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    I am not sure what a t table is. But for that question, definitely write about pros and cons, focusing on long tern and short term issues. A strong argument will consider stakeholders and the question will likely be based around stakeholders anyway. ie. Considering the views of different stakeholders, should SHL invest in mardidi? I would also throw in some numbers such as the return time for their investment when drawing a conclusion and link this to their objectives
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    (Original post by thepatel_1)
    ROCE:
    2012: 1.68%
    2013: 34.1%

    GEARING
    2012: 16.4%
    2013: 20.8%

    Means long term liabilities as a % of total capital has risen by 2.5%

    Hope this helps
    Thanks dude, could I also get the workings out?
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    Can anyone help me, I find the strategic question very difficult

    Using evidence from the case study, discuss the role of strategic planning/management in achieving SHLs objectives


    Anyone?
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    Any suggestions on how you could answer

    ' Discuss the extent to which SHL's staff can influence the ability of SHL to achieve its objectives...'
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    (Original post by thepatel_1)
    Any suggestions on how you could answer

    ' Discuss the extent to which SHL's staff can influence the ability of SHL to achieve its objectives...'

    - if the design staff don't make designs that match customer expectation then this will lead to decrease in revenue which means they can't achieve their objective due to dissatisfied customers

    - if staff in their retail stores don't offer a good service then this will decrease repeat purchase thus revenue and the ability to meet their revenue objective. This will affect their exports objective aswell as it may lead to negative word of mouth

    - if staff are demotivated there may be high absenteeism which means that customer service will be poorer which will decrease revenue and affect their objective. If labour turnover is high then this will increase their recruitment costs thus reduce profit which could have been used for the sub brand for the teenage market. If the staff don't concentrate then they won't be able to come up with strategies to meet their objectives in the long term either

    Hope this helps


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    Opinions of the most likely questions to come up?

    - Discuss the extend to which SHL's sales revenue objective is achievable.
    - Should SHL move manufacturing to the UK?

    Anyone got anything else they think likely?
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    By considering the views of SHL's stakeholders, should SHL invest in mardidi? (or make their own subbrand?)
    I think this will be the 23 marker personally. However, another question would be something along the lines of re-shoring manufacture as you suggested. Hope this helps
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    I think the calculation 13 marker will be Critical path and the following questions will probably be the advantages and disadvantages of critical path. I think an economic factor question such as the effect of exchange and or interest rates will come up. I also think as you guys already said there will be an offshoring question which would either be assess the advantages and disadvantages of offshoring in the Far East or whether they should bring it back to the UK and I agree that the 23 marker will be assess how the stakeholders would view SHL expanding into Mardidi or whether they should develop their own sub brand.


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    (Original post by yoyo111)
    Possible questions:

    Critical Path Analysis for maths question
    Second question will be to evaluate the critical path
    Question on exchange rates
    Possibly on the mardidi investment
    Stakeholder question about SHL
    How do you think we should evaluate the critical path?
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    (Original post by Jspurr)
    How do you think we should evaluate the critical path?
    Advantages
    - can motivate staff as it can show them how many days they have to complete a task so staff have a goal to work towards. This will mean that the activity is more likely to be completed and there will be less absenteeism.
    - Allows SHL to see which activities can be carried out simultaneously, this will allow SHL to save time and money
    - allows SHL to prioritise resources, employees to the shortest path so that they can complete it quicker due to having the resources needed

    Disadvantages
    - the main disadvantage is that manufacturing and delivery are what takes the longest with manufacturing taking 60 days and delivery taking 28 days. However this is a different company to SHL so is out of their control which means that reducing the time it takes to manufacture and deliver is the only way they can aide the critical path. They could put pressure on suppliers to manufacture quicker but this may decrease the quality of clothing. This therefore puts pressure on SHL to locate suppliers closer to home to reduce the manufacture and delivery times.


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    (Original post by Merrick8432)
    Thanks dude, could I also get the workings out?
    Gearing:
    long term liabilities ÷ capital employed ×100

    2012: 1722÷10501 (8779+ 1722)×100= 16.4%

    2013: 2648÷12933 (10285+ 2648)×100= 20.8%

    ROCE: PBIT ÷ Capital employed×100

    2012: (288- 112) 176÷ 10501 (8779+ 1722)×100= 1.68%

    2013: (4962- 555) 4407÷ 12933 (10285+ 2648)×100= 34.1%


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    (Original post by r-t)
    - if the design staff don't make designs that match customer expectation then this will lead to decrease in revenue which means they can't achieve their objective due to dissatisfied customers

    - if staff in their retail stores don't offer a good service then this will decrease repeat purchase thus revenue and the ability to meet their revenue objective. This will affect their exports objective aswell as it may lead to negative word of mouth

    - if staff are demotivated there may be high absenteeism which means that customer service will be poorer which will decrease revenue and affect their objective. If labour turnover is high then this will increase their recruitment costs thus reduce profit which could have been used for the sub brand for the teenage market. If the staff don't concentrate then they won't be able to come up with strategies to meet their objectives in the long term either

    Hope this helps


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    high labor turnover in a bakery? what do u think just say it simple
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    I dont understand? If you're on about making that point in contwxt of SHL, I think it is too simple, weak and lacks application.
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    (Original post by thepatel_1)
    Hello everyone,

    For those who study business studies at A2 - Have you received any kind of resources or help on the case study?

    I'm really struggling to pick out key points from the profit and loss account and the balance sheet :mad:

    If you have any idea, please do let me know

    Thank you
    what is your exam board?
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    Suppliers & Manufacturers are in Asia. Suppliers (small, but growing number) are also in Eastern Europe. Can we assume then that no manufacturing is done in Eastern Europe whatsoever... Is that right?
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    Anyone have any idea, what factors to consider or how i would answer this question on Mardidi, 'Should SHL buy the 25% stake in Mardidi for US$5m? justify your view, 18 marker
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    (Original post by Amanath)
    what is your exam board?
    OCR and you?

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    (Original post by thepatel_1)
    OCR and you?

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    edexcel
    are you an indian?
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    (Original post by pete184)
    Anyone have any idea, what factors to consider or how i would answer this question on Mardidi, 'Should SHL buy the 25% stake in Mardidi for US$5m? justify your view, 18 marker
    You would talk about how SHL would have to obtain the $5m from shareholders meaning they'll be dissatisfied but given that the shareholders are also founders of SHL thy wouldn't mind sacrificing it for a higher return in the long term

    SHL has not obtained any first hand knowledge of mardidi and only has the figures provided by Sharon so should perhaps establish a relationship beforehand

    They need to agree on who's suppliers to use. The teenage life is notoriously short so using SHL's suppliers wouldn't be suitable as it would take too long to deliver, however they would benefit from economics of scale and their suppliers would benefit from additional profit

    They need to carry out market research to see how UK customers would respond to it as just because American customers like it doesn't mean UK ones will which may decrease profits. However it will give them a first mover advantage if the UK does

    It would provide promotional prospects for employees as they would be able to work in America possibly

    It would allow SHL to achieve revenue objective quicker because it would take them longer to set up themselves as they would have to carry out market research, advertise, design etc which is time Consuming and could distract staff from the objectives.

    SHL's trade creditors have increased meaning that they should instead focus on paying back suppliers rather than buying to Mardidi. However in the long-term they will have more money from Mardidi to pay suppliers.

    You would use all of this information and then decide yourself whether they should expand or not. Based on the above I wouldn't recommend it but you could argue that you would.


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    (Original post by pete184)
    Anyone have any idea, what factors to consider or how i would answer this question on Mardidi, 'Should SHL buy the 25% stake in Mardidi for US$5m? justify your view, 18 marker
    I would first draw up the basics..

    For example, mardidi and SHL
    Mardidi :
    2 year lose making business
    Its American
    Are they financially in trouble?
    Producing clothes that are rap artist

    SHL:
    15 years well established business
    Successful
    Good and huge customer base
    Found on market town values
    Its English

    Then I would draw up a T table argument for Mardidi to buy 25% equity or they shouldn't

    Should:
    Allow SHL to meet objectives to be achieved - new market new product - ansoff - market diversification?
    This links to Ian been looking for options for a teenage market. But do teenagers want to be seen wearing the same brand as their parents. Therefore mardidi could be a options.
    If SHL have no management control in mardidi. There is no clashes of culture

    Shouldn't:
    Mardidi are producing clothes that are rap artist would wear.
    Mardidi does not sell in the UK. This is where SHL main customer base is.
    Mardidi does not have the 'cunning' that SHL are lookin for.
    Ian has only got information which is given to him through contact. There is a lack of first hand knowledge which is important for lan to determine the reliability of the information and make judgements
    SHL are going into a teenage market segment which is outside SHL normal sphere of operation. Therefore divert existing staff and management effort away from SHL core harvey business could put the achievement of objective to increase revenue to 70m by2016 at risk.
    The ARR is 8.4% compared to ROCE of SHL of 38.4%. Therefore massively below SHL returns
    Payback period?

    Then you could concluded it on what you think?

    Hope this is helpful :rolleyes::yes:



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