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@obuhmed – Do you work for an airline? or know much about airline operations?I think an airline may be rather challenging for this topic unless you have access to internal financial information. I base this statement on many factors that are specific to this industry. Unlike a manufacturing organisation there is no trade stock (apart from an insignificant amount of duty-free goods) and a significant amount of the business normally takes place in an international context with trade suppliers that range from oil companies to governments (landing fees and passenger taxes), and tie ups between other ‘partner’ airlines. Revenue receipts are also complex – individual passengers booking online pay upfront but the service is delivered later, there are intermediary online companies (Expedia) and again ‘partner’ revenue sharing and mutual booking arrangements. Bring in foreign exchange into this mix and I think trying to come up with an operating cycle without reliable information is at best going to be tenuous. On the positive side funding strategy analysis present some opportunities (but again many challenges): many airlines lease rather than buy aircraft, many no doubt go in for hedging currencies and oil prices on a major scale, probably have significant forward and future contracts and possibly use other derivative instruments. Need I go on….? If you have this sort of detailed knowledge about an airline you could do a brilliant RAP, if you don’t it will be a headache from start to finish.
General advice: if you want to do Topic 15 choose an uncomplicated sector (ideally a manufacturing or consumer retailing organisation rather than a utility or service one). Or alternatively if you want an airline as your company, choose a more amenable topic and if you have to rely on secondary data that would be 8, 18, 17 or 20.
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hi all, i took topic 15 and failed two components and passed sls. application of accounting and business techniques and results and analysis of. correction was that though i understood it i did not provide enough academic underpining and theories which i have now done but my issue has to do wif the impact of funding strategies on the organisation. i dont know how i am going to identify which funding strategy the organisation used and wat ratios i would use for that. And also am i going to identify the funding strategy for each of the three years separately. Pleassssssssssse help this is my 2nd attempt. time is drawing near. pleasssse ur response woud be appreciated a lot.
Hi everyone,
Im having trouble choosing a company to research on for topic 15.
I dont know if I’m thinking too much and just afraid@Swama – we had 2 forum topics for T15 which I have now merged into one. I suggest you read through all the queries and answers above as you will gain a better idea of what is involved.
Students tend to think this topic is almost identical to T8 . It most certainly is not and a sensible analysis of funding strategies is crucial. Choosing an appropriate company is also critical and complex organisations such as petroleum companies, airlines and energy / utility companies should be avoided.
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