[Lakhvir.Singh]

(Original post by jk122)
Yeah same im hoping that comes up its prob the only thing i can actually do lol

Haha! That's the only thing I know how to do and obviously all the other ratios! Hope the case study has lots of useful data so I can get application marks without too much effort

[Sprocket25]

(Original post by Theturnbull9)
Sweet, where are you going on your gap year? & which Uni are you planning on going to?

During my Gap year I plan to study Biology to A2 (Independently with a bit of help from my school) and work as a Badminton coach (County player) and part-time life guarding. Coaching earns me decent money (Anything over £15 an hour) and I love it! I may go traveling next summer to America or go and visit my friend skiing for a couple of weeks over Xmas this year and then hopefully I will go to Birmingham Uni in Sept 2013 to study Business Mgt.

What are your plans?

[SL25]

(Original post by Theturnbull9)
Ansoff measures how risky the proposal will be. Is the business entering into a new market with a new product - high risk. Same market with similar product - low risk.

I thought Porter's theory is what actually analyzed the risk of business strategies.

[beth122]

What's NPV formula?

[Sprocket25]

(Original post by Lakhvir.Singh)
Hardly done any revision! Hope Investment Appraisal comes up so I can get some marks :O

Key thing on investment appraisal. Even if it doesn't come up in the form of an actual question, you should be able to do at least 1 of the 3 sums with the figures they give you. If you can then DO IT! Because it can instantly score you Lvl 5 application/ analysis marks

[jk122]

(Original post by Lakhvir.Singh)
Haha! That's the only thing I know how to do and obviously all the other ratios! Hope the case study has lots of useful data so I can get application marks without too much effort

Yeah i have learned a few ratios here and there.. ahh same here i really cant be arsed to be searching around for data hopefully it will be staring at me in the face lol im really dreading the 34 marker so longg to writee

[HP348]

Whats the definition of a profit centre in laymens terms. The definition in A2 book confuses me with the mention of it can aslo be a product?

[jk122]

(Original post by Sprocket25)
Key thing on investment appraisal. Even if it doesn't come up in the form of an actual question, you should be able to do at least 1 of the 3 sums with the figures they give you. If you can then DO IT! Because it can instantly score you Lvl 5 application/ analysis marks

Great tip! cheers dude

[Sprocket25]

(Original post by beth122)
What's NPV formula?

To do NPV you would need depreciation rates to be given to you. Then just do Net cash flow X Depreciation rate for each year given to which gives you the present value for that years Net present value. You then you can add up the Present values for the project.

[HP348]

(Original post by beth122)
What's NPV formula?

Doesnt have a formula as far as im aware of you are just given dicount rates to times by each net margin.

[Lakhvir.Singh]

(Original post by Sprocket25)
Key thing on investment appraisal. Even if it doesn't come up in the form of an actual question, you should be able to do at least 1 of the 3 sums with the figures they give you. If you can then DO IT! Because it can instantly score you Lvl 5 application/ analysis marks

Yeah, I'm just going to try fit it in :P I have a habit of answering the questions I make up LOL!

(Original post by jk122)
Yeah i have learned a few ratios here and there.. ahh same here i really cant be arsed to be searching around for data hopefully it will be staring at me in the face lol im really dreading the 34 marker so longg to writee

Hopefully we'll be ok! I swear if the case study and questions are really easy and I haven't done revision I'll shoot myself!!

[Sprocket25]

(Original post by HP348)
Whats the definition of a profit centre in laymens terms. The definition in A2 book confuses me with the mention of it can aslo be a product?

I've never heard of "Laymens" terms in my life

But a profit centre is [art of a business that directly generates revenue as well as costing money. They can work out the profit or loss they are making from taking costs from the revenues.

[Theturnbull9]

(Original post by Sprocket25)
During my Gap year I plan to study Biology to A2 (Independently with a bit of help from my school) and work as a Badminton coach (County player) and part-time life guarding. Coaching earns me decent money (Anything over £15 an hour) and I love it! I may go traveling next summer to America or go and visit my friend skiing for a couple of weeks over Xmas this year and then hopefully I will go to Birmingham Uni in Sept 2013 to study Business Mgt.

What are your plans?

That sounds top! especially the potential trip to America. I'm going to Swansea University in September to study BA International Business Management.

[SL25]

(Original post by SM94)
If the businesses initial investment was say £100,000, and each year it made £20,000 off this investment, the payback period would 5 years, really simple example but payback period itself is simple, ARR is a little bit more tricky

Not really, but I commonly make the mistake of not adding the initial investment to the average annual profit. Other than that, its simple, calculate average annual profit by adding all net cash flows by initial investment divided by number of years, then average annual profit divided by intial investment x 100

~ You may know this already lol but when I respond to comments on certain subjects it actually helps me remember them better for some reason

[Theturnbull9]

(Original post by SL25)
I thought Porter's theory is what actually analyzed the risk of business strategies.

Ansoff is used when a businesses objective is to grow. It shows the strategies that can be used to achieve growth according to how risky they are. Basically its a measurement of 'risk' of new business strategies for example (existing market with existing product - low risk and so on). Not sure if this sounds confusing or not but you get the idea

[SL25]

(Original post by Theturnbull9)
Ansoff is used when a businesses objective is to grow. It shows the strategies that can be used to achieve growth according to how risky they are. Basically its a measurement of 'risk' of new business strategies for example (existing market with existing product - low risk and so on). Not sure if this sounds confusing or not but you get the idea

So what is Porters theory?

Its not actually in my text book

[Sprocket25]

(Original post by Theturnbull9)
That sounds top! especially the potential trip to America. I'm going to Swansea University in September to study BA International Business Management.

Yeah, I've always loved America! Swansea is a top uni, am I right in thinking its right by the beach?! Because that would be awesome!

[beth122]

ok so i THINK i've got ARR down now.. using Januarys paper as an example i'm using the figures:
Initial Cost = £10m
Forecast Sales per annum = 30 000 units
Fixed Costs per annum = £1m
Selling price per phone to supermarket = £100

ARR = annual return £2m (30 000 x £100 = 3,000,000 - £1m (fixed costs)
initial cost £10m
x 100
= 20%

obviously the sales per annum was a forecast so if using that i'd say it was a prediction.
anyway am i on the right track? i wasnt sure whether to include the variable cost per phone?

[Sprocket25]

(Original post by SL25)
So what is Porters theory?

Its not actually in my text book

Porters generic strategies is about Cost leadership and diversification, Strategic targets and Strategic advantages. In my text book its on pages 137-139.

[SL25]

(Original post by Sprocket25)
Porters generic strategies is about Cost leadership and diversification, Strategic targets and Strategic advantages. In my text book its on pages 137-139.

Ok, cheers for that mate