CIMA 英国皇家特许管理会计师公会 (Chartered Institute of Management Accountants) T. 400 820 4080 E. gbc.chinacimaglobal.com Web. http:/gbc.cncima.comCIMA Global Business Challenge 2014CIMA 2014 商业国际精英挑战赛THE CASE CONCERNINGCERTAIN ISSUESFACINGMERBATTYThe report is prepared by Team: AMIC5From: Huazhong University of Science and Technology, School of Management Team memberTeam leader: Zou Qi 邹琦Team member 1: Shao Mingxia 邵明夏Team member 2: Liu Chen 刘琛Team member 3: Wang Liran 王丽然CIMA 英国皇家特许管理会计师公会 (Chartered Institute of Management Accountants) T. 400 820 4080 E. gbc.chinacimaglobal.com Web. http:/gbc.cncima.comContent 1 Introduction 2 Terms of reference 3 Identification and prioritization of issues 4 Discussion of issues 5 Ethical issues 6 Recommendations 7 Conclusions Appendix 1 SWOT analysis 2 PEST Analysis3 Porters Five Forces Analysis4 Mendelows Matrix5 Ansoff Matrix6 Financial Performance Indicators7 Forecasted Cash Available For Investment at 31 Dec 20138 Cash Flow Difference between Two Hull Suppliers9 The Breakeven Sales Volume of Racing Boat ProposalCIMA 英国皇家特许管理会计师公会 (Chartered Institute of Management Accountants) T. 400 820 4080 E. gbc.chinacimaglobal.com Web. http:/gbc.cncima.com1. Introduction Established in northern Europe 33 years ago, Merbatty now is a world renowned builder of luxury boats which became listed in November 2012. It has enjoyed rapid growth in sales for the last 12 years and has recently reached a global market share of around 8%.Confronted with the increasingly competitive market, Merbatty is supposed to deal with several issues which would hinder its current operations and the planned expansion. A number of problems and incidents need consideration and analysis in order to achieve Merbattys five-year plan. 2. Terms of ReferenceThe report is designed to prioritize, analyze and evaluate the issues facing the board of Merbatty. Detailed recommendation is made where appropriate.3. Identification and prioritization of issuesfitbetweentheissueandcorporatestrategycontributionto thefulfillmentof5-yearplanStrategicthe extentto whichtheoutcomeisacceptabletostakeholders(shareholders,customers,employees,thepublicandetc.)financialconsiderations,returnto riskprofileAcceptabilitywhetherthedeadlineof theissue iscomingsoonImpendingCIMA 英国皇家特许管理会计师公会 (Chartered Institute of Management Accountants) T. 400 820 4080 E. gbc.chinacimaglobal.com Web. http:/gbc.cncima.comPriorityIssue Strategic W1 Acceptability W2 Impending W3 Total Priority1 5 0.4 5 0.4 4 0.2 4.8 12 3 0.4 3 0.4 5 0.2 3.4 33 3 0.4 2 0.4 2 0.2 2.4 64 4 0.4 2 0.4 3 0.2 3 45 2 0.4 4 0.4 2 0.2 2.8 56 4 0.4 4 0.4 5 0.2 4.2 2Issue Strategic Acceptability Impending15 points: most critical to the planned sales growth5 points: easy to make an acceptable decision with only limited risks4 points: the new facility will be operational early in 201423 points: important to reduce staff turnover and maintain brand reputation3 points: improvements are expected by employees and clients5 points: the accident already happened33 points: aimed at enhancing brand recognition2 points: challenges the current risk-averse profile of Merbatty2 points: the proposal still needs consideration and it lacks a definite time limit 44 points: aimed at increasing market share and sales revenue2 points: this proposal is risky and it challenges the conventional practice3 points: needs to be negotiated within a short period52 points: a limited impact on the 5-year plan4 points: sensible explanation is expected by JKL2 points: a lack of a definite time limit64 points: important to customer satisfaction and brand reputation4 points: sincere apology and explanation are highly expected5 points: the hull is originally due in exactly one month.CIMA 英国皇家特许管理会计师公会 (Chartered Institute of Management Accountants) T. 400 820 4080 E. gbc.chinacimaglobal.com Web. http:/gbc.cncima.comCIMA 英国皇家特许管理会计师公会 (Chartered Institute of Management Accountants) T. 400 820 4080 E. gbc.chinacimaglobal.com Web. http:/gbc.cncima.comIssue 1 New design supplier for SuraniaPriority 1The third boat building facility located in a Middle East country named Surania is assumed to be operational early in 2014. Merbatty has to decide between two potential interior design companies, both of which are willing to cooperate and have their strengths and weaknesses.Issue 6 Late delivery of a hull from TopcrestPriority 2Topcrest, the sole hull supplier for Merbatty, has recently won a new major client with a lucrative, thus causing a late delivery of a hull. Although Topcrest has offered to compensate Merbatty, the procurement director Paul is furious and has proposed to pay an extra 50K to source the hull from another supplier who can deliver it on 15 January 2014.Issue 2 Accident at workPriority 3Recently one of Merbattys employees arrived for work high on drugs and made his way on to a hull promptly falling off and breaking his leg. This reveals