This website uses cookies to ensure you have the best experience. Learn more

Lisa Estimated That Out And About Plc Will Need To Raise £14 Million For Its New Marketing Budget. Using Appendix B , And Any Other Relevant Data, Assess Out And About Plc Ís Current Financial Position And Recommend How

538 words - 3 pages

Out and About plc

Capital is the funds that are invested into a business to be used for the growth and expansion of a business. In the case of Out and About plc, they are going to use this capital in order to fund its marketing budget.

Out and About have a current ratio of 0.87:1 and an acid test ratio to one. This suggests that they are suffering from very severe liquidity problems especially short term liquidity. As they have £800 million worth of non-current assets, it would be useful for them to sell off some of these assets because it will increase the amount of cash they have, thus also increasing their current assets figure. Also, they could then use this cash to also reduce its current ...view middle of the document...

If these bad debts start to build up, this can cause a business's expenses to increase and the value of the receivables asset to decrease.

One major concern for Out and About plc is its profit margins. They had made a gross profit of £158 million and an operating profit of £16 million. This means that they have a gross profit margin of 53.5% and a net profit margin of only 5.4%. This drop of almost 50% raises many questions about Out and About plc ability of managing its cost. This huge drop in profit shows that they are not very good at managing their indirect costs; they are not able to manage their expenses effectively.

This rise is expenses may be down to their inventories. Their inventories alone make up 46% of their current assets also; their inventory turnover is only 2.14. This low figure is very unusual for a retailing business such as Out and About which suggests they are holding onto too much stock. This then also causes stockholding costs to increase causing the expenses of the business to increase.

Overall, I feel that the best way for Out and About plc to raise their capital is by borrowing money. As they only have a gearing ratio of 35.9%, this suggests that they have potential to borrow money. However, in order to borrow money, creditors requires a business to have a strong income statement and balance sheet, in the case of Out and About they are both weak. Due to both profitability and liquidity problems, this may prevent Out and About plc to borrow any money as creditors, may feel that they won't get their money back.

Other Papers Like Lisa Estimated That Out and About Plc Will Need to Raise £14 Million for Its New Marketing Budget. Using Appendix B , and Any Other Relevant Data, Assess Out and About Plc Ís Current Financial Position and Recommend How

Using the Information from Items a, B and C and Elsewhere, Assess the View That the Nuclear Family Functions to Benefit All Its Members and Society as a Whole

1276 words - 6 pages family to have any vital meaning. He doesn’t believe that any other form of family can fulfil the family functions as well as the nuclear family. However in modern society, there are many different types of family and they are increasing and they do appear to fulfil the functions put forward by Murdock. Like Functionalists, Marxists adopt a structural perspective on the family, looking at how the family contributes to the maintenance of society’s

All You Need To Know About Ireland And Its Turbulant History

867 words - 4 pages , even for a developed nation.5. Overall, Ireland has benefited from participation in the global economy. It has modernized from an agricultural to a service sector economy, and though it is small nation, Ireland plays an important role in the European Union. Ireland's economic growth rate has been four times that of the EU average, with current average growth at 8% a year. The Irish economy boomed in the last decade and was termed the "Celtic Tiger

Will Online Storefronts Wipe Out Brick-and-Mortar Businesses?

1292 words - 6 pages losing their CEO and Chairman the future is a little more uncertain. One thing is for sure is that Amazon will continue to push in new directions and try to sweep its competition off the floor. With their stock on the rise at around $220 a share and solid position to take over the retail world, retail dominance could be in their future. People will always shop for the best deal, whether it is online or in a retail store, just to save a few

Identify The Goal Of The Company And Describe The Strategy That Was Adopted To Achieve It. Explain With Full Reference To Available Information And Data How Successful, Or Otherwise, This Strategy...

1408 words - 6 pages Identify the goal of the company and describe the strategy that was adopted to achieve it. Explain with full reference to available information and data how successful, or otherwise, this strategy turned out to be in practice. Company overview Bunge Company was found in 1818 by a German merchant, Johann Peter Bunge in Amsterdam, Holland. It was to merchandise grains and imports from the Dutch colonies. The company has since grown to become one

About Autism And Other Similar Disorders

1592 words - 7 pages the Pope owns one.The movie Rain Man exposed millions of people to autism as well as the autistic savant phenomenon. In the movie Dustin Hoffman played an autistic savant who displayed a great memory for baseball players stats, memorized parts of the telephone book, and even counted cards in Las Vegas. The later being almost impossible for a normal person, since there are normally six or more decks in play at once.The reasons for these talents are unknown, but there are many different theories, and no evidence to support any of them. I don't think that we will ever find out why they have these skills, we barely know anything about autism as it is.

Outline and Assess the View of the New Egalitarian Arguments About Social Mobility

857 words - 4 pages ‘Outline and assess the view of the New Egalitarian arguments about social mobility’ (40 marks) Social mobility refers to the movement of individuals, families, households, or other categories of people within or between social strata in a society. It is a change in social status relative to others' social location within a given society. The New Egalitarians are a group of sociologists and politicians who believe that social-class divisions

Morale: The Strongest Weapon In a War - This essay is about morale and (1) Why We Need It, (2) Has It Done Any Good? and (3) Techniques (4) Other Opinions

573 words - 3 pages won't happen. Same thing for the soldiers. Why do they want to fight this war? What difference does this make? These pondering questions plague a soldier in and out of battle. What will he die for? I'll tell you. The soldier will not fight at all if he has no reason to. He/She does not believe in victory! Now give him/her a reason. Give him/her hope. Tell the soldiers that they can win this battle for their country!Does this really work, you ask? Has

How Do We Assess Whether A City Is Global? What Other Criteria Could Be Used? This Essay Seeks To Identify Criteria’S And Different Aspects To Assess What Makes A City Global. Firstly, It Will Outline...

336 words - 2 pages How do we assess whether a city is global? What other criteria could be used? This essay seeks to identify criteria’s and different aspects to assess what makes a city global. Firstly, it will outline and explain the concept of globalisation and a global city, showing evidence from the use of academic sources and giving examples if necessary. It shall then continue to examine and focus on a specific global destination, discussing different

Society Has Entered a New Postmodern Age and We Need New Theories to Understand It. Assess This View

949 words - 4 pages ------------------------------------------------- Society has entered a new, postmodern age and we need new theories to understand it. Assess this view. Postmodernism is a movement that has emerged since the 1970’s. Postmodernists argue that we are now living in a new era of postmodernity where image and reality are indistinguishable and we define ourselves by what we consume. They believe that this new kind of society needs a new

Thoughts About The Ez80 And Its Applications

562 words - 3 pages it easy to access data in any angle. Arithmetic, logical and bit manipulation instructions are also important features that are used in providing the eZ80 CPU with its number-crunching ability for arithmetic instructions. Logical instructions are also used as they provide the user with the Boolean operations that are necessary in decision making as well as manipulating bits in registers or memory. Bit manipulation instructions are used in the

Using the Data and Your Knowledge of Recent Economic Events, Assess the Contribution That Fiscal and Monetary Policies Can Make in Maintaining a Stable Economy

724 words - 3 pages fiscal and monetary policy measures the government can use to promote economic stability. It is important that policies work on both the short term AD side of the economy and long run AS of the economy so that there is a balance at play. Also stability in the economy might be affected by what is happening in other world economies and it becomes difficult for fiscal and monetary policy to work effectively if the Uk economy is affected by the working of other economies and also any economic shocks which might occur in the wider world economy.

Related Essays

Out And About Essay

724 words - 3 pages , whereas current target market is significantly higher). Therefore sales may be a problem as only 10% of Out and About plc's proposed target market are aware of the company, as opposed with the current target market whereby 70% of them are aware of them. However, the view may be taken that the £14million marketing budget will raise reputation and awareness to their target market by extensively advertising their new extreme sports products to the

Therefore In Order To Make Sure That They Are The Highest Competitor In The Market, Or To Match The Other Strong Competitors, A Significant Amount Of Money Will Need To Be Spent, Using A Marketing...

340 words - 2 pages significant budget. Not only will it need to promote its new strategy in order to gain more customers, but the case study informs us that Sound and Vision are up against a lot of competition, from both online retailers and supermarkets.    Therefore in order to make sure that they are the highest competitor in the market, or to match the other strong competitors, a significant amount of money will need to be spent, using a marketing budget, for

Take A Look Back To Your Life Since Your Childhood, And Write Out Your Experiences About How Hard It Is For Your Parents To Bring You Up

622 words - 3 pages . Don't just play when you feel you can" A 13 years old boy takes long time to know how psycho his father was when he want his son to have a close girl friend. When he finds out, the chance has lost. A 14 years old son knows that men can cry when he sees his father crying, but why his father cry is the thing he keeps in his mind secretly. A every ages boy can know he is everything to his father when he see his father proud of

This Is A Paper I Did For Debating. It Argues About About Coke And Other Soft Drinks, Their Affects And The Need For Kids To Consume

1404 words - 6 pages consumption ofthem.The first step that parents and health officials need to take is to recognize soft drinks for what they are -- liquid candy -- and do everything possible to return those beverages to their former, reasonable role as an occasional treat.I am not saying that you can not have any, but that you should limit yourself because in the future no good will come out of them. Obesity can lead to later developments of diabetes, heart disease