OCR F297 Strategic Management Case Study Thread 2012

OP

Okay guys, I have a few questions.

1. Is the bonus paid to staff included in the figures in table 4? Or are the staff costs just what SLSL pays its staff without giving them a bonus?

2. Based on evidence throughout the case study SLSL had a net profit of about £300,000 in 2011. What was this spent on? On the balance sheet it only says they had £66,000 worth of current assets. Confused...

Reply 42

Original post by Onion man

Okay guys, I have a few questions.

1. Is the bonus paid to staff included in the figures in table 4? Or are the staff costs just what SLSL pays its staff without giving them a bonus?

2. Based on evidence throughout the case study SLSL had a net profit of about £300,000 in 2011. What was this spent on? On the balance sheet it only says they had £66,000 worth of current assets. Confused...

where did u get 300,000 net profit from

Reply 43

OP

Original post by wwelol

where did u get 300,000 net profit from

Revision guide. Money from commission - total costs (overheads, staff costs etc.) - staff bonus - £400 a week advert + a small amount for their peripheral income streams.

I think... it's only an estimate. It's not the net profit figure.

Reply 44

Original post by Onion man

Revision guide. Money from commission - total costs (overheads, staff costs etc.) - staff bonus - £400 a week advert + a small amount for their peripheral income streams.

I think... it's only an estimate. It's not the net profit figure.

what did u get for the crirical path ananlysis

and what revision guide u using

Reply 45

oli_042

Now we know some aspects e.g. exchange rates are unlikely to appear in the case-study? Will any other topics be unlikely to show in the case-study too? Don't want to revise area's that will not be coming up most likely in the exam! Can anyone shed any light on this? :smile:

Reply 46

Original post by oli_042

Now we know some aspects e.g. exchange rates are unlikely to appear in the case-study? Will any other topics be unlikely to show in the case-study too? Don't want to revise area's that will not be coming up most likely in the exam! Can anyone shed any light on this? :smile:

ermmm

interest rates impact on mortage
critical path analysis or time series

ermmm dont know bout others

Reply 47

oli_042

Original post by wwelol

ermmm

interest rates impact on mortage
critical path analysis or time series

ermmm dont know bout others

Surely they're more likely to come up? :s-smilie:

How's everyone revising for this exam at the moment?

Reply 48

[QUOTE="oli_042;37033884"]Surely they're more likely to come up? :s-smilie:

How's everyone revising for this exam at the moment?[/QUOTE
im struggling

Reply 49

Yeh, im finding it hard to start somewhere. I've gone through interest rates and inflation which i think would come up.

Not sure what the questions would be. Pretty sure we're going to see these fellass...

How would a rise in interest rates affect SLSL?
Should SLSL expand into Market Haworth?

HYPE

Reply 50

http://www.housingmarket.org.uk/

Also... this site is helpful with how macroeconomics effect the housing market. And other issues :smile:

Reply 51

Original post by mindblock

Yeh, im finding it hard to start somewhere. I've gone through interest rates and inflation which i think would come up.

Not sure what the questions would be. Pretty sure we're going to see these fellass...

How would a rise in interest rates affect SLSL?
Should SLSL expand into Market Haworth?

HYPE

oh yh defo
and first Q will be on critical path analysis or time series
and possibly
on the sucess of the 3 branches

i doubt inflation will come up

Reply 52

OP

In terms of the business cycle are SLSL in the recession stage or the recovery stage?

Reply 53

Original post by Onion man

In terms of the business cycle are SLSL in the recession stage or the recovery stage?

the economy is likely to be in recoveey stage cause table 2 shows mortage lending increased slowly

Reply 54

OP

Original post by mindblock

Yeh, im finding it hard to start somewhere. I've gone through interest rates and inflation which i think would come up.

Not sure what the questions would be. Pretty sure we're going to see these fellass...

How would a rise in interest rates affect SLSL?
Should SLSL expand into Market Haworth?

HYPE

What sort of things are you revising for interest rates and inflation. I just read through my textbook and I'm really confused. What do we actually need to know...

Reply 55

Original post by Onion man

What sort of things are you revising for interest rates and inflation. I just read through my textbook and I'm really confused. What do we actually need to know...

interet rate rise will make it expensive for slsl to invest in the new branch. however whether this is possible depends upon the rise and wheteher its expected

it will reduce demand for mortages and there put downward pressure on house prices. this in turn means less commsission earnt from house sales.

in the short term slsl will face low sales with high rates, also difficult to find vendors and thus reducing the instructions. in the long term can maybe offer letting managemnt

Reply 56

ALSO....

If interest rates increase, this reduces the disposable income of consumers in the economy. People may even be saving more due to the high interest they would receive. Therefore, less people are spending and so businesses are not making as much profit.

This can result in high unemployment, which consequently makes the demand for houses fall drastically. (As people do not have enough money to purchase a house)

.... Which will effect SLSL through lower revenue etc etc.

:smile:

Reply 57

Original post by mindblock

ALSO....

If interest rates increase, this reduces the disposable income of consumers in the economy. People may even be saving more due to the high interest they would receive. Therefore, less people are spending and so businesses are not making as much profit.

This can result in high unemployment, which consequently makes the demand for houses fall drastically. (As people do not have enough money to purchase a house)

.... Which will effect SLSL through lower revenue etc etc.

:smile:

or u can say it simpler like this

high interest rates reduce demand for houses as they become too expensive which puts downward pressure on house prices. therefore they earn less revenue through commission and quote table 5 with average house price at £315,000 currently with 0.5base rate they earn thiss......
whereas if they go up then this average price will fall leading to less commsion of only.....

this get easy level 3?

Reply 58