Year 12 IB Extended Essays 2017

B USINESS AND M ANAGEMENT .....................................................................................................1

ABSTRACT ................................................................................................................................2

ACKNOWLEDGEMENTS ........................................................................................................4

RESEARCH QUESTION ...........................................................................................................5

INTRODUCTION ......................................................................................................................5

ANALYSIS AND DISCUSSION .................................................................................................6

CURRENT AND ACID RATIO ANALYSIS ............................................................................ 10 J UNE 2013 – P RE -E XPANSION .................................................................................................... 10 J UNE 2015 – D URING E XPANSION .............................................................................................. 11

ANALYSIS OF CURRENT AND ACID RATIO’S ................................................................... 12

CORRELATION BETWEEN NUMBER OF STORES AND INVENTORY BALANCE ......... 13 G ROWTH IN S TORE N ETWORK 2013 – 2016 | M C G RATH N ICOL .................................................. 13 G RAPH 1: I NVENTORY B ALANCE 2013 – 2016 | M C G RATH N ICOL ............................................... 13 A NALYSIS OF C ORRELATION BETWEEN N UMBER OF S TORES AND I NVENTORY B ALANCE .......... 13 WHAT WE CAN LEARN FROM THE COLLAPSE OF DICK SMITH ................................. 14 I NVENTORY M ANAGEMENT IS E SSENTIAL ................................................................................. 14 P RIVATE E QUITY F LOATS A RE N OT A LWAYS W HAT T HEY S EEM .............................................. 14 I NVESTMENT IN F ADING S YSTEMS W ILL U LTIMATELY L EAD TO F AILURE ................................ 15 T HE I MPORTANCE OF D UE D ILIGENCE U PON I NVESTING .......................................................... 15

CONCLUSION ......................................................................................................................... 16

REFERENCES ......................................................................................................................... 17

APPENDIX ............................................................................................................................... 18

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