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

    1
    ReputationRep:
    By considering theviews of SHL's stakeholders, should SHL invest in Mardidi? Or make their ownsub brand?

    Any ideas?
    Offline

    0
    ReputationRep:
    talk about finance for Madidi - payback period - ARR - $5 million for 25% - if investment good in long term - could opt horizontal integration - buy further 26% shares - (51%) overall = they own it - ROCE for investment is low - could get a higher ROCE in a savings account with NO risk - ROCE for SHL in 2013 = 34%

    doesnt fit with SHL 2016 objective to reduce risk - wont contribute much to £70 million saves revenue target as the forecast for the return of mardidi doesnt yield mcuh revenue from dividends.

    does purchasing mardidi share give SHL the opportunity to sell the products in the UK through independent retailers?

    talk about reliability of figures in study of payback for mardidi - Tim got them from this random guy - not very professional - not likely to be reliable - more research into mardidi required
    doesn't fit with brand image - teenage -

    sub-brand could be more lucrative - diversification (Ansoff matrix) more risky - not in line with business objectives - more market research required to make it work - no indication of market research in critical path analysis when bringing a new product to the market - something crazy like 90% don't succeed. talk about that

    HRM cost of sub-brand - more staff - could take attention away from core business - could jeopardise objectives if sub-branding doesn't work

    pm if you want more
    Offline

    1
    ReputationRep:
    (Original post by jakecre8)
    Yes, in terms on manufacturing.
    Exchange rates are an issue and so are other ecomic factors. Communication and lead time are two large point also.
    I've been making a plan for this question and I've written so far about the lead times (possibly moving suppliers) and exchange rates, what would you do for communication apart from the obvious, the language barrier might delay the lead time. How would you elaborate this point further? and are there any other things to consider with the communication issue?
    Offline

    2
    ReputationRep:
    (Original post by r-t)
    were the teachers really bad last year or was it because of students being lazy?
    soz for the late reply, well the teaching was decent, students were also quite lazy.

    what could you say about fig.4 in the case study?
    Offline

    20
    ReputationRep:
    (Original post by raypalmer)
    soz for the late reply, well the teaching was decent, students were also quite lazy.

    what could you say about fig.4 in the case study?
    so figure 4 doesn't show all the products that SHL sells and only shows a selected few items, SHL should review all items to see whether they're moving slowly or not. it also doesn't show the quantity of items that remain in stock which means that a proper decision cannot be made as we don't know how much stock is left and whether it is a problem or not. moreover given the size of SHL, the sales volume appears to be very small. the highest sales volume before the discounts is only 40 and even with discounts the sales volume doesn't increase as expected. the child polo shirt pink large even decreases by 5 even though it is £20.00 cheaper which suggests that SHL needs to change parts of its marketing mix as usually you would expect a significant increase in demand if the price is lowered.
    Offline

    2
    ReputationRep:
    (Original post by r-t)
    so figure 4 doesn't show all the products that SHL sells and only shows a selected few items, SHL should review all items to see whether they're moving slowly or not. it also doesn't show the quantity of items that remain in stock which means that a proper decision cannot be made as we don't know how much stock is left and whether it is a problem or not. moreover given the size of SHL, the sales volume appears to be very small. the highest sales volume before the discounts is only 40 and even with discounts the sales volume doesn't increase as expected. the child polo shirt pink large even decreases by 5 even though it is £20.00 cheaper which suggests that SHL needs to change parts of its marketing mix as usually you would expect a significant increase in demand if the price is lowered.
    amazing, thank you!
    Offline

    0
    ReputationRep:
    I can offer some help if you show me what you have.
    (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
    Offline

    1
    ReputationRep:
    How long should an 18 mark question be roughly? i know that there is no definitive answer and that 'quality is more important than quantity' but i could do with a guide. Maybe 1 side to 1 and a half?

    Thank You,
    Offline

    0
    ReputationRep:
    "To what extent is SHL's £70m sales revenue objective in 2016 realistic in the context of its current performance? Justify your view."

    Could someone help me in answering this question please?
    Offline

    1
    ReputationRep:
    (Original post by LJ_96)
    "To what extent is SHL's £70m sales revenue objective in 2016 realistic in the context of its current performance? Justify your view."

    Could someone help me in answering this question please?
    This question was answered on the previous page;
    "So you could argue considering the niche market it targets then the consumer base isn't big enough but the fact that revenue has been increasing year on year suggests it's possible despite prices being high. However according to the selected discount data the sales volume seems quite low considering the size of SHL which means that they may not earn the revenue needed. Also appendix 2 shows that females in their target age range are projected to decrease over the next few years which means that they'll have a smaller consumer base. However the decrease isn't by that much and they also target men and children which are not projected to decreased so perhaps revenue won't decrease significantly. The profit and loss accounts are however from the end of the year which means that sales may have been high due to Christmas and may not actually be high all year round."

    I've also answered this before, so hopefully it helps in some way...
    Name:  2015-06-05 12.51.46.jpg
Views: 243
Size:  592.7 KB
    Offline

    3
    ReputationRep:
    Fig 4 really shows us very little. Their products are elastic (although one shown is not). Also, as stated prior, sales volume is minute compared to their revenue figures which suggests and proves they have a huge product portfolio.
    Offline

    0
    ReputationRep:
    (Original post by stresso)
    This question was answered on the previous page;
    "So you could argue considering the niche market it targets then the consumer base isn't big enough but the fact that revenue has been increasing year on year suggests it's possible despite prices being high. However according to the selected discount data the sales volume seems quite low considering the size of SHL which means that they may not earn the revenue needed. Also appendix 2 shows that females in their target age range are projected to decrease over the next few years which means that they'll have a smaller consumer base. However the decrease isn't by that much and they also target men and children which are not projected to decreased so perhaps revenue won't decrease significantly. The profit and loss accounts are however from the end of the year which means that sales may have been high due to Christmas and may not actually be high all year round."

    I've also answered this before, so hopefully it helps in some way...
    Name:  2015-06-05 12.51.46.jpg
Views: 243
Size:  592.7 KB
    Thank you, this has helped me a lot
    Offline

    2
    ReputationRep:
    So can the payback period not be worked out? Because we know SHL are only purchasing 25%, so it would take longer than the 5 years on the table to pay it back? Is that something you could mention in a "Should SHL invest in the Mardidi brand?" question?
    Offline

    3
    ReputationRep:
    I presume so. In earlier posts, there was confusion around the payback time since people had calulated such that SHL had 100% equity.
    Offline

    2
    ReputationRep:
    It just seems strange that they would give us a table to work out the payback period, if they don't give us enough information to calculate it fully. Also don't know if you or anybody else knows, if they invest in Mardidi, will it just be an investment or will they begin to sell the stock in the UK, because my class can't decide, and I think its quite a crucial point.
    Offline

    2
    ReputationRep:
    for figure 4, discounting ony increased revenue for the mens polo shirts. it didn't boost revenue for the other 5 items. sales volume may have increased, but it did not increase by enough to offset the price cut.
    Offline

    2
    ReputationRep:
    (Original post by 08tlegg)
    talk about finance for Madidi - payback period - ARR - $5 million for 25% - if investment good in long term - could opt horizontal integration - buy further 26% shares - (51%) overall = they own it - ROCE for investment is low - could get a higher ROCE in a savings account with NO risk - ROCE for SHL in 2013 = 34%

    doesnt fit with SHL 2016 objective to reduce risk - wont contribute much to £70 million saves revenue target as the forecast for the return of mardidi doesnt yield mcuh revenue from dividends.

    does purchasing mardidi share give SHL the opportunity to sell the products in the UK through independent retailers?

    talk about reliability of figures in study of payback for mardidi - Tim got them from this random guy - not very professional - not likely to be reliable - more research into mardidi required
    doesn't fit with brand image - teenage -

    sub-brand could be more lucrative - diversification (Ansoff matrix) more risky - not in line with business objectives - more market research required to make it work - no indication of market research in critical path analysis when bringing a new product to the market - something crazy like 90% don't succeed. talk about that

    HRM cost of sub-brand - more staff - could take attention away from core business - could jeopardise objectives if sub-branding doesn't work

    pm if you want more
    thank you, this helped
    Offline

    18
    ReputationRep:
    Anyone planning to use the various ratios available from the p and l and balance sheet to justify their argurments?
    Offline

    2
    ReputationRep:
    Use of valid ratios secures you into the level 3 boundary! So I'm going to try to use at least a couple of ratios per question, just incase my Level 4 point points I make aren't strong enough!
    Offline

    0
    ReputationRep:
    Hello, if you need any help with your essays kindly inbox me.
 
 
 
Poll
If you won £30,000, which of these would you spend it on?

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.