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

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and can someone send me any essays they have on the 18 and 23 marks questions please!
"Evaluate the financial position of SHL." Any ideas?
Any idea on how to answer
"Discuss how a change in the state of the UK economy/ UK economic growth might affect the ability of SHL to achieve its objectives, the strategic direction of SHL and the success of SHL?"
Original post by Pribb
Wouldn't that make it more likely to come up then if it hasn't come up before and interest rates came up last year? In my opinion there is enough to talk about for an 18 mark question, I've just written an 18 marker purely exchange rates. There is always a macroeconomic question though so if it is not exchange or interest rates are you saying it will be unemployment?


Just the feeling I get, I think it will be direct taxation and we would be able to mention middle class earners, being most affected. This group being SHL target market. The last time they used unemployment was in 2013 but it was obvious from the pre release that it was going to come up because there was a section on unemployment in it. In all fairness I think its hard to predict, I wouldn't necessarily rule anything out. It could have something to do with the second appendix though!
can someone post all the formulas please
Does nobody think demographics or social change could come up?
Original post by Schooledsam
Does nobody think demographics or social change could come up?


It's a potential; there's a fair bit you can talk about, it would most probably ask for strategies... to better respond to changes in the UK social environment.

Can then mention:

Widen the TA - older people... continuously growing as seen from the table

Introduce the sub brand - target teenagers

Increase sponsorship - 'kate effect' further sponsorship in sports etc...
Table 2 of the case study shows the projected net profit, for the next 5 years, from starting an independent business selling mardidi clothing in the UK on the capital investment of US$5m.

Using the information from table 2 calculate the accounting rate of return ARR and the payback period PBP for this venture ...


How would I answer this? Any suggestions?

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Original post by thepatel_1
Table 2 of the case study shows the projected net profit, for the next 5 years, from starting an independent business selling mardidi clothing in the UK on the capital investment of US$5m.

Using the information from table 2 calculate the accounting rate of return ARR and the payback period PBP for this venture ...


How would I answer this? Any suggestions?

Posted from TSR Mobile


For ARR:
Add the cash inflows, (0.1)+0.2+1+2+4=7.1

Then take away the the cost of investment ($5m) 7.1-5=2.1

Then divide by the length of the project (5 years) 2.1/5=0.42

Then express as a percentage, 0.42/5x100=8.4%


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There has been a lot of discussion regarding the CPA being a potential red herring, surely it will be the 13 mark question?

Considering...

A page has been dedicated to it...

As well as the fact that 80% of the product development process is external to SHL... that is a round figure suggesting the exam board will most probably not changed the figures??
Original post by raypalmer
For ARR:
Add the cash inflows, (0.1)+0.2+1+2+4=7.1

Then take away the the cost of investment ($5m) 7.1-5=2.1

Then divide by the length of the project (5 years) 2.1/5=0.42

Then express as a percentage, 0.42/5x100=8.4%


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Thank you. And how would I calculate the pay back period?
considering nobody has asked this question yet, could we put some thoughts together on this one?

USING THE DATA IN APPENDIX 2, DISCUSS HOW CHANGES IN THE DEMOGRAPHIC STRUCTURE OF THE UK MIGHT AFFECT SHL'S FUTURE PROFITABILITY (18 MARKS)


:smile:
I am so glad that it appears to be the critical path analysis that will come up as the 13 marker instead of the 4 ratios. They were a nightmare to remember last year
Original post by thepatel_1
Thank you. And how would I calculate the pay back period?


Payback is just under 4 years 6 months, im not entirely sure how u work it out, but it does say this on the toolkit


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Also an A (going on last years grade boundaries) last year was 52/90 which is 58%. If you do 13/52 x 100 it works out at 25% of the marks hence it's so important to fill in the right est and lft for each node and then selecting the correct critical path and also being able to calculate the total float lol. Either way I would much prefer this then 4 ratios even though I will discuss some of them in my answers
Has anyone done a question on demographics and franchises?


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Original post by neal95
Also an A (going on last years grade boundaries) last year was 52/90 which is 58%. If you do 13/52 x 100 it works out at 25% of the marks hence it's so important to fill in the right est and lft for each node and then selecting the correct critical path and also being able to calculate the total float lol. Either way I would much prefer this then 4 ratios even though I will discuss some of them in my answers


So its easy to get an A?


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Original post by raypalmer
So its easy to get an A?


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It's up to you if you say it lol I am not gonna curse myself but it is certainly doiable I mean you can drop quite a lot of marks
Original post by raypalmer
Payback is just under 4 years 6 months, im not entirely sure how u work it out, but it does say this on the toolkit


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I think its this...

its initial investment divided by cash inflow per period


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Original post by neal95
Also an A (going on last years grade boundaries) last year was 52/90 which is 58%. If you do 13/52 x 100 it works out at 25% of the marks hence it's so important to fill in the right est and lft for each node and then selecting the correct critical path and also being able to calculate the total float lol. Either way I would much prefer this then 4 ratios even though I will discuss some of them in my answers


This is a possibility of a 13 marker...

Table 2 of the case study shows the projected net profit, for the next 5 years, from starting an independent business selling mardidi clothing in the UK on the capital investment of US$5m.

Using the information from table 2 calculate the accounting rate of return ARR and the payback period PBP for this venture ...


Posted from TSR Mobile

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