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    (Original post by ShaminiPamini)
    You don't use operating profit, you use PBIT

    Add profit before taxation to interest...

    You need to add in the Long Term Liabilities to net assets employed to get total capital employed
    http://www.tutor2u.net/business/refe...pital-employed
    but it said operating profit here... Im confused ((
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    Well the SWOT question would most likely be in relation to VGLs objectives.

    S - Substantial increase in net profit due to an increase in revenue and reduction in costs --> increases the chances of VGL being able to borrow money to diverse into the textiles market --> diversification will assist in achieving O1 (increase revenue by 6%)

    W - Absence of labour turnover rates for each site --> difficulty in identifying problems --> limits their ability to achieve O3 (keep labour turnover below 10%)

    O - Increasing UK population --> increased amount of household waste --> increased demand for collection services (from the council) --> helps with the achievement of obtaining two more local authority contracts

    T - Greater environmental awareness --> less packaging to process and sell on the spot market --> could negatively impact O1 ---> could be overcome through extra training --> minimise contamination so that products can achieve their full potential revenue --> questions the extent to which a greater environmental awareness will impact O1

    P.S. Sorry for how brief this is! You will need make sure to expand these points and make it all relevant to the case study. Context is key!

    (Original post by GFEFC1)
    Hi, how would you go about answering a SWOT question?
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    TSA has come up before but not for a while. TSA would be the most logical question to give us though

    (Original post by Lewis7_)
    It'll either be ratios or TSA - As TSA has apparently not came up before, its quite likely it will.
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    To get evaluation you will need to weigh up which stakeholder diversification will impact the most and why.

    You could talk about the impact diversification could have on VGLs employees and managers but I wouldn't talk about the business as a whole as the link to the question is stakeholders.

    (Original post by GFEFC1)
    When answering 'what impact would a diversification into textiles have on VGL's Stakeholders' how would you get evaluative skills in there? And would you only speak about the impact on them or include VGL too?
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    (Original post by alevel0620)
    http://www.tutor2u.net/business/refe...pital-employed
    but it said operating profit here... Im confused ((
    OCR has their own spec and it says use PBIT
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    (Original post by ShaminiPamini)
    Attachment 548499
    thank you sooo much!
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    (Original post by ShaminiPamini)
    OCR has their own spec and it says use PBIT
    thank you !!
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    I have memorised all the ratio formulas, but I am unsure on what category they come under e.g what ratios are in activity ratios? Can some tell me them?
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    (Original post by GFEFC1)
    I have memorised all the ratio formulas, but I am unsure on what category they come under e.g what ratios are in activity ratios? Can some tell me them?
    Activity:
    Stock turnover
    Fixed asset turnover
    Debtor turnover
    Creditor turnover

    I just remember it as being all the turnovers (how many times the business does something)

    Have a look at this: http://www.ocr.org.uk/Images/78299-u...g-elements.pdf

    It's all the formulas you need to know and has all their categories
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    Can someone check my ratios ? I don't know whether did I do it in the right way... feel free to correct me ! many thanks !

    #GPM: 2014 is 34.88%, 2015 is 49%
    #NPM: 2014 is 4.65%, 2015 is 14.55%
    #ROCE: 2014 is 2.52% , 2015 is 5.87%
    #ROE: 2014 is 2.91%, 2015 is 10%

    #Current ratios : 2014 is 88:1 , 2015 is 1.57:1
    #Acid test: 2014 is 1:1 and 2015 is 0.57:1

    #earning per share : 2014 is 0.35 and 2015 is 1.2
    # earning ratio : 2014 is 2.86 and 2015 is 0.83
    # Dividend per share: 2014 is 7.5 and 2015 is 95
    #Dividend yield : 2014 is 750 and 2015 is 9500 (not sure)

    #Asset turnover: 2014 is 0.31times and 2015 is 0.33times
    #Stock turnover : 2014 is 1.3times and 2015 is 1.2 times
    #Debtor days : 2014 is 84.88 days and 2015 is 44.24 days
    #Crediotors days : 2014 is 316.58days and 2015 is 304.17days

    Gearing : 2014 is 57% and 2015 is 55%
    Interest cover: I don't know how to do, pls help

    Plus I'm not sure what unit to put on the shareholder ratios.

    Feel free to correct me !! thanks !
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    -snip- formatting error
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    (Original post by alevel0620)
    Can someone check my ratios ? I don't know whether did I do it in the right way... feel free to correct me ! many thanks !

    #GPM: 2014 is 34.88%, 2015 is 49%
    #NPM: 2014 is 4.65%, 2015 is 14.55%
    #ROCE: 2014 is 2.52% , 2015 is 5.87%
    #ROE: 2014 is 2.91%, 2015 is 10%

    #Current ratios : 2014 is 88:1 , 2015 is 1.57:1
    #Acid test: 2014 is 1:1 and 2015 is 0.57:1

    #earning per share : 2014 is 0.35 and 2015 is 1.2
    # earning ratio : 2014 is 2.86 and 2015 is 0.83
    # Dividend per share: 2014 is 7.5 and 2015 is 95
    #Dividend yield : 2014 is 750 and 2015 is 9500 (not sure)

    #Asset turnover: 2014 is 0.31times and 2015 is 0.33times
    #Stock turnover : 2014 is 1.3times and 2015 is 1.2 times
    #Debtor days : 2014 is 84.88 days and 2015 is 44.24 days
    #Crediotors days : 2014 is 316.58days and 2015 is 304.17days

    Gearing : 2014 is 57% and 2015 is 55%
    Interest cover: I don't know how to do, pls help

    Plus I'm not sure what unit to put on the shareholder ratios.

    Feel free to correct me !! thanks !
    If you cant read anything, feel free to ask!

    Large image!
    http://i.imgur.com/qGhhMyO.jpg

    All of this is from the APT pack/Classroom
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    (Original post by Lewis7_)
    If you cant read anything, feel free to ask!

    Large image!
    http://i.imgur.com/qGhhMyO.jpg

    All of this is from the APT pack/Classroom
    How did you do the interest cover?
    Also do you think there will be any economic/finance questions that will come up?
    Thanks !
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    (Original post by Lewis7_)
    If you cant read anything, feel free to ask!

    Large image!
    http://i.imgur.com/qGhhMyO.jpg

    All of this is from the APT pack/Classroom
    Im confused with the net profit margin.. is it net profit/ sales revenue x100? or something do with operating profit? I got different answer as yours..
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    (Original post by alevel0620)
    How did you do the interest cover?
    Also do you think there will be any economic/finance questions that will come up?
    Thanks !
    (Original post by alevel0620)
    Im confused with the net profit margin.. is it net profit/ sales revenue x100? or something do with operating profit? I got different answer as yours..
    Interest cover was
    (Operating Profit - Depreciation) / Interest

    Interest cover: 2014 is 2.15times, 2015 is 5.33times

    NPM was
    Net(Operating) Profit / Sales revenue x 100

    NPM: 2014 is 21.59%, 2015 is 36.96%

    If any economy questions come up, it'll be linked to the calculations i think. (And hope. haha.)
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    (Original post by Lewis7_)
    Interest cover was
    (Operating Profit - Depreciation) / Interest

    Interest cover: 2014 is 2.15times, 2015 is 5.33times

    NPM was
    Net(Operating) Profit / Sales revenue x 100

    NPM: 2014 is 21.59%, 2015 is 36.96%

    If any economy questions come up, it'll be linked to the calculations i think. (And hope. haha.)
    Sorry to ask too much.. but can you explain what point would you write about these two questions... struggling...
    "How inflation affect to achieve objectives ?"
    "How 4Ps affect the ability to achieve objectives"
    Thank you
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    (Original post by Lewis7_)
    Interest cover was
    (Operating Profit - Depreciation) / Interest

    Interest cover: 2014 is 2.15times, 2015 is 5.33times

    NPM was
    Net(Operating) Profit / Sales revenue x 100

    NPM: 2014 is 21.59%, 2015 is 36.96%

    If any economy questions come up, it'll be linked to the calculations i think. (And hope. haha.)
    Isn't VGL's NP 1.4m and 4.8m?
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    (Original post by GFEFC1)
    Isn't VGL's NP 1.4m and 4.8m?
    That is correct, but the pack I used, was Operating Profit Margin, so i used operating profit. Effectively the same result. (sort of.)
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    (Original post by alevel0620)
    Sorry to ask too much.. but can you explain what point would you write about these two questions... struggling...
    "How inflation affect to achieve objectives ?"
    "How 4Ps affect the ability to achieve objectives"
    Thank you
    I have no idea why the 4P's would ever be involved in a strategy paper.. haven't practiced for that question.

    I will do a plan for inflation tomorrow and tell you what I get, as I have not done it yet. (yay for last minute cramming!)

    But all I can think of right off the top of my head, is about how inflation would effect the prices for VGL selling the recclying abroad, as they will become less favourable to over seas businesses due to higher prices.

    (I think, im tired..)
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    (Original post by Lewis7_)
    I have no idea why the 4P's would ever be involved in a strategy paper.. haven't practiced for that question.

    I will do a plan for inflation tomorrow and tell you what I get, as I have not done it yet. (yay for last minute cramming!)

    But all I can think of right off the top of my head, is about how inflation would effect the prices for VGL selling the recclying abroad, as they will become less favourable to over seas businesses due to higher prices.

    (I think, im tired..)
    Just had a quick look at them and although they take up a full page it seems rather useless information aha.

    I guess you could talk about how the pillars could limit VGL in achieving their objectives. For example, they stress that they 'Source their supplies in a responsible and sustainable manner'. One could presume that this is not the cheapest way due to health and safety legislation being costly and thus increasing VGL's costs. With their objectives mainly being growth based (in particular the 6% revenue increase) extra capital is likely to be needed so any increased cost will diminish this... Suppose you could go into detail about how a reduction in capital could prove detrimental especially concerning the textiles diversification (which appears to be a huge opportunity to achieve their 6%)

    But then you could argue that because they are paying extra, it highlights their true passion for helping the planet and it is not just a business ran to make money. This could determine whether VGL achieve their 2 additional contracts as a more energy efficient firm may prove more attractive to councils and the government (tackling global warming etc)

    This is a real shot in the dark so i might be well off aha, only just properly read through them. But hope it helps.
 
 
 
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