax as we get your paper done within the timeline indicated.

Essays

Academic Help Service

Our team of skilled writers and researchers is readily available to get any type of academic paper completed. We deliver high quality papers and projects to our customers to ensure that we maintain a long-term relationship that will shine your academic career.

Admissions

Admission Essays & Professional Writing

An admission essay allows you to express yourself by providing personal details that wouldn’t have fit on other areas of an application. We have a team of experienced writers who will get you to the desired academic level through a professional and a personalized admission essay.

Reviews

Editing & proofreading

Are you seeking for editing or proofreading help? We have a team of editors who will ensure that any issue within you paper has been addressed. Upload the paper to be cleaned up and relax as we get the job done.

Reviews

Revision Support

At mymasterpapers.com, you can always ask for revision in case you want some changes in you paper. We focus on ensuring that the grammar, research and formatting are done as per the latest academic writing standards.