SBL GRAND REVISION

MARCH 2024 ATTEMPT

BY HASAN DOSSANI

YEXMARINE– SPECIMENT EXAM 2

ADVANTAGES OF BOARD COMMITTEE
- more specialized
- more focused
- more time can be spent
- frees up the Board
- higher involvement of NEDs increasing shareholder confidence

DISADVANTAGES OF BOARD COMMITTEE

- Difficulty in finding NEDs with right expertise
- NEDs may not give sufficient time
- May not be motivated as they don’t get salaries
- Adding more NEDs can lead to extra cost

ORG CHANGE PROCESS / CHANGE MANAGEMENT

UNFREEZE
- Communicate the planned changes to employees
- Take their feedback
- Address their concerns
- Take their buy-in

MOVE
- Implementation / execution
- Detailed planning
- Project teams
- Training
- Overtime

REFREEZE
- Ensure compliance with new plans
- Rewards and appreciation
- Manage resistance
- Solve post implementation issues
IMPACT OF EMPLOYEE DISSATISFACTION / DEMOTIVATED
- Affects product quality
- Affects customer service
- Increase in customer complaints
- Loss of reputation
- Reduction in customers, revenue and market share
- Higher inefficiencies and wastages leading to higher costs
- High staff turnover
- Higher recruitment and training cost

TOOLS USED IN E-MARKEITNG

- Website / mobile apps
- Emails
- SEOs
- Social media (facebook, insta, linkedin, twitter, etc.)
- Big data analytics
- Blogs, forums, communities
- Influencers
- Placing our link on related websites

ADVANTAGES E-MARKEITNG
- Global reach / no geographical limitations
- Cheaper
- Personalized marketing
- Two way communication with customers
- 24x7 availability

DISADVANTAGES E-MARKEITNG
- Not all customers use internet
- Requirs expertise and one time investment
- Risk of hacking, data leakage and Cyber crimes
- Data security and privacy legislations
PSS– SPECIMENT EXAM 1
ENVIRONMENTAL POLICY OR FOOTPRINT
- Responsible use of scarce resources (e.g. use of solar power)
- Recycling and disposal of waste products
- Pollution, emission and reducing carbon footprint

STEPS TO ADOPT A NEW STANDARD OR EMAS

- Read and understand the requirements
- Analyze current process
- Identify the gaps
- Fill or address the gaps
- Audit to ensure you are fully compliant

BENEFITS OF A TELENT MANAGEMENT PROG

- Higher motivation
- Improved productivity and efficiency
- Better quality products and customer service
- Increased revenue and market share
- Lower staff turnover
- Helps in career progression and succession planning

CHALLENGES OF A TELENT MANAGEMENT PROG

- Resistance or low motivation towards training
- Staff might leave organization after training
- Extra cost implications
- Day to day work might suffer as staff may not have the time

BENEFITS OF BIG DATA ANALYTICS

- Better insight into customer needs and trends
- Customized products and deals
- Personalized marketing and sales promotion
- Higher customer satisfaction and retention
- Increased revenue and market share
- Comp edge

CHALLENGES OR THREATS OF BIG DATA ANALYTICS

- Data security and privacy risks
- Legal compliance and complications
- Requires IT technical expertise
- One time investment
QUALITA HOMES SEP/DEC 2022

EXTERNAL ENVIROMENT
PESTEL:
- Political
- Economy
- Social
- Technological
- Ecological
- Legal

PORTER 5 FORCES
- Power of customer
- Power of supplier
- Threat of new entrants
- Competition
- Substitute products

STRATEGIC POSITION
- PESTEL
- PORTER 5 FORCES
- INTERNAL FACTORS
o Human resource
o Financial resource
o IT
o Brand
o Others:
▪ Strategies
▪ Leadership

INTEGRATED REPORTING
ROLE OF IR
IR is a report which shows the relationship between:
a- Governance / Mission
b- Strategies
c- Financial performance
d- Social and environmental initiatives
And demonstrate how organization creates value in long run
DIFFERENCE BETWEEN FINANCIAL REPORTING AND IR

6 CAPITALS
1. financial capital (fin position)
2. manufacturing capital (NCA + CA)
3. intellectual capital (research, patents, brands, innovation)
4. human capital (employees)
5. social capital (customers, suppliers, society)
6. natural capital (environmental sustainability)

BENEFITS
- Since it’s a voluntary disclosure, it enhances the image and reputation of the organization
- Better communication with wider stakeholders
- Highlights social and environmental initiatives of the organization
- Talks about 6 capitals
- May attract ethical investors hence reducing the cost of capital
- Provides competitive edge

DRAWBACKS
- May disclose too much strategic information which may cause loss of competitive edge
- Valuation of 6 capitals is subjective
ADVANTAGES OF SOUND COST MANAGEMENT
- Increase in profit
- Higher ROCE
- Increase in EPS and share prices
- Higher profit leads to improved liquidity / cash flows
- Able to fund future plans or projects

ETHICAL ISSUES OR IMPLICATIONS

- IMPACT ON:
o Employees
o Customers
o Suppliers
o Society / community
- OTHER MATTERS:
o Deliberate violation of law
o Bribery and corruption

BUSINESS THREATS OR STRATEGIC ISSUES

- Reputational loss
- Legal fines and penalties
- Loss of customers, revenue and market share
- Ultimately going concern

ROLES AND RESPONSIBILITIES OF A PROJECT SPONSOR

- Prepare business case / PID
- Seep approval from the board
- Appoint project manager and project team
- Provide leadership to the project
- Monitor the progress
- Problem solving
- Communication with the board
- Responsible and accountable for the success of the project
SMARTWEAR PRACTICE EXAM # 3

POSSIBLE RISKS

- Business risk - Political risk

- Strategic risk - Economic risk
- Financial risk - Reputation risk
- Liquidity risk - Legal risk
- Credit risk - Operational risk (suppliers / production)
- Exchange risk - Environmental risk
- Market risk (share prices) - Competition risk
- Interest rate risk - Product obsolescence risk
- Technology risk - Health and safety risk
- Intellectual risk - Probity (fraud) risk

CHECKLIST FOR FINANCIAL PROJECTIONS

- Chk whether discounted cash flow method is used
- Whether the NPV is positive or not and comment
- Calculate payback and comment
- Check the projections and assumptions and see whether they are realistic
- Ask for breakups and basis of assumptions
- Check corporate tax has been included or not
- Check the basis of discount factor and check whether business risk factor has been included or not
- Suggest doing a sensitivity analysis
NOLA TOYS MAR/JUN 2023

ANALYZE CULTURE
- Power structure (talk about the leader and his style or habits)

- Organizational structure (board structure ie ED vs NED or functional departments)

- Control systems (quality focused or cost focused AND reward structure)

- Rituals and routines (daily activities, workplace environment, annual days, leaves, timings)

- Symbols (office layout)

- Stories (past events, values)

CORJETZ PRE MAR2024 MOCK

BENEFITS OF DIVERSITY IN THE BOARD

- Age diversity will have different ideas and perspective
- Gender diversity will help understand female customers
- Ethnic diversity will help understand various cultures
- Skills diversity will help the board to run all functions of business in a better way

BENEFITS OF HAVING NEDs IN THE BOARD

- Wider external perspective and experience
- Able to challenge Executive directors
- Monitor the performance of the board
- Higher shareholder confidence
TT4U
IT SECURITY AND CONTROLS
- Physical access controls (Server)
o Security
o Biometrics
o CCTVs
- Strong password management
o No sharing
o Should change regularly
o OTPs
o System lock down after 3-5 incorrect attempts
- Access rights should be given as per user’s role
- Firewalls
- Backups
- Anti virus
- System logs / audit trails
- Segregation duties
- Disaster recovery plans
- Staff training
- IT audits

E-BUSINESS / E-MARKETING
TOOLS:
- Search engine optimization (SEO) / google search
- Emails
- Website
- Social media: Facebook page, Instagram, Linked-in, Whatsapp, Twitter
- Links on related websites
- Blogs / forums / communities
- Influencers

ADVANTAGES:
- Global reach (no geographical boundaries)
- Customer convenience
- Personalized marketing
- Lower cost (less physical outlets required)
- Two way communication with customers
DISADVANTAGES:
- Not all customers use internet
- One time investment required
- Requires technical expertise / IT infrastructure
- Risk of Hacking and cyber frauds
- Data security / privacy / legal compliances
- dependency in internet

CHANGE MANAGEMENT STAGES (CHANGE MGT OR TRANSFORMATION)

1- Un-freeze
a. Communication the planned changes with all employees
b. Explain the benefits and reasons of the proposed changes
c. Taking their views and feedback and address their concerns
d. Obtain employee buy-in
2- Move
a. Implement / execute the plan
b. Detailed planning
c. Make project teams
d. Trainings
e. Compensate for extra work by giving overtime
3- Re-freeze
a. Monitoring compliance
b. Rewards and recognition to employees
c. Handle resistance if any

COMPOSITION OF THE BOARD

- Chairman (NED)
- CEO (ED)
- Executive directors
- Sufficient Non executive directors (around 50%)
- Board committees
OPTIMA

ADVANTAGES OF CUSTOMER SEGMENTATION ANALYSIS

- Same like big data

ADVANTAGES OF CSR
- Enhance the reputation and image of the org
- More customers / revenue
- Better staff retention / motivation
- Able to attract talented workforce
- Ethical investors leading to lower cost of capital
- Government grants and future contracts / partnerships
- Society word of mouth leading to enhanced reputation

ADVANTAGES OF MOBILE APPS

- More handy / convenient
- Notifications / reminders / popups
- Two way communication
- Feedbacks and complaints
- More personalized
HILITE HOTELS
SUCCESS FACTORS
EXTERNAL:
- Political
- Economy
- Social
- Technological
- Ecological
- Legal
- Customers
- Suppliers
- Threats of new entrants
- Competition
- Substitute products
INTERNAL:
- Human resource / expertise
- Financial resources
- IT
- Brand
- Others:
o Leadership
o Good Strategies
o Good processes

SFA FRAMEWORK (FOR ACQUISITION QUESTION ONLY)

SUITABILITY (external factors)
Home country
Target country
Target company

FEASIBILITY (internal factors)

Human resource / expertise
Financial resource
IT
Brand

ACCEPTABILITY
Shareholder acceptance
Cultural diff (if another country involved)
Financial analysis of target company
SOCIAL FOOTPRINT
- Employees
- Customers / Suppliers
- Society

ENVIRONMENTAL FOOTPRINT
- Minimize Use of scarce natural resources (use renewable energy like solar, bio-fuel etc))
- Minimize waste (do recycling)
- Pollution, carbon emission
STUDY PLAN FOR NEXT TWO DAYS
- Thoroughly revise the TOP 25 topics (if done then no need)
- Go through grand revision notes (this one)
- Revise preseen summary Sir Hasan Dossani
- Revise preseen discussion points and answers by Sir Hasan Dossani

EXAM DAY FOCUS

- Take good sleep and get up fresh
- Focus on rigorous time management. Do not fall in time trap. Move to next question as soon as
allowed time is up
- Focus on number of points
- Do bouncer question in the last.
- 90% answer should be from exhibit, 10% from preseen
- From preseen try to link with strategic objectives or values and KPIs
- Dress nicely and formally just like a CFO

ALLL THE BEST CFOs