Peels Sleep Solutions (PSS)

SBL SPECIMEN 1 –VALID FOR SEPTEMBER 2023 PRE-SEEN

DRAFTED BY SIR HASAN DOSSANI

WhatsApp: +971555245672

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(1A) Prepare a report for the board of directors which evaluates the opportunities and
challenges which PSS must consider in relation to the proposed contract with Zeelande
Health

(20 marks)

REPORT
TO: BOD
FROM: Independent Business Analyst
SUBJECT: Proposed contract with Zeelande Health
DATE: September 20X3

INTRODUCTION
This report evaluates the opportunities and challenges which PSS must consider in relation to the
proposed contract with Zeelande Health

OPPORTUNITIES

Increased revenue
Payment of $190,000 will be made by Zeelande Health to PSS at the end of every month of the six-month
contract. This means that PSS will be able to earn revenue of 1.14 million from this project. Since the
industry is growing by 4% only, this is extra revenue for PSS.

No trial period
Trial periods are not included in this contract. This is in line with the terms with retail partners and is
favourable for PSS as there will be no returns and hence lessor costs.

Monthly payments
Payment will be made by Zeelande Health to PSS at the end of every month. This is in line with the
standard payment terms of 30 days which PSS gives to its retail partners. Hence it will improve PSS cash
flows and reduce overall receivable turnover days.

Marketing
Zeelande Health will publicize this program through its own website, the national press, and social
mediaand will include the PSS brand name within all publicity. This will help in marketing and improving
PSS brand image across the country so that we can attract more customers. Also since marketing is a
significant cost in your industry, this program will help you save marketing cost.

CSR activity
Zeelande Health is the largest healthcare charity in Zeelande. It provides healthcare for the public benefit.
If PSS undertake this program, this can be seen as a CSR activity as you are selling mattresses to the charity
sector at a lower cost. This will improve your brand image and reputation and will help you attract ethical
customers who prefers organizations involved in CSR.

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 CHALLENGES

Lower selling price

Currently you are supplying this mattress to retail partners at $ 204. However the suggested price for this
program is $ 190. This will lead to lower profitability. Also PSS needs to do a cost analysis and see whether
its making any profit on this program.

Delivery and recycling costs

PSS will meet delivery costs. Also PSS will dismantle and recycle old mattresses as part of PSS’s mattress
disposal service. PSS will meet all costs for this service. Hence this will increase PSS costs and will lower
its profitability.

EMAS registration
Its requirement of Zeelande Health that all contract partners, including PSS, are registered with the Eco-
management and Audit Scheme (EMAS). PSS will first need to evaluate whether its able to meet the
criteria of EMAS. This may also have additional cost which PSS will need to absorb.

Production capacity / staffing

All four factories are currently running at 100% capacity and there is a shortage of skilled staff in the
industry. PSS might face challenge in producing 6000 extra mattresses. In case PSS is unable to produce,
then it will face penalty as mentioned in the contract.

Relation with retail partners

Currently PSS is supplying mattresses to retail partners at $ 204. If they find out that you have supplied
mattress to Zelande Health, it might ruin our relationship with them and they might also demand a lower
price.

Best regards
Independent Business Analyst

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(1B) Prepare TWO presentation slides, with accompanying notes, which can be
presented at the next board meeting which:

(i) Explain the actions which PSS will need to take to comply with EMAS; and

(ii) Outline the key areas which should be included in its environmental policy

(14 marks)
SLIDE 1
ACTIONS REQUIRED TO COMPLY WITH EMAS

- Understand the EMAS requirments

- Assess PSS current level of compliance

- Identify gaps

- Plan and address the gaps

- Environmental audit

ACCOMPANYING NOTES
PSS should read the requirments and criteria of EMAS and detail and understand what its requirments.

PSS should assess its current level of compliance with the EMAS regulations. In my view, PSS is already
complying with most of the requirements such as using solar energy, recycling, carbon neutral etc as
sustainability is one of the values of the company

PSS should match the EMAS requirments with its current situation and identify those criteria which are
currently not being complied with

PSS should implement procedures to address the gaps so that it becomes fully compliant with EMAS
requirments

PSS should do an environmental audit to ensure that it is fully compliant, as EMAS requires an audit

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SLIDE 2
KEY AREAS OF ENVIRONMENTAL POLICY

- Limited use of scare resource

- Recycling of waste materials

- Pollution / carbon emission

ACCOMPANYING NOTES
Organization should limit its use of scarce natural resources such as oil, trees, etc. PSS is already focusing
on reducing its use of scarce resources. For e.g. PSS is using solar energy to power its four plants.

Organization should properly recycle all its waste material and products. PSS is already recycling all waste
which is generated across its manufacturing plants. It is also recycling the old mattresses.

Organization should minimize pollution and emission. PSS is a carbon neutral business which shows that
it is focusing on reducing its carbon footprint.

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(2A) Prepare a briefing paper for the chief executive which:

(i) Assesses the issues raised by staff in the survey; and

(ii) Recommends actions which PSS should take to address each of these issues.

(22 marks)

BRIEFING PAPER
TO: Chief Executive
FROM: Independent Business Analyst
SUBJECT: Issues raised in staff survey
DATE: September 20X3

INTRODUCTION
This briefing paper assesses the issues raised by staff in the survey and recommends actions which PSS
should take to address each of these issues

ISSUES RECOMMENDATION
Health issues
There is possible health issues due to exposure to PSS may consider using alternative chemicals
chemicals from the lower quality foam. which are less harmful.

This is a serious issue as it may lead to health and PSS should also provide protective equipment to
safety issues to your staff. It will also lead to high staff who are handling these chemicals.
staff turnover and possible legal and reputation
risk. This is also against the company’s values for
human resource.

Reviews by staff on website

Several staff members suggested that some of It is recommended that PSS should provide proper
our staff should write positive mattress training to all staff regarding ethical values of the
reviews. company.

Don’t you think its unethical to write fake reviews? PSS should also consider disciplinary actions so
This is also against the company value of ethics that the staff refrain from such acts.
and might create reputational issues as well as
issues with the Industry Body of which PSS is a
member.

Lack of innovation
Some staff are concerned that PSS is not PSS should invest in research and innovation. It
innovating as fast as its competitors. should do customer surveys, market research,

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 competitor analysis etc. and then come up with
Don’t you think that this is against the company’s innovative designs.
value of innovation? Further, if PSS does not
innovate, its products will become obsolete and
will lead to a fall in revenue and market share .

Lower quality
In January 20X3 PSS changed to a cheaper and PSS should not compromise on the quality of the
lower quality foam to reduce manufacturing costs. raw materials in order to reduce costs. You should
revert to the original quality materials as soon as
Moving to lower quality materials is against the possible.
value of PSS. Also lower quality will lead to
increase in returns, loss of customers and
reputation damage.

Full capacity
All four of your manufacturing plants are working PSS should consider increasing its capacity either
at 100% capacity. by increasing the number of its manufacturing
plants
How will PSS meet future growth / demand if it
does not have any more manufacturing capacity? PSS can also consider outsourcing the
manufacturing to a reliable manufacturer without
Also you will not be able to meet any extra order compromising on the quality, as several online
such as the Zeelande Health program, leading to retailers are already using outsourced
loss of opportunity and revenue. manufacturers.

High turnover
- Operational disruption - Understand the reason for high turnover
- Unable to meet orders - Address staff concerns
- Shortage of skilled labour in the industry - Improve motivation
(student to draft) (student to draft)

Best regards
Independent Business Analyst

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(2B) Draft an email to the human resources director which advises on how a talent
management programme can support PSS’s values, together with the challenges PSS
may face with such a programme.

(16 marks)

EMAIL
TO: Human resources director
FROM: Independent Business Analyst
SUBJECT: Talent Management Program
DATE: September 20X3

This email advises on how a talent management program can support PSS’s values, together with the
challenges PSS may face with such a program.

SUPPORTS PSS’S VALUES

Quality
Quality has always been at the heart of the PSS business. Talent management program will help in
improving the quality of the mattresses as staff are better trained and motivated. Hence this program will
help you achieve your value of Quality.

Innovation
Talent management program would help staff improve their understanding of the business and they will
be able to give suggestions which would help in improving performance. Hence this program will help you
achieve your value of Innovation.

Customer service
If staff are better trained, they will be able to handle customer service efficiently. This will reduce number
of complaints and increase customer satisfaction. Hence this program will help you achieve your value of
customer service.

Employee welfare
Employees are an integral part of your success. Providing training to staff will improve their skills and
competence. Hence this program will help you achieve your value of employee welfare.

Better productivity and efficiency

The operating profit for PSS is falling since last three years. Talent management program will help in
achieving more productivity and efficiency, hence it may help in reducing costs and improve profits.

Improved staff retention

PSS is finding it increasingly difficult to hire skilled workers in this competitive industry. Just last week,
three staff members resigned. A talent management program will keep the staff motivated and hence will
reduce staff turnover. Hence this program will help us achieve our value of employee welfare.

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Succession planning
Talent managemt program will help to develop talented employees further, into possible future roles and
positions. Hence this will help in better succession planning.

CHALLENGES
Resistance / Low motivation
(Student to draft 2 lines in general explain this point)

Staff may leave

(Student to draft 2 lines in general explain this point)

Identifying training needs

(Student to draft 2 lines in general explain this point)

Time and cost

(Student to draft 2 lines in general explain this point)

Lack of training expertise

(Student to draft 2 lines in general explain this point)

Best regards
Independent Business Analyst

(SELECT ANY 8 POINTS IN TOTAL)

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3)Prepare briefing notes for the finance director which:

(a)(i) Discuss how PSS could benefit from analysing and using data from online
customers and website visitors;

(a)(ii) Advise on the threats which PSS could be exposed to in relation to undertaking
big data analytics; and

(12 marks)

(3B) Evaluate the potential impact of the weaknesses identified in PSS’s internal control
activities and recommend actions to address these weaknesses.

(16 marks)

BRIEFING NOTES
TO: Finance Director
FROM: Independent Business Analyst
SUBJECT: Big Data Analytics and Internal Control Weaknesses
DATE: September 20X3

INTRODUCTION
This briefing notes advise on the benefits and threats of big data analytics AND evaluate the potential
impact of the weaknesses identified in PSS’s internal control activities and recommend actions to address
these weaknesses

BENEFITS OF DATA FROM ONLINE CUSTOMERS

Understand customer needs and trend

PSS collects data which includes personal data as well as information on mattress preferences. PSS also
gathers feedback. If PSS analyzes this data properly, it will help to understand customer needs and latest
trends.

Innovation
There is significant innovation happening in the mattress industry such as smart mattress, temperate
controlled mattress, etc. Hence, understanding latest customer needs and trend will help PSS in research
and innovation. This will be in line with the values of PSS

Personalized marketing
The demand for digital advertising on social media platforms has grown. If PSS analyzes its customer data,
it will help PSS in designing personalized marketing campaigns and sales promotions which may be more
effective than traditional marketing campaigns.

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More revenue / market share
Currently revenue from DTC sales accounts for around 20% of PSS revenue. Analyzing customer data will
help PSS increase its revenue and market share and it may be able to increase the %age of the DTC
revenue.

Competitive edge
There is increased competition from online retailers and many physical retailers have also introduced their
own websites to facilitate online ordering. Analyzing customer data will help PSS in competing with other
online retailers and in protecting your market share.

THREATS OF BIG DATA ANALYTICS

Data security and privacy threats

PSS collects data which includes personal data, credit card details, etc. It is unclear what controls are in
place to ensure that the data is kept secure. this data face serious risk of hacking and cyber frauds.

Legislations
Since PSS collects and stores personal data, several legislation relating to privacy of data will be
applicable. PSS will need to ensure that it complies with all relevant legislations otherwise it may face
legal fines and penalties.
(TOTAL 6 PTS REQUIRED)

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 INTERNAL CONTROL WEAKNESSES

WEAKNESS / IMPACT RECOMMENDATION

Substantial increase in guarantee claims of Alpha:
- Increase in cost (wastage, recycling) - Investigate the reasons for substantial
increase in guarantee claims
- Reputational loss leading to loss of revenue
and market share - Review the existing manufacturing
process and quality controls
- Risk of fraudulent claims
- Thoroughly check the claim before
- Causes operational inefficiency (extra work) releasing payment

(explain any 2 points) - Dashboard / MIS to monitor claims on a

periodic basis
(explain any 2 points)

Five expired patents

- Immediately renew the 5 expired patents
- Competitors can copy our products hence
we will lose comp edge - Keep track of the patent expiry dates and
renew the patents on time
- We will lose customers, revenue and market
share

- We may lose Zeelande Health contract

which is also for 1000 Badin mattresses as
competitor might copy our product in
absence of patent
(explain any 2 points)

Best regards
Independent Business Analyst

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