Assessing a Business Case for Training

Title: Assessing a Business Case for Training
Name of Learner
Affiliated Institute
Lecturer
Summary of the case
In any business venture, the key driver to success is the ability of a business to attract and retain customers. The simplest way of ensuring that your business retains its customers is by offering high quality and satisfactory services. In order to do this, it will call for the different stakeholders to play their respective roles properly. Before venturing into any business one has to consider the costs and benefits and afterwards ensure that his or her employees are properly trained as this would improve generation of revenue and reduce costs that come with poorly trained workforce.
Answers to critical thinking questions
Qn. 1:
The 10% change in the category (very dissatisfied - will never return) is the most significant case. This is because retention of customers is vital for the survival and success of any business as indicated in the above summary. If the customer is not satisfied with the goods or services offered by the business it would be most likely that he would never come back. This affects to a great extent the revenue generated (Decline in revenue generated). From the table the 10% decline in the percentage of customers who were not satisfied is as a result of the training of employees and has been of great benefit to the business. This means that the number of customers who come back keeps on raising hence the continued increase in the profits generated. In addition to the above, since the training also reduces the costs of the business, the business bottom-line goes up.
Assuming that the average revenue generated by each customer = $500 and that, there are 500 customers, the generated revenues would be: $500 * 500 = $25000. The amount generated due to the training = 10% * $250000 = $25000.
Qn.2:
The training of the employees can positively impact on the business through direct costs. Some of the assumptions in this case could be that each employee becomes more competent after the training. Training also enables an employee be effective as one can work faster and therefore no need for overtime costs. Another assumption is that the training helps the employees in perfecting their work and hence reducing the chances of errors when working an aspect that makes the end product to be nothing but perfectly produced. From the foregoing, it is after the training that the generated revenues shot to $250000 (see Qn1) hence the direct cost savings can be deduced as, 10% * $250000 = $25000.
Qn. 3:
Assuming that an employee Q, earns a monthly salary of $1000. If the training gives him/ her job satisfaction such that there will be no turnover, then the saving in this indirect cost can be deduced as follows: 1.5 * $1000...