SBL

Game Changing Webinar Series

Sir Hasan Dossani

VIFHE - Dec 2021 (Day 4)
Whatsapp +92 332 337 8435
 Teacher’s Intro

Professional Qualification
• Fellow Chartered Accountant (1999)
• CMA, CISA, CIA and several more
• 20 years working experience in field of accounting and auditing
• Working as CFO in Dubai since last 10 years

Teaching Experience
• Teaching ACCA students since last two decades
• Taught appx 6000+ students
• I teach physical batch (in Karachi, Pakistan) and online batch (globally)
• I love to share real life / board room examples
• This is my 7th SBL Webinar

My Whatsapp: +971 5552 45672

Whatsapp +92 332 337 8435

 Join My Global SBL Group

To join my global whatsapp group, pls message on the below number and you will be sent a link

+ 92 330 376 0125

Whatsapp +92 332 337 8435

 How To Ask Question

• You can type your question in the CHAT Box

• Your question should relate to the topic under discussion

• Any general / other question should be asked in last 10 minutes of the webinar

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 Suggested Study Plan till Exam
Week Watch / Revise

WEEK 1 Watch DEC 2021 Webinar by Hasan Dossani & practice the Questions on
1 to 7 Nov CBE platform
WEEK 2 Watch SEP 2021 Webinar by Hasan Dossani & practice the Questions on
8 to 14 Nov CBE platform
WEEK 3 Practice following SBL Questions on CBE Platform:
15 to 21 Nov 1. SBL Sep 2018 (Cofold)
2. SBL Dec 2018 (Hilite)
3. SBL Sep/Dec 2019 (Dulce)
4. SBL Sep/Dec 2020 (BCO)

WEEK 4 Do 3 Mock Exams under strict Exam Conditions & have it marked:
22 to 28 Nov 1. SBL Mar/Jun 2019 (Smartwear)
2. SBL Specimen Paper # 3 (Nehby)
3. SBL Mar/Jun 2021 (NCCP)

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Week Watch / Revise

WEEK 5 Revise SBL Past Papers

29 Nov to 5 Dec

STAY AWAY FROM

BOOK & REVISION KITS

Just Use Webinars &

Practice SBL Case Studies on CBE
(all webinars and notes available in my Global SBL Whatsapp Group + 92 330 376 0125)

Whatsapp +92 332 337 8435

 Mock Based Practice Class
(Paid Session)

You can also join my Mock Based Practice Classes starting 6 Nov 2021:

- 40+ hours of practice in LIVE sessions

- 4 SBL Question solving
- 3 Mock Exams under strict exam conditions
- 1 Mock Script checking with marks and feedback
- All classes will also be recorded for later viewing

Message +92 332 337 8435 for details and registration

Whatsapp +92 332 337 8435

1- Assess Options from Strategic Perspective
2- Diversifying Risk
3- Financing Structures
4- Tracking Project Variables
5- Governance Structure
6- Analyze Culture
7- Weakness of MIS
8- Recommendations & KPIs

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 Question 4
Required:

Prepare a presentation with an appropriate number of slides and accompanying notes to

support your findings:

a) Identification of the weaknesses of the current management accounting information in

supporting decision making for the restaurant business (6 marks)

b) Recommendations for improvements to management accounting data which identifies

key performance indicators (KPIs) which should be included in the monthly
management accounts to support decision making for the hotel business (10 marks)

Professional skills marks are available for demonstrating communication skill in clarifying
relevant information to the board of Nehby (4 marks)

(20 marks)

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 Budgets / MIS

Always Remember 3 THINGS

1- Flexed Budget
▪ You CANNOT compare Actuals numbers directly with Budgeted numbers because actual volumes are normally
different than budgeted volumes
▪ Whenever Actual numbers are given, you first calculate FLEXED budget and then you compare with Actuals

2- Compare Actuals With

▪ FLEXED Budget
▪ Prior Year Actuals

3- Reasons for Variances should be explained

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 Professional Skills

Communication Skill
Express clearly and convincingly keeping in mind the target audience, for e.g. are you writing to Chairman,
NED, Finance Director, HR Director, Shareholders, General Public, etc.

HINT: Use appropriate format, keep in mind your role, general layout and tone of your answer

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 Lets Read:
- Exhibit 5
- Exhibit 4
- Exhibit 6

And start referencing and drafting on CBE Platform

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 Syllabus Change
NEW TOPICS ADDED
• Four line of defence approach (risk management)

• Artificial Intelligence, Robotics and Machine Learning:

▪ Potential Benefits

▪ Risks
Syllabus changes are
▪ Ethical implications
quite minor…
so nothing to panic about
TOPIC DELETED
• Tucker 5 Question approach for ethical situations

AMENDMENTS
• No significant amendments

• Most amendments are to add clarity to existing syllabus

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 AI / Robotics / Machine Learning
Definitions
• Artificial Learning: When computers thinks, works and takes decisions like humans being

• Machine Learning: Is a type of AI which learns and improves automatically on its own as it progresses
more and more (i.e. self-learning programs)

• Robotics: machines capable of carrying out competitive / repetitive tasks like humans

Industries in which AI / Robotics / ML are most commonly used:

• Manufacturing

• Retail / customer experience

• Big data / data analytics

• Financial investment

• Transportation

• Medicine and surgeries

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Advantages:
• Faster

• Accurate / less errors

• 24/7

• Employee related issues can be avoided (e.g. strikes, trade unions, etc.)

Risks / Issues:
• High dependency on technology

• Security / hacking risk

• Misuse of personal data

• Creates unemployment in society

• Profits will be concentrated in hands of corporations

• Lack of ethical and moral values

• One time costly investment

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Ethical Matters which Business should Consider before implementing AI:
• Impact on employment / employees

• Compliance with legal and social norms (morals and values)

• Ethical use of personal data

• Transparency

• Accountability

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 4 Lines of Defence (Risk Mgt)

1st line of defence – Employees:

• Proper policies and procedures

• Training

• Regular performance evaluation

• Reward or punishment

2nd line of defence – Managers:

• Supervise employees

• Review and monitor their performance

• Risk and compliance departments (in larger organizations)

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3rd line of defence – Internal Audit:
• Objective review and assessment of risk management activities

• Having good knowledge of organizations internal control and systems

• But may not be 100% independent

4th line of defence – External Audit:

• External auditors or bodies

• More independent than internal audit

• “Fresh” pair of eyes

• Have external / wider industry experience

• However less knowledge about the organization’s internal control and systems

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 Technical Articles
Technical Articles in Last 1 Year:

Article On Covered In

1. Cyber security March 2021 Webinar (Day 5)

2. Principles of E-Marketing Will cover in Dec 2021 (Day 4/5)

3. A world of Intelligent Agents (AIs) Will cover in Dec 2021 (Day 4/5)

No New Article Relating to December 2021 Attempt (as yet)

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 List of Important Topics
MODELS
1 PESTEL / P5F / Strategic Position
2 SFA Framework
3 SWOT / TOWS
4 Corporate Parenting / BCG
5 Ansoff Growth matrix
6 Harmon Process matrix
7 Mendelow Stakeholder matrix
8 Cultural Web
9 Context of Change
10 Risk Mitigation Steps
PLUS
Professional Marks &
Exam Techniques
TOPICS
1 Financial ratios & Projections
2 Funding Strategies (debt vs equity)
3 Budgets / MIS
4 Project Management / PID
5 Value Chain
6 E - Business / E - Marketing
7 IT / Cyber risks and security
8 Big data / CRM
9 Professional / Corporate Code of Ethics & Public interest
10 NEDs / Committees / Family Owned
11 Integrated Reporting / 6 Capital
12 Social & Environmental Footprints
13 Risk management and recoms
14 Control weakness & recoms
15 Audit Committee / Internal Audit
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• PESTEL / P5F / Strategic Position
• SFA Framework
• SWOT / TOWS
• Corporate Parenting / BCG
• Ansoff Growth matrix
• Harmon Process matrix
• Mendelow Stakeholder matrix
• Cultural Web
• Context of Change
• Risk Mitigation Steps
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 External Environment
• There are 2 types of EXTERNAL Environment:

✓ Country environment

✓ Industry environment

• Country environment is also known as:

✓ MACRO environment

✓ General Environment

✓ Model to use: PESTEL

• Industry environment is also known as:

✓ MICRO environment

✓ Industry / market-place environment

✓ Competitive environment

✓ Model to use: PORTER 5 FORCES

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 P E S T E L (Country / Macro Env)
Political: Technological:
• Government • Plant & machinery
• Govt policies • Skilled workers
• Govt Subsidies / loans • IT / technology
• Govt approvals / license • Internet / online
• Political stability • Roads and infrastructure
• Taxes
Ecological:
Economy: • CO2 Emission
• Economy • Carbon footprint
• Economic growth • Recycling
• Economic downturn • Pollution
• Recession

Social: Legal:
• Prosperous developed nation • Laws
• Standard of living • Regulations
• Educated population • Legislations
• Unemployment • Patent / trademark / copyright

- Mention Favorable or Unfavorable

- Impact
- Overlapping Points

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 Porter 5 Forces (Industry / Micro Env)
Power of customer:
• Factors to decide HIGH or LOW:
o Size of customer (e.g. large global customer)
o Any brand or uniqueness in our product?
o Customer willing to pay any premium?
• Words to look for:
o Customers
o Consumers
o Buyers

Mention HIGH or LOW

Power of supplier:
• Factors to decide HIGH or LOW:
o Size of supplier (e.g. large global supplier)
o Are we willing to pay any premium?
• Words to look for:
o Supplier
o Vendor
o Manufacturer

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Threat of new entrants:
• Look for Barriers to Entry:
o Patents
o Govt approvals
o Govt license
o Franchise

• If Barrier is High, then Threat is LOW (i.e. opposite relationship)

Threat of Competition:
• Words to look for:
o Competition/ rivalry Mention HIGH or LOW
o Number of competitors
o Market share
o Patents / Franchise

Threat of Substitute Product:

• Words to look for:
o Substitute
o Alternate / Alternatives

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 Strategic Position Analysis
Includes 3 things in your answer:

1. Macro / Country Environment

2. Micro / Industry Environment

3. Internal Factors
a. Human resource (experience, expertise, management competencies,)

b. Financial resource (profitability / financial position / gearing)

c. IT / Brand (goodwill, online, website)

PLEASE WATCH SEPT 2021 WEBINAR (DAY 1) FOR QUESTION PRACTICE

PLEASE WATCH MARCH 2021 WEBINAR (DAY 2) FOR QUESTION PRACTICE

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 SFA Framework
USED WHEN??
• To evaluate a “proposed” strategy

• However, in exam you should only use when we plan to “ACQUIRE” another company, either in
same country or in another country

• Examples:
Evaluate the proposal of acquiring ABC company situated in XYZ Country

Evaluate the option of opening a new Restaurant in another city

Evaluate the proposal of adding a new product line to our existing products

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SUITABILITY
Focuses on EXTERNAL factors

Para 1: Home country

Para 2: Target country

Para 3: Target company

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FEASIBILITY
Focuses on INTERNAL factors

Para 1: Human resource / expertise

o Do we have acquisition experience from the past?

o Do we have experience of managing similar business?

o Do we have experience of working in an Overseas Country?

Para 2: Financial resource

o Do we have funds to acquire another company?

o Look at gearing ratio

Para 3: Technology & Brand

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ACCEPTABILITY
Focuses on FINANCIALS of target company

Para 1: Will shareholder accept the proposed strategy?

o If family owned (or private) company managed by the owners then “ACCEPTABLE”

o If listed company, then shareholders will accept IF it has a positive / reasonable NPV

Para 2: If target company is based in another country, then we have to consider any
cultural differences

Para 3: Review financial projections / analysis

CONCLUSION REQUIRED?
Avoid conclusions if Question does not specifically ask for conclusion

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 If You Feel SFA is Getting Complicated in the Exam

• Its not compulsory to use SFA

• You can also use a general approach

• Make sure you cover the following aspects of the Proposal

1. External Factors (pros & cons)

2. Internal Factors (pros & cons)

3. Financial analysis (if data provided)

PLEASE WATCH JUNE 2021 WEBINAR (DAY 1) FOR QUESTION PRACTICE

Whatsapp +92 332 337 8435

 SWOT Analysis
Strength and Weakness are INTERNAL

Opportunity and Threat are EXTERNAL

Examples?

Why Do We Do SWOT Analysis?

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 TOWS Matrix

▪ SO: Use Your Strength To Avail Opportunities

▪ WO: Remove Your Weakness To Avail Opportunities
▪ ST: Use your Strength To Avoid or Counter Threats
▪ WT: Remove Your Weaknesses and Avoid Threats
How will you know if TOWS model is required?
o A SWOT analysis will be given OR
o You will be required to do a SWOT analysis first
o Just go through the list of strength, weakness, opportunity and threat and link them

PLEASE WATCH JUNE 2021 WEBINAR (DAY 2) FOR QUESTION PRACTICE

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