x Turn on thread page Beta

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

1. (Original post by thepatel_1)
Thank you. And how would I calculate the pay back period?
you would add the projected net profit for each year up - (0 .1) + 0.2 + 1.0 + 2.0 + 4.0 which equals 3.1m million then you know then 1.9 mil is still required after four years and you know its going to occur somewhere in between the fourth and fifth year, so you divide the 1.9 mil by the 4.0 mil projected net profit from the fifth year which comes to 0.475 then you multiply it by 12 because there are 12 months in a year and that comes to 5.7! so in total would take 4 years and 5.7 months, hope i helped!
2. (Original post by raypalmer)

Posted from TSR Mobile
i will give you some ideas/framework.
so by "aggressive growth" they mean gaining lots of market growth quickly.
so you would want to talk about the benefits of selling harvey franchises and the negatives and how they will benefit SHL in the short and long run e.g how franchisees pay royalties which act as a steady flow of income compared to a negative e.g bad franchises give the whole store a bad name!
3. Anyone have any ideas on how they could structure or answer this ..

"Evaluate which stakeholder group is likely to be the most influential in the achievement of SHL's 2016 objectives. "

Posted from TSR Mobile
4. (Original post by fiddy123)
you would add the projected net profit for each year up - (0 .1) + 0.2 + 1.0 + 2.0 + 4.0 which equals 3.1m million then you know then 1.9 mil is still required after four years and you know its going to occur somewhere in between the fourth and fifth year, so you divide the 1.9 mil by the 4.0 mil projected net profit from the fifth year which comes to 0.475 then you multiply it by 12 because there are 12 months in a year and that comes to 5.7! so in total would take 4 years and 5.7 months, hope i helped!
Do you not have to say though that they would only own 25% of the business and would therefore take longer to pay SHL back?
5. (Original post by raypalmer)
What are the ethical considerations when manufacturing offshore?

Posted from TSR Mobile
well as you should know, the countries SHL make their clothes in are far eastern producers like china and bangladesh and these countries are most known for poor working conditions, and child labour, SHL will want to be careful as this as it can affect product quality as well as the publicity it gives SHL.
just imagine if a respected high quality firm was publicised as promoting child labour e.t.c sales may decrease!
6. dont forget level4
(Original post by fiddy123)
i will give you some ideas/framework.
so by "aggressive growth" they mean gaining lots of market growth quickly.
so you would want to talk about the benefits of selling harvey franchises and the negatives and how they will benefit SHL in the short and long run e.g how franchisees pay royalties which act as a steady flow of income compared to a negative e.g bad franchises give the whole store a bad name!
7. (Original post by josephrudd97)
Do you not have to say though that they would only own 25% of the business and would therefore take longer to pay SHL back?
who do you mean by they? its SHL's owners buying a stake.
8. SHL also dont want the manufacturing companies to be making fake goods and selling them in the black market. Another reason why they should invest in UK manufacturers as much as possible.
(Original post by fiddy123)
well as you should know, the countries SHL make their clothes in are far eastern producers like china and bangladesh and these countries are most known for poor working conditions, and child labour, SHL will want to be careful as this as it can affect product quality as well as the publicity it gives SHL.
just imagine if a respected high quality firm was publicised as promoting child labour e.t.c sales may decrease!
9. (Original post by joshfogg)
SHL also dont want the manufacturing companies to be making fake goods and selling them in the black market. Another reason why they should invest in UK manufacturers as much as possible.
Yup, but don't mistake that for an ethical consideration!
10. (Original post by akashpatel02)
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)

You would need to argue the current situation. .. but it does not tell us thr changes in life styles over the few years.

Young people may be unemployed? If so it will have an effect on the mardidi... as said to be 25% unemployed

Also if older people are changing lifestyle they could use the Harvey direct to shop online. Increase awareness.

As a result if shl can stock the right products then they could more easily reach their objectives of getting Harvey direct to 40% of sales by 2016...

Something along the lines of that.

Posted from TSR Mobile
11. (Original post by fiddy123)
well as you should know, the countries SHL make their clothes in are far eastern producers like china and bangladesh and these countries are most known for poor working conditions, and child labour, SHL will want to be careful as this as it can affect product quality as well as the publicity it gives SHL.
just imagine if a respected high quality firm was publicised as promoting child labour e.t.c sales may decrease!
Brilliant, cheers!

Posted from TSR Mobile
12. (Original post by fiddy123)
who do you mean by they? its SHL's owners buying a stake.
Yeh, So SHL are purchasing a 25% stake in mardidi. So the net profit figures are for the whole 100% of the business. So when working out the payback period, they wouldn't be paid back for a much longer amount of time than what is given in Table 2. They wouldn't get paid back in 4 years 5.7 months because SHL only receive 1/4 of the profits.
13. How can I incorporate ROCE figures into the mardidi question

Posted from TSR Mobile
14. AHH i see, very analytical my man, this is one of the flaws in the case study it does not specify! it doesnt say three things, these are:
does the 25% stake allow SHL to sell the brand in the UK?
is SHL buying 25% and mean that its only the shareholders that benefit from dividends as well as the increases in share prices etc.
i would personally assume table 2 to show how much SHL will Get as paying 5 million for something that will take 4.6 months to pay off seems more likely than 13.8 months... anyone help us out?
15. (Original post by raypalmer)
How can I incorporate ROCE figures into the mardidi question

Posted from TSR Mobile
if you can talk me through calculating the ARR of mardidi i will!
16. How do you guys structure your 18 mark essays and 23 markers?
17. (Original post by fiddy123)
if you can talk me through calculating the ARR of mardidi i will!
Check page 11 i posted it there

Posted from TSR Mobile
18. (Original post by raypalmer)
Check page 11 i posted it there

Posted from TSR Mobile
i see, thats your side of the deal done haha, well the ARR for mardidi is 8.4%, compare this to the ROCE of SHL of 38.4 percent and its clear to see that the return of mardidi is alot poorer and kinda suggests that the money would be better invested in SHL e.g in foreign marketing to try and secure the export objectives or in internet marketing to meet the 40% objective for Harveydirect
this is especially important as all of tims info on maridi is from a us source and it appears he has done no first person research and therefore its probably super unreliable!
19. (Original post by fiddy123)
i see, thats your side of the deal done haha, well the ARR for mardidi is 8.4%, compare this to the ROCE of SHL of 38.4 percent and its clear to see that the return of mardidi is alot poorer and kinda suggests that the money would be better invested in SHL e.g in foreign marketing to try and secure the export objectives or in internet marketing to meet the 40% objective for Harveydirect
this is especially important as all of tims info on maridi is from a us source and it appears he has done no first person research and therefore its probably super unreliable!
Haha cheers, what about shareholder ratios, what can i say about them, all i can think of is the greater the percentage the greater the returns

Posted from TSR Mobile
20. (Original post by joshfogg)
dont forget level4
What needs to be added to it?

Posted from TSR Mobile

TSR Support Team

We have a brilliant team of more than 60 Support Team members looking after discussions on The Student Room, helping to make it a fun, safe and useful place to hang out.

This forum is supported by:
Updated: August 16, 2015
Today on TSR

### Negatives of studying at Oxbridge

What are the downsides?

### Grade 9 in GCSE English - AMA

Poll
Useful resources

Can you help? Study Help unanswered threadsStudy Help rules and posting guidelines

## Groups associated with this forum:

View associated groups

The Student Room, Get Revising and Marked by Teachers are trading names of The Student Room Group Ltd.

Register Number: 04666380 (England and Wales), VAT No. 806 8067 22 Registered Office: International House, Queens Road, Brighton, BN1 3XE