criticalcocktails

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Teacher InstructionsCritical Cocktails is an activity used to enhance the teaching and learning of network analysis.The activity can be used in a number of different ways depending on whether the teacher wantsto ask students to draw the network diagram or simply complete the nodes on the completednetwork diagram.

Teaching and Learning Strategy 1

A The teacher should split the students into pairs or three’s. Each pair/ three should then be given a copy of the Critical Cocktails stimulus material.

B The teacher should ask students to complete the network diagram based on the scheduleof activities.

C Once this has been completed, the teacher should then go round each pair/ three and askthem to choose ‘Heads’ or ‘Tails’. Based on their response give the students the relevantscenario card.

D Students should amend the network diagram based on the scenario card and complete the question on the scenario card.

BUSINESS

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Resources for CoursesCritical Cocktails

Teaching and Learning Strategy 2

A The teacher should split the students into pairs or three’s. Each pair/ three should then begiven a copy of the Critical Cocktails stimulus material and a copy of the semi-completednetwork diagram.

B The teacher should ask students to complete the nodes on the network diagram based onthe schedule of activities.

C Once this has been completed, the teacher should then go round each pair/ three and askthem to choose ‘Heads’ or ‘Tails’. Based on their response give the students the relevantscenario card.

D Students should amend the network diagram based on the scenario card and complete the question on the scenario card.

HEADS1 Amend the network diagram based on the following:

Activity E (Advertise for staff) is delayed by 6 weeks

Activity I (Recruit and induct staff) is delayed by 8 weeks

2 Analyse the consequences of the above

TAILS1 Amend the network diagram based on the following:

Activity K (Building control check) is delayed by 2 weeks

Activity M (Test all systems) is delayed by 3 weeks

2 Analyse the consequences of the above

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CRITICAL COCKTAILSCOLIN CRITICAL IS MANAGING DIRECTOR OF CRITICAL LTD, A BUSINESSWHICH OWNS SEVERAL BARS IN THE NORTH EAST OF ENGLAND.GROWTH IS ONE OF THE BUSINESSES KEY OBJECTIVES AND COLINHAS COMMISSIONED SOME MARKET RESEARCH TO IDENTIFY POTENTIAL NEW AREAS FOR THE BUSINESS TO EXPAND INTO.One area that Colin is particularly attracted to is the cocktail market.

Cocktails have surged in popularity over the last two years resultingin a 10.8% sales increase in UK bars and pubs and cocktails havebeen boosted by its almost equal appeal to both genders, with a54% to 46% balance between female and male drinkers, particularlyamongst the 18-35 year old demographic, where consumers areincreasingly choosing to drink cocktails throughout the night ratherthan just as an aperitif.

Based on the above information, Colin has decided to open up anew, upmarket cocktail bar in Sunderland, Critical Cocktails.

Colin believes that the bar needs to be open in less than 33 weeksin order to capitalise on the festive period when footfall in barsand clubs is at its peak. Another pub chain, based in Sunderland is also looking at opening a new bar in the city, Gin and Bear it. Although Gin and Bear it will focus mainly on speciality gins, thebar will also have an extensive cocktail menu therefore opening up before this will be crucial.

Colin has drawn up a cash flow forecast for the period Octoberto January as well as a schedule of activities for Critical Cocktails.

Table 1: Cash-flow forecast for October to January

Oct (£) Nov (£) Dec (£) Jan (£)

Inflows 20,000 37,000 55,000 60,000

Outflows 21,000 25,000 28,000 30,000

Net Cash Flow (1,000) 12,000 27,000 30,000

Opening Balance 0 (1,000) 11,000 38,000

Closing Balance (1,000) 11,000 38,000 68,000

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CRITICAL COCKTAILSPreceding Duration

Activity activities (weeks)

A: Research cocktail menu - 6

B: Buy premises - 8

C: Design cocktail menu A 6

D: Planning permission B 8

E: Advertise for staff B 4

F: Design initial marketing campaign B 4

G: Print cocktail menus C 4

H: Building work D 10

I: Recruit and induct staff E 10

J: Launch initial marketing campaign F 8

K: Building control check H 2

L: Train staff in premises G, K, I, J 2

M: Test all systems G, K, I, J 1

N: Opening soon promo campaign G, K, I, J 1

O: Private test events L, M, N 2

Schedule of activities for Critical Cocktails

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BLANK CRITICAL COCTAILS NETW

ORK DIAGRAM

A6B8

D8

H10

E4

I10

F4

J8

K2

M1N1 L2

O2

C6

G4

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COM

PLETED CRITICAL COCTAILS NETW

ORK DIAGRAM

A6B8

D8

H10

E4

I10

F4

J8

K2

M1N1 L2

O2

C6

G4

001

6182

883

16165

12186

12207

26268

28289

303010

323211

12244

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HEADS CRITICAL COCTAILS NETW

ORK DIAGRAM

A6B8

D8

H10

E10

I18

F4

J8

K2

M1N1 L2

O2

C6

G4

001

6262

883

16245

18186

4327

26348

36369

383810

404011

12324

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TAILS CRITICAL COCTAILS NETW

ORK DIAGRAM

A6B8

D8

H10

E4

I10

F4

J8

K4

M4N1 L2

O2

C6

G4

001

6202

883

16165

12206

12227

26268

30309

343410

363611

12264

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Resources for CoursesCritical Cocktailssuggested answers

Suggested Answers – General

• The bar should be open in 32 weeks, 1 week before the 33 week deadline.• Critical path is B, D, H, K, L, O

Suggested Answers – Heads

• Critical path changes from B, D, H, K, L, O to B, E, I, L, O• Time taken to open the bar increases from 32 weeks to 40 weeks, a delay of 8 weeks• An 8 week delay could result in the bar missing the crucial festive period and a time when

sales are at their peak• Delay could result in the rival bar, Gin and Bear it gaining first mover and competitive

advantage. This could make it difficult for the bar to establish a loyal customer base• Cash flow – an 8 week delay would result in no inflows in October and November resulting

in the following:

Suggested Answers – Tails

• Critical path changes from B, D, H, K, L, O to B, D, H, K, M, O

• Time taken to open the bar increases from 32 weeks to 36 weeks, a delay of 4 weeks

• A 4 week delay could result in the bar missing the build up to the festive period and a timewhen sales are moving towards their peak

• Delay could result in the rival bar, Gin and Bear it gaining first mover and competitive advantage. This could make it difficult for the bar to establish a loyal customer base

• Cash flow – a 4 week delay would result in no inflows in October resulting in the following:

Oct (£) Nov (£) Dec (£) Jan (£)

Inflows 0 0 55,000 60,000

Outflows 21,000 25,000 28,000 30,000

Net Cash Flow (21,000) (25,000) 27,000 30,000

Opening Balance 0 (21,000) (46,000) (19,000)

Closing Balance (21,000) (46,000) (19,000) 11,000

Oct (£) Nov (£) Dec (£) Jan (£)

Inflows 0 37,000 55,000 60,000

Outflows 21,000 25,000 28,000 30,000

Net Cash Flow (21,000) 12,000 27,000 30,000

Opening Balance 0 (21,000) (9,000) 18,000

Closing Balance (21,000) (9,000) 18,000 48,000

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