OCR Business studies F297 - SHL Pre- Release 2014/2015

Critical path, offshoring, franchising, expansion into Mardidi, stakeholders, influence of exchange and interest rates.

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thank you! what are the possible questions about franchising?

Reply 81

r-t

22

Original post by raypalmer

thank you! what are the possible questions about franchising?

May be an assess the advantages and disadvantages of SHL setting up a franchises or should SHL set up a franchise or establish their own outlets.

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Reply 82

raypalmer

2

Original post by r-t

May be an assess the advantages and disadvantages of SHL setting up a franchises or should SHL set up a franchise or establish their own outlets.

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cheers, im the only person doing business studies in my school and i have no teacher so im finding this rather challenging

Reply 83

r-t

22

Original post by raypalmer

cheers, im the only person doing business studies in my school and i have no teacher so im finding this rather challenging

Oh that sounds very difficult, why are you the only one doing it?

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Reply 84

raypalmer

2

Original post by r-t

Oh that sounds very difficult, why are you the only one doing it?

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im the only one that passed the AS exams

Reply 85

r-t

22

Original post by raypalmer

im the only one that passed the AS exams

were the teachers really bad last year or was it because of students being lazy?

Reply 86

ferdous

Am confused on the following question:

"To what extent is shl's £70m sales revenue objective in 2016 realistic in the context of its current performance? Justify your view"

Any ideas?

Reply 87

r-t

22

Original post by ferdous

Am confused on the following question:

"To what extent is shl's £70m sales revenue objective in 2016 realistic in the context of its current performance? Justify your view"

Any ideas?

So you could argue considering the niche market it targets then the consumer base isn't big enough but the fact that revenue has been increasing year on year suggests it's possible despite prices being high. However according to the selected discount data the sales volume seems quite low considering the size of SHL which means that they may not earn the revenue needed. Also appendix 2 shows that females in their target age range are projected to decrease over the next few years which means that they'll have a smaller consumer base. However the decrease isn't by that much and they also target men and children which are not projected to decreased so perhaps revenue won't decrease significantly. The profit and loss accounts are however from the end of the year which means that sales may have been high due to Christmas and nah not actually be high all year round.

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Reply 88

LeahWhitton

Will the first question definitely be on critical path or do you think it'll be the ratios?

Reply 89

Pribb

1

Original post by r-t

Critical path, offshoring, franchising, expansion into Mardidi, stakeholders, influence of exchange and interest rates

Do you mean offshoring in terms of manufacturing? and if so will that be to do with exchange rates?

Reply 90

jakecre8

3

Yes, in terms on manufacturing.
Exchange rates are an issue and so are other ecomic factors. Communication and lead time are two large point also.

Reply 91

Pribb

1

Original post by jakecre8

Yes, in terms on manufacturing.
Exchange rates are an issue and so are other ecomic factors. Communication and lead time are two large point also.

Okay thank you! So how do you think the question would be phrased?

Reply 92

ferdous

Original post by r-t

So you could argue considering the niche market it targets then the consumer base isn't big enough but the fact that revenue has been increasing year on year suggests it's possible despite prices being high. However according to the selected discount data the sales volume seems quite low considering the size of SHL which means that they may not earn the revenue needed. Also appendix 2 shows that females in their target age range are projected to decrease over the next few years which means that they'll have a smaller consumer base. However the decrease isn't by that much and they also target men and children which are not projected to decreased so perhaps revenue won't decrease significantly. The profit and loss accounts are however from the end of the year which means that sales may have been high due to Christmas and nah not actually be high all year round.

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Thank you!!! really helped me write up my answer

Reply 93

cav0rting

My teacher thinks the critical path may be a red herring and that the first question could be ratios, with them providing the 2014 accounts for us to use. Do people think this could be possible? I don't see why the examiner would bother constructing the critical path if he wasn't asking a question on it tbh.

Reply 94

stresso

4

Original post by cav0rting

My teacher thinks the critical path may be a red herring and that the first question could be ratios, with them providing the 2014 accounts for us to use. Do people think this could be possible? I don't see why the examiner would bother constructing the critical path if he wasn't asking a question on it tbh.

It could very well be a misleading indicator, otherwise that would basically be a guaranteed 13 marks for everyone. But I doubt you would exclude anything intentionally from your revision, so it would only be safe to prepare for either topic, or any other.

Reply 95

nathcart

Original post by r-t

I think they will receive 25% of net profit as they are buying 25% of the business. They can't receive all of it because it's not 100% their business.

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They will receive either

1. 25% of the net profit - but this might be unlikely that Mardidi will pay out all retained profit to shareholders? like SHL it will retain some and pay out some dividends to shareholder which means...

2. 25% of dividends which will be paid out to SHL

Either way they'd be stupid to buy 25% ($5m) of a loss making business which would give them about 800K payback after 5 years if they will receive 25% of total net profit... but if they buy in there a shareholder, and shareholders are likely to get dividends...

(edited 8 years ago)

Reply 96

r-t

22

[QUOTE="Pribb;56439999"]

Original post by r-t

Critical path, offshoring, franchising, expansion into Mardidi, stakeholders, influence of exchange and interest rates

Do you mean offshoring in terms of manufacturing? and if so will that be to do with exchange rates?