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Issue:

Miscellaneous

 

Written by:

John H

 

Date added:

January 13, 2015

 

Level:

University

 

Grade:

A

 

No of pages / words:

3 / 612

 

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1675 times

 

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The company is spending more money in marketing and sales costs which clearly results in higher expenses on cost of sales and subsequently expenses in distribution of their products. The statement of financial position shows that cash at bank for this period is lower than the others, however, this could be due to the company investing in its inventory and the amount of trade debtors is particularly higher than the last two...
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If they were to go into liquidation, there will be a big gap that will be left by the company where consumers will be left with less choices and missing out on less expensive beverages, which Lion Nathan is able to do (in comparison with Fosters) whilst maintaining desired profit margins (IBISWorld Report 2008) Furthermore, Lion Nathan is in joint venture with Heineken and under license brewing Beck’s beer, both brands are popular and well known the beer industry...
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