Business decision making- corillion

?
  • Created by: jf00632
  • Created on: 07-03-19 18:15
What was there strategy?
Win high-quality contracts2.Deliver contracts safely3.Develop and attract excellent people and capabilities
1 of 26
What were their strategic objectives? (3)
Rigorous contract selection and risk management2.Focus on growing support services 3.Maintain a strong construction capability
2 of 26
What were their strategic objectives? (2)
Continue to extend integrated services offering -utilising synergies/ skills between support services and construction5.Identifying adjacent areas of opportunity –skills and geography
3 of 26
What were their strategic objectives? (2)
Pursuing investment-led opportunities with good equity returns, plus construction and support services contracts7.Continue reviewing our markets to anticipate change and adapt
4 of 26
What is administration?
Administraion allows a company to continue to operate as the administrators try to find someone to purchase good parts of the business
5 of 26
What is acquisition?
A company takes over another company to make it more profitable
6 of 26
What companies took over and what were their costs?
look on document on laptop
7 of 26
What were their key performance indicators 2016
Revenue growth the result of organic growth•Support services contribution to operating profit offsets reduction from PPP and Middle-East constructio
8 of 26
What was on their risk management
working- winning, contract managment, brexit, pensions, new markets and services, ethics, systems, human rights, health and safety
9 of 26
State the timeline of their downfall
LOOK AT NOTES
10 of 26
Headline finnacials 2016
LOOK AT NOTES
11 of 26
What is liquidation?
Liquidation means a company ceases trading, and the liquidator merely tries to realise any remaining assets and distribute them to creditors.
12 of 26
What are the 2 types of liquidation?
compulsory liquidation and voluntary liquidation
13 of 26
who can decide to go in to compulsory liquidation?
This can be decided by the company, creditors, shareholders, official receiver
14 of 26
Why would compulsory happen? (4)
if the company cannot pay its debts, it has not commended business within a year of incorporation,has not been issued with a trading certif within a year, insufficnet memebers as subscribed by statue
15 of 26
What is the process of compulsory liquidation? (6)
1. petition 2.asset trasaction frozen 3. application is heard 4. court appoints an official receiver 4.collection of assets and settlement claims 5. disolution
16 of 26
What is the process of voluntary liquidation?
1. the members of the company agree to wind up the company 2. it begins when the company passes a resolution (agrees for this to occur. 3. the result that the company stops trading 4. the purpose is to allow insolvent and for the company to close
17 of 26
What will the liquidator look for? (5)
They will try to identify misconduct by the officer/ directors of the business, fraud, voidble transations, unfair trasactions, under priced transactions
18 of 26
What is the purpose of liquidation? (10)
collect assets, calculate outstanding liabilites, legal settlement of liabilites, liq costs, creditors with a fixed charge over assets, admin costs, employee wages, workers injury claims, annual leave pay, cred with a floating charge,
19 of 26
What is the purpose of liquidation? (2)
shareholders and creditors with no security
20 of 26
Why did they have to go into compulsory liquidation?
The company is not in a position to pay its debts•It is just and equitable to wind up the company
21 of 26
What warnings was there?
1. Failing to halt acquisitions and the build up of liabilities 2.Signing off aggressive accounting policies that allowed revenues to be booked early and costs to be delayed
22 of 26
More
Not tapping shareholders for help and instead continuing to pay out dividends even as cash haemorrhaged out of Carillion
23 of 26
more
Signing off on hefty pay packets and bonuses for top executives even when they scored zero on key performance targets introduced to instil capital discipline
24 of 26
more
corporate failure as a reason to take back bonuses
25 of 26
Where did it all go so wrong?
taking on too many risky contracts that proved unprofitable. It also faced payment delays in the Middle East that hit its accounts. Last year, it issued three profit warnings in five months and wrote down more than £1bn from the value of contracts.
26 of 26

Other cards in this set

Card 2

Front

What were their strategic objectives? (3)

Back

Rigorous contract selection and risk management2.Focus on growing support services 3.Maintain a strong construction capability

Card 3

Front

What were their strategic objectives? (2)

Back

Preview of the front of card 3

Card 4

Front

What were their strategic objectives? (2)

Back

Preview of the front of card 4

Card 5

Front

What is administration?

Back

Preview of the front of card 5
View more cards

Comments

No comments have yet been made

Similar Business Management resources:

See all Business Management resources »See all Business decision making resources »