Business Case for assignment quiz 2

Question:1 Identify and discuss the main business features of the childcare
industry [Generate a list of competencies].

Answer: Since children spend more time there than at home, a childcare center or daycare
could be a true home away from home. As a result, childcare centers and preschools must place
a strong emphasis on a younger audience that will be consuming the environment within the
next 20 years. Many countries' futures depend on them, and not just their parents', so they can
help shape it. As a result, parents and schools were able to resume operations. The wonderful
lessons they will experience at this point will last a lifetime if they are shown plenty of affection,
caring, and compassion.

Childcare is a form of social security that follows manufacturing. It is also in its early stages. If a
growing number of women enter the full-time labor force, the demand for service is rising.
There have been such significant shifts in people's socioeconomics and ways of life that service
is now becoming a need in some situations.

Certain market prerequisites must be fulfilled in order for the childcare business to function
efficiently and to become once norms. The following are examples of such necessities that can
be used as business competencies:

 A Brand-New Curriculum for Children of All Ages that should be Introduced: There should
be a curriculum in place to address the needs of the children at the childcare center. The
program should be age-appropriate and look at opportunities to improve language abilities,
basic knowledge, color skills, music and art skills in children of all ages. The program should
be designed in such a way that children can learn by play which might play a differential role
in this sector.

 Legislations and laws enacted by the government: It is important to have stringent federal
regulations in place to oversee the childcare industry. It is a delicate company that requires
proper administration by the directors to prevent a negative effect on society as a whole.
There should be legislation to prevent child trafficking. Furthermore, the legislation can
include specifics that meet the premise demand of the middle, such as bedrooms, play area
 & equipment, dining area, toilet, cleanliness, window area to allow light/air to enter,
kitchen, children's protection & protection, and so on. Unless and when these aspects are
adequately governed by law, service centers may fall short of their requirements, which
may have an impact on the children who are admitted to those centers.

 Guide to Nutrition and Physical Development: The childcare centers should also create a
wellness and physical development checklist that they would follow. The guide will assist
childcare workers in adhering to feeding and mealtime regulations. It would also help
outline the basic help goals to be reached by a child at any age group in order to determine
whether a child could be slipping behind their achievement goal.

 Licensing: Each nursery or daycare facility should be approved by the relevant government
authorities. Before issuing such a license, the authorities can inspect the premises and any
other physical requirements. Usually, the Departments of Social Services, Health/Family
Services, and Women and Children's Ministry are involved.

 Service Employee Development Program: The service center is responsible for providing
coaching and growth to their staff and service employees on a regular basis. Policies and
required pointers are often updated in this way so that workers are reminded of what is and
is not legal. Furthermore, fresh experience is shared with employers and employees in
order to provide them with input into how to enhance their existing child care activities.

 Service Employee Development Program: The service center is responsible for providing
coaching and growth to their staff and service employees on a regular basis. Policies and
required pointers are often updated in this way so that workers are reminded of what is and
is not legal. Furthermore, fresh experience is shared with employers and employees in
order to provide them with input into how to enhance their existing child care activities.

 Maintenance & Environment Development: It is important that each childcare center is

routinely inspected for maintenance issues and that any issues are addressed as soon as
 possible. Furthermore, the childcare center administrators must investigate alternative
ways for developing and improving the atmosphere in order to make it more friendly and
vibrant for the children in the childcare center.

 Systematic Feedback Session with Parents and Teachers: Every childcare center must have
a systematic feedback session with the parents of the children who attend their centers.
These meetings are intended to keep parents up to date with their children's events, to
remind them of any reasons for concern due to delays in progress, and to reassure parents
of their children's accomplishments. The meetings would also focus on the parents' top
priorities, as well as any ideas they might have. Parental suggestions should be given overt
weight by childcare center administrators.

 Qualified HR Personnel to Recruit & Manage Child Workers: This can be the most
important aspect of childcare centers. The HR personnel can be in charge of overseeing the
performance of childcare employees should have solid knowledge of the business and
service development so that, in addition to an existing unit of time work, they can supervise
the performance and supervise the service employees on matters of ethics and lawfulness.
To care for them, a capable and experienced individual should be hired. It will also be
beneficial if the caregiver had a history in early childhood development or a related area.
Furthermore, each child employee should undergo a thorough job review. The applicant
should be aware of the job description and therefore the job recruitments prior to being
hired in order to ensure that the best candidate has been chosen. While it may not be
appropriate, female caregivers are favored for younger children and babies.

 The importance of credible, consistent, long-lasting, and secure relationships that facilitate
advancement and learning across boundaries and enable children to fully participate in
learning opportunities. Often included is an understanding of how a child develops and
learns, such as psychological turn of events, explicit substance knowledge and skills, general
cognitive capacities, socio-emotional development, and physical turn of events and health.
 Connect appropriately in quality interactions with children that foster sound to aid children
advancement and learning in scheduled regular conferences, explicit learning lessons, and
instructive and other specialist environments in a manner appropriate to the child's
formative stage.
 Capability to design and execute productive learning environments (physical space, content,
events, classroom management). To develop loving relationships and experiences with
adolescents, as well as to use constructive words. Continuously strive to improve the
consistency of their work of managing their own physical and mental wellbeing, including
the consequences of their own adversity and stress is vital for a child care facility.
 Recognize signs that children should be evaluated and referred for specific administrations
(for example, for formative deferrals, emotional wellness issues, social help needs, or
mistreatment and disregard) and understand how to get to the data, assets, and backing for
such specific assistance when required. Along with this, it is critical to make informed
decisions on when and how to employ different forms of advancements as apparatuses to
advance children's learning.
 Learning the ability to communicate in their respective way is a must need for any child. A
child care facility must include proper resource and education to ensure this. Therefore,
teachers should be educated as well to perform the ideal technique in terms of teaching to
their students.
Question 2: Critically evaluate the main reasons for ABC Learning’s collapse.
What are the lessons learned from ABC’s mistakes?

Answer: ABC Learning Centers expanded at an astonishing rate in just 20 years. It crashed late
in 2008, after several months of economic trouble that began in February 2008, mostly due to a
margin call after the share price fell from $8.80 to 54 cents in August 2008. The primary cause
for the company's demise was the ABC Learning's skyrocketing debt levels as a result of the
company's accelerated growth abroad, mostly by acquisitions in the United States and the
United Kingdom. However, several internal flaws within the enterprise were what led to the
massive collapse of this massive corporation. The below are the primary reasons:

 Manipulated Accounts and a Lack of Transparency: There were undoubtedly fundamental

shortcomings in the company's financial bookkeeping, which had not been properly
maintained. There tend to be significant inconsistencies between the sales, earnings, and
estimates reported in the company books. Several properties had to be written down, and
pretax profits were inconclusive. When the corporation was turned over to the directors
during the receivership period, new auditors Ernst & Young told creditors that the records
of basics Learning were highly distorted and that the accounts would like to be reinstated.
 Related Party Transactions: After a detailed inquiry, it was revealed that the company CEO,
Mr. Eddy Groves, hired Queensland Maintenance Services (QMS) belonging to his former
brother-in-law Frank Zullo for maintenance work at ABC Centres. Those works cost a total of
$74 million. Furthermore, the 'Brisbane Bullets' squad was financed by ABC and was owned
by Mr. Groves.
 Liquidated Damages: In addition to the above, ABC Learning had deals involving liquidated
damages with 123 multinational networks of firms. ABC Learning will have 123 Global buy
properties, create centers, operate them until occupancy rates were adequate, and then
purchase the centers at a high price from 123 Global. Liquidated penalties are financial
compensations incurred by an entity if they refuse to comply as per contract or if there is a
violation of contract as per contract stipulation.
 Poor Strategic Planning & Inorganic Expansion: Proper risk analysis was not performed
prior to the rapid foreign expansions, resulting in ABC Learning becoming a highly leveraged
organization. It is a term used in industry to describe the expansion of companies by
mergers and acquisitions, as well as the use of market control on the commodities of other
organizations. ABC Learning Centers used this approach for their expansion methods. They
crossed international borders and took over many children's services and daycare providers
in New Zealand and the United States through a series of mergers and acquisitions. As a
result of this, the company had substantial debts, and at one time, those loans surpassed
the company's ability to repay them.
 Poor Management & Board: The company's management was too preoccupied with
expanding its activities outside national borders to consider the specific problems at hand.
Furthermore, the members of the Board were mostly lawmakers who lacked the necessary
expertise and skills to oversee the child care sector.
 Opaque Operations: ABC Learning's corporate operations were still unclear. It was not well-
planned and uncertain how each center would function, what the costs associated with
each center are, how these centers work, and how long it would take for a center to
become economically viable.

So, we have learned from the mistakes here that:

I. There should be no political figures in the company's upper management. And they would
only work for the loss of their benefits, not for the good of the organization.

II. Employees are really important in a company. When an organization has this issue, it has a
significant impact on the morale of its workers. As a result, ensuring healthy contact among
employees from all divisions is critical to the company's image. As a result, we discovered that
ABC Learning has a significant connectivity deficit with its employees.

III. A competent specialist accountant is essential for a company; otherwise, there would be
major manipulating problems, such as ABC Learning.
IV. A good strategic planning team should be developed. They must perform a thorough risk
assessment. An organization should extend its division or offices beyond its capacities. It may
result in a greater number of loans and losses, as ABC Learning did.

Question 3: What HR policy regime do you recommend for a viable childcare

industry? Explain.

Answer: The childcare sector isn't a lucrative one and it doesn't make a lot of money unless
you charge a lot of money. If the occupancy is insufficient, the company would not make a
profit. Employee benefits are the most expensive aspect of the child care industry, but there
are other costs such as food, supplies, games, administration, and grounds or premises
maintenance. As a result, before entering this market, all of the above factors must be
considered. The policy regime for a sustainable childcare sector is as follows.

Job Vacancies: Job openings should be varied as a result of frustration with benefits, salaries,
and unfavorable working conditions, which lead many employees to leave the company.

Effective and Coordinated HR Department: It goes without saying that each company should
have a strong and organized human resources department with clear policy to run all of their
activities, or else they would fail like ABC Learning. The following will be the use for a child care
business:

a) Job Analysis: A job analysis for this company will decide the tasks and expertise required for
the childcare business and the employee who will be working for it. This industry mostly
requires preschool teachers, classroom assistants, and child care workers.
I) Job Description: It can be very rewarding to assist children in growing, learning, and
acquiring new skills. The job can be normal, but every day brings new tasks and
challenges. Employees in child care must continuously stand, pace, bend, stoop, and
carry to listen to each child's needs and problems, and can be physically and
emotionally demanding. Employees in child care should be constantly vigilant,
anticipating and preventing trouble, dealing actively with difficult children, and
 enforcing reasonable yet strict discipline. Employees at infant daycares work a
variety of hours. Several centers are open twelve or more hours a day and cannot
close until any of the children have been picked up by their parents or guardians. So
energizing and cool-headed. There could be more overtime. Employees must remain
on-site before both of the children's parents arrive to pick up their children.
II) Job Requirements: Child care centers can meet the country's mandatory personnel
requirements. Though requirements may vary, in most cases, teachers should be at
least 18 years old, and supervisors or officers should be at least 21. Some places
allow assistants to start at the age of 16, while others want them to start at the age
of 14. Teachers should have a high school diploma and, in some cases, a
combination of college education and ability. Assistants and child care workers can
have a high school diploma. If applicable, a day care provider can hire staff who have
earned certification from a nationally recognized child daycare agency.

b) Recruitment & Selection: A straightforward recruitment policy should exist in the case of
the enlistment & selection process. Since the child care industry can be very advanced,
human resource departments can hire accounting, banking, regulatory, and management
experts. Before making a final decision on a job, HR managers should review the references
of the particular person and parents would never give their child to a thief or anyone.
Favoritism, such as nepotism, should not be practiced in education. The CEO and the board
of directors should be made up of experienced and trained people.
c) Training and Performance Management: Since there is no service quality standard for the
childcare sector, training and performance management are necessary for a competitive
industry. Any employee should be closely monitored by performance evaluation.

Employee Management: A child care industry can handle its workers in an extremely well-
mannered system. A child care provider has a wide variety of staff. Employees should be
efficiently assigned to each center in accordance with the worker need of that particular center.
To limit turnover, a childcare provider should provide workers with adequate job protection.
Casual work is not a good choice for the child care sector, so human resource officers can focus
on permanent employment.

Efficient Management Decisions: Since childcare can be a very specific enterprise, major
investments and expenses are required during this business, so management choices must be
accurate. An organization will fail as a result of a single bad decision. Since establishing a new
center is too costly, administrators should consider site selection before establishing a new
center. In the case of mergers and acquisitions, management should perform a feasibility
report.

They must justify whether or not they have sufficient capital, whether or not the asking location
is an appropriate location to establish a center or not, whether or not it would be beneficial to
both the final individuals and the company, so what should be the specific center, what
percentage of employees should be recruited for that center, what quantity should be invested,
and what facilities s Borrowings should be restricted. Benefit sources should be systemic (e.g.,
by improving service quality & by gaining new customers). Liquidity damages, restitution, and
government incentives cannot be the primary sources of benefit.

If a chosen organization lacks the resources to establish a center, it should consider a franchise
option (e.g., regional management company or RMC). Though the franchise is not an honest
option for child care industries, if anyone needs to grow a franchise, HR managers should let
those franchises operate concurrently so the workers can target the parent's company's
operations.