BTEC BUSINESS LEVEL 3- UNIT 6 -Principles of Management on CLOCKWISE LTD.
This Document has thorough DISTINCTION Level research on Clockwise Ltd with great key information, analysis and recommendations for Clockwise Ltd to improve its current situations.
It contains management and leadership a...
BTEC Business Level 3: Unit 6 - Principles of Management Report
Clockwise Ltd
Introduction
This report will contain recommendations, key information and analysis on leadership and
management styles and motivational theories which will allow Clockwise Ltd to take actions
and improve its current situations which it is facing.
This will be done through by carrying out a full analysis of the relevant statistical data which
is related to the company over the last 5 years, and therefore evidence which is related to
the main management styles and practices and other minor and major factors which have
impacted upon Clockwise Ltd and its performance.
Historically, the business has performed well with an increase in total revenue and users,
this is with gross profit and net profit identified in the 5 years between 2016 and 2020 as the
company was founded by Patrick Neve and two friends, Mitra Vinod and Mehdi Rohit. The
total revenue peaked in the last 12 months from 2019 to 2020 as of reaching £6 million in
total revenue and 300 million active users each month. However, the falling net profit
margins and net profits have been declining since 2018 to 2020. The lack of management,
location, shortages of staff, taxes, high wages, expenses and outsourcing fees have led to
the fall in profits for Clockwise Ltd. The owners have not been able to replicate the rising
success of Clockwise Ltd since 2016 to 2018.
Management and Leadership Issues
Revenue Analysis
The financial information which has been provided for the company shows that overall,
there as been an upward trend in the total revenue generated by advertising and
sponsorship. Between 2016 and 2017, the revenue had increased by £100,000 from £1
million in 2016 to £1.1 million in 2017, an increase of 10%. However, by 2017 as the revenue
was at £1.1 million, it drastically increased by £4.3 million which is a 391% increase which
sat at £5.4 million in total revenue at 2018. Therefore, it continued to increase but at a
much slower rate by £600,000 which is a 11% increase from 2018 to 2019 which set the
total revenue from £5.4 million at 2018 to £6 million at 2019. Finally, from 2019 there was a
short growth of £200,000 which is a 3.3% increase in total revenue from £6 million at 2019
to £6.2 million at 2020 which was the slowest growth of revenue in the past 5 years.
A reason for the drop-in rate of increase in revenue is due to the software engineers not
prioritising the urgent software error which caused major problems for the millions of users
worldwide and resulted in a huge loss of major advertising contracts. This vital mistake led a
slower rate of growth between 2018 to 2019 (11% growth) in comparison to 2017 to 2018
(390% growth).
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