Save:
Favorite
Share:
Calculator Allowed: Yes

Question

Answer

Transcription of this question: 5.Maquinaria de la Oficina de Santiago, Ltda. (MOS)Maquinaria de la Oficina de Santiago, Ltda. (Office MachineryOf Santiago Ltd., MOS) is a private limited company run byMaria Salazar, who in 2009 became Chief Executive Officer(CEO) Of the company after her father, Martino, retired.When Martino opened the business in 1959, he mainly soldtypewriters*. Now MOS sells the following for personal andsmall business use:• modern mobile telephones (for example Apple iPhones)portable DVD playerspersonal computerstypewriters.[Image: httpJ.’commons.wikimedixorgAvikiFile: UnderuoodtivejpglBecause Of liquidity problems when she became CEO, Maria conducted a detailed analysis Of salesand stock (inventory). She discovered the following:Because Of liquidity problems when she became CEO, Maria conducted a detailed analysis Of salesand stock (inventory). She discovered the following:Modernmobiletel honesPortableDVD la ersPersonalcom u tersTypewritersTotalsales,2009123055100sales,2011153450100sales, 2011in S1 8000004080000600000012000012 000000stock,20111231507100Average stock,2011 ins73000188000304 ooo43 ooo608000Maria concluded that MOS should stop selling typewriters, as they are at the end Of their productlife cycle. Reducing the stock of these items would release funds to help with the liquidity problem.The gross profit margin for the company on all products is 50%, whereas for typewriters it is 600/0.Maria wants to modernize the image of MOS She would like to change the name Of the companyto Electrönica Moderna de Santiago, Ltda. (Modern Electronics Of Santiago Ltd.). Her father,a major shareholder in the company, dislikes the idea. He argues that too many loyal customers stilluse typewriters and that the company’s name is well-known in the Santiago business community.The legal and Other costs Of changing the name would use up all the funds released by thereduction in typewriter stock.(Question 5 continued)(a)(b)(c)(d)(e)Define the term product life cycle.Calculate:(i) the 2011 stock turnover in days at MOS(ii) the 2011 stock turnover in days for typewriters.Explain how the slow turnover Of typewriters contributes to the liquidity problemof MOS.Analyse MOS’ product portfolio by applying the(BCG) matrix.Discuss Maria’s plans to stop selling typewritersof MOS.Bostonand toConsulting Groupchange the name[2 marks][l mark][2 marks][3 marks][5 marks][7 marks]

Leave a Reply