problem1) Use the following information to answer problems 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) find out 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) find out 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 problem 2 you must:

• demonstrate knowledge and understanding relevant to the problem

• use the information provided

• communicate using relevant terminology and concepts

• present a sustained, logical and cohesive response in the form of a business report

problem2) This problem 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 prepare a business report for the owner of “Pau Tango”.

In your report:

• outline the sources of change that have impacted on this business;

• describe 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 problem 3 and 4 you must:

• demonstrate knowledge and understanding relevant to the problem

• use relevant business case study/studies

• communicate using relevant business terminology and concepts

• present a sustained, logical and cohesive response

problem3) Outline the objectives of financial management AND analyse financial strategies which need to be addressed when managing global expansion.

problem4) ‘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.