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Question on December 2010

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBL Exams › Question on December 2010

  • This topic has 1 reply, 2 voices, and was last updated 11 years ago by AvatarKen Garrett.
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  • November 21, 2014 at 3:01 pm #211961
    Avatarandygoh
    Member
    • Topics: 1
    • Replies: 0
    • ☆

    Hi sir,

    In question 1a, which it requires to access contribution and performance of ShoalFish,
    ShoalPro and ShoalFarm. Your assessment should include an analysis of the position of each company in the Shoal plc portfolio.

    I know it require to apply BCG models, but why PESTEL is also included in the answer? From which extent that it require PESTEL to be included? I’ve read the examiner comment but still don’t understand. 🙁

    November 23, 2014 at 9:27 am #212322
    AvatarKen Garrett
    Keymaster
    • Topics: 10
    • Replies: 10656
    • ☆☆☆☆☆

    There is material in the question about fish stocks running down and impending legislation to limit fishing. This means that that market must keep declining and reinforced the point that this is a dog sector. Thare is also material suggecting that there are many small independent fishermen. This is important because if the company divested of fishing bots, it does not want to be left at the mercy of a single large fishing company (think 5 forces).

    All models should look to the future and no model is enough on its own. For example, BCG analysis could be overtaken if a star product was going to be made illegal in a couple of years.

    In general if detail is provided in a question you have to thing about what it might be there for.

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