Techniques for Business and Economic Analysis: Victoria's PSOs Report

This report provides a comprehensive analysis of business and economic techniques, specifically focusing on the social value of Victorian Protective Service Officers (PSOs). The study examines a case involving a gun-toting train station in Victoria, evaluating the PSOs' contributions to public safety, crime reduction, and public awareness. The analysis delves into the principles of social value, emphasizing stakeholder involvement and transparent result verification. It presents a detailed cost analysis, including the expenses of a PSO training program and the impact of staff resignations. Using demand and supply theory, the report calculates the net social value of the PSOs, considering factors such as recruitment costs and wages. The findings highlight the importance of PSOs in providing essential services and contributing to the economic stability of Victoria. The report concludes with a discussion on the implications of the analysis for business and economic perspectives, addressing potential challenges related to service demand and supply.

Running head: TECHNIQUES FOR BUSINESS AND ECONOMIC ANALYSIS
Techniques for Business and Economic Analysis

TECHNIQUES FOR BUSINESS AND ECONOMIC ANALYSIS
Table of Contents
1. Introduction..................................................................................................................................3
2. Social Value on Victoria’s PSOs.................................................................................................3
3. Response to the Scenario.............................................................................................................5
4. Assumptions................................................................................................................................6
5. Results..........................................................................................................................................8
6. Conclusion.................................................................................................................................10
7. References..................................................................................................................................11
8. Bibliography..............................................................................................................................13
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1. Introduction
Social values can be defined as the benefits derived from the social, economic, and
environmental activities in a country or a state (Tomlins, 2017). In this study, a case associated
with the Victorian Protective Service Officers (PSOs) has been evaluated properly. Through the
analysis, the social value of these PSOs has been examined in an appropriate manner. Before the
case analysis, proper elaboration of social values associated with PSOs is elaborated in details,
which enabled the examination of the scenario in a feasible manner. In addition, a proper
response to the selected case thereby considering the important aspects of PSOs and their
contribution towards society are also included in the paper.
2. Social Value on Victoria’s PSOs
Social value can be considered as an international approach, which has been implemented by
most of the countries in order to develop society and environment of the country or state. The
main purpose of the social value is to enhance the financial stability of the individuals thereby
contributing to society. In relation to the organizations or the business sector, the higher
authorities have faced a major issue while measuring the adequate social value of their
employees. The financial decision of these companies can be depended on the measurement of
their employees’ social value. Social value mainly follows seven major principles i.e.
stakeholders involvement, determination of the change, the involvement of materialistic aspects,
avoid claims, the value of the activities, transparent approach and result verification (Social
Value International, 2017). In relation to Victoria, the ‘gun-toting train station’ has been
elaborated in the case study. Hence, the authority must focus on the above-mentioned factors in
order to improve the situation of the train station. Most importantly, the managers of the Victoria
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train station focuses on their staff in order to evaluate the social value, which helps them to
collect adequate tax from the community. This is found to develop their businesses in Australia
in an effective manner. Hence, PSOs of the station has been taken into consideration in this paper
so that the station authority can create a strong PSO’s team, which can provide the required
security to Victoria’s stations.
However, PSOs plays a major role in the Victoria stations as well as the other stations across the
world. In the given scenario, the gun-toting train station intended to provide certain social
services to the Victorians. These involved safety required on the station area, reducing the crime
rate in the station, proper public awareness associated with the train traveling, proper co-
operation with station authority, and night safety to the people of Victoria within the station
surroundings (VAGO, 2016). These services are properly provided by the PSOs, which can be
considered as a major social contribution. Through the case study, it has been found that the
company needs to recruit PSOs, wherein they introduced proper training and development
programs. Through the training program, the company recruited 50 PSOs, wherein only 30
remained at the end of 2014. Based on the cost of the training program and their wages, the net
value of each PSO was found to be $76,626.90. This value can be considered as the social value
of the PSOs because; the mentioned amount has been spent to provide adequate services. Hence,
this social value can enhance the security of the station, wherein each individual in Victoria feel
safe at least in and around the station. The detail statistical analysis of these PSOs has been
described in the assumptions and the result section of the study.
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3. Response to the Scenario
According to the case scenario, it has been identified that the gun-toting station in Victoria
needed new PSOs for their service development. The company estimated that the entire area has
2.65 million taxpayers, who can share the cost of the new PSOs. In between 2011 to 2014, the
station authority organized training and development activities for 50 PSOs. This activity can be
considered as vital because it has the potential to develop the skills of the existing and new PSOs
in different crime situations and can enhance the provision of quality services to the public of
Victoria. In addition, it can also increase the public security and safety within the station area.
Most importantly, the perspective of the consumers towards the station can change, wherein the
station authority will be able to understand the needs of society in order to maintain peace and
harmony in and around the station area (EU Skills Panorama, 2014). This can directly affect the
economy of Victoria as well as the country thereby posing a positive impact due to the successful
facilitation of the training and development activities. Furthermore, adequate communication has
been developed between the passengers and the station, which have created a proper business
environment. In this environment, the social value of each PSO will increase in an effective
manner. Besides, the case study has created a proper system for the PSOs to provide adequate
social value to the passengers of the train.
Throughout the training program, 20 PSOs resigned and they were not selected for bestowing
their duty in the railway stations of Victoria. This indicates that the training program enhanced
the cost of the station. The company easily completed the recruitment process at the cost of
$945000, wherein they spent $ 1575000. Therefore, the company spent $630000 in total for the
completion of the training session. However, this activity created 30-trained PSOs but the
company faced a major labor shortage. In the economic perspective, the company may face
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major issues in the future during the period of service provision. This is because, in the initial
stage, each PSO needs to work more hours in the stations in order to meet the demand of the
consumer service. It can increase the social value of the PSOs, wherein the cost of the company
can increase. Most importantly, the growth of the company may be reduced, which can be
termed as a major problem from both business and economic perspectives. The trains may be
delayed to provide adequate services to the consumers. In addition, the quality of the service can
be deteriorated within the market (BDC, 2018). Besides, the Victorians will pay the taxes and
price during the period of traveling on the train. The station authority will charge the value of
service, while the Victorians purchase a ticket from the company. The PSOs will provide the
required safety and security to the Victorians in the station area. In addition, they will also guide
the newcomer. This is the reason why Victorians need to continue paying for the PSOs in the
station who are newly recruited for providing emergency services.
4. Assumptions
Based on the case scenario it has been found that the tax collected from the taxpayers in the
entire Victoria is 2.65 million. Hence, these people can help the station authority to implement
cost on the PSOs. Through 2011 to 2014, the station conducted PSO training activities in order to
train 50 PSOs for their service enhancement. The assumption associated with the cost has been
reflected below.
Year Total PSOs Recruit Cost Weekly Cost Daily Cost Total Wage
2011 14 441000 36750 5250 750974
2012 10 315000 26250 3750 536410
2013 15 472500 39375 5625 804615
2014 11 346500 28875 4125 590051
Total 50 1575000 131250 18750 2682050
Assumption Gross Cost
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Table 1: Assumption of the Cost
Based on table 1 it has been found that the PSO numbers were assumed to be 14, 10, 15, and 11
in the period of 2011, 2012, 2013, and 2014 respectively. The case study has stated that the
station has incurred the cost of about $ 31,500 to recruit a PSO for the required public service.
Based on this statement, the cost of each PSO has been calculated. In addition, the cost of the 12
weeks of activity and their wages are also included in the table. The reflected figures in table one
can be considered as the basic assumptions, which have been considered in the case study.
Moreover, 20 PSOs have left the training session. Hence, the assumptions of their resignation
time and its effect on the cost have also been presented in the following table.
Year Total PSOs Resigned Each Year PSOs Remaining Recruit Cost Weekly Cost Total Wage
2011 14 5 9 283500 23625 482769
2012 10 5 5 157500 13125 268205
2013 15 5 10 315000 26250 536410
2014 11 5 6 189000 15750 321846
Total 50 20 30 945000 78750 1609230
Total Cost
Table 2: Total Cost of Station after Resignation
Table 2 has reflected that approx 5 PSOs has left the training program each year. For this reason,
the weekly cost has been reduced, however, the recruiting cost has not been found to decrease
because the 20 PSOs left the training session in the middle. Based on these aspects, the cost of
the entire training program was calculated at $1609230, which was lower than the 50 PSOs
training program.
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Based on this situation, it can be stated that the station authority estimated that the demand for
the PSOs is 50, wherein they received only 30 PSOs at the end of 2014. For this reason, a major
problem can be introduced herein in relation to service demand and supply. Fundamentally,
demand and supply is a major part of any business organization as well as the country’s economy
(Brækkan, 2015). In this scenario, the demand for the service can be found to be high, wherein
the supply of service can be considered as low. In this situation, the cost of the PSOs can be
increased in the future, which can be considered as a commercial issue for the station. Although
the station includes experienced PSOs, who require knowledge, skill, and attitude to execute the
assigned tasks, it can also increase the cost, which may affect the society (Palacios and Hertig,
2010). The result of the net social value of the PSOs and their relation with the Victorians has
been properly elaborated in the next section of the study.
5. Results
The demand and supply theory has been used to explain the results mainly because the company
has less number of PSOs than what is required in the stations of Victoria. Based on the above
assumptions the net social value of PSOs has been calculated. In addition, the contribution of
each people in calculating the cost of PSOs has been reflected in the following table.
Total Social Value 2,554,230$
Social Value of Each PSO 85,141$
Shift Penalties 10%
Penalty Value 8,514.10$
Net Value Each PSO 76,626.90$
Total social Value 2,298,807$
People Contribution 0.87$
Net Social Value
Table 3: Net Social Value
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Based on table 3, the social value of the 30 PSOs is $2,554,230, wherein the station will spend
$76,626.90 for each PSO. This cost can be considered as the social value, which has to be paid
by the station authority and it will be collected from the 2.65 million population of Victoria.
According to Westall (2012), the social value can be measured on the basis of five aspects i.e.
input, activities, outputs, outcomes, and impacts. In relation to the PSOs, the station has
considered each of the mentioned factors, which helps to determine previously mentioned social
value in Victoria. However, the output and the outcomes in a business is the most important
factor herein because it identified the social value of a person or commodity (Joseph, 2012).
However, the social value of a person has a major relationship with economic value. Only
relational distance between these two values is determined the worth of the person or
commodity. In relation to the Victorian station, the cost of the PSOs and their motive, as well as
a dependency in the society, can help to decide the social value. Most importantly societal
benefits also can determine the social value (Gassenheimer and Davis, 2016). Hence, the value
of PSOs in the station is high, wherein the company needs to pay $298807 after successful
recruitment of PSOs, which can be considered as the main social value of the person because the
society, as well as the company, needs to spent this money to increase business profit in the
market.
Furthermore, the proper social value can influence the economic growth of a place because the
proper image of social value can create job opportunity for other people (UKGBC, 2018). Based
on the case scenario it has found that the 30 PSOs worked in the station, wherein its demand was
50. Hence, a job can be created, wherein the people of Victoria can play a major role in
providing financial aid to enhance the social value of PSOs in stations. Overall, the social value
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of PSOs in Victoria has been found to be high. In addition, the demand for the posts of PSOs
also found high, whereas the supply in the industry is low (Bhatt and Hebb, 2013).
6. Conclusion
To conclude, the Victorian station needs adequate numbers of PSOs to provide service in the
city. However, the 20 PSOs have left the program, wherein the social value of other PSOs has
been increased due to high market demand. The social value of each POS was found to be
$76626.90 at the end of 2014. This value can be increased in the future due to low numbers of
PSOs available in the market. Thus, the business of the station can face loss in future but they
can also increase the quality of the service by enhancing the social value of the PSOs. This will
further help to grow the business, which will affect directly to the economy of Victoria thereby
enhancing the security of the stations to a large extent.
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7. References
BDC. (2018) Labour Shortage: Here to Stay. Business Development Bank of Canada. pp. 1-
27.
Bhatt, B. and Hebb, T. (2013) Measuring Social Value A Social Metrics Primer. Carleton
Centre for Community Innovation. pp. 3-19.
Brækkan, E. H. (2015) Why do Prices Change? An Analysis of Supply And Demand Shifts and
Price Impacts in The Farmed Salmon Market. UiT. pp. 1-35.
EU Skills Panorama. (2014) Personal, Care and Protective Service Workers. European
Commission, pp. 1-3.
Gassenheimer, J. B. and Davis, J. C. (2016) The Role of Economic Value, Social Value, and
Perceptions of Fairness in Interorganizational Relationship Retention Decisions. Journal of the
Academy of Marketing Science. 24(4), pp. 323-337.
Joseph, R. (2012) Briefing for Members Measuring Social Value. Eurodiaconia. pp. 1-7.
Palacios, K . and Hertig, C. A. (2010) Role of the Professional Protection Officer. Chapter 3.
pp. 41-53.
Social Value International. (2017) The Seven Principles Of Social Value, And Why They Are
Important For Accountability And Maximising Social Value. Principles of Social Value and
Accountability | Social Value International. pp. 1-4.
Tomlins, R. (2017) Social Value Today: Current Public and Private Thinking on Social Value.
National Housing Federation. pp. 2-40.
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UKGBC. (2018) Social Value in New Development: An Introductory Guide for Local
Authorities and Development Teams. UK Green Building Council [online]. Available from
https://www.ukgbc.org/wp-content/uploads/2018/03/Social-Value.pdf [Accessed 31 August
2019]
VAGO, (2016) Public Safety on Victoria’s Train System. Victorian Auditor-General’s Report
[online]. Available from https://www.parliament.vic.gov.au/file_uploads/20160224-Public-
Safety_0txmKvBZ.pdf [Accessed 31 August 2019].
Westall, A. (2012) Briefing 2 Measuring Social Value, Social Outcomes and Impact. Navca, pp.
4-23.
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