tutor2u Exam Coaching & Revision Workshops

Get Summer 2014 Right First Time with tutor2u Exam Coaching & Revision Workshops

AS & A2 Economics   |  AQA AS & A2 Business and AQA & Edexcel GCSE Business

Business Studies Resources Popular resources on the {my channel} blog Resource tags for the blog RSS Feed for the blog Twitter feed for this blog Teacher Email Resource Newsletter Category listing for this blog Business Studies Blog Home Page
Tracker Pixel for Entry

Linking corporate objectives to management performance - the Vodafone way

Friday, June 04, 2010
Print Tweet This!Save to Favorites

Here’s a cracking example for A2 students of how the senior management team of a global business are incentivised to focus on key corporate objectives.  This article in the FT explains how Vodafone has made taking market share from rivals a key part of its remuneration for senior management in 2010-1.

According to the FT:

“Vodafone’s top management’s 2010-11 bonus will be based, in descending order of importance, on revenue and competitive performance assessment, free cash flow and operating profit. Free cash flow was given the most significant weighting in 2009-10.”

Free cash flow is a term that is probably new to business students.  It is a measure of net cash flow which focuses on the cash flow that is available (“free”) for the business to invest or distribute to shareholders, or to use to repay debts. Essentially free cash flow = operating cash flow less capital spending less tax.  Businesses are often valued as a multiple of their free cash flow.

The market share objective / incentive is a great example of how corporate objectives can be used to motivate and focus senior managers. 

Students might want to discuss why Vodafone is so keen to improve its market share.  The mobile phone markets in most developed economies are now pretty mature / saturated, which often results in more intensive competition amongst the leading players.


blog comments powered by Disqus

AQA A2 Business Studies BUSS4 Section A Research Theme for 2014

Revision workshops for business studies from tutor2u

Business Studies Revision / Exam Coaching Workshops Coming Up:

GCSE Business (AQA Unit 2 & Edexcel Unit 3)

Thursday 24 April 2014 - Birmingham
Friday 25 April 2014 - London (Stratford City)

AQA AS & A2 Business (BUSS1 & BUSS3)

Monday 20 January 2014 - London (Stratford City)
Tuesday 21 January 2014 - London (Fulham Broadway)
Wednesday 22 January 2014 - Bristol (Cribbs Causeway)
Thursday 23 January 2014 - Birmingham (Star City)
Friday 24 January 2014 - Manchester (Salford Quays)

AQA AS & A2 Business (BUSS2 & BUSS4)

Tuesday 25 March 2014 - London (Stratford City)
Wednesday 26 March 2014 - London (Fulham Broadway)
Thursday 27 March 2014 - Bristol (Cribbs Causeway)
Friday 28 March 2014 - Birmingham (Star City)
Tuesday 1 April 2014 - Newcastle (Metro Centre)
Wednesday 2 April 2014 - Leeds (The Light)
Thursday 3 April 2014 - Manchester (Salford Quays)

Post-Easter (BUSS1/BUSS2 Combined & BUSS4)

Monday 28 April 2014 - London (Stratford City)
Tuesday 29 April 2014 - London (Fulham Broadway)
Wednesday 30 April 2014 - Bristol (Cribbs Causeway)
Thursday 1 May 2014 - Birmingham (Star City)
Friday 2 May 2014 - Manchester (Salford Quays)

Try some of these superb starter activities for Business Studies:

Business Studies Blog Economics Blog
Geography Blog Politics Blog
   
Give It A Go! Blog Sociology Blog
   

tutor2u online store

PowerPoint Lesson Activities Teacher Conferences & CPD Courses
Exam Coaching & Revision Workshops Pre-release Case Study Toolkits
A Level Economics Teaching Support Resources for Business Studies
Digital Magazines  


Enter your Email



TBBLE 2014 - Teaching & Learning Resources for Business Studies

50+ New Teaching & Learning Resources for GCSE, A Level & IB Business

Latest resources

Resource categories Blog RSS feed Blog RSS Feed
© Copyright Tutor2u Limited 2013 All Rights Reserved