Join TSR now and get all your revision questions answeredSign up now
    Offline

    1
    ReputationRep:
    (Original post by imothornhill)
    yeah, inelastic is less than 1
    Thanks
    Offline

    0
    ReputationRep:
    (Original post by nicho005)
    Okay lets summarise, opinions on the most likely question's that are coming up?

    - Clearly CPA is although its likely they will change a number so eyes pealed!
    - Should SHL purchase Mardidi? Also very likely to come up.
    - How should SHL strategically respond to a change in the exchange rate? Also likely to come up due to their exports and shipping from their suppliers. Remember SPICED!!!

    Any other suggestions?
    The exchange rate question came up last year I think also if it did come up would you just talk about relying more on Harvey direct and changing to UK suppliers
    Offline

    1
    ReputationRep:
    What are the main pros and cons of having a 25% equity stake in mardidi? Can someone briefly summarise for me please?!
    Offline

    2
    ReputationRep:
    What are the pros and cons of creating the sub brand


    Posted from TSR Mobile
    Offline

    2
    ReputationRep:
    (Original post by Lewart)
    The exchange rate question came up last year I think also if it did come up would you just talk about relying more on Harvey direct and changing to UK suppliers
    It was interest rates last year
    Offline

    2
    ReputationRep:
    (Original post by georgia17xo)
    What are the main pros and cons of having a 25% equity stake in mardidi? Can someone briefly summarise for me please?!
    -financial reward for shareholders, should mean higher dividends.
    However, high initial cost of Mardidi could mean short term, the dividends are reduced as SHL have to borrow the large sum of money.
    -should mean greater job security and satisfaction for staff, non financial reward as jobs should be more varied, may get more responsibility etc. however, if most of design etc is still done in U.S. it is unlikely that the benefit would be that great.
    Hope that helps a little bit! X
    Offline

    1
    ReputationRep:
    how would you conclude a question about buying in to Mardidi?
    Offline

    1
    ReputationRep:
    with a question worded 'devise and justify a strategy…' what do you include? HR, finance, ops management and marketing?
    Offline

    1
    ReputationRep:
    (Original post by sim96)
    -financial reward for shareholders, should mean higher dividends.
    However, high initial cost of Mardidi could mean short term, the dividends are reduced as SHL have to borrow the large sum of money.
    -should mean greater job security and satisfaction for staff, non financial reward as jobs should be more varied, may get more responsibility etc. however, if most of design etc is still done in U.S. it is unlikely that the benefit would be that great.
    Hope that helps a little bit! X
    Thanks! How much control does a 25% equity stake actually give SHL? Are they sleeping partners or are they involved shareholders? I'm finding it hard to analyse how buying into mardidi will help without actually knowing how much control they get
    Offline

    2
    ReputationRep:
    (Original post by georgia17xo)
    Thanks! How much control does a 25% equity stake actually give SHL? Are they sleeping partners or are they involved shareholders? I'm finding it hard to analyse how buying into mardidi will help without actually knowing how much control they get
    Must admit, the case study doesn't make it very clear at all so I was having the same problem. Guess you could always use that in evaluation, would SHL relocate to America as a result and what could be the implications of this ?
    Offline

    1
    ReputationRep:
    From table 2 setting out Mardidi projected net profit, is that the profit that SHL would receive and be 25% of Mardidi overall, or is that Mardidis overall net profit and SHL would receive 25% of that? Or is that an unknown that can be used for analysis and evaluation?
    Offline

    2
    ReputationRep:
    (Original post by imothornhill)
    no, total float is 0 when the numbers are the same so the only ones with float are C = 1, G = 68 and J =68
    Thanks for clearing that up, I did not know that when the est and lft are the same the total float is zero
    Offline

    1
    ReputationRep:
    (Original post by imothornhill)
    with a question worded 'devise and justify a strategy…' what do you include? HR, finance, ops management and marketing?
    Depends on what it was. We've always been told to to recommend two strategises, describe the advantages/disadvantages of each and the main implications on SHL then make a decision on which is the best one in the conclusion.
    Offline

    1
    ReputationRep:
    'To what extent might different stakeholders view SHL as a successful business?'
    How would you answer this?
    Offline

    1
    ReputationRep:
    (Original post by georgia17xo)
    'To what extent might different stakeholders view SHL as a successful business?'
    How would you answer this?
    I would use employees and share holders:

    Employees- Would view it as successful as revenue has substantially increased and we can see that 16% of this has been from SHL retail outlets. Also with SHL's apparent expansion they will also feel a sense of job security therefore likely to feel as though SHL successful.

    Shareholders- Likely to view as a success as their dividend has massively increased.

    Not really sure what else you could talk about tbh.
    Offline

    0
    ReputationRep:
    (Original post by FrankieG1)
    What could the points be for 'SHL is considering buying a 25% equity stake in Mardidi. By considering the perspectives of SHL's different stakeholders, discuss whether this purchase would be beneficial. Please?!?
    so when answering this question you need to consider which stockholders you will think will be affected the most, i think that the owners, shareholders, suppliers and even customers are the most important stockholders in this case

    shareholders may not receive regular and prompt dividend payments if SHL have to use their retained profit to fund the $5m investment - this creates conflict between owners and shareholders, however as a LTD company they have less pressure as the shareholders are friends/family

    suppliers may gain business if they have to manufacture the mardidi clothing however they may not capacity to deal with the demand , however it can also be suggested that mardidi may have its own suppliers, this will mean no extra business for the suppliers which can be seen as a positive so they can divert their attention and skills to SHL's current and successful product range

    customers may not appeal to the 'urban' feel of the brand and thus feel less inclined to purchase from the brand however, children of the typical target audience may want to dress differently to their parents and thus demand increases. Brands like Ralph Lauren is worn by new born babies and 70 +, this is effective branding

    hope it makes sense i was kind of just waffling as i went along
    Offline

    2
    ReputationRep:
    pros and cons of creating the sub brand?
    Offline

    1
    ReputationRep:
    (Original post by nicho005)
    I would use employees and share holders:

    Employees- Would view it as successful as revenue has substantially increased and we can see that 16% of this has been from SHL retail outlets. Also with SHL's apparent expansion they will also feel a sense of job security therefore likely to feel as though SHL successful.

    Shareholders- Likely to view as a success as their dividend has massively increased.

    Not really sure what else you could talk about tbh.
    Thank you
    Offline

    0
    ReputationRep:
    What would you write if our economics question was on inflation
    Offline

    1
    ReputationRep:
    If ratios were to come up instead of critical path what would be the most likely ones?
 
 
 
Poll
Which pet is the best?

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

Quick reply
Reputation gems: You get these gems as you gain rep from other members for making good contributions and giving helpful advice.