Question1) Use the following information to answer questions 1.
“Corporate Look Furniture” Profit and Loss Statements
2008 2009
$ $
Sales 650 000 555 000
Cost of Goods Sold 280 000 280 000
Gross Profit ? ?
Expenses
Rent 10 000 10 000
Wages 90 000 140 000
Insurance 20 000 20 000
Electricity/Phone 8 000 9 000
Motor Vehicle 110 000 58 000
Interest on loan 25 000 30 000
Net Profit ? ?
(a) Calculate the gross profit for “Corporate Look Furniture”in 2009.
(b) Comment on the net profit of“Corporate Look Furniture” over the last two years.
(c) Calculate AND comment on the expense ratio for “Corporate Look Furniture” between 2008 and 2009.
(d) Recommend ONE profitability and ONE efficiency strategy that “Corporate Look Furniture” can implement to improve its performance
For question 2 you must:
• demonstrate knowledge and understanding relevant to the question
• use the information provided
• communicate using relevant terminology and concepts
• present a sustained, logical and cohesive response in the form of a business report
Question2) This question refers to the following case study:
“Pau Tango” is a Brazilian restaurant that has been operating for 5 years. In the last 12 months, sales have fallen by 20% and staff absenteeism has increased by 12%. Management is concerned about the recent rising interest rates, which have led to a slowdown in economic activity. In response to falling profit levels, management has decided that a new marketing plan is required to shift the business prime function from a restaurant-based service to internet ordering and home delivery service.
This structural change has resulted in resistance from employees, as the home delivery service requires downsizing in the workplace. Employees are displaying covert forms of industrial action and are threatening to strike. Management is looking to resolve this conflict.
As a consultant, you have been hired to write a business report for the owner of “Pau Tango”.
In your report:
• outline the sources of change that have impacted on this business;
• explain the elements of the marketing plan which need to be assessed to shift the business prime function and improve profitability;
• analyse the dispute resolution processes that can be used to resolve the conflict.
Expected length of response is approximately 800 words.
For question 3 and 4 you must:
• demonstrate knowledge and understanding relevant to the question
• use relevant business case study/studies
• communicate using relevant business terminology and concepts
• present a sustained, logical and cohesive response
Question3) Outline the objectives of financial management AND analyse financial strategies which need to be addressed when managing global expansion.
Question4) ‘As businesses become more global in their operations, they need to recognise their social and ethical responsibilities’.
Outline the sources of funds available to a business when expanding into the global market AND analyse the strategies management mayuse to ensure ethical and socially responsible business practices in a global environment.
Expected length of response is approximately 800 words.