OCR Business Studies F297 2016 - VGL Case Study

I think their customers are businesses who want waste collected. Not sure if that's right though!

I'm thinking the questions that come up will be on whether to diversify into textiles, recommending strategies to improve liquidity, how a rise in interest rates will affect VGL, how their stakeholders will view VGL's attempts to improve its ethical reputation. They're what my teacher has said anyway, but there could be ones related to achieving objectives.

Hope this helps!

Just to clarify is analysis what effect something will have on the business, and evaluation how they should react/respond to it?

How would you answer the 'recommending strategies to improve liquidity' one?

Well currently VGL aren't exactly liquid, they have a poor acid text of 0.57 in 2015, and current ratio of 1.57 in 2015, which means that they are relying on stock way to much, as stock on its own effectively accounts for the ability to pay off all of their current liabilities. however the nature of their business sort of allows that, as they are holding stock to wait for higher prices, all VGL could really do is sell at slightly lower prices, but that could harm their revenue. Therefore VGL could attempt to get more contracts (Which is one of their objectives) so their income from the first revenue stream goes up, also giving them the most liquid of assets, cash, however then comes all of the issues when trying to get new contracts... such as having to wait for their current contract to end.
Using the balance sheet,you can see that VGL went from 15 million to 14 million in stock, but dropped heavily from 10 million to 4 million cash, so they definitely are having some cash flow issues.

VGL could also try to improve liquidity by reducing the current liabilities instead of increasing the current assets through lowering warehouse space (Buying a smaller warehouse and selling the old one) however thiss would cause issues with the stock holding for the best prices, but the trade off may be worth it.

Not a full answer, just some notes in paragraph form, but hopefully helpful! :P

yes! Thank you so much

Hey guys,

What do you think the first questions going to be, i think TSA? Would there also be a question on the positives and negatives of TSA?

Also what would you guys write about if a question came up on health and safety?

Thanks 'oh Katie', i'm so nervous for the exam, really need an A and got a U last year!

also any ideas about this question..'Discuss the issue Michael should consider in seeking to implement his proposed changes to the training policy.'

change management?
Time?
Cost?
he did it at times that were best for him

also any ideas about this question..'Discuss the issue Michael should consider in seeking to implement his proposed changes to the training policy.'

All of michaels current research is very questionable, he does it when convenient to him, the shifts are at different times and the sorting crews have no power of the quality of rubbish that is recieved which could skew the research results anyway!

The data collected isnt even fully accurate as it is only mean levels of contamination, the change in contaimination only lasts for 2 weeks, which could just be coincidence.

No problem, If anyone has any tips on how to remember the damned ratio formulas/answers, please tell me! Im struggling to remember em..

Memorise the formula so you can work it out in the exam, if you forget the answer and don't know the formula then you're stuffed. Try the whole write, cover, copy, repeat thing.. that might work!