Lili Han Education Manager ACCA China P 3

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Lili Han Education Manager ACCA China P 3 Business Analysis Debriefing past exam paper

Lili Han Education Manager ACCA China P 3 Business Analysis Debriefing past exam paper

Content § Past exam papers § Learning support resources 2 ©ACCA

Content § Past exam papers § Learning support resources 2 ©ACCA

Past exam papers 3 ©ACCA

Past exam papers 3 ©ACCA

Q 1 Dec 2009 Required: (a) Xenon usually analyses an industry using Porter’s five

Q 1 Dec 2009 Required: (a) Xenon usually analyses an industry using Porter’s five forces framework. Using Porter’s framework, analyse the business analysis certification industry (BACTI) in Erewhon and assess whether it is an attractive market for ABCL to enter. (20 marks) (b) After considering Xenon’s interim report, ABCL decided to enter the business analysis certification training industry (BACTI) in Erewhon through the acquisition of one of the three main providers. In March 2009 they asked Xenon to write a short report to evaluate Ecoba Ltd and to analyse whether it was the most appropriate and attractive of the three possible acquisition targets. You are a business analyst with Xenon and were given the task of writing this report. Write the requested short report evaluating Ecoba Ltd analysing whether it was the most appropriate and attractive of the three possible acquisition targets for ABCL. (16 marks) Professional marks will be awarded in part (b) for clarity and format of your report. (4 marks) ©ACCA

(c) In November 2009 ABCL acquired Ecoba Ltd. Gillian Vari agreed to stay on

(c) In November 2009 ABCL acquired Ecoba Ltd. Gillian Vari agreed to stay on for two years to assist the management of the ownership transition. However, her business partner became seriously ill and ABCL have agreed, on compassionate terms, for her to leave the company immediately. ABCL, from experience, know that they must manage stakeholders very carefully during this transition stage. Identify the stakeholders in Ecoba Ltd analyse how ABCL could successfully manage them during the ownership transition. (10 marks) (50 marks) ©ACCA

a) Analyze the attractiveness of industry Existing competitors • how hard to succeed in

a) Analyze the attractiveness of industry Existing competitors • how hard to succeed in an industry little competition (well tolerate with each other) • 2 strategic groups 20 small providers covering 20% of market (fierce competition) ©ACCA

New competitors • how hard to enter the new industry (barriers to entry) •

New competitors • how hard to enter the new industry (barriers to entry) • Megatrain entered into the industry and Big 3 training work together - price cutting - strengthening promotional campaigns • Megatrain’s foreign ownership (ABCL are from the same country, and they are likely to do it again) • Gold certification (12 months to achieve) - significant disadvantages ©ACCA

Customers • Powerful? The more powerful, the harder to make profit • 15 large

Customers • Powerful? The more powerful, the harder to make profit • 15 large corporate customers trying to costs hard to profit Suppliers • Powerful? The more powerful, the harder to make profit • lecturers- Big 3 find hard to recruit lecturers salary powerful higher ©ACCA

Substitutes • alternatives to the products/alternatives to attending college • the more substitute, the

Substitutes • alternatives to the products/alternatives to attending college • the more substitute, the harder to price - direct substitute students attending other colleges (smaller colleges) - indirect substitute - monetary substitute online course (little online tuition appears in Erewhon receiving tuition but not attending class (self-taught 40% and Eloba did not insist students to attend) they spend on other products/service Conclusion • ABCL can expect a vigorous response to their proposed entry into the industry, so not suitable for organic growth • need to enter the market through acquisition ©ACCA

b) Write the requested short report evaluating Ecoba Ltd analysing whether it was the

b) Write the requested short report evaluating Ecoba Ltd analysing whether it was the most appropriate and attractive of the three possible acquisition targets for ABCL. (16 marks) Professional marks will be awarded in part (b) for clarity and format of your report. (4 marks) To: Owner of ABCL From: Business Analyst Date: Today Subject: Possible acquisition targets Introduction • Look at 3 largest companies in the industry • All targets will be through SFA test ©ACCA

Catalyst • Acceptability public limited company core business and source of significant growth for

Catalyst • Acceptability public limited company core business and source of significant growth for Tuition Group Batrain • Acceptability 8 owners with 4 under age of 40 (too young to retire) Ecoba • Acceptability • Feasibility 95% owned by Gillian Vari approaching retirement age assuming ABCL has funds to purchase Ecoba ©ACCA

 • Suitability Financial perspective CATalyst 1) Revenue Batrain Ecoba $35, 000, 000 $22,

• Suitability Financial perspective CATalyst 1) Revenue Batrain Ecoba $35, 000, 000 $22, 000 Comment from $ 19, 000 (29. 4% due to gaining 2 new large customers) 2) Gross profit margin 35% 37% 20. 45% high salary for named lecturers 3) Net profit margin 6% 8% 4. 55% smaller for Ecoba. best at controlling their overhead 4) Sales revenue to capital employed 5) Liquiduty ratio 3. 36 3. 19 3. 89 better than the others two meaning Ecoba using its lecturers efficiently (only pay them for when they are actually teaching) 0. 92 0. 93 industry norm 6) Average payables settlement period 65 days 60 days 144 days reflect the concerns of the lecturers at Ecoba. It takes too long for them to be paid 7) Average receivables settlement period 30 days 35 days 71 days better terms given to 2 customers to persuade them to come lower than 2. Once ABCL buys Ecoba, easy to borrow money to expand the business (particularly the NCA required to develop online tuition 8) Gearing ratio 30% 25% 3. 50% 9) Interest cover ratio 3. 25 4. 75 50 low level of borrowing they have & no financial ©ACCA risks for ABCL to worry

Non-financial perspective • Most lecturers do not work full time for Ecoba, so it

Non-financial perspective • Most lecturers do not work full time for Ecoba, so it is unlikely much resistance to an acquisition Conclusion • Pass SFA test ©ACCA

Q 3 Dec 2011 a) Explain the purpose of each of the following: a

Q 3 Dec 2011 a) Explain the purpose of each of the following: a post-project review, a post-implementation review and a benefits realization review. (6 marks) b) Evaluate the problems and the lessons that should be learned from a post-project review and a post-implementation review of the electronic ordering system at Home. Deliver. (12 marks) ©ACCA

Q 3 Dec 2011 (a) A post-project review • Time take place when the

Q 3 Dec 2011 (a) A post-project review • Time take place when the project has been completed. (last stage of the project) • Focus delivered the conduct of the project itself, not the product it has • Aim identify & understand what went well & what went badly in the project & improve future project • Lessons feed lessons learnt back into the project mgt system ©ACCA

Q 3 Dec 2011 (a) A post-implementation review • Time take place a specified

Q 3 Dec 2011 (a) A post-implementation review • Time take place a specified time after the product has been delivered. • Focus purpose the product delivered by the project & fitness of product for • Aim fix or address identified faults & make recommendations on how to avoid the faults in the future. • Lessons feed lessons learnt back into the production process ©ACCA

Q 3 Dec 2011 (a) A benefits realization review Time take place after the

Q 3 Dec 2011 (a) A benefits realization review Time take place after the product has been delivered (part of postimplementation review) • Focus • Aim • Lessons Review of the initial cost (accurate)/benefit (accrued) analysis & any subsequent updates made to this analysis during the conduct of the project feed lessons learnt back into the benefits mgt process ©ACCA

Q 3 Dec 2011 (b) Post-project review @ Home. Deliver Problems Lessons learnt •

Q 3 Dec 2011 (b) Post-project review @ Home. Deliver Problems Lessons learnt • The late allocation of order administrators full time to the project. (other normal operational duties & 2 mth slippage) • Deadline will slip if appropriate employees are not allocated full-time to the project • The failure to consult catalogue supervisors & agents (amend an order not included) • Ensure that stakeholder analysis includes all stakeholders. • The implementation scope, implementing all supervisors and agents inappropriately (too ambitious and risky) • The risk assessment of the scope of projects is important & project mgr should look to mitigate risk by reducing scope. ©ACCA

Q 3 Dec 2011 (b) Post-implementation review @ Home. Deliver Problems Lessons learnt •

Q 3 Dec 2011 (b) Post-implementation review @ Home. Deliver Problems Lessons learnt • Faults & omissions in the computer software (browser/order amendment) • Acceptance testing should be undertaken & multiple browser should be considered. • Faults in the documentation (content/delivery) - spelling& function faults - received actually? - print out by agent at the cost of themselves • Documents must be carefully inspected before software release & its physical distribution should be considered. • Training of users (miss the opportunity to find early faults ( eg. Certain browser & could not support multiple orders from one householder. • Training is necessary -Build rapport with users -Identify possible issues & faults with the software at an earlier stage. ©ACCA

Learning support resource 20 ©ACCA

Learning support resource 20 ©ACCA

Learning support resources § ACCA approved tuition and learning materials § Student Accountant and

Learning support resources § ACCA approved tuition and learning materials § Student Accountant and its APP § Website – exam specific resources § ACCA-X on Xuetang X § BPP language programme § ACCA learning community § Student service wechat 21 ©ACCA

Exam specific resources § Syllabus and study guide § Examiners’ approach articles § Technical

Exam specific resources § Syllabus and study guide § Examiners’ approach articles § Technical articles, study support videos and podcasts § Examiners’ reports § Self-study guide & re-take guide § Question practice: ü ACCA approved materials ü Specimen exams ü Past exam papers 22 ©ACCA

Thank you! Insert supporting copy here, keep to a maximum of four lines 23

Thank you! Insert supporting copy here, keep to a maximum of four lines 23 06/03/2021 ACCA supporting you ©ACCA