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OCR Business Studies F297 2016 - VGL Case Study

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Original post by georgie2498
how will stakeholders view VGL as a successful business? how would you answer this?


Different stakeholders will judge it differently.

List of stakeholders:
Local Community
Supervisors
Suppliers
Managers
Customer
Local Authoritys
Shareholders (Phoebe)
Employees

Only do 2-3 stakeholders which have the best points about them, personally I'd do:
Employees (Stable Job etc..)
Shareholders (Making profit, enough dividends etc..)
Local authorities (Holding up contracts and collecting rubbish on time, reasonable price etc..)
Here's another..'Evaluate how Phoebe might assess the effectiveness of VGL.' Any ideas?
Original post by bobs business
Here's another..'Evaluate how Phoebe might assess the effectiveness of VGL.' Any ideas?


Phoebe will see the effectiveness of VGL as through the 4 Pillars, "People, Performance, Planet and Profit."

Obviously, as the key shareholder and the owner of VGL she will be interested in making a profit and getting a nice dividend payout.

However, Phoebe is said as "Priding herself on vgls ability to be locally focused yet globally responsible." which would show that she thinks about VGL's reputation and the planet on par with making a healthy profit.

She has also set one of the main objectives as "Support one new major charitable community initiative" while this in itself is an appalling objective, it does show that VGL, and phoebe do care about their local community.

Therefore Phoebe would most likely view the effectiveness on how much recycling is being processed, how well it is selling, profit levels (obviously) and if they are sticking to their foundations (The 4 pillars).

Clearly expand for a real answer, but these are just notes off the top of my head and reading the case study :P
(edited 7 years ago)
Hi
Do u think that ratio analysis or tsa is most likely to come up
Original post by Lewis7_
Phoebe will see the effectiveness of VGL as through the 4 Pillars, "People, Performance, Planet and Profit."

Obviously, as the key shareholder and the owner of VGL she will be interested in making a profit and getting a nice dividend payout.

However, Phoebe is said as "Priding herself on vgls ability to be locally focused yet globally responsible." which would show that she thinks about VGL's reputation and the planet on par with making a healthy profit.

She has also set one of the main objectives as "Support one new major charitable community initiative" while this in itself is an appalling objective, it does show that VGL, and phoebe do care about their local community.

Therefore Phoebe would most likely view the effectiveness on how much recycling is being processed, how well it is selling, profit levels (obviously) and if they are sticking to their foundations (The 4 pillars).

Clearly expand for a real answer, but these are just notes off the top of my head and reading the case study :P


cheers mate
Original post by bobs business
Here's another..'Evaluate how Phoebe might assess the effectiveness of VGL.' Any ideas?
Could you possibly help me with this question pls if u have any ideas
Discuss how a change in the UK economic growth might affect the strategic direction
Of VGL 18
Original post by lizzcelby
Could you possibly help me with this question pls if u have any ideas
Discuss how a change in the UK economic growth might affect the strategic direction
Of VGL 18

- Revenue to increase by 6% - rise: it is likelyto have an influence on wage growth and household incomes, therefore if peoplehave higher incomes they are likely more packaged items therefore for VGL theyhave more to process and sell on the spot market which can increase. However afall: would have the adverse/opposite effect. VGL consider strategies toincrease revenue such as increasing prices.
- Two new local authority contracts rise: it’slikely there will be a rise in competition therefore they will need a greatercompetitive advantage, this could be done by improving quality of collectionmethods or acting in an ethical manner, with commercial being tight it isunlikely VGL will want to lower prices of the contracts however I feel theyshould lower the prices worst case scenario as gaining two new contracts willallow for greater revenue. If there is an economic decline VGL could lowerprices due to government spending cuts, however quality must still bemaintained in order to retain/gain contracts, once the economy to raise VGLcould try and renew contracts and charge higher prices.- Labour turnover: rise: could mean that more jobsare available therefore VGLs competition could offer more attractive jobspackages with higher rates of pay and better working conditions, thereforemeaning for VGL current employees are likely to leave thus increasing labourturnover. Decline would mean that jobs aren’t as available therefore VGL couldemploy better/more qualified employees for lower costs who are likely to staytherefore decreasing labour turnover. It could however mean that costs for VGLin other areas of the business increase or VGL are unable to suitable wagestherefore - Charitable initiative: rise: greater profitmargins therefore have the capital to fund it. Decline, profit margins decreasetherefore VGL may not have sufficient capital to fund a project.
anyone got a full list of figures and key statistics for the exam
Original post by Lewis7_
Phoebe will see the effectiveness of VGL as through the 4 Pillars, "People, Performance, Planet and Profit."

Obviously, as the key shareholder and the owner of VGL she will be interested in making a profit and getting a nice dividend payout.

However, Phoebe is said as "Priding herself on vgls ability to be locally focused yet globally responsible." which would show that she thinks about VGL's reputation and the planet on par with making a healthy profit.

She has also set one of the main objectives as "Support one new major charitable community initiative" while this in itself is an appalling objective, it does show that VGL, and phoebe do care about their local community.

Therefore Phoebe would most likely view the effectiveness on how much recycling is being processed, how well it is selling, profit levels (obviously) and if they are sticking to their foundations (The 4 pillars).

Clearly expand for a real answer, but these are just notes off the top of my head and reading the case study :P


thanks
Does anyone think shareholder ratios will come up? My teacher didn't teach them as she didn't feel they would come up due to the assumption that Phoebe is the only shareholder. I have revised them, just not 100% on them and not sure if it it the most important thing to be going over before the exam!
Original post by oh katie
- Revenue to increase by 6% - rise: it is likelyto have an influence on wage growth and household incomes, therefore if peoplehave higher incomes they are likely more packaged items therefore for VGL theyhave more to process and sell on the spot market which can increase. However afall: would have the adverse/opposite effect. VGL consider strategies toincrease revenue such as increasing prices.
- Two new local authority contracts rise: it’slikely there will be a rise in competition therefore they will need a greatercompetitive advantage, this could be done by improving quality of collectionmethods or acting in an ethical manner, with commercial being tight it isunlikely VGL will want to lower prices of the contracts however I feel theyshould lower the prices worst case scenario as gaining two new contracts willallow for greater revenue. If there is an economic decline VGL could lowerprices due to government spending cuts, however quality must still bemaintained in order to retain/gain contracts, once the economy to raise VGLcould try and renew contracts and charge higher prices.- Labour turnover: rise: could mean that more jobsare available therefore VGLs competition could offer more attractive jobspackages with higher rates of pay and better working conditions, thereforemeaning for VGL current employees are likely to leave thus increasing labourturnover. Decline would mean that jobs aren’t as available therefore VGL couldemploy better/more qualified employees for lower costs who are likely to staytherefore decreasing labour turnover. It could however mean that costs for VGLin other areas of the business increase or VGL are unable to suitable wagestherefore - Charitable initiative: rise: greater profitmargins therefore have the capital to fund it. Decline, profit margins decreasetherefore VGL may not have sufficient capital to fund a project.

Thank u so much
Original post by oh katie
anyone got a full list of figures and key statistics for the exam


Do you mean figures from the ratios??
Reply 172
Original post by Lewis7_
No problem, If anyone has any tips on how to remember the damned ratio formulas/answers, please tell me! Im struggling to remember em..


I've personally just written them out on a massive piece of paper all in different colours so it stands out (so like purple for liquidity ratios, blue for profitability ratios etc) and just reading over them loads! ( I haven't had time to remember the answers, so the ones I'll need from the Q I will work out from the balance sheet/ P&L accounts ... or get someone to keep testing you on the formulas over and over :smile: (probably not much help, but that's what I am doing haha!)
(edited 7 years ago)
Reply 173
For TSA do we just have to learn the 4pt moving average technique? as it is 4 Quarters..?
Original post by Lewis7_
Phoebe will see the effectiveness of VGL as through the 4 Pillars, "People, Performance, Planet and Profit."

Obviously, as the key shareholder and the owner of VGL she will be interested in making a profit and getting a nice dividend payout.

However, Phoebe is said as "Priding herself on vgls ability to be locally focused yet globally responsible." which would show that she thinks about VGL's reputation and the planet on par with making a healthy profit.

She has also set one of the main objectives as "Support one new major charitable community initiative" while this in itself is an appalling objective, it does show that VGL, and phoebe do care about their local community.

Therefore Phoebe would most likely view the effectiveness on how much recycling is being processed, how well it is selling, profit levels (obviously) and if they are sticking to their foundations (The 4 pillars).

Clearly expand for a real answer, but these are just notes off the top of my head and reading the case study :P


Hi
Could u potentially help me out with this question pls if u have any ideas

Discuss how a period of sustained unemployment might affect the success of VGL 18 marker.
how do you work out vgls gearing ratio? i know its 55% but i dont know how to get that figure
Original post by lizzcelby
Hi
Do u think that ratio analysis or tsa is most likely to come up


I personally thing its more likely for TSA as it is has came up once before, but I want it to be ratios, haha :P


Original post by GFEFC1
For TSA do we just have to learn the 4pt moving average technique? as it is 4 Quarters..?


Im revising the 4pt and 8pt moving average, ive got some shoddy graphs and tables i can send you if you want.

Original post by lizzcelby
Hi
Could u potentially help me out with this question pls if u have any ideas

Discuss how a period of sustained unemployment might affect the success of VGL 18 marker.


Sorry, I have no idea how unemployement would effect.. All i can really think of, is that it could affect their labour turnover, and thats an objective it could cause them to become unsuccessful.
Original post by brad02111997
how do you work out vgls gearing ratio? i know its 55% but i dont know how to get that figure


See picture: http://i.imgur.com/qGhhMyO.jpg

Gearing ratio formula:

( Long term Liabilities / Capital Employed ) x 100

2014: 56.6% | 2015: 55.05%

Creditors falling due after one year + Equity Shareholder funds = Capital Employed
(edited 7 years ago)
is it likely a question on how an increase in inflation might affect the achievement of VGL's 2017 objectives? if so what would you guys put?
Reply 179
Original post by Lewis7_
I personally thing its more likely for TSA as it is has came up once before, but I want it to be ratios, haha :P




Im revising the 4pt and 8pt moving average, ive got some shoddy graphs and tables i can send you if you want.

Yes please mate

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