To: The Finance Manager

From: Martin Thawani, Senior Financial Manager

Subject: Profits

Hi FM

Sorry that I have not been around today. I have been in a meeting with Dujuan reviewing an extract of our own annual report against that of Westaglint. I have attached a copy of this for your reference.

Despite our success, he is unhappy and believes that we may soon be overtaken by our main competitor, Westaglint. Although we have higher revenues and market share in absolute terms, they have better profit margins. He believes that they can leverage this to take business from us in the future.

He does have a point. Before my next meeting I need to have some solutions, this is where I need your help as I am short on time. Can you please prepare a report that addresses the following two issues?

Firstly, there are a broad range of contributing factors that can achieve higher margins. I would be interested to hear your own suggestions as to how we could potentially improve our gross and net profit margins. [Subtask (A) = 60%].

Secondly, I am also aware that achieving higher margins can have adverse effects on other parts of our business model. In light of this, please explain any potential risks we may face as a result of any suggestions you make. [Subtask (B) = 40%].

I need this in a report by the end of today please.

Thank you,

Martin

To: The Finance Manager

From: Martin Thawani, Senior Financial Manager

Subject: Digital Customers

Hey FM,

Thank you for your help writing that report last week that suggested ways to improve margins. One idea that the Board are almost agreed on is to close our call centre to reduce wages and salaries. The idea is to require potential customers to make online bookings through our automated website only.

This is quite drastic, and I am not sure that it is a great idea. However, it will be going ahead.

Before it is announced tomorrow, I’d like to be prepared. The staff will be understandably upset. Please suggest a list of ways that we can support the call centre staff through the redundancy process. [Subtask (A) = 40%].

I believe that online only booking will mean a shift in our customer base. The marketing team will need new data to target them. I have heard of a concept called “The Digital Customer” which is a recent term used to describe changes in buying behaviour and habits. Please describe what these changes could mean in the context of our own business model. [Subtask (B) = 32%].

Finally, I have concerns about how the market may react to this initiative. I know that Dujuan and Nathan spoke about it after the last board meeting. In your opinion what impact could this have on our share price? [Subtask (C ) = 28%]

I am really grateful for your help with this, I look forward to receiving your memo.

Kind Regards

Martin

[A transcript of the conversation between Dujuan and Nathan has been re-produced in the Reference Material]

Dujuan: So, Nathan, I’ve been thinking a lot about this call centre closure I’m not sure how the market will react to this kind of drastic change.

Nathan: Yeah, I’ve been wondering the same thing. I can’t shake the feeling that investors might be worried about the transition. There’s always that initial uncertainty when you make a big move like this.Dujuan: Exactly. But this could go either way.

Nathan: What do you mean?

Dujuan: Well, it could also be positive.

Nathan: Hmm I suppose so. But there could be some volatility.Dujuan: We cannot risk not knowing. We need to prepare for either scenario and manage the changes correctly.

Nathan: That’s the key. We need to get out in front of this, be proactive in our messaging. If we handle it right, we could come out of this looking even stronger. But yeah, I wouldn’t be surprised if we see some early jitters reflected in the share price.

To: The Finance Manager

From: Martin Thawani, Senior Financial Manager

Subject: Integrated Reporting

Good morning FM,

Take a look at this article I found last night online. I have attached it to this email.

Lately I feel that all of our focus has been on profits, and we risk losing the real core values of our business. I want to bring the focus back. I have been wondering what we can do to keep a more rounded focus and believe I found some good solutions.

I’m hoping that you can help me with some work on these two ideas:

Integrated Reporting seems interesting, it could be very good for us as a business but what about the users? Is it really an improvement for them? Please advise of the potential benefits of Integrated Reporting to the users of our annual reports. [Subtask (A) = 40%]

As well as Integrated Reporting I looked at something called a Balanced Scorecard. This looks like a well-rounded approach help drive our performance and create more value.

With this in mind I would like you to recommend TWO applicable KPI's relevant for us under each of the FOUR perspectives of the Balanced Score Card. Please try to remember that effective KPI's are often described as being "SMART". [Subtask (B) = 60%]

If you could put all of this in an email for me by the end of today that would be great.

Regards,

Martin

To: The Finance Manager

From: Martin Thawani, Senior Financial Manager

Subject: Booking System

Good morning FM,

Since closing the call centre, it has become apparent that our online booking system is woefully inadequate. We have had many emails expressing frustration at not being able to use the online system properly. Also, from the system data, we can see that many people get part way through booking an appointment and simply give up. We are losing a lot of potential business.

The booking system needs a complete overhaul, and quickly. If we do not get this sorted soon, I fear our reputation will be adversely affected and orders and sales will fall.

I need to attend a meeting about this today and would appreciate your input. Can you please prepare a set of briefing notes including the following items:

Explain what different resources we will need to ensure a timely and successful upgrade of our booking system. [Subtask (A) = 40%].

I suggested putting a project team together for this, but the Board believes that this is just business as usual. Are they right? Please describe the characteristics of a project and apply them to this situation. [Subtask (B) = 20%].

Whether this is indeed a project or not, we need more money! Please analyse the potential sources of finance available to a company like us, and recommend the most suitable one. [Subtask (C ) = 40%]

Thank you, FM.

Martin