BrightSteps Childcare (BC) is a private limited company that operates three childcare centres in a large city. BC’s customers are mainly working parents who value safety, reliability and affordable fees. BC employs 42 nursery assistants, many of whom are part-time, and buys food from a local supplier. Rising rent and wage costs have reduced BC’s profits.

The directors of BC are considering increasing weekly fees by 12 percent and using part of the additional revenue to improve employee training and staff-to-child ratios. Some parents have already complained that childcare is becoming too expensive. Employees support better training but are concerned that dissatisfied parents may withdraw their children, reducing job security.

FreshFields Market (FM) is a family-owned grocery store in a small coastal town. FM has built its reputation by buying fruit, vegetables and dairy products from nearby farmers. Customers like FM’s local image, but many have become more price-sensitive because of a downturn in the local economy.

A national wholesaler has offered FM lower-priced imported produce. Accepting the offer would allow FM to reduce some prices and improve profit margins. However, several local farmers depend on FM for regular orders and have warned that losing FM’s business would damage their farms. The owners of FM are divided: one wants to protect the store’s local reputation, while another wants lower costs to ensure survival.

NorthStar Dairies (NSD) is a family-owned private company that processes milk for regional supermarkets. NSD currently uses returnable glass bottles and employs workers in a bottle-washing unit. Managers are considering switching to lighter cartons supplied by a national packaging company. The change would reduce some costs and water use, but it would lead to redundancies and may reduce customer satisfaction. A long-term local glass-bottle supplier has warned that it would lose most of its contract with NSD.

Forecast information for next year is shown below.

TrailLine Buses (TLB) is a private bus operator in a medium-sized city. TLB currently runs services only between 06:00 and 21:00. The city government has asked TLB to introduce late-night services to support shift workers and reduce car use. Some drivers welcome the possibility of extra paid hours, but other employees are concerned about antisocial working hours. Residents near the bus depot have complained about noise from buses returning late at night. TLB's owners are concerned about the effect on profit.

Forecast annual information is shown below.

MedLink Homecare (MH) provides home visits by nurses and care assistants to elderly patients. MH has grown quickly after winning contracts from local health authorities. Its internal stakeholders include the founder, managers, shareholders and 95 employees. Its external stakeholders include patients, patients’ families, local health authorities, suppliers of medical equipment and the media.

MH’s managers are considering introducing a digital scheduling system. The system would allocate visits automatically and reduce time spent by managers on planning routes. Shareholders expect the system to improve efficiency and profits. However, care assistants are worried that the system will increase workloads and reduce flexibility for patients who prefer familiar staff. Patients’ families have also expressed concern that faster scheduling may reduce the quality of care.

HelioMine Lithium (HML) is a public limited company that extracts lithium used in batteries for electric vehicles. HML's directors are considering expanding extraction near a rural community. Shareholders are pressing for higher returns, while the national government supports the expansion because it would increase tax revenue and create jobs. However, a local community group and an environmental pressure group argue that the expansion would increase water use and damage HML's reputation.

Forecast annual information is shown below.

For this question, operating profit means revenue less variable extraction costs, fixed operating costs and community development fund contributions, before tax and royalty payments. Treat the listed tax and royalty payments as stakeholder-analysis data rather than deductions from the operating-profit calculation.

BrightSteps Mobility (BSM) – a social enterprise

Read the resources and answer the questions that follow.

Resource 1 — Background

BrightSteps Mobility (BSM) is a social enterprise in a large city. It repairs donated wheelchairs and mobility scooters, then rents them at low prices to elderly people and people with disabilities. BSM also employs and trains adults who have been unemployed for more than one year. Its founder, Lina, says: “Affordable mobility is a human need, but we must also be financially stable enough to keep serving users.”

BSM currently operates from a small workshop near a residential area. Demand is increasing, but the workshop is overcrowded and there are long waiting times for repairs. Lina is considering moving to a larger unit on an industrial estate. The move would allow BSM to serve more users and improve employee training, but it would be further from many existing service users and would increase delivery journeys.

Resource 2 — Stakeholder views

Employees support better equipment and training but are concerned about longer travel times to work. Service users want lower waiting times but fear that the new location will be harder to access. Local residents near the current workshop want less traffic, while the city council is interested in both disability access and local employment.

Resource 3 – Selected operational and financial information for BSM, comparing the current workshop with the proposed larger unit.

Resource 4 — Social-media statistic and quotation

BSM has 18 600 followers across social-media platforms. A recent post about repair delays received 940 comments, most asking BSM to “expand without forgetting the people who cannot travel easily.”

LoopLearn Devices (LLD) – a social enterprise

Read the resources and answer the questions that follow.

Resource 1 — Background

LoopLearn Devices (LLD) is a social enterprise that collects unwanted laptop computers from companies, refurbishes them and sells them at very low prices to schools in low-income communities. LLD trains young technicians from the communities it serves. Any surplus is reinvested into digital-skills workshops for students and parents.

LLD has received an offer from a national electronics retailer, VentoMart, to buy refurbished laptops in bulk and resell them under a joint campaign called “Tech for All”. VentoMart would pay promptly and could increase public awareness of LLD. However, schools are concerned that fewer low-cost laptops will be available to them. Some technicians believe that working to VentoMart's strict deadlines may reduce training quality. A local e-waste pressure group supports LLD's reuse mission but warns that rapid growth could lead to unsafe disposal of unusable parts.

Resource 2 — Selected stakeholder information

The founder wants financial stability and wider impact. Trainee technicians want skills, mentoring and secure work. Schools want affordable, reliable devices. VentoMart wants dependable supply and positive publicity. The e-waste pressure group wants transparent recycling and safe disposal.

Resource 3 – Selected operational and financial information for LLD, including forecast effects of accepting VentoMart's bulk order.

Resource 4 — Quotation and social-media statistic

One school principal commented: “LLD exists because our students are usually last in line for technology.” LLD's short video announcing the possible VentoMart partnership has been shared 12 400 times, with many comments asking whether schools will still be prioritized.

HarbourHope Kitchens (HHK) – a social enterprise

Read the resources and answer the questions that follow.

Resource 1 — Background

HarbourHope Kitchens (HHK) is a social enterprise in a coastal town. It prepares nutritious frozen meals for low-income families and provides paid work placements for people recovering from long-term illness. HHK buys vegetables from local farms and sells meals through community centres, while also supplying a small number of hotels at a higher price. Surpluses fund free cookery classes.

A large hotel group has offered HHK a three-year supply contract. The contract would require HHK to produce a new premium range of frozen meals. HHK would need to buy some lower-cost imported vegetables to meet the required volume and consistency. The hotel group says the contract would provide stable revenue, but local farmers, community-centre customers and some employees are worried. The founder, Mateo, says: “If we grow too commercially, people may question whether we are still a social enterprise.”

Resource 2 — Stakeholder concerns

Employees want supportive working conditions rather than intense production targets. Local farmers want regular orders at fair prices. Community-centre customers want affordable meals. The hotel group wants consistent quality and timely delivery. The local council values HHK's work placements and community health impact.

Resource 3 – Selected financial and operational information for HHK, comparing the current situation with the proposed hotel contract.

Resource 4 — Quotation and social-media statistic

A community volunteer posted: “Please do not let hotel meals replace meals for families who need HHK most.” The post has received 3 700 likes and has been reported by the local newspaper.