3.3
2) identify which products should be divested from eg dogs or improved upon
3) resource allocation
What is an advantage of the payback method?
- focuses on cash flow
- emphasises speed of return
By focusing on the environment (stakeholder approach), this could lead to reduced ____
profit
How are suppliers impacted by a businesses decision to expand?
- more orders
How can the U17 world cup affect the hospitality industry here?
increase in tourism -> more reservations -> increase in sales
Nike is considering investing £200,000 in new automated shoe production equipment. The project will last for 4 years and is expected to generate the following net cash inflows:
Year Net Cash Inflow
1 60,000
2 70,000
3 80,000
4 90,000
Calculate the Average Rate of Return (ARR) for this investment.
37.5%
Usefulness of CPA is very dependent upon...
- External factors
- Skills of person constructing the CPA
What is a + and - of job production?
- charge high prices
- higher customer satisfaction
however
- less econ of scale
- workers are highly skilled -> high wages
- takes time
Why can it be hard to change culture?
employees are resistance to change
Where have SHEIN opened their first physical store despite protests?
Paris, France
** 3 year moving average Patagonia **
file:///C:/Users/emer.carroll/Downloads/WBS13_Extract_A-E%20(2).pdf
Calculate to two decimal places the three year moving average for the percentage of recycled material used in clothing by Patagonia in 2021.
65 + 66 + 72 = 203/3 = 67.67%
Costa Coffee is considering investing £150,000 in new self-service coffee machines for its airport branches. The expected net cash inflows are:
Year Net Cash Inflow (£)
1 40,000,
2 50,000
3 45,000
4 35,000
Calculate the payback period (in years and months).
3 years 5 months
A business is seeking to change their culture by implementing the following:
- can wear jeans on Friday
- flexible working practices
- removing layers of hierarchy to become flatter
- seeks to have more women in workplace
What are impacts of all 3?
- more comfortable -> more creative and innovative
- increased sense of trust and responsibility -> motivate employees -> increase productivity
- more autonomy for employees -> empowered
- more diversity -> more new applicants -> new ideas
What is a trade embargo?
A trade embargo is an official ban or restriction on trade with a particular country, usually imposed by a government or international organisation.
Ahead of Tesla's annual general meeting (AGM) on Thursday there's been one key message the electric car-maker has been hammering home to shareholders: the boss is worth $____
$1tn.
Selling price per drink: £4
Variable cost per drink: £1.50
Fixed costs per month: £9,000
Calculate the contribution per drink.
If Costa expects to sell 5,000 drinks per month, calculate the total contribution for the month.
Calculate the monthly profit.
2.50
12,500
3,500
Why is it useful to calculate the float time using CPA?
A business has to recall one of their products. What impact does this have on employees and shareholders?
- employees may worry about job security
may also be overworked/stressed
- shareholders may want to sell shares
Why are air traffic controllers in Greece striking?
- introduction of 13 hour working day
- unions want salary increase
Starbucks says it is selling a 60% stake in its business in _______
China
- make comparisons
- visual tool
- minimises risk by looking at all options
Quantitative sales forecasting is less useful in ______ markets because __________
Less useful in dynamic markets because external factors play a huge role in sales performance
What are two benefits of a task culture?
motivated employees
faster decision making
seen as fun
Why do central banks increase interest rates?
Control inflation – Higher rates make borrowing more expensive, so spending falls, reducing demand-pull inflation.
Strengthen the currency – Higher interest rates attract foreign investment, which increases demand for the currency.
Cool an overheating economy – Slows down rapid economic growth to prevent bubbles.
US Natural Gas Prices Dip As Supply Outpaces Demand
Draw a S&D diagram to represent this.