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?
Ask the Tutor ACCA SBL
3 corporate rationales 12/10 paper
11y ago#1Portfolio 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.
is portfolio manager outside from the business?
11y ago#3No. 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?
11y ago#5Have you listened to the lectures and read the notes on this?
Setting a target and leaving it up to the subsidiary can be a way of adding value ie making the subsidiary and hence the group more valuable.
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