Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

During the global coronavirus pandemic in 2020, London Zoo had to close twice (March and November) during the two rounds of national lockdowns (when all

image text in transcribed
During the global coronavirus pandemic in 2020, London Zoo had to close twice (March and November) during the two rounds of national lockdowns (when all 'non-essential' businesses had to close their doors to customers in an attempt to control the COVID-19 virus). Non-profit organizations like the Zoological Society of London (ZSL), which runs London Zoo, rely on admissions tickets for their sources of finance, but the lockdown proved devastating for its cash flow position. Whilst some businesses could reduce their operational costs by being closed, London Zoo had to continue feeding more than 19,000 animals, which the ZSL reported to be around 1,000,000 ($1.344m) per month. The organization had put off its plans for capital expenditure. During the first national lockdown in the UK, the zoo was forced to close for an unprecedented three months due to the pandemic. London Zoo says a loss of income from ticket sales has put a \"huge financial pressure" on its operation. The zoo usually welcomes 1.25 million of visitors and tourists each year (that's more than 3,400 paying customers each day). In early November 2020, as London Zoo had been looking toward to welcoming guests for the December holiday season, the 200's website stated "While we understand this national action is necessary to curb the spread of Coronavirus, it adds a huge burden to an incredibly tough year for us. Our focus throughout has always been keeping our animals happy and well cared for, and knowing we would be able to share the joy of the zoo with visitors again. " Dominic Jermey, ZSL director general, said: "The impact of coronavirus on ZSL cannot be understated. Lockdown saw us closed for longer than any time in our history with fixed costs of more than 1 million a month just on food and care for our animals, let alone our conservation and science and almost no income. This has been catastrophic for us and we are seeking funding from a range of places. " To prevent possible collapse of London Zoo, celebrities including Sir David Attenborough, Jonathan Ross, and Catherine Tate have fronted videos aiming to raise funds for the Zoological Society of London. The government also provided support to businesses through its furlough scheme which allows employers to put some or all of their staff on temporary leave (during the lockdowns), with the government funding their pay during this period of time. Sources: adapted from https:llwww.zsl.orglnewslour-zoos-wilI-close-on-thursday-5-november and httpszllwww.itv.comlnewsllondonl2020-08-27llondon-zoo-weigh-in-more-than-19000-animals-step-on-the-scales-as- zoo-warns-of-catastrophic-covid-im pact Questions (a) Define the term capital expenditure. [2 marks] (b) Define the term xed costs. [2 marks] (c) liksplart from admissions tickets, explain three other appropriate sources of finance for [6 marks ] Discuss the value of STEEPLE analysis as a situational tool of the external [10 (d) environment for ZSL. marks]

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Fundamentals Of Lawyer Leadership

Authors: Leah W. Teague, Elizabeth M. Fraley, Stephen L. Rispoli

1st Edition

1543825257, 978-1543825251

More Books

Students also viewed these Law questions

Question

What is the Easterlin Paradox?

Answered: 1 week ago

Question

Describe the factors influencing of performance appraisal.

Answered: 1 week ago