ACCA - F1 Accountant in Business: Study Text by BPP Publishing

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2 Implications of service provision Poor service quality on one occasion (eg lack of punctuality of trains, staff rudeness, a bank's incompetence) is likely to lead to widespread distrust of everything the organisation does. Complexity. If the service is intangible offering a complicated future benefit then attracting customers means promoting an attractive image and ensuring that the service lives up to its reputation, consistently. Pricing of services is often complicated, especially if large numbers of people are involved in providing the service.

Pricing is a very practical matter and important part of marketing work. (a) The price element of the mix itself covers the basic price, discounts, credit terms and interest free credit. (b) Price is influenced by demand and the product's stage in its life cycle. (i) (ii) Penetration pricing: a low price is charged to persuade as many people as possible to buy the product in its early stages. Skimming: prices are set to cream off the highest level of profits even though this restricts the number of people able to afford the product.

A) (b) (c) Actual numbers recruited, leaving and promoted should be compared with planned numbers. Action may be required to correct any imbalance – depending upon the cause. Actual pay, conditions of employment and training should be compared with assumptions in the HR plan. Do divergences explain any excessive staff turnover? Periodically, the HR plan itself should be reviewed and brought up to date. 1 What is centralisation? FAST FORWARD A centralised organisation is one in which authority is concentrated in one place.

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