GLAD RAGS Questions

GLAD RAGS Questions

Define with reference to the case study .... (2 marks)
1. Brand Loyalty
2. Profit Margins
3. Market expansion
4. Efficiency
5. Job Security
6. Just-in-time stock control
7. Total Quality Management
8. Formal Organisational Structure
9. Labour Turnover
10. Labour Relations
11. Downsizing
12. Industrial Action
13. On-the-job Training
14. Formal Training
15. Flexible Working Practices
16. Budgeting
17. Variance Analysis
18. Price-Sensitivity
19. Market Share
20. Market Research
21. Market Segment
22. Depreciation
Discuss the advantages and disadvantages of.... (6-10 marks)
1. Formal organisational structure
2. Penetration Pricing
3. Market skimming
4. Market expansion
5. Product expansion
6. Creating a Balance Sheet
What is the formula for:
1. Gross Profit Margin
2. Net profit Margin
3. Gross Profit
4. Net Profit
5. Net Assets
6. Retained Profits
7. Current Ratio
8. Variance
1) Using a PEST analysis, assess the decision of Gladrags Ltd to sell their UK production Facilities and move production to Vietnam and Bangladesh.
2) Analyse the current position of Gladrags Ltd using a suitable (PEST) analysis.
3) Carry out a SWOT analysis of the Gladrags Ltd Company
4) Carry out a marketing audit of Gladrags Ltd to identify the external factors affecting Marketing objective
5) Explain how advances in Technology will affect the following:
i. The sale of goods in Gladrags Ltd.
ii. The production of goods at Gladrags Ltd.
6) With reference to the case study, explain two advantages of 'Targeting a higher socio-economic group'.
7) Suggest 1 possible Primary and 1 possible secondary form of Market research that Gladrags Ltd could undertake.
8) Using a suitable model (Ansoff), analyse the three suggestions on amendments to the Product.
9) Assess the marketing options open to Gladrags Ltd.
10) Compare the Profit Margins of Gladrags Ltd for 2004 and 2006
11) Identify the fixed assets of Gladrags Ltd.
12) From the information in Appendix 1 calculate the following for Gladrags Ltd in 2004 and 2006
i. Net current assets
ii. Working Capital
13) Using an example from the case study explain the difference between fixed and variable costs
14) Using information from the Balance Account in Appendix 1 calculate for 2004 and 2006
i. Current ratio
15) Using the Profit and Loss account given in appendix 1, calculate the
i. Operating profit
ii. The percentage change in turnover from between 2004 and 2006
16) Using the information in appendix 1, what evidence is there that Gladrags Ltd. Has experienced a slow in growth.
17) Using ratio analysis and information in Appendix 1, evaluate the financial performance of Gladrags Ltd.
18) Explain how the preparation of a balance sheet will be useful to the management of Gladrags Ltd.
19) Outline possible limitations of balance sheets.
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Q 1. EVALUATE THE FOUR (4) STRATEGIC OPTIONS.
Q 2. DISCUSS TWO (2) WAYS GLADRAGS COULD MAKE ITS BALANCE SHEET STRONGER BEFORE A POSSIBLE SALE.
Q 3. WHAT IS THE VALUE OF FIXED ASSETS IN 2004 & 2006?
2004 2006
Table 1: THE FOLLOWING INFORMATION IS PRESENTED IN THE EXAM:
Par Value of Ordinary Shares = £1.00
Value of Land (at Original Cost) = £50,000
Value of Land (Independent Valuation May 2006) = £3,000,000
Value of Brand Names (Method = DCF, May 2006. Expert Report) = £500,000
Assume only Ordinary Shares exit. Market Value of Shares = Net Assets
------No of Shares
Q 4. CALCULATE, SHOWING FORMULAE/METHOD:
2004 2006
Number of Shares
Earnings per Share
Market Value per Share
(using Appendix 1 Balance Sheet)
Market Value per Share
(using Table 1 information)
Dividend Yield
(using Appendix 1 Balance Sheet)
Dividend Yield
(using Table 1 information)
Asset Revaluation
(in Balance Sheet)
Q 5. REFER TO THE BALANCE SHEET IN APPENDIX 1 (Page 7). PRESENT A NEW REVISED BALANCE SHEET USING THE INFORMATION IN Table 1.
Balance sheet as at 31 May 2004 and 2006
31 May 2006 31 May 2004
Q 6. BASED ON THE NEW BALANCE SHEET, CALCULATE THE FOLLOWING:
2004 2006
Net Assets
Intangible Assets
Net Tangible Assets
ROCE
ROE

SECTION A

Answer all questions in this section

1. (a) Outline the case for introducing more flexible working practices (line 116). [4 marks]

(b) Assess how a JIT stock control system (line 86) might affect the operations of Gladrags Ltd. [6 marks]

2. (a) Identify 3 sources of conflict within Gladrags Ltd. and outline why they present potential problems for Naseem. [3 marks]

(b) Using PEST analysis, assess the feasibility of Gladrags Ltd. introducing the ‘Sassy’ brand (line 74). [7 marks]

(c) Apply Lewin’s forcefield analysis to examine which of the strategic options Gladrags Ltd. should opt for (lines 151-155). [10 marks]

3. (a) Using examples, outline how Total Quality Management (line 96) presents opportunities for Gladrags Ltd. [3 marks]

(b) Examine the costs and benefits to Gladrags Ltd. of operating in a regional trading bloc such as the European Union. [7 marks]

(c) Using Appendix 1 and your knowledge of financial ratios, discuss the performance of Gladrags Ltd. between 2004-2006 from the perspective of potential buyers. [10 marks]

Gladrags possible exam q’s