Page 15 - CIMA MCS Workbook February 2019 - Day 1 Suggested Solutions

SUGGESTED SOLUTIONS

Similarly the effect of social media provides huge growth in consumer awareness, brand
value/identity, promotions, and direct‐to‐consumer communication and is very relevant.
Online forums are growing in importance as consumers seek advice, reviews and price
comparisons before purchase. Dental practices need to invest and constantly improve
technology to be more competitive in the industry.

 ecological/environmental influences – laws related to environmental friendliness and
disposal of products are constantly growing more stringent world‐wide. Dental practices
such as CROWNCARE need to be seen to effectively follow waste disposal policies to
prevent harmful effects of large amount of dental waste on the environment. They also
need to be well aware of their Corporate Social Responsibilities (CSR) and have policies in
place including their supply chain to have a sustainable business. The products which are
low on environmental effect may receive tax subsidies and are favoured by governments.
From a legal perspective, pollution tests have grown stricter and the products passing these
tests only are allowed in certain markets, for example the EU and UK.

Environment friendliness has become an important test for industry in the 21st century as
governments have started focusing heavily on pollution control, necessitating a more
frequent asset replacement policy than in previous years. In addition the control of waste
on the external environment in terms of pollution and sustainability are of increasing
relevance to CROWNCARE due to disposal of waste products during the clinical service
delivery process. In addition, fair treatment of suppliers in low cost negotiations and the
use of “greener” materials in raw material manufacturing are additional factors to consider.

 legal influences – are another important factor that affects the profitability and
performance of the service. There are now more laws, legislations and policies that need to
be considered by dental care practices firms like data protection act, equality act, anti‐
discriminatory act, safeguarding vulnerable people act, etc. In addition, employment laws,
corporate social responsibility, minimum wages laws etc. also need to be considered.
Products used in the delivery of the service are subject to laws related to product quality
and health effects of the product. The pollution laws have grown stricter and products
have to pass strict controls plus laws related to health and safety. Fines can be set by
governments if companies do not meet standards regarding manufacturing, production,
and distribution, which can have an important impact on the acceptability of products.
Apart from this, there are environmental laws that companies have to deal with while
operating in the market e.g. control over waste disposal as noted above. Changes in laws
and regulations, the damaging effects of compensatory claims for poor quality service and
products as well as intellectual property, advertising legislation and employment law must
be considered. Similarly, newly proposed data protection law affecting the treatment of
customers and staff needs to be considered. Ignoring such aspects can only serve to
damage the CROWNCARE brand.

KAPLAN PUBLISHING 65