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AS Business Studies ‘ Taster Lesson’

Explore the reasons behind the fall of BHS share price, including lack of profitability, weak product offering, slow adoption of e-commerce, and competition from up-market rivals. Also, understand the concept of market capitalization and its impact on share prices.

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AS Business Studies ‘ Taster Lesson’

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  1. AS Business Studies‘Taster Lesson’

  2. BHS – what went wrong?www.manchestereveningnews.co.uk/business/timeline-history-bhs-prepares-go-11236092

  3. Soo…possible reasons as to what may have caused the BHS share price to fall? • They didn’t make any profits! WHY? • Their product offering wasn’t strong enough so customer were shopping elsewhere (it wasn’t a ‘destination choice’!!) • The economy was relatively strong so perhaps consumers were spending their money at the more up-market rivals? • They were slow to go on-line (e-commerce)

  4. Why has Go-Pro's Share Price Tumbled?

  5. Soo…possible reasons as to what may have caused Go-Pro’s share price to fall?

  6. AS Business Studies Topic:Market Capitalisation‘Playing Footsie’ • Market Capitalisation is simply the number of shares sold in the business multiplied by the current share price…. Soo…for example • If 5000 shares have been issued (or sold) x £2 each, then the firm have a market cap of : £10,000

  7. Market Capitalisation‘Playing Footsie’ • What if then, the 5000 shares that have been issued (or sold) are now £3 each, then the firm now has a market cap of : £15,000

  8. Market Capitalisation‘Playing Footsie’ • What if then, the 5000 shares that have been issued (or sold) are now 50p each, then the firm now has a market cap of : £2,500

  9. Market Capitalisation – translated means how much confidence do people have in them (and therefore their share prices!)

  10. Lets Play the Stock Market !!https://www.hl.co.uk/shares/stock-market-summary/ftse-100

  11. Blue is good Red is bad!

  12. Risers!!

  13. Losers! (but might they be winners soon???)

  14. Task • Choose 2 companies – perhaps a ‘winner’ and a ‘loser’ ? • Write a short report on each firm individually detailing their current share price and how this compares to what it might have been previously. • Using the internet, try to offer reasons as to the factors (both internal and external) that may have affected the share price going up or down. • So then, what does an increase (or even a decrease) in market capitalisation actually represent?

  15. Homework: Would you invest in this firm?http://www.retailresearch.org/whosegonebust.php Pick a firm that interests you and write a short half page report that details their share price (if it’s a public company of course) and present some exploratory research as to where you see their business strategy may have failed. Is there any hope for their future??

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