s integrated case march 2015 webinar 2 february...

STRATEGIC LEVEL

INTEGRATED CASE MARCH 2015WEBINAR 2

FEBRUARY 26TH 2015

Adrian Sims

[email protected]

• Revise the SCS exam structure

• Revise the competences you will need to pass the SCS examination

• Revise the key issues in the pre-seen material for ‘Look’

• Explain techniques to get marks in the SCS exam using mock simulations

• Apply techniques to a mock exam

Objectives for Webinar 2

2

Exam structurePre-seen material

September 2014 +

Exams w/c

9th March

35 variants of exam

Trigger material

Tasks Tasks TasksTrigger material

Trigger material

Trigger material


Trigger material

Trigger material


Trigger material

Trigger material


Trigger material

Trigger material


Trigger material

Up to 3 hours

Exam Day

4

• Sat on a PC and using a word processor• Represents office assignments (email, report, memo)• Reporting to CFO or Board level• Provided a sequence of ‘triggers’ and requested to

conduct a series of time-constrained tasks (eg 3 x 60 mins, 4 x 45 mins)

• Trigger = additional information, tasks, and a deadline• 2 tasks per trigger: you choose how you allocate

available time between them• Complete first set of tasks and submit before seeing

next trigger(no going back)• No complex calculations to do in exam

The competences being assessed in the SCS Exam

5

The four competences

6

Plus 2 moreIntegration

Your written submissions must join up

• Consistent analysis and advice involving all the competences

• Combine insight from across the three strategic subjects

Underpinned by Ethics, Integrity & ProfessionalismYour written submissions should

• Draw attention to ethical issues

• Ensure the advice you give is ethical

• Provide value and inspire trust

7

What it takes to pass

Strategic Level Competences

Total marks

available

Student marks

attained

Threshold of competence (33% min)

Statement of competence

Core accounting and finance skills

23 8

Business acumen 23 8

People skills 22 7

Leadership skills 23 8

Integration 9 3

Totals 100 Score >60%?

Competent in all skills?

8

The resultStrategic Level Competences

Total marks

available

Candidatescore

Threshold of competency

Candidate Performance

Coreaccounting and finance skills

23 8 8 Competent

Business acumen

23 8 8 Competent

People skills 22 7 7 Competent

Leadership skills

23 8 8 Competent

Integration 9 3 3 Competent

Total 34

9

Grade: FailScore: 34/100 (less than 60%)


Total marks

available

Candidatescore




23 18 8 Highly competent

Business acumen


People skills 22 19 7 Highly competent

Leadership skills

23 5 8 Not competent

Integration 9 8 3 Highly competent

Total 67

10

Grade: FailScore: 67/100 (more than 60%)


Total marks

available

Candidatescore





Business acumen


People skills 22 19 7 Highly competent

Leadership skills

23 15 8 Competent

Integration 9 8 3 Highly competent

Total 77

11

Grade: PassScore: 77/100 (more than 60%)

Perspectives on the March 2015 Pre-seen

‘Look’

12

13

Basic strategy is to increase use of the internet and ensuring people use Google to do it.Earn• Advertising• Storage• Apps• Handhelds• Content (movies, music, books, TV)Entice and defend• Deliver ads • Bolster earnings by using big data to target ads• Defend against other portals that rival for internet

time (eg Facebook)• Get control of operating systems (Android,

Chrome, Android TV)Expand the pie• Google Drive = more internet time• Google Glass = more connectivity• Fiber = faster connectivity

Experiment• Medical research at Google X Ideas

Source: Steve Faktorwww.forbes.com

• Confusion of two mission statements

• Significant stakeholder power of 3 founders

• Reliance on core business of search engine to generate cash for dividend (F$9bn in 2014) and investment in new lines of business

• Loss-making units (OS, Lens and Cloud)

• Very limited scope of CSR

• Competition from social media

• SWOT identifies two ways to grow business- brand extension to new product offerings- replacement of other operating systems by Look OS in home and workplace (unlike Android)

• Board needs to take Look through to next stage of development

E3 Perspective

14

• Weak board- limited experience of executives and NEDS- no Nomination Committee

• High degree of delegation = weak internal controls

• No evidence of risk management strategy

• High potential for Big Data

• Poor formal alignment mechanisms of IT/IS to business strategy

• Significant expenditures during 2014- purchase of Memory Games- upgrade of Western Data Centre

P3 Perspective

15

• 2 tier shareholdings lock out ordinary investors

• Underperforming in same industry as Friendtime- Look has risen 97% since July 2013- Friendtime has risen 280% since April 2014

• CSR policies not communicated by integrated reporting (GRI)

• High dividend payout (50% in 2014)- unhappy investors seeking cash?- need clear dividend policy?

• Potential for acquisition of Friendtime

F3 Perspective

16

Approaching the Strategic Case Study Exam

17

1. Read the task- identify the subjects (x2)- identify the Strategic paper involved- identify format of response (email, paper, report)- identify who is it for (CFO, Board, outsiders)- identify any particular emphasis: what is it that is giving concern?

2. Read the reference materials- relate information to the tasks - identify how information affects concerns of CFO

3. Draw up your planner/put headings into document- TS, BS, PS, LS

4. Identify points to get skills marks- Technical Skills (mainly F3 and P3 + impact on profits)- Business Skills (E3 + commercial know-how)- People Skills (interests, & responses of people + ethics)- Leadership Skills (give a clear structure and message)

5. Plan and type your answer

5 Stage Approach to each section

18

Technical PeopleBusiness Leadership

P3 - Risk

F3 - Finance

E3 –Business Strategy

Business applications

20

Technical

• Financial statements (profit, cashflow, assets, liabs)

• Investments (NPV, IRR, Payback)

• Business valuations

• Financial reporting (incl. integrated reporting)

• Disclosures

• Financing –debt/equity

• Risk cycle (appetite, mapping, TARA)

• Corporate governance

• Internal controls

• Internal audit

• Fraud

Business

• External forces on business (PEST, 5 forces, Diamond)

• Stakeholders (Mendelow, Mission)

• Strategic options (Porter, Ansoff, BCG, Value Chain)

• Rational, Emergent, Freewheeling, Incremental

• Impact of IT

• Human resource management

• Quality management (TQM)

• Balanced scorecard

• SVA

• Traditional control (ratios, variances)

People

• Consider stakeholders affected (ICE)

• How to manage them

• Organisational culture – Handy, McKinsey, Hofstede

• Organisational structure – matrix, functional, network

• Negotiation and influence

• Observing different needs / wants

• Consider people’s motivations (Maslow)

• Collaboration and teamworking(Tuckman, Belbin)

• Work/life balance

• Ethics and CSR

Leadership

• Identifying good leaders

• Commenting on leadership style

• Impact of good/bad leadership

• Managing change

• Change theory (Lewin, Balogun, Kotter & Schlesinger)

• Recommended actions to lead change

1. Business- fit with goals of firm- fit with the firm’s business model & strategic position- responses of competitors, suppliers, government

2. Economic- financial feasibility- impact on profits, cash flows and share price

3. Social- fit with social trends and culture- impact on CSR

4. Technological & timing- impact of modern technology developments- how soon impact will come

5. Organisational & operational- effect on job roles, teams, departments and divisions- disruptive effects on immediate operations

Business Skills = BESTO

21

1. Stakeholder interests- staff and management- customers- suppliers- investors- media- governmental bodies- interest groups

2. Ethical issues- professional (PIPCO)- personal behavior- business ethics/corporate citizenship

3. Competitors behaviour- how will they view it- their likely response

4. Change- sources of resistance- overcoming barriers- areas to be imposed, negotiated or avoided

People Skills = SECC

22

1. Structure- suitable document- short paragraphs and subheadings- follow structure given in CFO request

2. Assurance/Advice- opening summary paragraph- state relative important of each point or issue- don’t just give problems, give solutions

3. Message/Motivation- be upbeat/inspirational- express your opinion

Leadership Skills = SAM

23

STRATEGIC LEVEL

INTEGRATED CASE MARCH 2015WEBINAR 2

FEBRUARY 26TH 2015

Adrian Sims

[email protected]

s integrated case march 2015 webinar 2 february...

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