Business Studies Assignment: Chapter 1
Dear students of the Business Studies,
I hope that all of you are enjoying your holiday. However, please be reminded to keep yourself on track with your holiday homework.
Please attempt the questions below.
Take good care, and I miss you all :)
Cheerios,
Dominic
Q1
The table below shows some data for three shoe manufacturers in 2005
Sales turnover ($m) Capital employed ($m) Workers employed
Company X 160 35 1,500
Company Y 100 4 2,500
Company Z 50 10 700
a) Which is the largest business:
i) in terms of sales? [1 mark]
ii) in terms of capital employed? [1 mark]
b) How would you explain the high number of workers employed by Company Y get the relatively low sales compared to Company X? [4 marks]
c) Company Z has not expanded in recent years. Explain any two possible reasons why this business remains quite small. [4 marks]
d) The directors of Company X are planning to take over a leather supplies. This will cost $10m. The directors expect the business to gain great advantages from this integration.
i) What type of integration is this? Explain your answer. [3 marks]
ii) Analyse two possible benefits to Company X from this integration. [4marks]
e) The directors of Company Y are planning a merger with a chain of retail shoe shops. These shops currently sell a wide range of shoes from different manufacturers. Which sector of industry do the following business operate in?
i) The shoe manufacturer, Company Y.
ii) The retail shoe shops.
In each case, explain your answer briefly [4marks]
iii) Analyse one possible benefit to Company Y resulting from the integration. [5 marks]
f) Do you think shoe retailers should be in the public or private sector in your country? Justify your answer. [5 marks]
I hope that all of you are enjoying your holiday. However, please be reminded to keep yourself on track with your holiday homework.
Please attempt the questions below.
Take good care, and I miss you all :)
Cheerios,
Dominic
Q1
The table below shows some data for three shoe manufacturers in 2005
Sales turnover ($m) Capital employed ($m) Workers employed
Company X 160 35 1,500
Company Y 100 4 2,500
Company Z 50 10 700
a) Which is the largest business:
i) in terms of sales? [1 mark]
ii) in terms of capital employed? [1 mark]
b) How would you explain the high number of workers employed by Company Y get the relatively low sales compared to Company X? [4 marks]
c) Company Z has not expanded in recent years. Explain any two possible reasons why this business remains quite small. [4 marks]
d) The directors of Company X are planning to take over a leather supplies. This will cost $10m. The directors expect the business to gain great advantages from this integration.
i) What type of integration is this? Explain your answer. [3 marks]
ii) Analyse two possible benefits to Company X from this integration. [4marks]
e) The directors of Company Y are planning a merger with a chain of retail shoe shops. These shops currently sell a wide range of shoes from different manufacturers. Which sector of industry do the following business operate in?
i) The shoe manufacturer, Company Y.
ii) The retail shoe shops.
In each case, explain your answer briefly [4marks]
iii) Analyse one possible benefit to Company Y resulting from the integration. [5 marks]
f) Do you think shoe retailers should be in the public or private sector in your country? Justify your answer. [5 marks]
