Mock 4 Soloutions BPP.pdf

7/30/2019 Mock 4 Soloutions BPP.pdf

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MockExam

4

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


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Mock Exam 4: Solution and marking grid IESPT4232

ANSWER TO QUESTION 1A

REPORT

To: Finance Director, N

From: Management Accountant

Date: 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 Conclusion

Appendices

1 SWOT analysis

2 Ansoffs matrix

3 Online platform NPV

4 Autoroute payback

5 Q1b answer

INTRODUCTIONDespite 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. Ns 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 thefailure 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.

IDENTIFICATION AND PRIORITISATION OF ISSUES

The issues below have been prioritised based on the potential impact each could have combined with theirurgency. A full SWOT analysis is presented in Appendix 1.

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IESPT423 Mock Exam 4: Solution and marking grid 3

3.1 Integrated online platform first priority

The first priority in this report is the decision whether to acquire Jotty or partner with VeeJay in order to

deliver an integrated IT platform and clicks and bricks capability. This issue is ranked as the first in this

report because alongside tackling perhaps Ns most serious weaknesses, it will require a large capital

investment and also potentially the enormous effort required to integrate an acquisition.

3.2 Autoroute outlets second priorityThe second priority is the decision whether or not to expand into autoroute outlets. This is highly prioritised

due to the 3 week window of exclusivity alongside the strategic and operational scope of the project. It

ranks behind the first issue as its financial and operational impact is potentially much lower.

3.3 Change management third priority

The third priority is managing the change in attitudes to online sales. To a degree managing the possible

move to acquire Jotty or work with VeeJay will be much harder without supportive staff and Ns reputation

for good customer service also depends on staff support. However N already manages online sales with a

limited degree of success, so it is assumed that the culture, whilst not helpful, is by no means openly

hostile. As such the culture can be changed after a decision on the IT platform problem has been made andthe issue is not as urgent as the decision to acquire Autoroute outlets.

3.4 Customer retention fourth priority

Customer retention is a key driver of revenue and profits. However, this is ranked as the last issue in this

report as at this stage I have been asked to generate ideas rather than evaluate a current opportunity or

problem as with the other issues.

3.5 Other issues facing N

There are issues of lesser importance which have not been prioritised in this report as they are seen as less

urgent and as having minor impact on the organisation as a whole. For example matching staff charitabledonations, or the commercial case for using offshore trading vehicles.

Ethical issues facing the company have been discussed in a separate section.

APPROACHES TO RESOLVING THE MAIN ISSUES


ImpactThe lack of an integrated online sales platform, and a clicks and bricks offering are highlighted as major

weaknesses for N in Appendix 1. The moves either to acquire Jotty or agree a licence with VeeJay represent

differing approaches to penetrating the online market per Ansoffs Matrix in Appendix 2. Either of these

offerings would appear to overcome Ns strategic weakness.

Acquire Jotty

Acquiring Jotty would mimic the strategy of the UK supermarket Morrisons that purchased a small baby

goods retailer Kiddicare in 2011 in order to gain rights to its online platform and distribution centre. This

illustration lends strategic credibility to this approach.

From a financial perspective the acquisition yields a positive NPV of Z$28.3m over the first 5 years

(Appendix 3), which is very positive from a shareholder perspective. At this point assuming there is nofurther growth the recurring cashflows of $Z23.3m would be valued at Z$110m (23.3 / 0.12) x 0.567. This

illustrates that the purchase price of Z$35m represents excellent value for money for Ns shareholders.

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The acquisition gives N total control of Jotty. Additional value can possibly be levered from the brand. This

is in part reflected in the calculations above as they include the current profits of Jotty of $Z4m, inflated to

$Z7m to reflect the expected administrative savings possible through rationalisation.

Compared to the VeeJay option the opportunities for growth are greater at 30%. This will allow N to meet

most of its growth targets without restriction.

The negative aspects of this strategy include the difficulties of integrating an acquired company. It is well

known that in a clear majority of acquisitions the shareholders of the takeover company are worse off 12

months later than the shareholders of the target company. This reflects the tendency to (i) overpay for the

target and (ii) fail to take the tough decisions required to achieve rationalisation e.g. approving

redundancies. Aside from this N will need to be sure it can harness the IT capabilities of Jotty and integrate

these into its current systems where required.

Aside from these operational difficulties N will also need to integrate the acquired workforce whilst

respecting any legal obligations upon a transfer of employment. Where terms and conditions between 2

companies are very different it may be expensive to compensate one set of workers where there is a large

disparity between them. This was a problem for the UK arm of Deloitte when it acquired the business of

Arthur Andersen, whose staff were much better paid.

Finally the Jotty option is initially more cash intensive than VeeJay, requiring an upfront payment of Z$35m

with a further Z$15m over 5 years. However, this is somewhat offset by the larger cash inflows.

VeeJay

The licensing proposal is similar to a recent initiative signed between the UK grocery companies Morrison

and Ocado, part of Morrisons continuing drive to offer a broader online offering. Again this lends strategic

credibility to the plan.

The positive aspects of this ploy include that it is profitable, delivering a positive NPV of Z$18m over 5

years (Appendix 3). This is delivered at a lower initial capital cost of Z$10m and a lower overall cost of

Z$35m.

VeeJay appears to be a reputable company with a reasonably long trading history given the market it

operates in. This is a benefit of the proposal as N should benefit greatly from their expertise.The negative aspects of this proposal are that the capacity offered by VeeJay limits Ns growth prospects in

some areas. There are only 4 instances where capacity is a limiting factor for the Jotty, whereas with

VeeJay there are 8 instances. This is reflected in the total sales achieved under both proposals, where

VeeJay comes out Z$41m lower over 5 years.

A further concern is the effective non-competition clause that VeeJay wants. By agreeing not to enter the

grocery market for the next 5 years, N is further restricting its sales growth opportunities. Although this is

not something the company is looking at currently, N may wish to exploit this area in the near future.

In both instances, more research is needed to assess how significantly online sales could cannibalise store

sales. The SMDs estimate has been used, but this may be an over-estimate.

4.2 Autoroute outlets second priority

Impact

Expanding into autoroute outlets is a form of market development per Ansoffs Matrix in Appendix 2, and

has been classified as a major opportunity per Appendix 1.

Evaluation

This outline opportunity will be assessed using Johnson, Scholes and Whittinghams SAF framework.

Suitable

The suitability of these stores in somewhat uncertain. In the UK there are no autoroute outlets that currently

offer concessions from fashion stores. One of the largest operators Welcome Break has 35 locations with

hotels, fast food, stationery, mobile phone and quality grocery concessions. As such N would be a pioneer.

Having said this, the offering proposed with a much greater focus on accessories, appears to be geared up


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to the location and feedback received. The success of the stores is likely to depend upon the product mix,

so as long as this stays fairly fluid there is every chance that an attractive proposition can be launched.

From a different perspective this opportunity does fit with an existing idea floated by the Estates

Management Director.

Acceptable

Per Mendelows matrix the shareholders of N would be classified as keep satisfied given their relatively low

level of interest in N, but high power given their voting rights. Similarly customers who generally haveunrestricted choice as to where they spend their money need to be kept satisfied.

From a financial perspective the proposal looks acceptable. Appendix 4 shows that the current projections

will yield operating profits each year the stores are open, and that the initial investment in leases and store

fitting will be paid back in simple terms within 4 years. The margins steadily grow from 13% to 21% over 5

years. This is well in excess of the operating profit margin of 8.1% in the 31 March 2013 accounts. Overall

the shareholders will need to be convinced that these margins are a fair compensation for the risks that they

face, but it seems unlikely that they will object.

The success of the project will ultimately rest with whether customers will buy from the shops. In this

respect N will need to be guided by the focus group feedback received and weekly sales reports.

Feasible

The only bars to feasibility are N agreeing a deal with the outlet operator and financing the initial set-up

costs. The negotiations appear to be well advanced already and the Z$6m in capital investment appears to

be well within Ns current financing arrangement, notwithstanding a possible bid for Jotty.

Risk management

A suitable approach to trial will be the CIMA risk management cycle. This will involve appointing a senior

and experienced delegation to oversee the process. This team can then set about identifying, then

evaluating, all of the risks of the autoroute project such as a lack of footfall, theft or a failure to get the

product mix correct. Evaluation can be assisted with a variety of numerical techniques such as probability

analysis or Value at Risk calculations.

Once the risks have been recorded in a risk register a selection of suitable strategies can be made. These

can be drawn from:

Avoid choosing not to do something Control such as CCTV to deter theft Accept bearing the cost Transfer such as insuring against fire risk

The chosen strategies will then need to implemented and regularly reviewed in order to assess their

effectiveness. On at least an annual basis the whole process will need to be reviewed as the risks will

change over time. As such the risk register will need to be updated and new strategies employed.


Impact

In order to implement operational changes successfully the support of staff will be required. In this instance

there appears to be a lot of negative sentiment towards online selling, which is an area of growth targeted

by N. If this is not tackled any attempt to drive through change will be undermined by responses that could

range from indifference to outright hostility.

Formulating change management approaches

A good starting point for managing change is to adopt a proven framework such as the unfreeze move refreeze model by Kurt Lewin. This framework will allow the change manager to break down and plan what

needs to be done into smaller, more manageable, stages. The advantages a structured approach is that they


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are proven to work. Furthermore it should be easier to get a high level of staff buy-in if managers are able to

demonstrate that they know what they are doing i.e. it is easier to gain the trust and confidence of staff if

management is following a clear and logical pathway.

NOTE: Other change management approaches such as the Lewins Forcefield Analysis or Kotter and

Schlesinger are equally applicable

Implementing change management approaches

Unfreeze

This will require existing attitudes and behaviours to be challenged. A good way to do this would be to

undertake an employee education program. This could consist of the dissemination of information on the

actual benefits of online selling. For instance it appears that at least 70% of online sales would be sales that

would not have been made instore. This information could help reassure store staff.

Move

During the move phase employee behaviour and business processes will need to be changed. This will

require the implementation of any planned changes agreed at the unfreeze stage. For instance there will

undoubtedly be a need to change the way that warehouse operations are managed and recruit more staff, in

order to cope with a higher proportion of home deliveries.

Refreeze

The final stage is to ensure the new attitudes and processes become quickly entrenched. This is achieved

via a combination of positive and negative reinforcements. For instance a system of rewards could be

introduced to incentivise staff to adopt new working practices that support online sales. To balance this the

company needs to be prepared to implement disciplinary action if necessary if staff wilfully obstruct the

changes agreed.


Impact

Customer retention is a key driver of sales and profitability. If N can entice its existing customers to stayloyal to the business it not only secures future sales but also avoids the costly marketing campaigns and

discounting required to entice new customers. In essence this is the theory behind Customer Relations

Marketing as opposed to the more traditional Transactions Marketing. As an example the satellite TV

provider BSKYB invests a lot in customer retention as each customer spends on average around 450 a

year with the company. However the cost of attracting a new customer is over 200 as the company heavily

subsidises the equipment supplied and has a large advertising budget.

Tracking retention lawfully

A common method used to track customer data is to provide a loyalty card, such as those used by the

global retailer Tesco and the UK retailer Boots. These are issued under no obligation. Within the terms and

conditions of acceptance, they will have a clause allowing N to store and process data within legal limits.The Tesco Clubcard is now the largest database of its kind in Europe allowing Tesco to harvest data on 30

million shoppers in the UK per week.

How to boost retention

In order to boost retention N will need to use the cards to offer promotions for future purchases. The data

collected can be analysed to identify 2 things:

1. What do customers buy? Knowing this will allow N to offer discounts on future purchases oncustomers favourite items, thus enticing them back instore or onto the website

2. What are the missing items in customers baskets? Certain items may never be purchased byparticular customers, despite the fact they buy complementary goods. If for instance manycustomers buy shampoo but not conditioner N can offer discounts on conditioner to swell

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Aside from simple money-off vouchers N may be able to partner with other companies to make the rewards

transferable. For instance in the UK the Nectar loyalty card is run by a number of companies and allows

points earned in supermarkets to be spent against buying airline tickets. Such an approach broadens the

appeal of the card, making customers perhaps more likely to use it to shop with N.

The significant issue with such a scheme is the cost. To launch the card will require extensive IT and

marketing spend to provide the capability to host the service and to create customer awareness. The

ongoing costs will also be significant, due to the need to maintain the IT systems, host a customer helpline

and to offer discounts.

NOTE: Other retention methods such as store cards and simple money off your next purchase voucher are

equally acceptable

ETHICAL ISSUES

5.1 Confidential data

Why this is an ethical issue

An offer of confidential information on MFY has been made. The analyst has in all likelihood not only

breached his previous employment contract in retaining this data but has probably committed a crime as

well. Accepting this data would have the effect of condoning what the analyst has done.

Recommendation for this ethical issue

The offer should be unilaterally declined, and the data handed back to MFY. A similar incident occurred in

2006 when Pepsi Co was offered the recipe to a new Coca Cola product. Pepsi reacted by handing all the

information back to Coca Cola. This matter should also be referred to Ns HR department to implement any

disciplinary action against this employee, if warranted.

5.2 Marketing preferences


There are 2 ethical problems embedded within this issue. Firstly customer data may be being unlawfully

shared with third parties. Secondly the wording used on Ns website appears to be deliberately confusing,

allowing N and its partners to exploit customer misunderstandings.


Firstly N should investigate its database to discover whether there is a fault leading to unlawful data sharing.

As a precaution all emarketing campaigns should be suspended until the fault is cleared up and customer

data should not be passed to third parties. N should consider whether it ought to report itself to the

authorities for a breach of data protection laws.

Secondly the wording on the website should be made clearer to avoid customer confusion. The easiest way

to do this is to set the default position as customers opting out of receiving information from both N and its

partners, and then ticking a box to opt in.

5.3 Overseas trading hub


Whilst there is nothing legally wrong in a company minimising its tax liability it is not ethical to engineer

transactions so as to give merely the impression that a trade is being carried out overseas for tax purposes.

This is likely to be treated by the tax authorities as tax evasion, which is unlawful. A wider issue is whether itis ethical to channel profits overseas even in a lawful manner. This has been criticised as abusive business

practice as it allows a company to enjoy all the benefits of government spending without contributing its fair

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share of tax receipts. In 2013 multinationals such as Apple, Google and Starbucks have been criticised for

complex tax avoidance schemes. In July 2013 Finance ministers from the G20 group of nations backed

plans to tackle tax avoidance and evasion. They supported the automatic exchange of information between

countries and plans by the Organisation for Economic Co-operation and Development to stop firms moving

their profits across borders to avoid tax.


The scheme should be rejected. On the facts it seems more like a case of tax evasion. Even if it was lawful it

may result in widespread criticism of N. Such criticism may lead to reputational harm and possibly even

some customers boycotting N. In the longer-term it seems likely that this loophole will be closed.


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RECOMMENDATIONS


Recommendation

It is recommended that the acquisition of Jotty is pursued in preference to the licensing agreement withVeeJay.

Justification

The acquisition will give N much more control over its future strategy. Aside from this it does not limit the

future growth of online sales to the degree that VeeJay does. It is also has no grocery restrictions, is less

capital intensive and appears to be more profitable.

Action to be taken

The Board of N should approach the owners of Jotty with a view to entering into a heads ofagreement. This will secure a period of exclusivity where full due diligence can be performed.

The FD should put in place the necessary banking facility to ensure the purchase price of Jottycan be financed.

N should contact its legal advisors to ensure that the purchase contract is watertight. The Board should insist that the owners of Jotty stay involved in some capacity for at least 2

years after the purchase, to assist with the integration of the business.

The Board should also attempt to negotiate some sort of earn-out package with the owners toboth spread the cost of the acquisition and to incentivise the owners to maximise the financial

returns from the deal for themselves and N.

Contact should be maintained with VeeJay for as long as possible to ensure that this optionremains on the table in the event that negotiations with Jotty are not successful.

6.2 Autoroute outlets second priority

Recommendation

It is recommended that the agreement with the autoroute operator is pursued.

Justification

From the financial forecasts produced this appears to be a relatively low risk investment. It is potentially

very profitable, due in part to the reduced rent being offered and the premium pricing policy. N will be

offering its existing products within Country Z further minimising the risks in this venture.

Action to be taken

Negotiations should be continued with utmost haste to ensure that an agreement can be madewithin the 3 week period. At this point other parties may come forward which may have the

effect of bidding up the rent.

The floor space available should be passed to the Estates Management department so that theoptimal layout can be designed. During this process N should bear in mind the need to

maximise profits per m2, but also the need to retain some flexibility so that the product mix can

be tweaked in order to take advantage of seasonal changes in demand.

A tender for the shop fitting contract should be drawn up, so that once an agreement is in placethe shops can be opened as soon as possible.

A team should be appointed to implement the CIMA risk management cycle as outlined inAppendix 5.

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Recommendation

It is recommended that a structured change management programme is instituted in order to educate staff

in the benefits of online retailing as well as its importance in securing the future success of N.

Justification

Without the support of staff N will find it very difficult to successfully integrate the Jotty business or make apartnership with VeeJay work. As such, a systematic approach to changing staff attitudes is required. Aside

from this having any widespread negative sentiment is unhelpful as it will create tension between senior

management and staff, making change of any type more difficult due to a lack of trust.

Action to be taken

N should appoint a change agent to oversee the programme. This person should have thequalities of experience, leadership and genuine enthusiasm for the online strategy chosen.

Staff consultation should be undertaken. The sceptical employees will need to feel thatmanagement are listening to them, otherwise they will perceive any educational programme to

merely be company propaganda.

The change agent should identify a member of staff of each location who is supportive ofchange and appoint them as champions of change. These people can act as a focal point to

both carry a positive message and to deal with queries at a local level.

Once the decision on Jotty / VeeJay is taken the sales projections should be shared with staff sothat they can see the transformative benefits of the strategy. It is important that within this

message N stresses the relatively low levels of cannibalisation of sales, the scope for high

growth, and the negative consequences of a failure of N to act decisively.

The HR department should investigate the feasibility of introducing some financial incentives forstaff linked to the growth of online sales.


Recommendation

It is recommended that N looks into the feasibility of launching a loyalty card with partner companies.

Justification

The evidence of real life retailers such as Boots and Tesco indicates that these cards generate more value

than they cost to run. Given Ns current more pressing need to develop a more rounded IT platform the

company should look to share the cost and technology investment with other businesses. This will have the

additional benefit of broadening the cards appeal.

Action to be taken

The ITLD should produce a report into the costs and IT infrastructure required to support such ascheme.

The SMD should investigate the likely benefits of such a scheme, working on the assumptionsthat N is able to launch its own card OR is able to partner with other companies.

Implementation of any scheme should be deferred until the Jotty / VeeJay outcome is up andrunning so as to avoid overburdening Ns IT function.

CONCLUSIONThis report has identified and evaluated the issues facing N and has offered appropriate recommendations.

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Appendix 1: SWOT analysis

Strengths

History of N including brand loyalty andreputation

Cash availability for acquisition Ms Bilder (track record of success)

Weaknesses

Limited click and collect offering Poorly integrated IT platforms Weak customer retention Negative attitudes to web selling

Opportunities

Online capability upgrades Autoroute outlets Loyalty card

Threats

Online competitors Depressed economic growth

Appendix 2: Ansoffs matrix

Consolidate Penetrate

Online expansion Jotty / VeeJay

Loyalty cards Withdraw

Market developmentAutoroute outlets

Product development Diversification

Markets

Existing New

Existing

Products

New


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Appendix 3: Online platform NPV

Jotty (30% max) Forecast growth, year on year2014 Forecast

online sales 1 2 3 4 5

Womenswear 12.9 15.1 18.0 21.4 23.9 26.3

Menswear 11.2 13.6 16.7 20.7 23.8 26.1

Childrenswear 6.8 7.8 9.5 11.5 13.5 15.5

Health & Beauty 19.2 24.6 31.9 41.5 50.7 58.3

Accessories 14.7 18.4 23.9 31.1 38.2 45.1

Home (Household) 14.3 18.6 24.2 31.4 35.8 40.8

Total 79.1 98.0 124.1 157.6 185.9 212.2 856.9

VeeJay (25% max) Forecast growth, year on year2014 Forecast

online sales 1 2 3 4 5

Womenswear 12.9 15.1 18.0 21.4 23.9 26.3

Menswear 11.2 13.6 16.7 20.7 23.8 26.1Childrenswear 6.8 7.8 9.5 11.5 13.5 15.5

Health & Beauty 19.2 24.0 30.0 37.5 45.8 52.6

Accessories 14.7 18.4 23.0 28.7 35.3 41.7

Home (Household) 14.3 17.9 22.3 27.9 31.8 36.3

Total 79.1 96.7 119.4 147.7 174.1 198.6 815.7

Jotty NPV 0 1 2 3 4 5

Uplifted sales @ 70% 68.6 86.9 110.3 130.1 148.5

13% margin 8.9 11.3 14.3 16.9 19.3

Jotty profits 7.0 7.0 7.0 7.0 7.0

Investment (35.0) (3.0) (3.0) (3.0) (3.0) (3.0)

Cashflow (35.0) 12.9 15.3 18.3 20.9 23.3

12% DF 1.000 0.893 0.797 0.712 0.636 0.567

PV (35.0) 11.5 12.2 13.1 13.3 13.2

NPV 28.3

VeeJay NPV 0 1 2 3 4 5

Uplifted sales @ 70% 67.7 83.6 103.4 121.9 139.0

13% margin 8.8 10.9 13.4 15.8 18.1

Investment (10.0) (5.0) (5.0) (5.0) (5.0) (5.0)

Cashflow (10.0) 3.8 5.9 8.4 10.8 13.1

12% DF 1.000 0.893 0.797 0.712 0.636 0.567

PV (10.0) 3.4 4.7 6.0 6.9 7.4

NPV 18.4


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Appendix 4: Autoroute payback

Years

0 1 2 3 4 5

Floor space 18,000 18,000 18,000 18,000 18,000

Sales 8.91 9.62 10.39 11.22 12.12Gross Margin

Womenswear 61.8% 20% 1.10 1.19 1.29 1.39 1.50

Menswear 69.0% 10% 0.61 0.66 0.72 0.77 0.84

Health & Beauty 38.6% 20% 0.69 0.74 0.80 0.87 0.94

Accessories 60.0% 50% 2.67 2.89 3.12 3.37 3.64

5.08 5.49 5.92 6.40 6.91

Shop fitting 5.25

Premium 0.75

Rent Z$140m2 2.52 2.52 2.52 2.52 2.52

Distribution 8% of sales 0.71 0.77 0.83 0.90 0.97

Admin Z$58k pcm 0.70 0.72 0.75 0.78 0.81

Cashflows 6.00 1.15 1.47 1.82 2.20 2.61

Cumulative cashflows (4.85) (3.38) (1.56) 0.64 3.24

Margin % 13% 15% 18% 20% 21%


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Appendix 5: Answer to Question 1b

Slide 1

Assign responsibility to an experienced group of managers The risk appetite and capacity of N should be defined Specific risks of the Autoroute project should be identified A risk register can be created The risks can then be evaluated via probability analysis or VaR

Slide 2

Risk strategies can be devised from: Avoid, Accept, Control and Transfer The chosen strategies should be implemented The success of the implemented strategies should be regularly assessed The risk register should be regularly updated An annual review of the process will be required


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Marking Grid for Mock 4

Criteria Issues to be discussed Marks

Total marks

available for

criterion

Technical SWOT/PEST/Ansoff/Porters 5 forces/Portersgeneric 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

13

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

12

Max 5 forapplication of

theory

Calculations:

Jotty NPV 1-5

VeeJay NPV

Autoroute payback

1-3

1-5

Total marks available (but max = 15) 18

Max = 15

Diversity Display of sound business awareness andrelevant real life examples related to case

12 markseach exampleused on merit

Max = 5

Focus Major issues to be discussed:

IT platform 1

Autoroute outlets 1

Change management 1

Customer retention 1

If all issues above discussed in full 1


Max = 5

Prioritisation 5 marks if 4 issues are prioritised and therationale for ranking is good AND the top 2issues are ranked in the correct order

5

34 marks if top 2 priorities are in top 3 but

ranking rationale is weak 34

2 marks maximum (marginal fail) if EITHER ofthe top 2 issues are not in top 3 priorities,irrespective of quality of rationale for ranking ofother priorities

Up to 2

Max = 5


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Total marks

available for

criterion

Judgement 4 key and 1 minor issue available for detailedanalysis in this case:

Marks on merit based on depth of analysis andcommercially realistic comments

IT solutions the merits of each approach mustbe discussed i.e. SAF or +/- of each

17

Autoroute outlets again the SAF or +/- of thisapproach is required. A max of 3 marks if noreference to risk mgmt

17

Change management analysis on how to planfor change within N AND how to implementchange

16

Customer retention any suggestion to bemarked on merit but answers must tackle BOTH

tracking AND boosting retention

15


Max = 20

Logic Recommendations:

(Marks on merit. Max 1 mark if only an

unjustified recommendation is given)

IT solutions either outcome is acceptable,award higher marks for quality of practical advice

17

Autoroute outlets the numbers are very positiveso must recommend pursuing the opportunity.Limit marks to 3 if no mention of risk mgmt

17

Change management no credit for repeatingdiscussion points. Must focus on practicallypreparing for change

16

Customer retention some positive action mustbe given on both issues i.e, tracking data andboosting loyalty

15


Max = 30

Q1 (a) 20

Q1 (b) 10


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Total marks

available for

criterion

QUESTION 1b 1 mark for each valid point. Maximum of 2 marks

for each heading. Answer must be in the format

of 2 slides

10

Total marks available 10

Integration Judge script holistically and whether

recommendations follow on logically from

analysis of the issues and refers to data in

appendices. How well written is the report:

professional language?

12 if weak

35 if script is

good

Max = 5

Ethics Ethical issues in case include:

Confidential data:Hand back to MFYInvestigate ee

Marketing preferences:Suspend emails

Change website options

Overseas trading hubOutright rejection

Up to 5 for

identificationand discussion

of issues

Up to 5 for

recommend-

ations on how

to address

those issues

Max = 10

Total 100


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Documents

Mock 4 Soloutions BPP.pdf