SBL GRAND REVISION

DEC 2024 ATTEMPT

BY HASAN DOSSANI

YEX MARINE SPECIMEN EXAM 2

ADVANTAGES OF BOARD COMMITTEE

- More specialized
- More focused
- More time can be given by committee
- Frees up the Board for other strategic matters
- Higher shareholder confidence / independence

DISADVANTAGES OF BOARD COMMITTEE

- May not find NEDs with right expertise
- NEDs may not give sufficient time
- May lead to extra cost
- Risk of lack of independence
- Risk of lack of motivation

3 STAGE CHANGE MODEL / ORGANIZATIONAL CHANGE PROCESS

UNFREEZE (TO COMMUNICATE AND CONVINCE)
- Communicate the reasons and benefits of the change
- Take employee comments and concerns
- Make sure that employees agrees to the planned change

MOVE (EXECUTION / IMPLEMENTATION STAGE)

- detailed planning
- making project teams
- Provide training and support
- Overtime for extra hours spent on project

RE-FREEZE (POST IMPLEMENTATION)

- Make sure everyone follows the new change
 - Reward and appreciate staff eg bonus, promotions
- Manage resistance
- Monitor and resolve any issues

Advantages of E-Marketing
- Global reach / no geographical limitations
- Lower cost
- Personalized marketing
- Customer convenience
- Data analytics
- Able to attract younger generation
- Easy two way communication
- Able to obtain customer feedbacks
- Provides competitive edge

Disadvantages of E-Marketing: (NOT REQUIRED IN THE TASK)

- Not all customers use internet
- Requires expert staff
- Risk of hacking, data leakage and Cyber crimes
- Data security and privacy legislations

OPTIMA– SEP/DEC 2021

ADVANTAGES OF CUSTOMER SEGMENTATION ANALYSIS

SAME AS BIG DATA
- Deeper insight into latest customer needs and trends
- Offer customized product
- Personalized and targeted marketing
- Increase customer satisfaction and retention
- Higher revenue / market share
- Competitive edge
ADVANTAGES OF CSR
Customers
- Will attract customers who value CSR activities
- Competitive edge / more revenues

Employees
- Will motivate employees
- Improved staff retention
- Able to attract talented workforce

Suppliers
- Will attract suppliers who value CSR activities
- Discounts
- Collaboration / strategic alliance

Government
- Prestigious government award leading to improved reputation and brand
- Improved relationship with govt (government events)
- Possible tax benefits

Society
- Higher reputation and image
- Word of mouth
- More customers / revenue

Investors
- Will attract investors who value CSR activities
- May reduce our cost of capital

Banks / lenders
- Will attract banks who value CSR activities
- Improved credit rating
- May reduce our financing cost

VALUE FOR MONEY

- Effectiveness (achieving the objectives)
- Efficiency (resources)
- Economy (remaining within budget)
OPPORTUNITIES AND THREATS OF BIG DATA ANALYTICS
Advantages of big data
- Deeper insight into latest customer needs and trends
- Offer customized product
- Personalized and targeted marketing
- Increase customer satisfaction and retention
- Higher revenue / market share
- Competitive edge

Disadvantages of big data

- Data security and privacy
- Legal compliance and complications
- Requires technical expertise
- One time investment

ADVANTAGES OF MOBILE TECHNOLOGY / APPS

- More handy / convenient
- Notifications / reminders / popups
- Two way communication
- Feedbacks and complaints
- More personalized
- Able to attract younger generation
 PVS – MAR / JUN 2024

HOW TECHNOLOGY CAN DELIVER GROWTH IN BUSINESS

- Innovation / competitive edge
- Attract younger generation
- Better customer service
- No geographical boundaries
- Digital marketing
- Improved productivity and efficiency

DRAWBACKS OF TECHNOLOGY
- Technical expertise
- Data security and privacy
- Legal compliance
- One time investment
- Loss of jobs

ROLE OF PROJECT MANAGER

- Breaking down the event into smaller components
- Detailed event planning for each component (quality / time / cost)
- Monitoring of the event team
- Ensuring event is on track
- Execution of the event
- Accountable to the Event Sponsor

NOLA TOYS – MAR/JUN 2023

ANALYZE CULTURE
Power structure
- Leadership style
- Style and behavior of the leader

Organizational structure
- Structure of the board (ED vs NEDs / board committees)
- Organizational structure (tall / flat / hierarchical)
- Divisions and departments
Control systems
- Cost focused or quality focused
- Reward structure / punishment system

Rituals and routines

- Routine activities and practices
- Office timing, punctuality, long working hours, annual leaves, annual staff function, staff engagement /
townhalls, playdays, picnics and outings, etc.

Symbols
- Office building
- Office layouts and sitting arrangements
- Uniforms / dress code

Stories
- Values of the leader
- Staff loyalty to leader
- Past traditions

DIFFERENT LEADERSHIP STYLES

Top down
Bottom up
Democratic
Autocratic
Participative / consultative
FINANCIAL PROJECTIONS CHECKLIST
Checklist for reviewing financial projections:
- Chk whether discounted cash flow method is used
- Whether the NPV is positive or not
- Calculate payback (on pre discounted cash flow) and comment (<4 yrs is reasonable)
- 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

OPPORTUNITIES AND THREATS OF BIG DATA ANALYTICS

ALREADY COVERED EARLIER

SMARTWEAR – PRACTICE EXAM 3

GENERAL ENVIRONMENT
- Political
- Economy
- Social
- Technological
- Ecological
- Legal

LIST OF POSSIBLE KEY RISKS

▪ Business / Strategic risk ▪ Political risk

▪ Financial risk ▪ Legal & compliance risk
▪ Liquidity risk ▪ Environmental risk
▪ Credit risk ▪ Reputation risk
▪ Foreign exchange risk ▪ Health & safety risk
▪ Interest rate risk ▪ Technology risk
▪ Market risk ▪ Operational risk
▪ Market-share / competitive risk ▪ Intellectual risk
STRATEGIC IMPLICATIONS
- Loss of reputation
- Loss of market share
- Redundancy costs

ETHICAL IMPLICATIONS
- Employees
- Customers
- Suppliers
- Society

FINANCIAL PROJECTIONS
Checklist for reviewing financial projections:
- Chk whether discounted cash flow method is used
- Whether the NPV is positive or not
- 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

ADVANTAGES OF OF INTEGRATED REPORTING

- Enhanced reputation
- Communication with Wider stakeholders
- Focuses on social and environmental initiatives
- Attracts ethical investors and lowers cost of capital
- 6 capitals
DIFF BETWEEN F/S AND IR

6 CAPITALS OF INTEGRATED REPORTING

- Financial
- Manufacturing
- Intellectual
- Human
- Social
- Natural

NC TECH – DEC 2023

IMPACT OF DATA BREACH
- Business / operational disruption
- Reputational loss
- Loss of customers / revenue / market share
- Legal cases by customers
- Regulatory fines (e.g. breach of Data Protection Act)
- Incorrect decision making based on erroneous data

CONTROLS TO STRENGTHEN DATA SECURITY

- Strong password management / regular changing
- Two factor authorization
- Data encryption
- User access rights should be as per their roles
- Regular Backups
- Firewalls
 - Audit Trails / system logs
- Updated anti-virus
- Segregation of duties
- Disaster recovery plans
- Regular staff training
- IT security audits

ADVANTAGE OF DIVERSE BOARD

- Wider pool of talent
- Fresh ideas / out of box thinking
- Healthier debates
- Skill diversity (functional expertise)
- Age diversity (younger directors)
- Gender diversity (more females)
- Ethnic diversity (various ethnic / cultural backgrounds)
- Better image and outlook of the organization
- Compliance with listing regulations
- Better decision making

Advantages of talent management program

- Increased skills and competencies
- Better quality of work
- Higher customer satisfaction and revenue
- Lower customer complaints
- Higher staff motivation
- Increased productivity and efficiency
- Lowers staff turnover/ recruitment costs
- Helps in succession planning

Disadvantages of talent management program

- Requires expertise
- Staff may leave and join competitors after training
- Resistance / low motivation to participate
- Day to day work will get affected during training days
- Time and cost implications
- Difficult to identify training needs and measure results
STAKEHOLDERS AFFECTING STRATEGIC PLANNING
External
- Customers
- Suppliers
- Government / regulations
- Competitors
- Society
- Pressure groups
- Banks / lenders
Internal
- Shareholders
- BOD
- Employees

6 CAPITALS
- Financial capital
- Manufacturing capital
- Human capital
- Intellectual capital
- Social capital
- Natural capital

AT FOOTBALL – PRE DEC 2024 MOCK

Role Of Project Sponsor
- Provide senior leadership and guidance to event manager
- Arrange resources required for the project
- Monitoring progress and ensuring event is on track
- Problem solving
- Ultimately responsible and accountable for success of the event
Role Of Event Manager
- Breaking down the event into smaller components
- Detailed event planning for each component (quality / time / cost)
- Monitoring of the event team
- Ensuring event is on track
- Execution of the event
- Accountable to the Event Sponsor

Why should bribery not be done

- Its unethical and against social norms and illegal
- Violates the principle of integrity and honesty
- Can lead to reputation loss
- Can lead to legal cases, fines and penalties
- Loss of customer and revenue
- May lead to cancellation of license to do business

Measures to prevent bribery

- Org should have ethical code of conduct / anti-bribery policy
- All employees should be trained on these policies
- All employees should report to management if they are asked by client for any bribery
- Strict disciplinary actions to discourage other employees
- Whistle blowing arrangement
- Ethical or anti-bribery committee
 LAST 2 DAYS PREPARATION PLAN
1- Revise Top 25 topics

2- Go through Preseen workshop (day 2)

3- GO THROUGH THIS GRAND REVISION NOTES

4- Revise all past papers we did

5- Do the following paper under time conditions if you have time

a. PRE-DEC 2024 mock exam: AT Football (UNDER STRICT TIMING)
 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
- Start with easy / familiar questions first and bouncer in last
- 80-90% answer should be from exhibit, only 10-20% from preseen
- From preseen try to link with strategic objectives or values and KPIs

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