Business Economics and Finance in a Global Environment

Running head: BUSINESS ECONOMICS AND FINANCE IN A GLOBAL
ENVIRONMENT
Business economics and finance in a global environment
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1BUSINESS ECONOMICS AND FINANCE IN A GLOBAL ENVIRONMENT
Table of Contents
Executive summary...........................................................................................................2
Introduction........................................................................................................................3
Methodology to evaluate proposed new superstore location and acquisition...................3
Evaluation of proposed alternatives..................................................................................5
Conclusion.........................................................................................................................8
Recommendation...............................................................................................................8
Reference........................................................................................................................10

2BUSINESS ECONOMICS AND FINANCE IN A GLOBAL ENVIRONMENT
Executive summary
As the management consultant it is required to analyze different kinds of
strategic alternatives like turnaround, liquidation, stability, diversification and
concentration. However, the alternatives are determined through technically sound,
focused value, comprehensiveness, definition and capacity of promoting collaborations.
Major idea is to promote profitability of the superstore along with considering the
approaches that may help the entity to become competitive along with other prospects
influenced by the external factors. Takeover bid is considered to be most suitable
alternative as the store is established that will save cost associated with the startups.
Employees will be retained owing to their skills however they shall undergo training that
will help hem embracing organizational culture. The company which is currently
planning for setting up a new store and will evaluate the best option for it to open the
new store in any of the 2 locations or in both locations. Further, it will also consider
taking over of Helibeb Plc, a clothing store. Best alternative for setting up the new store
will be chosen on the basis of annual profit, average investment and accounting rate of
return. Further, the takeover of Helibeb Plc will be analyzed on the basis of ratio
analysis. For setting up new store and taking over Helibeb Plc it will consider different
source like issuance of bond or equity shares for raising finance. Based on the entire
outcomes, the task will recommend the best location for setting up the new store, best
option for raising finance and whether acquisition of Helibeb Plc will be a feasible one.

3BUSINESS ECONOMICS AND FINANCE IN A GLOBAL ENVIRONMENT
Introduction
Scylace Plc is the grocery retail chain that is now consider8ing 2 alternative
proposals to build the new superstore in addition to a proposal for making takeover bid
of Helibeb Plc. The entity has 2 options for building the superstore at 1 of 2 locations.
As the grocery retail chain the commitment of the entity is providing the quality services
and products in cost effective manner that will help them to excel in aspect of serving
the customers. Main objective of the company is to be concerned for people and create
strong belief among the people that will be determining factor to motivate the operations
for developing the relationship with customers and employees. The entity believes that
the satisfaction for customers is not only focused on product sale but is focused on total
relationship for customers experience while interacting with the organization. The task
will evaluate the best option for the company including opening of new store in any of
the 2 locations or in both locations along with taking over Helibeb Plc. Best alternative
will be chosen on the basis of computation including annual profit, average investment
and accounting rate of return. Further, the takeover of Helibeb Plc will be analyzed on
the basis of ratio analysis.
Methodology to evaluate proposed new superstore location and acquisition
Different methodologies that can be used for evaluating the alternatives for
location are as follows –
 Annual profit – annual profit is the financial term used in business context that
deals with amount generated from the product sales over one year period. This
is crucial for the entity to maintain track of annual profit for determining if sale
of the particular product is meaningful. If business is not able to make sufficient
business profit, it will be wise decision to revise the product and marketing or
to discontinue the product completely so that company will not continue losing
money (Baum & Crosby, 2014).