Mock 3 Soloutions BPP.pdf

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M o c k E x a m

3

The solution that follows is a comprehensive answer showing the range

of points and calculations you could undertake. As the marking grid

shows, in the exam you would not need to make all the points in order

to be awarded high marks.

SOLUTION

AND MARKING GRID



Mock Exam3: Solutions and Marking grids2

ANSWER TO QUESTION 1A

REPORT

To: Board of Directors

From: Senior Management Accountant

Date: September 2013

Contents

1 Introduction

2 Terms of reference

3 Identification and prioritisation of issues

4 Approaches to resolving the main issues

5 Ethical considerations

6 Recommendations

7 ConclusionAppendices

1 SWOT analysis

2 Mendelow’s Stakeholder Analysis

3 Froth Shoes

4 Bonus Scheme

5 Nearshoring

INTRODUCTION

Despite stabilising its position in the years following its management buy-out in 2004, N is still struggling to

find a viable competitive position in its domestic market. N’s sales growth is well below its competitors, and

it has weaknesses in on-line sales growth, the integration of its multi-channel sales platform and

unfashionable clothes ranges.

N needs to create a sustainable competitive position either in terms of differentiation or cost leadership

(Porter) or it will become ‘stuck in the middle’. In the challenging economic conditions within Country Z, even

well-known companies that are ‘stuck in the middle’ will struggle to survive; this is illustrated by the failure of

many established high street retailers in the UK, such as Woolworths, in recent years.

TERMS OF REFERENCE

This report identifies and evaluates the issues facing N and offers appropriate recommendations.

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Mock exam 3 : Solution and marking grid 33

IDENTIFICATION AND PRIORITISATION OF ISSUES

The issues below have been prioritised, based on the potential impact each could have on N, combined with

their urgency. A full SWOT analysis is presented in Appendix 1.

3.1 Froth Shoes – first priority

This is the most important issue facing N because if Froth Shoes is liquidated N is likely to suffer a loss in

present value terms of approximately Z$30m. However, appropriate action taken promptly could convert this

into a benefit of Z$20m. Froth Shoes is considered an important concession strategically as well as

financially, as it attracts significant footfall into the stores. A decision as to whether to invest in Froth Shoes

is required by the administrator within the next week.

3.2 M-commerce – second priority

This is the second most important issue facing N as the company is already lagging behind its competitors in

this strategically vital area of the business. However, the trial in the new flagship store has produced poor

feedback. It is essential that the problems are identified and resolved before the roll out. An analysis of this

issue has been requested by the Finance Director as a decision on how to proceed is required within the

month.

3.3 Bonus scheme – third priority

This is the third most important issue facing N because N differentiates on the basis of quality of service, and

low staff morale represents a threat to that. The solution proposed by the HR Director may be effective but

too expensive. Alternative approaches could be equally effective at a much lower cost. There is no specificdeadline on a decision, so it has been ranked below the first two issues.

3.4 Nearshoring – fourth priority

This is the least important of the 4 key issues as this particular contract is relatively small for a company of

N’s size. However, in the longer term, costs of production are likely to continue to increase in South East

Asia, so this contract may present an opportunity to gain experience of nearshoring and increase the

flexibility of the supply chain.

3.5 Other issues facing BVS

There are issues which have not been prioritised in this report as they are seen as less urgent or as having a

minor impact on the organisation.

Global Textiles

Marketing campaign

Ethical issues facing N will be discussed in section 5.

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APPROACHES TO RESOLVING THE MAIN ISSUES

4.1 Froth Shoes – first priority

Impact

The Froth Shoes situation can be seen as both a threat and an opportunity. The threat relates to the potential

losses should the company go into liquidation. However, purchasing Froth could lead to higher profits and

gaining control of an important ‘supplier.’ This was the view taken by Debenhams when faced with the failure

of Principles in 2009 and Faith in 2010, both of which it decided to purchase.

Suitability

Froth represents a good strategic fit with N. The two companies have co-ordinated products. The Froth Shoes

brand is highly valued by N’s customers and supports wider womenswear sales. As a parent, N has a lot to

offer Froth. Froth Shoes failed through poor financial management. With access to N’s skills in this area and

N’s greater financial backing, the two companies could fit well together. Froth would also be able to benefitfrom N’s greater purchasing power.

On the other hand N has a number of strategic problems of its own to address, for example its weakness in

its integration between its on-line and stores based systems. It could be argued that taking on a significant

challenge such as this could be a distraction from the core issues that N is facing.

Acceptability

Appendix 3 demonstrates if the company goes into liquidation and N takes over the floor space it would

generate a loss of shareholder wealth of around Z$31m, greater than the cost of buying Froth. If the

acquisition goes ahead, it should generate an NPV of around Z$26m. Even allowing for the uncertainties in

the forecast, the financial argument for acquisition is hard to refute. Customers would also find the purchaseacceptable since they value the brand and will appreciate that N stepped in to save it. This could generate

good publicity and further sales.

Feasibility

The main issue here is the cash necessary to fund the acquisition. However, with the revolving credit facility

standing at Z$530.1m as at 31 March 2013, there should be sufficient of funds available. If not, given the

overwhelming financial benefits it is possible that the shareholders would be willing to provide any additional

finance required.

Often a stumbling block to successful acquisitions is integration of the new purchase. However, this should

not be a problem here. Froth Shoes only trades out of N stores and the CEO of Froth was an ex-employee. It

is likely that the cultures, values and processes of the two companies are very similar.


Impact

Debenhams now has wi-fi in each of its 167 stores and M&S is in the process or rolling it out, following a

successful trial. Debenhams claims that sales taken over mobile phones now accounts for 20% of its total

revenue. Clearly this demonstrates that there is a huge demand for M-commerce provided it is done properly,

and that the HR director’s fears of price comparisons are unfounded. This move would represent a market

penetration strategy (Ansoff’s Grid), and as such is relatively low risk since it is addressing N’s currentproducts and markets.

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Financial

The figures provided by the Finance Director demonstrate a clear financial benefit to the investment. Given

the need to catch up with our competitors the financial justification is less crucial, but it is reassuring that the

investment should be beneficial even if some of the costs prove higher.

Results of the trial

Before the scheme is rolled out on a wider scale it is important that the in-store app is improved, as it is

currently not offering sufficient added value to customers. Providing too much information on products will

just slow the app down and deter customers from using their phone. Too much text on a small screen may

actively deter use. Value added information should be provided, perhaps fashion tips or suggestions to match

potential purchases with other garments and accessories also available in store.Given that customers could

use internet access to search for similar items available elsewhere more cheaply, giving customers access to

discounts or vouchers, perhaps by QR codes displayed by the rails is more likely to result in sales. Improving

ease of access is important too. Most free access supplied by businesses for customers is available without

the need for a password.

Further risks

Any large scale IT project will carry risks. This particular project will require software development and

investment in hardware. This requires strong project management skills to ensure the project is delivered on

time and to budget. Given this is the first use of M-commerce for N it may be wise to seek external

consultants to advise on the technology issues. Rolling out the system more slowly will enable time for

technical issues to be resolved while they are still small, but would increase the time taken to catch up with

the competition and reduce the potential marketing impact of a ‘big bang’ changeover.

Security

It will be necessary to ensure that customer data is held securely and any personal details stored on the

system, including credit card numbers, are encrypted. It is important the wi-fi installed in the stores complies

with the latest security protocols, although most wi-fi available in shops and cafes is not very secure.

Reliability

Like the EPOS system and the online channel, it is important that the M-commerce system is available on a

reliable basis. While it is not as business critical as the tills, if customers perceive it as unreliable they may

not bother using it and sales will be lost. Reliability can be achieved via good design and maintenance,

thorough testing before launch and adequate duplication of hardware to deal with e.g. server failure.

4.3 Bonus scheme – third priority

Impact

Since customer service is key to N’s differentiation and given the changes to their role with the introductionof things like M-commerce and employee tablets, it is important to keep staff motivated and wanting to help

the company move forward.

Option 1 The bonus scheme

Appendix 4 demonstrates the impact on profit of the proposed scheme. One concern is that the scheme will

pay out Z$7.2m even if the original forecast sales are achieved. Nearly Z$5m is paid out if sales fall by 2%.

This seems to defeat the object of motivating staff to worker harder. Given the challenging retail environment,

it might be argued that managing to achieve the forecast sales is worth rewarding as sales are harder to

come by. It would partly depend on whether the additional cash is to encourage greater effort, or merely to

make employees feel better about their job (4J might be concerned if this was the main motivation). On the

plus side, if the staff are motivated to increase sales, the increased profit outweighs the cost of the bonus.The net increase in profit should sales increase by 10% would be Z$79m, enough to fund the next dividend.




Option 2 Alternatives

Most staff are not in a position of much power, particularly given the high unemployment across Europe.

Mendelow would regard them as a ‘Keep informed’ stakeholder with regard to this issue.

Various management theorists have looked at what motivates employees. Hertzberg regarded salary as a

hygiene factor rather than a motivator. He argued that workers could only be motivated by being empowered

to make decisions and by being given responsibility. However, that is probably more true of management

grades rather than shopfloor staff. It is common practice to reward sales staff using some kind of sales

linked pay.

Another way to motivate staff to want to buy in to the company’s goals is through improved communication.

Marks and Spencer managed to increase staff morale, despite 1200 job losses and 27 store closures. This

was done by increasing communication at all levels. Regular meetings take place between the employee

representation group and directors. Directors regularly visit individual stores and meet with employees and

much greater use is made of conference calls and instore briefings.

This has enabled M&S to raise staff satisfaction without expensive bonus schemes. On the other hand, John

Lewis, on the back of a 9.1% rise in sales, recently announced a bonus for staff amounting to 17% of their

salary.


Impact

Although the amounts involved here are relatively small, this contract could be seen as the start of a longer

term move to manufacture clothes nearer to Z. Given the constant battle to balance quality, flexibility and

cost, nearshoring is an important opportunity.

Suitability

One of the big limitations to profitability in the fashion industry is the wastage inherent in seasonal

collections that must be ordered a long time in advance. Some companies, such as Zara, have abandoned

this traditional industry model and aim to turn stock over on a much more regular basis; every few weeks.

Smaller orders can then be placed. This limits the impact of stock losses should garments not sell, but

enables further orders where a line proves popular. The problem with manufacturing in East Asia is partly the

time delay involved in shipping the goods, which can take several weeks. Manufacturing nearer to the

domestic market enables shorter transport times but still with lower labour rates. Clothcuts is clearly more

suitable here, as it enables the smaller order size, and possible reorder.

Acceptability

Which option is the most acceptable is harder to say. In the event of high sales the lower manufacturing cost

outweighs the benefit of flexibility. However, in the event of low sales, the fact that N still has to pay Fazza for

32,000 garments means Clothcuts is the better option.

Clothcuts is also more acceptable in terms of quality. Even if its quality was comparable, the closer the

supplier is, the quicker it is to get replacement of a faulty batch.

The recent collapse of the Rana Plaza shone a spotlight on the poor working conditions and safety standards

in Bangladesh. A supplier in Turkey is more likely to have the higher ethical standards our customers expect.

Nearshoring should also be more acceptable to consumers generally, as the reduced transport will reduce the

carbon footprint of the supply chain.

Feasibility

Given other companies in Z have used Clothcuts it seems feasible to place a contract with them, particularlyas the contract is not a big one for N, and would be done to trial a new idea. Marks and Spencer recently




moved production of dressing gowns from Sri Lanka to Turkey, which allowed it to test different colours

before needing to place significant orders, increasing sales by 11%.Given the likely continued cost of fuel and

the possibility that wage inflation will spread from China to other countries in Asia, the cost advantages of

manufacturing a long distance from the market are likely to be further eroded in the future.

There may be feasibility issues in dealing with a new country, such as language but communication should

be possible in English, and time differences will be reduced. The smaller time difference will make

communication between the design department and the factory easier during the setting up process.

Finally N needs to remember that some of the countries that have been used for nearshoring, such as Syria

and Egypt, are now unstable. Turkey has its own political problems and will need regular monitoring.

ETHICAL ISSUES

5.1 Global TextilesWhy this is an ethical issue

While the legal responsibility for breach of any law lies with Global Textiles, it is within N’s power to ensure

fair treatment of its employees. By not taking a stand, N would effectively condone abuse of workers and soallow it to continue. Next, Gap and Primark have all had similar problems to these in their supply chain andall have taken steps to prevent the problem in future.

Recommendations for this ethical issue

Global Textiles should be contacted by the Procurement Director who should demand a written guaranteethat its treatment of staff will improve and that it will comply with local labour laws and the industry’s ethicalcode. He should require the company to agree to random checks so that N can monitor the company’sadherence to the requirements of the Ethical Trading Initiative. A press statement should be prepared makingit clear that N was shocked at the revelations and is taking steps to ensure its garments are manufactured inethical conditions. Future contracts should clearly stipulate the need to adhere to ETI standards.

5.2 Marketing campaign

Why this is an ethical issue

This is an ethical issue because the company should behave as a responsible citizen. There has beenincreasing criticism of the use of airbrushing to portray models in unrealistic degrees of ‘perfection’ and howthis is adversely pressuring young people to try to match these unachievable standards. Britney Spears isone of several celebrities who have published unairbrushed photos of themselves in order to highlight theissue. Debenhams recently announced it would no longer accept airbrushed models and has also used morelarger sized and disabled models.

Recommendations for this ethical issueIt is recommended that the swimwear campaign does not use airbrushed pictures. While the Sales andMarketing Director’s views might have been accepted in the past, society’s view of this issue is changing andapart from any ethical imperative, it is unlikely to cause any damage to sales by using the original pictures.The Sales and Marketing Director should instead consider how the marketing campaign could use the ethicalstance of the company as a positive message to increase sales.

RECOMMENDATIONS

6.1 Froth Shoes – first priorityRecommendation for this issue

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This report recommends that N purchases Froth Shoes.

Justification

The financial benefit is overwhelming and because the company should be relatively easy to integrate with N

then there should not be a significant distraction from N’s core business.

Actions to be taken

The administrator should be informed in writing within the week about the intention to purchase.

Lawyers should be appointed to oversee the purchase. This is likely to be the first acquisition undertaken by

N and external skills will be required in drafting the contract and ensuring there are no regulatory barriers to

the transaction.

A press statement will be required. This can be used to generate good publicity, portraying N as saving a

much loved brand from extinction.

The transaction will probably require shareholder approval so a general meeting may be required.

The HR director should consider alignment of employee terms and conditions since, the Froth employees will

be part of the N group and be working alongside N employees.

The IT director will need to consider the process of integrating the Froth sales system into N’s.


Recommendation for this issue

It is recommended that the M-commerce system is rolled out across all 160 stores.

Justification

It is clear from the results competitors have achieved that this retail channel is already generating significant

revenue and has great potential for the future. However, before rolling out, the software needs to besignificantly improved.

Actions to be taken

Firstly the system should not require password access. If anyone can ask a member of staff for the passwordand be given it, it is not clear how the password adds any level of security but it does act as a deterrent touse.

Secondly the features available need to be radically improved. This should be done partly through abenchmarking exercise against competitors, and also by the use of customer focus groups and externalconsultants.

To ensure the project is delivered on time and on budget, a project management methodology should beadopted, with regular status reports to the Board. The risk assessment stage of such a methodology shouldensure that problems are anticipated and overcome and that adequate levels of security and reliability arebuilt into the system.

Finally the system cannot be developed in isolation, but needs to be properly integrated with the otherchannels so that purchases bought on line are visible to staff in stores, allowing a more flexible returnspolicy. The process would be enhanced by following Marks and Spencer’s example of recruiting a specificdirector of Multichannel E-commerce.

6.3 Bonus scheme - third priority





This report recommends non-financial solutions should be used to motivate staff in conjunction with a

cheaper bonus scheme linked to sales levels. The expensive bonus scheme suggested by the HR Director

should only be used as a last resort if morale declines further.

Justification

Marks and Spencer has clearly demonstrated that it is possible to improve staff morale without using

bonuses. However, improving staff ‘happiness’ is not the same as motivating them to sell more, so a

combined approach is likely to be more effective.

Actions to be taken

An employee representative council should be formed, comprising of elected representatives of the staff, the

HR director and some representatives from management and finance.

A regular conference call briefing should be implemented where local managers can raise concerns with

regional management.

A schedule of visits by directors should be implemented.

With regards the bonus, it is recommended that a bonus is only paid for beating the 2014 forecast, and thatthe percentages are reduced, with a maximum payout of 5%.



It is recommended that Clothcuts is chosen for the suits order.

Justification

Although the financial benefit depends on the actual sales achieved, this contract should be seen as an

experiment in using smaller orders and responding to sales data. It is likely that in the longer term the cost

advantages of places like China and the Indian sub-continent will be eroded by increased fuel and labourcosts.

Actions to be taken

Clothcuts should be contacted so that the necessary due diligence can be done. Although the contract is

relatively small, N still needs to go through the correct vetting process before classifying Clothcuts as an

approved supplier.

A factory visit should be arranged so that one of the procurement team can ensure the factory complies with

the necessary safety and ethical standards, and samples of production should be checked to ensure the

necessary quality standards.

Any contract with the supplier will need to include clauses to cover compensation for late delivery and ensureprotection of IP on the designs.

Once the suits are delivered sales will need monitoring at least weekly to see if the second order will be

required.

CONCLUSIONThe recommendations made in this report aim to assist the Board in dealing with the strategic issues thathave arisen recently. By following the recommendations, the worst of the impact will be mitigated.

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Appendix 1: SWOT analysis

Strengths

Spare finance available via the revolving

credit facility

Ms Bilder’s turnaround experience

New flagship store

Weaknesses

Long lead times

Poor feedback from the M-commerce trial – 2

Declining staff satisfaction - 3

Opportunities

Nearshoring with Clothcuts - 4

Purchase of Froth Shoes - 1

Threats

Competitors with better multichannel

operations

Collapse of Froth Shoes

Potential reputational damage from Global

Textiles

Appendix 2: Mendelow’s matrix

Key stakeholders are:

High Power, High Interest - Key Players

The Board of N

High Power, Low Interest - Keep Satisfied

4JAdministrator of Froth Shoes*

Low Power, High Interest - Keep Informed

Store staff

Head office staff

Clothcuts

*It is arguable how to regard the Administrator. Clearly it has the power to decide what happens to Froth but

presumably have no interest in who buys Froth as long as it is sold.




Appendix 3: Froth Shoes

If Froth is liquidated:

T0 T1 T2 T3

Z$m Z$m Z$m Z$m

Bad debt -10

Loss of concession income (W1) -12.8 -12.8 -12.8

Loss of margin on womenswear

(4% x Z$282.4m)

-11.3 -11.3 -11.3

Profit on replacement sales (W2) 13.0 17.3 17.3

Total -10 -11.1 -6.8 -6.8Discounted at 10% 1.000 0.909 0.826 0.751

-10 -10.1 -5.6 -5.1

NPV -30.9

W1 Loss of concession income

= floor area per shop x number of shops x sales/sqm x concession fee percentage

= 100 x 160 x Z$2000 x40%= Z$12.8m

W2 Profit on replacement sales

= floor area per shop x number of shops x sales/sqm for N products x GPM on Froth Shoes

= 100 x 160 x Z$1800 x 60%

= Z$17.3m (x 9/12 in T1 due to lead time in filling space)




If Froth is purchased:

T0 T1-3

Z$m Z$m

Acquisition cost -30Gross profit on sales

(100 x 160 x 2000 x 70%)

22.4

Total -30 22.4

Discounted at 10% 1.000 2.487

-30 55.7

NPV 25.7

Appendix 4: Bonus scheme

Sales level

(Z$m)

Bonus

%

Bonus cost

(% x Z$240m)

Increase in

GP (Z$m)

Net change in profit

(Z$m)

2039.0 2 4.8 -20.6 -25.4

2080.6 3 7.2 0.0 -7.2

2122.2 5 12.0 20.6 8.62184.6 7 16.8 51.5 34.7

2288.7 10 24.0 103.0 79.0




Appendix 5: Nearshoring

High sales (35,000 units)Fazza Clothcuts

Initial order size 32,000 15,000Z$’000 Z$’000

Sales revenue 9,600 4,500`

Manufacturing cost

32,000 x 93

15,000 x 135

2,976

2,025

Transport cost

32,000 x 5

15,000 x 3

160

45

Profit exc. Initial set-up costs 6,464 2,430

Set-up costs 50 100

Profit on initial order 6,414 2,330Profit on additional order of 20,000 units

=2,430x 20/15

3,240

Total profit 6,414 5,570 Fazza better

by +844

Low sales (15,000)

Initial order size 32,000 15,000

As above

Z$’000 Z$’000

Sales revenue 4,500

Manufacturing cost

32,000 x 93

15,000 x 135

2,976

Transport cost

32,000 x 5

15,000 x 3

160

Initial set-up costs 50

Total 1,314 2,330 Fazza worse

by

-1,016




Appendix 6: Bonus scheme

To: HR Director, HR Management Team

From: Senior Management Accountant

Date: September 2013

Re: Bonus Scheme

This email summarises my views on the proposed bonus scheme.

Financial considerations

Sales level

(Z$m)

Bonus cost

(Z$m)

Net change in profit

(Z$m)

2039.0 4.8 -25.4

2080.6 7.2 -7.22122.2 12.0 8.6

2184.6 16.8 34.7

2288.7 24.0 79.0

The major concern from a financial perspective is the paying out of a bonus even if sales do not better the2014 forecast. However, at higher levels of sales the benefits do outweigh the costs.Given that particularly retail salaries are generally low, it is likely that an element of bonus would be greatlyvalued by staff.

Non-financial solutions

If the objective is to increase morale rather than to boost sales, a bonus may not be the most cost effectivemethod. Employee satisfaction is increased by enhanced communication and being made to feel part of ateam. Communication can be enhanced through:

Greater use of briefings

Site visits by senior management

Forming a meaningful employee forum

Recommendation

Primarily non-financial approaches should be used, with a bonus scheme also employed but only for beatingforecast, and with a lower percentage payout.

If you wish to discuss this further, please feel free to email me.




Marking Grid for Mock Unseen

Criteria Issues to be discussed Marks

Total marks

available for

criterion

Technical SWOT/PEST/Ansoff/Porter’s 5 forces/Porter’sgeneric strategies/Mendelow/Suitability,Acceptability, Feasibility/ BCG/BalancedScorecard/Life cycle analysis/Marketingknowledge

1 mark for EACH technique demonstrated

1 each max 5 Max = 5

Application SWOT – to get full 3 marks the script mustinclude all the Top 4 issues

1–3

Other Technical Knowledge applied to casematerial in a meaningful relevant way – on merit

1–2

Max 5 forapplication of

theory

Calculations:

NPV of liquidation 3

NPV of acquisition 2

Bonus 3

Nearshoring 4

Total marks available (but max = 15)17

Max = 15

Diversity Display of sound business awareness and relevant

real life examples related to case

1 mark each

example usedon merit

Max = 5

Focus Major issues to be discussed

Froth Shoes 1

M-commerce 1

Bonus scheme 1

Nearshoring 1

Total marks available. 5 marks if the 4 mostimportant issues are discussed

Max = 5

Prioritisation 5 marks if 4 issues are prioritised and the

rationale for ranking is good AND the top 2 issuesare ranked in the correct order.

3-4 marks if top 2 priorities are in top 3 butranking rationale is weak.

2 marks maximum (marginal fail) if EITHER of thetop 2 issues are not in top 3 priorities, irrespectiveof quality of rationale for ranking of otherpriorities

Max = 5





Total marks

available for

criterion

Judgement 4 key issues and one minor issue available fordetailed analysis in this case:

Marks on merit based on depth of analysis andcommercially realistic comments

Froth Shoes – Should discuss why the companywould be a good purchase from both a financialand strategic perspective.

0–6

M-commerce – Should cover how to deal with thecurrent failings of the system and suggest valueadded ways of improving it. Answer should alsocover wider project management issues and ITrisks.

0–6

Bonus scheme - Solution should comment on thecalculated profit impact, make reference tomotivation theory, and provide practicalalternatives to bonuses.

0–5

Nearsourcing – Solution should recognise that themain reason for nearshoring is the future potentialrather than the particular contract. Given theuncertain demand it is not possible to predictwhich will be the better option financially, but thatisn’t really the point.

0–4

Global Textiles – unseen makes it fairly clear there

is no real commercial risk to this issue, so a maxof 1 mark can be awarded for discussion ofimpact of reputational damage.

0–1

Total marks available (but max = 20) 22

Max = 20

Integration Judge script holistically and whetherrecommendations follow on logically fromanalysis of the issues and refers to data inappendices. How well written is the report:professional language?

1–2 if weak

3–5 if script isgood

Max = 5

Logic Recommendations

(Marks on merit. Max 1 mark if only an unjustified

recommendation is given)

Froth – No marks if recommend allowing the

company to liquidate.0–6

M-commerce – No marks if recommendation not

to pursue M-commerce. Recommendations

should cover both improvements to the system

and project management issues. Solution should

recommend integration with other channels.

0–5

Max = 30

Q1 – 20

Q2 – 10





Total marks

available for

criterion

Bonus - Recommendation should recognise the

proposed bonus is too expensive and favour

alternatives. However, credit should be given for

any commercially sensible approach here.

0–5

Nearshoring – Either company would be suitable

with respect to specific order of suits and would

be a valid answer. However, solution should

recognise the longer term necessity for greater

nearshoring.

0–4

Global Textiles – for any well justified

recommendation but not if points just repeat

those made in the Ethics section.

0–1


QUESTION 1b 1 mark for email format. Up to 2 marks for

including a table with summarised data (not all the

columns from appendix 4 are required). Up to 1

mark for each point expressed briefly. 1 mark for

recommendation.


Ethics Ethical issues in case include:

Global Textiles – no marks for considering

impact on reputation or risk of losing

contract. Recommendations should bepractical but scope for several points here.

Airbrushing models – discussion should

focus on corporate citizenship and

reflecting the wider values of society.

NO MARKS for any section that appears

commercial even if it relates to an ethics topic.

Up to 5 for

identification

and discussion

of issues

Up to 5 for

recommendati

ons on how to

address those

issues

Max = 10

Total 100



S18

Documents

Mock 3 Soloutions BPP.pdf