Reference no: EM131050503

1.

(i) The board of a company decides that the strategic objectives of the company should be: to become established as the best in its field to be the largest in its market.
Comment briefly on what the length of time should be to achieve these objectives.

(ii) State how the strategic and sometimes medium term objectives of a company may differ in an important aspect from operational planning. Give some examples of strategic planning activities and operational planning.

(iii) State briefly how the type of business a company is engaged in might determine the importance of the type of planning that would be required for:

(a) an oil exploration company
(b) a clothing retailer.

2. Imagine you are the manager of a pension fund that invests large amounts of money in companies, most of which are listed on the London Stock Exchange. Returns on your investments provide the funds to pay the pension beneficiaries. State the proportions of fixed interest securities (i.e. debentures, preference shares, etc.) and ordinary shares you would choose with a view to minimising the risk to funds and maximising returns. State briefly the reasons for your investment strategy.

(ii) State a source from which you would get information on which to base your investment strategy.

(iii) State a possible consequence of other fund managers thinking in a similar vein to yourself.

(iv) Select 5 listed London Stock Market companies from different sectors (such as Banking, Information Technology, Media, Chemicals, Construction, Retailers, Transport, Mining, Oil & Gas, Pharmaceuticals, Property, etc.) in which you intend to invest substantial amounts of capital with a view to seeking a return on your investment. Briefly give reasons for your selections.