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

    0
    ReputationRep:
    How can CSR and environment/ethics be applied to SHL? Thanks in advance
    Offline

    1
    ReputationRep:
    (Original post by sim96)
    I can't even seem to do thati don't know even know what the ratios really mean and how they can be applied, fingers crossed I can throw in lots of other application to make up for the fact I'm not confident on ratios
    I've never been confident with them, and judging by this threat neither are a lot of people but apparently they are vital in getting level 4
    Offline

    1
    ReputationRep:
    (Original post by raypalmer)
    ddoes creating a sub brand increase risk?
    Are you talking about the sub brand being teenagers?
    Offline

    2
    ReputationRep:
    (Original post by Justabi96)
    I've never been confident with them, and judging by this threat neither are a lot of people but apparently they are vital in getting level 4
    Oh dear 😳 I wasn't aware and thought you could just relate to the case study ... might have to try and quickly learn some of the key ones like ROCE, gearing etc
    Offline

    2
    ReputationRep:
    (Original post by imothornhill)
    Are you talking about the sub brand being teenagers?
    yeah, does it increase risk? if it does it conflicts with the objective of reducing risk right?
    Offline

    0
    ReputationRep:
    (Original post by raypalmer)
    ddoes creating a sub brand increase risk?
    It increases risk in the sense that SHL has to invest in their own market research, doing their own production and their own distribution. This is because there's a significant sum of cash outflow. Also, SHL will be developing from scratch without the help of a third party company (namely, Mardidi). this too is risky. However greater risk leads to greater reward. Primarily, the great reward is that SHL will receive 100% of everything they make in the long term, not just 25% of Mardid's stake. Observably, the sub-brand tactic is expensive in the short term as a result of increased costs, yet the reward in the long term can argue that it is a worthy investment.

    Hope this helps
    Offline

    1
    ReputationRep:
    (Original post by raypalmer)
    yeah, does it increase risk? if it does it conflicts with the objective of reducing risk right?
    yeah exactly, you can link it to ansoff as SHL are diversifying in to this new market that they've never targeted before so it is risky and would conflict with their target
    Offline

    2
    ReputationRep:
    (Original post by Need2Succeed_KH)
    It increases risk in the sense that SHL has to invest in their own market research, doing their own production and their own distribution. This is because there's a significant sum of cash outflow. Also, SHL will be developing from scratch without the help of a third party company (namely, Mardidi). this too is risky. However greater risk leads to greater reward. Primarily, the great reward is that SHL will receive 100% of everything they make in the long term, not just 25% of Mardid's stake. Observably, the sub-brand tactic is expensive in the short term as a result of increased costs, yet the reward in the long term can argue that it is a worthy investment.

    Hope this helps
    Amazing, thank you


    Posted from TSR Mobile
    Offline

    2
    ReputationRep:
    (Original post by imothornhill)
    yeah exactly, you can link it to ansoff as SHL are diversifying in to this new market that they've never targeted before so it is risky and would conflict with their target
    Brilliant, cheers


    Posted from TSR Mobile
    Offline

    0
    ReputationRep:
    (Original post by imothornhill)
    yeah exactly, you can link it to ansoff as SHL are diversifying in to this new market that they've never targeted before so it is risky and would conflict with their target
    Regardless of whether is sub-branding or Mardidi, it is still diversification. Hence, it would be inappropriate to simply argue that just sub-branding increases risk. The only benefit of Mardidi is that they're already producing their own clothes and have a newish name that could support SHL.

    Hope this helps
    Offline

    12
    ReputationRep:
    so does all of the quantitative information change in the exam then i.e. will everything in the balance sheet/profit and loss be completely different?
    Offline

    2
    ReputationRep:
    (Original post by Anna Maria2)
    Don't worry friends just found it
    could you please pm a copy of the sheet.
    Offline

    1
    ReputationRep:
    (Original post by akashpatel02)
    so are you trying to say it could ask us to make changes?
    The duration's will probably change when you come to filling in the C.P.
    Offline

    1
    ReputationRep:
    (Original post by Justabi96)
    Spoke to a friend
    (Original post by sim96)
    Oh dear 😳 I wasn't aware and thought you could just relate to the case study ... might have to try and quickly learn some of the key ones like ROCE, gearing etc
    You can get into level 4 without mentioning ratios; however, it does make your level 3 very strong allowing you easier access to level 4.
    Offline

    0
    ReputationRep:
    so, have people decided that the projected figures of Mardidi's profits are 100% of what SHL receive, or 25% and thus we need to divide them by 4? Still not sure which route to go down in the exam.
    Offline

    1
    ReputationRep:
    (Original post by sim96)
    Oh dear 😳 I wasn't aware and thought you could just relate to the case study ... might have to try and quickly learn some of the key ones like ROCE, gearing etc

    Spoke to a friend, she said the best ones to remember are Acid test, current ratio and gearing; so

    Current ratio = Current assets divided by current liabilities.
    In this case - 2012 = 15662/9206 = 1.7
    2013 = 17039\10660 = 1.6

    Acid test ratio is: Current assets - stock divided by current assets.
    So... 2012 = 8720/9206 = 0.95 and 2013 = 10335/10660 = 0.97
    (Evaluate on that saying there is a slight improvement in 2013 but both are unhealthy.
    Finally gearing ratio is - long term liabilities divided by capital employed x 100.
    Applying it = 2012: 1722/8799 x 100 = 19.6% and 2013: 2648/10285 x 100 = 25.7%
    (Evaluate saying this is suitable - high gearing is usually over 50% which may suggest a high proportion of finance is though loans)

    I'm hoping this is right, may pick us up a few extra marks.
    Offline

    0
    ReputationRep:
    (Original post by cav0rting)
    so, have people decided that the projected figures of Mardidi's profits are 100% of what SHL receive, or 25% and thus we need to divide them by 4? Still not sure which route to go down in the exam.
    I'm wondering this aswell, surely if table 2 shows mardidis net profit, SHL would only receive 25% of these? APT suggests otherwise but makes sense to me.
    Offline

    0
    ReputationRep:
    anyone know how to answer this? ' recommend a strategy that would improve SHL's market research (18 marks)'
    Offline

    1
    ReputationRep:
    (Original post by Justabi96)
    I've never been confident with them, and judging by this threat neither are a lot of people but apparently they are vital in getting level 4
    That is absolute BS! They get you level 3 if applied correctly that is all certainly not necessary!
    Offline

    2
    ReputationRep:
    guys one thing to remember... do not assume that SHL will receive 25% of the projected profits if they were to purchase a stake in mardidi AND do not assume that they receive 100% either! If a questions comes up on mardidi and you have to speak about the pay back period or ARR, make sure you state that it is unclear whether or not the projected profit represents SHL's 25% share of the profits, or whether its all theirs!
 
 
 
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.