IS === Maxirum Tne Alowes: 2 Hows Wielcome, Candidate Name Inhis isnt yourrame please et your adrinistrater row, (Chek Nexto star te test Operational Case Study ExamSecon number | Number of taske Time for section (minutes) “Thetime alate for each section for reading, paring and wring your answers). Please nte Section 2 consists of TWO asks. Please ave ennugh time to complete bth pas. “Ths irfrmaton wil bearable for youto access du the exarination by clekng onthe Pre-seenutonSeen crs Roger Dawson, Finance Managers on annual leave, You receive the following email from Freda Jones, Finance Director: From: Feeds Jones, Finance Decor TTerFinance Oricer Subject Expansion of ses ina Fevand ‘est had vary inrestng consersaton wth Richard Pct, Salas & Marting Ditectr, about expansion nto Fenland Fea 2 courty wth asm economic prof to Keyland and has the FS ace cureey. Richard hasbeen working Clozel we he Sales & Marking eam at TRU Group to make cortact anda sla negatatone ith poleral “epartmert store panels n Feylnd. The mast promisng lead athe Mamet wh Saf, a major nna department sorechan a Feyand ‘Stats nas agra en us space for concession sands te en sige sores, wh re alin major iis. The sangerent wa Sas be he same a wih ‘urkayans department stare panes here mint sles recess net rent nl be clested and pai vero she monn ter colecton We ined a prose aur own sles “emeloyes foreach concezston stand. We lo edt et up an ofce and worehousein eyand(robab on 2 shige te) fom which te whola Fela operation wl be ‘managed andnvereary sored ad dstbuted the concessen sands Fichat s confident at our prods il sl win Feyand, especialy wh ou Maden Keyan badge Apparently Fea conus af ely keen on ay products om Keland ‘because they have a epratn for bang hig auaty goods. Fuchard belves tat once weve esabished outset Stars we can lunch ou webstehere ae eed ou enIRe Sales ‘We nowneedto discuss, asa management team, some ofthe operational issues assocted wth sting up in Feland ad so lam preparing repr onthe mater Please could you send me an ema wih your assessment ofthe flowing ‘6 ny is portan hat we estbioh what our evel af demand might be mn Fyand and haw we might this using suey and tte approaches ie trancal reporting and tax plcatons of operating m Feand f we se up a subsidy Wis ncomporaed tee. now tek Feand uses tteratonal Fanci ‘Reperng Standards. The tax nes in Fed are exact the same as Kelana except that the corporat trates 308% anne whi tax appledo udends paid A outietation rey eats between the we cours. “Tran you Freda Jones Fence Drecor Snehee Navara @ Tabi a |rSeen. Leese ‘te the emaeacse by Fedo anes nthe box bbw ‘From: France Ocer ‘TocFeda Jones, Farce Oietr ‘Subjet RE Esponson sales fo evans Ea omcrs /Aweek ater, Roger Dawson i stil on annual leave and Freda Jones, Finance Director sends youth following email From: Feeds Jones, Finance Decor TTerFinance Once ‘Subject Felon budget, “Thank your the email tht you sent me ast weak: A the dicts mestng we decidedogo ahead wih he arangemert wth Sats, although we decked nto Setup as stbsiary ‘nt We wl be wuncting marking camagn in Fyland to promote or band, whch wi be organised and pa Tr rom Keyan ‘Aor meeting Richard Proce, Sales & Marketing Decoy, was ang abou ut marketing sategy for Felon. He kept mentioning veri wal and experiential marketing Ths ‘avery now osha and las weve aways ben que Vadanal hou martengappeaeh So at Wwe canta knouedgeaay abo dus wh Berar we woud Be very SIE au ould sed us arefng rete on what gurl, wal and expeental marketing areal abut wh examples of hor we might implement them m Fear We wilbe sting up an fce and warehouse in Feyland ana singe se. Te wie Fea operation willbe un rom is ofice as a profit cane seperate om the rest of te ‘business ela We wil employ a rarager ih cveralesponsby forthe prot certe ts safng and ts buget. Our products wl be shied om Keyan oth Friand ‘warehouse advil be chaged othe pot ceive sand cost of producion pis ght costs Each teen Stats concessions stands wi be seced nth warehouse “The Fefand manager wl have he same auory wih respect othe fecormented eal price of goats solo customers as out Sales Marages m Fear _We ned to stat puting he boe together forthe Fyn prof cent In parila am ncur of tow we should et the vokumes forthe sats ange, tis sat at igh el wt ‘ns be motwatora er the manager Please send me, ran eral a explanation othe deer ements hat shad be ncluded ths Duele depee of cro a he Fevand "manage il have foreach of hess elements and eter n your vw seg 3 fgh aie volume farget wou be motional forthe manager “Tark you France Orector Sonchez Novara a |r oarSeen ire your emai Freda Jones inthe box below ‘From: Finance Officer “To: Freda Jones, Fnance Drector ‘Subject RE Fevana tuonet Ea omSeen ‘Sixmonths ater. the te concession stands In Str department stoves ate operating. Jacob Peers the Feyland manager. ‘Youraceive the flloning email from Roger Dawson, Finance Manager From: Roger Dawson nance Manager TTerFinance Once ‘Subject Variance report and vestmert of surplus cash “The decors have asked for a bring paper for ther meeting ter ody on acouple of mater Fret, te decors have received the ltt sale variance report for body wach fam Jacob Perez (the manager ofthe Feyland business). The rectors woul ko know what he ‘epost them inte of how the Feyland profit centespesfoxming in sles of body wash, especialy a thee are some adverse variances, “Tonalp you win ths, know at Jacob nas he same autor fo eoice ne stared sling pie foreach poduct a do ou Keyl sts managers Cur roduets se wanted to the Feyland prot certre at ur budgeted standart cost of producton pus rh charges aise ata fod exchange ate This ransfr vale has not changed n he pend end the ‘Schange ae hasbeen stable nds exposed to feman ane sane lve ne oesceable se Second, despite the adverse variances, the Felon business has realy heed e boos the eral cach poston of te business the moment here is around KSt,000,000in our ‘sins bank acouris The reclvs have afeady decides that four martha te KSBS0 000 wilbe newado expan be production acy However, nthe shot hey ate ‘en at ay curerty surplus meneychoul eam som form of etm athe momar no TEs eared on other ofthe business bark acccurts). They have therfore ashod at the rig paar nclades explanation ofthe factors ba they need to cansier whan choosing howto mest ths money at suggest of sat vestments Pase pregaetne frat df chs being paper forme Mary tanks Roger Dawson Face Manager Sanchez Navara “The sales variance report canbe oune by eiking onthe Reference Materials button above. Onn a |rExtractof eles variance report tor Feylané prot centre ‘Sales of body wash forthe mont Standard gross | Price vance ron per unt - 1 Tota budgeted gross prof was FS54,012 forthe month, 2 The standard fos pli po unis the Standatd eal sling pice ss the standard cost of buying the product rom the production facity. Tis hasbeen ‘used alate the volime varices {3The stand etn eta pce per us F815, especie ofthe tomrance 4h urge was based on seg 6,000 units tal (1,200 or each aprance), Atul sles were 6600 unis etal (hich would equate to 00 itso each ‘ragranee ate ouigete 0).ire the rf being paper requested by Roger Dawson nthe boxbeow[fou weeks Inter Roger Davton phones you and sy: "The diectors ave now thinking about launching the onine sles service in Feyland. They ave not sure whether we should operate this within the Feyand profit ‘contre oF outsource the whale on-Ine sales function (which wilincude deaing with orders, distribution and customer care. There are two potential outsource pares; a TRU Group subsdary based in Feyland which sels lxury bedding trough its own on-ine sales function and a third-party dstnbuton and customer ‘cae specie, also based in Feyland, which manages on-ine ales for a number of cents. Richard Procter, Sales & Marketing Director, has prepared a schedule eoncemming the impact on proft forthe fst year of operation of each of these three options (n-house, outsource to TRU Group subsilary or outsource to» third-party). He is now away ata conference but Ido remember him sayna that there were diferent ways to nterret the tables shown m his schedule. The other dtectors would Ike to know what the schedules are showing as well as what the \anous interpretations ate. The duectors would als ike to know the benefis of carrying out the onvne sles function im house compared to outsourcing to ‘ther the TRU Group subsidiary or the thd party specalst. Pease come and pick up Richard's schedule and then prepare the frst drat of @ briefing paper tothe directors addressing these matter.” ‘Aer the phone call you collet Richaras schedule rom Roget “The seheuute can be found by elekng onthe Reference Materials burton above. oar a |rSchedule prepared by Richard Procter, Sales & Marketing Director Impact of onsine sales on proitfor the ist year of operation: sSSEs Tareas Wi OM WOT ore SH U Possible volume of Inhouse] Subsidiary| Third Party ‘sales in units FS'000 F$'000 $000 B00 200) TES 390 [-—a10.000, 200) 2750 2500] £30,000 3.500) 3500 3550) "Notes on proparaton of schedule: 1 That are tee pssitlewlumes of ses: 180,000 uns, 310,000 units an 48 000 unks. The eve Sales depends onthe mart condos 2 The mouse profs are based ane cornuton per unt an fed costs beng constant tal levels of sles 2. Botte TRU Group eubsary andthe ti pry are offering us a et charge per un snatched, The charge per unt patched varies wth vomes ok: ‘© Forthe TRU Group subsidiary the charge per unt wile higher at higher velumes, This Reeausethey wil ned te expand operations ifthe need to despath ‘more than 220 0 ns oe product nthe year ‘For tne id pay, he charge per unt decreases at higher volumes as ares of economies of saleire the rf being paper requested by Roger Dawson nthe boxbeow‘Thank you fr completing he Operational Case Study Exam. efoe you eave, do forget ocoect your pried confirmation of aterdance Floase click the End 2am (©) btn before leaving he tng room uit. a