VOLT TECH MOTORS
PRE DECEMBER 2023 MOCK
SKELETON ANSWER BY SIR HASAN DOSSANI
WhatsApp: +971555245672
1/12
(1a) Prepare a report for the CEO that critically evaluates the proposal received
from the Ceelandian government that discusses the benefits and challenges of
accepting the proposal for VTM and recommend the appropriate course of action. (20
marks) (Scepticism Skill)
REPORT
TO: CEO
FROM: Senior Business Analyst
SUBJECT: Proposal from Ceelandian Government
DATE: TODAY
INTRODUCTION
This report critically evaluates the proposal received from the Ceelandian government that discusses the
benefits and challenges of accepting the proposal for VTM and recommend the appropriate course of
action.
BENEFITS
- Opportunity for revenue and profitability growth. Our revenue and profit has fallen last year due to
intense competition
- Availability of local skilled resources
- Strategic location for manufacturing plant available at nominal cost for 15 years
- enough awareness in Ceelandia about the importance of sustainable growth and the industryis
taking steps towards becoming an environment-friendly economy
- There are existing local manufacturers of various components required for manufacturing the
electric vehicles
- Ceelandia government may extend the agreement to include manufacturing of electric buses for
public transport in Ceelandia. Opportunity for product diversification and new revenue stream
- First movers advantage
CHALLENGES
- VTM may need to pay a one-time payment of $2.5m to government official who will help us in getting
the proposal sanctioned to us. This seems to be bribery and is against our ethical value.
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- Ceelandia has successfully come out of a long-term recession and the current government is confident
of putting up a robust economic growth in the coming five years. What if this robust economic growth
does not happen?
- Better margins and higher ROA of 12%: Our existing ROA is 9%. This seems over optimistic. A proper
NPV analysis needs to be to validate this assumption
- High political risk as current Government has assumed power recently, the country has a history of
frequent changes on the political front
- Several government promises such as tax incentives, development of infrastructure, etc. . What if the
government changes or they do not keep their promises.
- There’s a small town which will be re-located to a nearby location. This might cause resistance or bad
publicity
- The demand will be for small compact car with a range of 300km. Our Voltech V1 has a range of 200
km only.
- Strong trade unions which may pose HR challenges in the long run
(select 3 benefits and 7 challenges – focus on scepticism skill – disagree or ask ques)
RECOMMENDATION
The proposal seems like a good opportunity for geographical expansion and growth in revenue and
profitability in the backdrop of intense competition. However there are several risks and assumptions
which needs to be analyzed carefully before accepting this proposal. A thorough financial projections
should also be done with multiple scenario / sensitivity analysis.
However the one time payment of $2.5 million to senior government official to become successful bidder
should be avoided as it is a form of bribery and is against the ethical values of the company
Best regards
Senior Business Analyst
3/12
(1b) Draft a note to the CEO that discusses the ethical implications to VTM of agreeing
to the conditions when accepting the proposal (8 marks)
NOTE TO CEO
SUBJECT: Ethical Implications of Ceelandian Government Proposal
INTRODUCTION
This note discusses the ethical implications to VTM of agreeing to the conditions when accepting the
proposal
Customers
There is enough awareness in people of Ceelandia regarding environmental sustainability and customers
are slowly shifting to EVs. Our cars will help support this initiative and is in line with our values.
Suppliers
Since we will be buying various components from local suppliers, we will be contributing in boosting the
economic activity and growth of automotive industry in Ceelandia
Society
Since we will be employing local skilled labour, we will be creating job opportunities in Ceelandia which
will help in reducing unemployment in the area in which we are operating.
Bribery
A one time payment of $2.5 million is to be made to senior government official to become successful
bidder. This is a form of bribery and is against the ethical values of the company. It may lead to legal fines
and penalties and reputation risk as well.
Relocation of small town
There is a small town which will be re-located to a nearby location paving the way for the construction
site. This will cause disruption in their daily life and create hardship and possible financial losses for the
people of the town.
(select any 4 points)
Best regards
Senior Business Analyst
4/12
(2a) Prepare a briefing note that discusses why developing a detailed Business Case is
essential for VTM before it implements the project of swappable batteries. Your
discussion should focus on the benefits and essential contents of the business case
document in relation to the swappable battery project. (16 marks) (COMM ACCUMEN)
BRIEFING NOTE
TO: CFO
FROM: Senior Business Analyst
SUBJECT: Business Case
DATE: TODAY
INTRODUCTION
This briefing note discussed s why developing a detailed Business Case is essential for VTM before it
implements the project of swappable batteries and includes benefits and essential contents of the
business case document in relation to the swappable battery project
BENEFITS
- Clarity of purpose and objective
- Identifies all benefits, challenges and risks associated with the project
- Demonstrate financial feasibility of the project
- Assist in formal discussion and decision making by the board
- Monitoring the progress of the project
- Analyzing whether the project is successful
CONTENTS
- Current situation / issues (justification for the project)
- Summary of the project
- Benefits
- Challenges and risks
- Financial feasibility
- Key stakeholders
- Resources required
- Governance and monitoring
5/12
- Recommendation
(select any 8 points)
Best regards
Senior Business Analyst
6/12
(2b) Prepare briefing notes for the CFO that discuss the potential challenges and risks
VTM may face in the implementation of the swapping battery project and subsequent
operations. The CFO requires you to provide your views on the likelihood and impact
of the risks identified (20 MARKS) (EVALUATION SKILLS)
BRIEFING NOTE
TO: CFO
FROM: Senior Business Analyst
SUBJECT: Challenges and risks of swapping battery project
DATE: TODAY
INTRODUCTION
This briefing note discusses the potential challenges and risks VTM may face in the implementation of
the swapping battery project and subsequent operations and provide views on the likelihood and
impact of the risks identified.
IMPLEMENTAION PHASE
- Regulatory risk
The commercial launch will be subject to us agreeing to the terms and conditions of BST. Likelihood:
Low / Impact: High
- Technological risk
Technology of swappable batteries is still in its developing stage. EV companies are likely to face
challenges regarding modifications required to be made in the EV designs to enable faster and easy
replacement. Likelihood: Medium / Impact: High
- Stakeholder risk
EV industry stakeholders suggests a bit of scepticism regarding whether the swappable batteries
would be environmentally sustainable, particularly with regard to the waste management and
recycling of batteries. I don’t foresee any issue in getting a nod from our shareholders as this project
aligns well with our mission and vision to which they are supportive Likelihood: Low / Impact: Medium
- Infrastructure Risk
We must consider whether we have the required infrastructure in place for swapping the batteries.
Without a robust infrastructure, the implementation will not succeed. Create battery swapping
stations and have a robust set-up throughout the country. Likelihood: High / Impact: High
- Financial risk
The success of swappable batteries will largely be dependent upon the on several factors including
cost. Financial feasibility is important. Likelihood: High / Impact: High
- Operational risk
7/12
Laura(the COO) has confirmed that little modifications are required in the vehicle designs and
she could start the manufacturing almost immediately. Our battery production facility is capable of
scaling up to manufacture swappable batteries. Likelihood: Low / Impact: Medium
- Logistic risk
We need to decide how the logistics for battery swapping will work. Likelihood: Low / Impact: High
OPERATIONAL PHASE
- Competition risk
Many existing EV companies in Corlandia have invested large amounts to make swappable
batteries a workable proposition. Likelihood: High / Impact: High
- Regulatory risk
Government is thinking of promulgating a new ordinance in this regard to ensure vehicle and customer
safety. Likelihood: High / Impact: Low
- Customer Satisfaction risk
Customer education is a challenge. Most of the customers expressed concerns about getting alerts
about when the battery needs swapping and the nearest swapping centre when they are travelling.
Likelihood: High / Impact: High
(select any 6-7 risks – assume each point is 3 marks as we have to comment of
likelihood and impact also)
Best regards
Senior Business Analyst
8/12
(3a) Prepare a report, addressed to Mr. John Anderson recommending an appropriate
integrated reporting framework for VTM. The report should include a discussion on the
relevance of the data presented in the existing performance summary. The report
should include suggestions on the KPIs that VTM should use to report on its
performance under integrated reporting (20 MARKS) (ANALYSIS SKILLS)
REPORT
TO: John Anderson
FROM: Senior Business Analyst
SUBJECT: Integrated Reporting Framework
DATE: TODAY
INTRODUCTION
This report recommends an appropriate integrated reporting framework for VTM and includes a
discussion on the relevance of the data presented in the existing performance summary and suggestions
on the KPIs that VTM should use to report on its performance under integrated reporting
I/R FRAMEWORK
- An IR is a report which shows the link between an organization’s mission, strategies, financial
performance and social and environmental initiatives and shows how organization creates value in
the long run.
- It is more futuristic and wholistic
- It addresses the wider stakeholders, such as customers, government, employees, etc.
- It focuses on social and environmental initiatives of the organization
KPIs
- Financial capital
o Revenue growth – depleting
o Profit margin – depleting
o Debt equity ratio – depleting
- Intellectual capital
o R&D expenditure – depleting
- Human capital
o Staff turnover – depleting
o Employee satisfaction – depleting
- Social capital
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o Customer complaints – depleting
o Delays in deliveries – depleting
o Outstanding orders – depleting
- Natural capital
o Carbon emission – improving
o Renewable energy % – improving
(select any 10 points)
Best regards
Senior Business Analyst
10/12
(3b) Prepare two presentation slides together with supporting notes for the CFO,
which explain various governance committees VTM should form with a brief role of
each committee and a plan for stakeholder engagement (only for the groups
identified). (16 MARKS) (COMMUNICATION SKILLS)
SLIDE 1 – ROLE OF EACH COMMITTEE
Audit Committee:
The role of audit committee is to review the financial statements, internal controls, internal audit, external
audit and whistle blowing
Nomination & Remuneration Committee:
The role of Nomination & Remuneration Committee is to nominate new directors, monitor their
performance and decide on the remuneration of each director.
Risk Committee:
The role of risk committee is to identify all risks, implement controls to mitigate their likelihood and impact
and maintain upto date risk register
Stakeholders Relationship Committee:
The role of Stakeholders Relationship committee is to identify the stakeholders, analyze their power and
interest and then maintain strong relationships with them according to the stakeholder engagement plan
SLIDE 2 – PLAN FOR STAKEHOLDER ENGAGEMENT
Shareholders:
High power
High interest
Plan: seek approval for all major decisions
Customers:
Low power
High interest
Plan: keep informed
Government:
High power
Low interest
Plan: keep satisfied
Employees :
Low power
11/12
High interest
Plan: keep informed
12/12
