management ACOUNTING
... original text, The North West Trust’s aims are: • To encourage farming practices in the region which will not endanger local animal and plant life;1 • To enable the region’s residents to enjoy the local countryside;2 and • To educate the region’s young people on how to look after and enjoy the local countryside and wildlife.3 The North West Trust, charitable organisation, should protect wild animals by preserving their natural habitats and providing them sanctuary within those habitats. The Trust’s aims are based on prohibiting development, commercial logging, and recreational and commercial hunting and trapping. Animals in these sanctuaries should benefit from the principles of kindness, justice, compassion, and respect for life.4 Main body II: Winston’s project clashes with the very first criteria of The Trust. Having mature trees fell to create tracks, have a likely loss of habitat to many species of animal and plant life in this land. "The only effective method of protecting nature is to interfere with it as little as possible..." Charles Rothschild (1877-1923). Having quad bikes travelling around this wood for 50 weeks a year, puts all kind of animals and species in danger of fatal accidents with bikes. It also increases the risk of damage and fire in the woods. These bikes are known as being extremely noisy as well. Animal living in the woods eventually will leave the land as bikes continues to disturb anything nearby. The range of people who could benefit from this project is so little. £1900 a week to spend is not something everyone could afford. Not at least the majority of people who live nearby in this area. Most of the people are farmers and with an average standard way of living its unlikely that Winston project bring any benefit to them. Also most of the young people who do not hold a licence for the quad bikes can not benefit from Moult Hall either. Instead the residents will be disturbed during their weekends due to extremely noisy quad bikes. Most of the money spent in Winston’s project are sunk costs such as Creating tracks and Stable conversion…, if for any reason the project did not payoff or failed the costs are heavy and hard to replace. Nevertheless if the project is successful (financially), it imitates the other private land owners/investors, increases competition hence more of these kind of lands will be exploited for financial reason thus even more loss of natural habitat. Competition reduces prices. Making normal profit then will not pay off the money that Winston has originally offered to the comity. To continue the business, sacrifices have to be made. Eventually more tracks and more other types of entertainment have to be introduced and provided to keep the customers flow as high as possible. This will jeopardise the whole aim of trust by creating the land into one big funfair and ruining its preserved beauty. However on the good side it increases the money circulating within the area, bringing more investments, creating more jobs in the long run. As Mr. Watson suggests, the customer base is not price sensitive. There could be two types of pricing, subsidised and full charges only using time management (off peak and peak time). Therefore local people could enjoy this sport as well as executives. It would also be great for local youngsters if they could explore woodlands, studying nature and animals in the camps sponsored by their school within Moult Hall. Other pitfalls to mention about Mr. Winston’s project appraisal: Recently the UK government have introduce strong laws that prevent such a constructions to take place in order to protect the wildlife and preserved woods in this country. It is highly unlikely that Mr. Winston’s appraisal could get through planning permission knowing Mount Hall is a fifty acres of mature woodland situated in extremely desirable location which is close to important nesting sites for the first kites that recently reintroduced into England. Also the costs mentioned by Mr. Winston are fairly unreasonable. Insurance costs are not included in the fixed costs, which can have a great impact on the profit and loss account. The only mean to success of this project is to ensure there are enough customers and that is not possible without having an expensive niche advertisement campaign. Advertising is a sunk cost and have to be included in the annual cost sheet. If the mansion is used as a hostel or guestrooms, then more people are needed to be employed on full time basis. eg. Receptionist, Cook and staff for security reasons… again proves the point that all the costs are not fully considered in this project. As said in the beginning of the text, “The decision-making and control process may be considered as a rational process, which naturally fl...