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the question in dec 2010
explain each of these separate rationales for adding value and their relevance to understanding the overall corporate rationales for adding value?
this is portfolio manager. Synergies. Parent developer.
see portfolio managers are they an agent of financial market and assesses which company’s is performing poorly and may they seek buyers for acquisition. This is correct? also does add value mean increase profitability, economies of scale, efficiency of food service, cheaper raw materials etc.
I don’t understand what synergy and parental developer is.
also why does portfolio manager not fit in this case of shoal plc?
Portfolio managers manage at a distance giving subsidiaries financial targets; there is no day-to-day interference or influence on the subsidiaries by head office. Value can be added, for example, if subsidiaries increase their profitability.
Synergy and parental deveroper are explained here:
https://opentuition.com/acca/p3/acca-p3-portfolio-management/
You should then realise that the Shoal groups has been managed to obtain synergy: fish catching/canning/fish farms and now a restaurant.
No. It is a method used by head office to manage subsidiaries/divisions. HO acts as though it is managing an investment at arm’s length just by setting it targets.
investment, setting expectations and standards for monitoring performance are not valued added activities?
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