Subject: CORPORATE STRATEGY, ETHICS & GOVERNANCE

Search 500 + past questions and counting.

  • Filter by Professional Bodies

  • Filter by Subject

  • Filter by Series

  • Filter by Topics

  • Filter by Levels

  • 25 Marks

CSME – Nov 2018 – L2 – Q1a – Environmental Analysis

Perform a SWOT analysis using a Mini Resource Audit and Porter's Five Forces for Igbadun Nigeria Limited in the online streaming business.

Igbadun Nigeria Limited is a private limited liability company engaged in the business of online content streaming to registered subscribers through a dedicated website “igbadun.com”. The company’s content offerings include movies, TV episodes, cartoon series, educational series, documentaries, and reality shows.

The subscriber base growth rate of Igbadun has been phenomenal, jumping from about 3,000 in 2013 to 30,000 at the end of 2017. This is despite the fact that the industry is relatively new in Nigeria. The growth has led to an increase in revenue from N72 million in 2013 to N450 million by the year ended 31 December 2017. However, the only source of revenue to the company is customer subscriptions.

The impressive performance of Igbadun Nigeria Limited has been attributed to several factors, including:

  • Increasing internet usage;
  • Increased patronage of streamed online programs;
  • Improved access to the internet at a reduced cost;
  • Affordability of internet-enabled devices suitable for viewing online video content;
  • Cost reduction strategies and a very affordable subscription rate, which has been reduced from N2,000 in 2013 to N1,500 in 2017. This is the second-lowest rate in the industry;
  • Aggressive marketing strategy and investment in advertising;
  • Reduction in marketing costs as a percentage of revenue from 16% in 2013 to 12.8% in 2017;
  • Growth of gross subscribers by more than 100% per annum;
  • Investment of over 60% of its earnings for growth and development, especially in purchasing the best hardware and software available;
  • Aggressive R & D policy that has led to in-house development of most of its software, with all of them duly patented;
  • Effective Human Resource Management strategy that has helped to attract, motivate, train, and retain highly qualified and experienced manpower;
  • Management team of highly experienced personnel.

A report recently released by Arthur Baker and Company, a reputable consulting firm in Nigeria, predicted that the demand for online program streaming in Nigeria will grow significantly to 5 million by 2020. Consequently, existing rivals, such as Netcom and other smaller competitors, are jostling to gain competitive advantage. The relatively liberal legal requirements for entry have also facilitated an influx of new entrants into the industry. Netflox, the world’s biggest provider of online program streaming service, recently commenced operations in Nigeria.

Copyright activists recently proposed a bill to the National Assembly, allowing online program streaming providers to stream new releases only after two months of release. This bill will adversely affect the subscription revenue of igbadun.com if passed into law.

A major part of Igbadun’s subscription revenue is received through online payments using debit cards. However, a recent report by an independent consultant shows a decline in the use of online payment platforms due to increased security concerns. This has the potential to hurt Igbadun’s revenue stream.

Igbadun is also struggling to compete with other movie entertainment media such as cable TV, DVDs, and cinemas. The most worrisome for the company has been DVDs. The activities of pirates have made the price of DVDs for new releases as low as N500 each. If this continues unabated, the company risks losing its subscriber base.

Despite these challenges, Igbadun plans to grow its subscriber base to 200,000 by the end of 2020.

Required:

a. With the aid of a Mini Resource Audit and Porter’s Five Forces Model, prepare a SWOT analysis for the management of Igbadun Nigeria Limited.

Login or create a free account to see answers

Login
Register

Find Related Questions by Tags, levels, etc.

Report an error
Report an error

You're reporting an error for "CSME – Nov 2018 – L2 – Q1a – Environmental Analysis"

  • 10 Marks

CSME – Mar/Jul 2020 – L2 – Q4 – Chairman’s Responsibilities and Board Diversity

Discuss responsibilities of the Chairman under Nigerian Code of Corporate Governance

a. Discuss the responsibilities of the Chairman as provided by the Nigerian Code of Corporate Governance. (10 Marks)

Login or create a free account to see answers

Login
Register

Find Related Questions by Tags, levels, etc.

Report an error
Report an error

You're reporting an error for "CSME – Mar/Jul 2020 – L2 – Q4 – Chairman’s Responsibilities and Board Diversity"

  • 15 Marks

CSEG – Nov 2015 – L2 – Q6b – Corporate governance framework

Explain five principles of corporate governance based on the OECD guidelines adopted by Ghana.

Ghana has adopted the principles published by the organization for Economic Co-operation and Development (OECD) which deal mainly with performance problems that result from the separation of ownership and management of a company. Explain FIVE (5) principles of corporate governance.

Login or create a free account to see answers

Login
Register

Find Related Questions by Tags, levels, etc.

Report an error
Report an error

You're reporting an error for "CSEG – Nov 2015 – L2 – Q6b – Corporate governance framework"

  • 5 Marks

CSEG – Nov 2015 – L2 – Q6a – Business ethics

Outline three personal qualities and two professional qualities expected of an accountant.

The personal qualities as well as the professional qualities of an accountant can influence his/her role in the strategic management process. Outline three personal qualities and two professional qualities expected of an accountant. [5marks]

Login or create a free account to see answers

Login
Register

Find Related Questions by Tags, levels, etc.

Report an error
Report an error

You're reporting an error for "CSEG – Nov 2015 – L2 – Q6a – Business ethics"

  • 8 Marks

CSEG – Nov 2015 – L2 – Q5c – Corporate social responsibility

Define sustainability and explain the concept of the triple bottom line with relevant examples.

What is meant by sustainability? Using relevant examples, explain the concept of the triple bottom line.

Login or create a free account to see answers

Login
Register

Find Related Questions by Tags, levels, etc.

Report an error
Report an error

You're reporting an error for "CSEG – Nov 2015 – L2 – Q5c – Corporate social responsibility"

  • 8 Marks

CSEG – Nov 2015 – L2 – Q5B – Marketing, operations and HR perspectives

Explain four different orientations organizations have towards customers.

Explain the FOUR (4) different orientations organisations have towards customers

Login or create a free account to see answers

Login
Register

Find Related Questions by Tags, levels, etc.

Report an error
Report an error

You're reporting an error for "CSEG – Nov 2015 – L2 – Q5B – Marketing, operations and HR perspectives"

  • 4 Marks

CSEG – Nov 2015 – L2 – Q5a – Management perspective

Explain how the production function can be integrated with other functions in a company.

Strategic management is a cross-functional activity. The production function for example, has relationship with other functions of a company. Explain how the production function can be integrated with other functions in company. [4marks]

Login or create a free account to see answers

Login
Register

Find Related Questions by Tags, levels, etc.

Report an error
Report an error

You're reporting an error for "CSEG – Nov 2015 – L2 – Q5a – Management perspective"

  • 10 Marks

CSEG – Nov 2015 – L2 – Q4c – Corporate governance framework

Explain five issues typically contained in corporate governance reports.

Reporting on corporate governance is one way of ensuring transparency. Based on recent corporate governance concerns, explain FIVE (5) issues that are contained in corporate governance reports. [10marks]

Login or create a free account to see answers

Login
Register

Find Related Questions by Tags, levels, etc.

Report an error
Report an error

You're reporting an error for "CSEG – Nov 2015 – L2 – Q4c – Corporate governance framework"

  • 5 Marks

CSEG – Nov 2015 – L2 – Q4b – Strategy evaluation and control

Identify and explain five elements of the Ms Model used in resource audits for strategy evaluation and control.

Strategy evaluation is as important as strategy formulation. One of the tools used in resource audit as part of strategy evaluation and control is the Ms Model. Identify and explain any FIVE (5) elements in the Ms Model. [5marks]

Login or create a free account to see answers

Login
Register

Find Related Questions by Tags, levels, etc.

Report an error
Report an error

You're reporting an error for "CSEG – Nov 2015 – L2 – Q4b – Strategy evaluation and control"

  • 5 Marks

CSEG – Nov 2015 – L2 – Q4a – Organisational mission and objectives

Outline five common elements included in most mission statements.

A mission statement describes an organization’s basic purpose and what it is trying to achieve. It can play an important role in the strategic planning process. There is no standardized format for mission statements. However, there are common elements included in most mission statements.

Outline any FIVE (5) of these elements. [5marks]

Login or create a free account to see answers

Login
Register

Find Related Questions by Tags, levels, etc.

Report an error
Report an error

You're reporting an error for "CSEG – Nov 2015 – L2 – Q4a – Organisational mission and objectives"

  • 10 Marks

CSEG – Nov 2015 – L2 – Q3b – Corporate governance framework

Explain five symptoms of poor corporate governance in organizations.

Corporate governance is now a very popular and important area in strategic management. However, corporate governance is poor in a number organisation.
Explain FIVE(5) symptoms of poor corporate governance [10marks]

Login or create a free account to see answers

Login
Register

Find Related Questions by Tags, levels, etc.

Report an error
Report an error

You're reporting an error for "CSEG – Nov 2015 – L2 – Q3b – Corporate governance framework"

  • 10 Marks

CSEG – Nov 2015 – L2 – Q3a – Internal control and audit

Explain the composition and functions of an Audit Committee in corporate governance.

The role of Audit Committee in corporate governance cannot be overemphasized.

i) What should be the composition of an Audit Committee? [4marks]

ii) Explain FOUR (4) functions of an Audit Committee. [6marks]

Login or create a free account to see answers

Login
Register

Find Related Questions by Tags, levels, etc.

Report an error
Report an error

You're reporting an error for "CSEG – Nov 2015 – L2 – Q3a – Internal control and audit"

  • 10 Marks

CSEG – Nov 2015 – L2 – Q2b – Business ethics

Compare and contrast the stakeholder and shareholder approaches to corporate governance.

There is an ongoing debate about the relative merits of the stakeholder approach versus the shareholder approach to corporate governance.

Required:

Compare and contrast the stakeholder approach and the shareholder approach to corporate governance. (10 marks)

Login or create a free account to see answers

Login
Register

Find Related Questions by Tags, levels, etc.

Report an error
Report an error

You're reporting an error for "CSEG – Nov 2015 – L2 – Q2b – Business ethics"

  • 40 Marks

CSEG – Nov 2015 – L2 – Q1 – Analyzing the external environment

This question involves analyzing the external environment affecting Grace Telecom Ltd., assessing market development opportunities using Ansoff’s Matrix, understanding economic data relevance, evaluating expansion plans, and outlining methods for obtaining a stock exchange quotation.

CASE STUDY: GRACE TELECOM LIMITED

Introduction: Grace Telecom Ltd. is a well-established company providing telecommunications services both nationally and internationally. It offers telephone services, telephone lines and equipment, and private telecommunication networks. Recently, it has expanded into mobile phone services, an expanding global market.

The company has a diverse customer base, including residential users, multinational companies, government agencies, and public sector organizations. Grace Telecom Ltd. handles approximately 100,000 million calls each working day and employs nearly 140 personnel.

Strategic Development: The Chairman of Grace Telecom Ltd., in the latest Annual Report, identified three main growth areas reflecting the evolving telecommunications market. The company aims to:

  • Expand its telecommunications business nationally and overseas, acting independently or through partnerships.
  • Diversify into television and multi-media services, including telephone shopping and broadcasting.
  • Extend joint ventures and strategic alliances already established in West Africa.

The Chairman emphasized the company’s intent to become a world leader in communications by focusing on long-term development, improving customer services, developing high-quality products, and maintaining innovation, flexibility, and market-driven approaches to deliver world-class services at competitive costs.

Financial Information: The following comparative statistics show extracts from the company’s financial performance in the national telecommunications market over the last two years:

Last year Previous year
Revenue/Turnover (GHS’000) 16,613
Profit before interest and tax (GHS’000) 3,323
Capital employed (GHS’000) 22,150

The company estimates its cost of capital to be approximately 18%.

Business Opportunities: The Chief Executive of Grace Telecom Ltd. identified major opportunities in:

  • Encouraging greater telephone usage.
  • Providing advanced services, including research and development into new technologies.
  • Benefiting from the increasing deregulation of global telecommunication services.

An extensive advertising campaign was used to penetrate the residential market further, offering various charging incentives to residential customers.

To increase long-term shareholder value, the company is considering investing GHS200 million annually for three years in new technology and quality improvements in its national market. This investment, due to its specialized technical nature, is not expected to have residual value at the end of the three-year period.

Following the investment, the directors believe the company’s rate of profit before interest and tax to turnover in the national telecommunications market will remain constant, at the same level as last year, for the three years of the investment.

Markets and Competition: Grace Telecom Ltd. is experiencing market share erosion and faces strong competition in the mobile phone market. Despite leading its national market with an 85% share, the company has seen reduced demand for residential lines over the past five years due to increased competition.

The market for telecommunications equipment is perceived as static. The planned investment of GHS200 million annually is estimated to increase Grace Telecom Ltd.’s market share to 95%. This improvement is expected to be fully realized in the first year and maintained for the full three-year period. Without further investment, the market share is expected to revert to current levels due to competitive pressures.

Industry Regulation: A government regulatory organization has been established to promote competition and deter anti-competitive behavior. Due to regulatory activities and aggressive pricing strategies, charges to customers are anticipated to remain constant for the full three-year period of new investment.

All cash flows are assumed to occur at the end of the year to which they relate. The cash flows and discount rate are in real terms.

Future Outlook: The business remains under family control, but the board is considering an expansion program, which would require raising GH¢200 million in equity or debt finance. However, there are risks associated with the expansion, such as the declining market for fixed telephone lines. New income is expected from expanding into mobile money transfer services. The company’s key to profit growth lies in generating sales growth, though it faces stiff competition from larger telecom companies.

Grace Telecom Ltd. must carefully consider external factors, including government economic policy. Recent key economic data include:

  • Bank base rate reduced from 22% to 20%, with a forecast of a further 0.5% reduction within six months.
  • Annual inflation rate reduced to 12% from 14% in the previous quarter and 16% twelve months ago, with no further declines expected in the medium term.
  • Personal and corporate tax rates expected to remain unchanged for at least twelve months.

Required:

a) Explain the nature of the political, economic, social, and technological forces which will influence Grace Telecom Ltd. in developing its business and increasing its market share. (8 marks)

b) Apply Ansoff’s Product/Market Growth matrix to assess the extent of the potential market development opportunities available to Grace Telecom Ltd. (12 marks)

c) Explain the relevance of each of the items of economic data listed in the case to Grace Telecom Ltd. (6 marks)

d) Explain whether Grace Telecom Ltd. should continue with its expansion plans. Clearly justify your argument for or against the expansion. (10 marks)

e) Outline FOUR (4) methods whereby Grace Telecom Ltd. can obtain a quotation for its shares on the Ghana Stock Exchange. (4 marks)

Login or create a free account to see answers

Login
Register

Find Related Questions by Tags, levels, etc.

Report an error
Report an error

You're reporting an error for "CSEG – Nov 2015 – L2 – Q1 – Analyzing the external environment"

  • 20 Marks

CSEG – Nov 2018 – L2 – Q6 – Strategic alternatives, analysis and selection

Discuss the challenges and strategies involved in Franko Ltd’s acquisition of a Nigerian accounting software company.

Franko Ltd is a producer of accounting software for SMEs. The software is very easy to use, even for a layperson, and has significant functionality for the price level of GH¢4,959 per annum. The package includes all functionality to comply with tax payments, including income tax, (PAYE) and VAT, as well as creditor and debtor accounting and some customer relationship management functions. The firm also has an enhanced package that includes telephone support and free updates for GH¢499 per annum.

Franko Ltd has been very successful, and this has led the firm to expand internationally, after starting and developing a business over the past five years, mostly in Accra, Ghana. Franko Ltd has decided to expand into the African market and has chosen to enter the Nigerian market by acquiring a Nigerian accounting software business as an entry route into that market, as it is perceived to be different from the Ghanaian market.

Required:

a) Explain FOUR (4) challenges Franko Ltd may face in the acquisition. (8 marks)

b) Advise Franko Ltd on how to effectively address the challenges they may face in planning and completing such an acquisition. (12 marks)

Login or create a free account to see answers

Login
Register

Find Related Questions by Tags, levels, etc.

Report an error
Report an error

You're reporting an error for "CSEG – Nov 2018 – L2 – Q6 – Strategic alternatives, analysis and selection"

  • 10 Marks

CSEG – Nov 2018 – L2 – Q5b – Corporate governance framework

Explain the importance of separating the roles of Chairman and CEO in a company.

A chairman of the board of directors leads the board in meetings. The board chairman plays a crucial role in developing a focused and effective board. The competence of the chairman of the board of directors is crucial to ensure that the company’s board is effective.

Required:

Explain FIVE (5) reasons to justify the need to separate the roles of the Chairman and Chief Executive Officer (CEO) of a company.

Login or create a free account to see answers

Login
Register

Find Related Questions by Tags, levels, etc.

Report an error
Report an error

You're reporting an error for "CSEG – Nov 2018 – L2 – Q5b – Corporate governance framework"

  • 10 Marks

CSEG – Nov 2018 – L2 – Q5a – Marketing, operations, and HR perspectives

Explain how five human resource management functions can help accomplish organizational objectives.

The successful implementation of corporate strategy depends, in part, on effective management of human resources within an organization.

Required:

Explain FIVE (5) human resource management functions that can help accomplish organizational objectives. (10 marks)

Login or create a free account to see answers

Login
Register

Find Related Questions by Tags, levels, etc.

Report an error
Report an error

You're reporting an error for "CSEG – Nov 2018 – L2 – Q5a – Marketing, operations, and HR perspectives"

  • 20 Marks

CSEG – Nov 2018 – L2 – Q4 – Strategy evaluation and control

Discuss how the Balanced Scorecard can assist in delivering the company’s vision and strategy and explain its limitations.

An insurance company has developed a new mission statement following a detailed analysis of the company’s operations and marketplace. The mission statement states: “We want to continually grow through our commitment to quality and delivering quality to customers.”

The management developed the following set of vision statements to complement the mission statement:

  • Provide superior returns to our shareholders
  • Continually improve our business processes
  • Delight our customers
  • Learn from our mistakes and work smarter in the future

Required:

a) Advise on how the Balanced Scorecard can assist the insurance company in delivering its vision and strategy. (12 marks)

b) Explain FOUR (4) limitations of the Balanced Scorecard. (8 marks)

Login or create a free account to see answers

Login
Register

Find Related Questions by Tags, levels, etc.

Report an error
Report an error

You're reporting an error for "CSEG – Nov 2018 – L2 – Q4 – Strategy evaluation and control"

  • 20 Marks

CSEG – Nov 2018 – L2 – Q3 – Corporate governance framework | Internal control and audit

Discuss the role and responsibilities of the audit committee in relation to external audit and internal controls, and suggest changes to address internal control failures.

ABB Bank Ltd (ABB Ltd) is a listed company. It has been given a substantial fine by the Central Bank for serious breaches of the banking regulations and, in the same month, the bank reported that it had suffered large losses because of unauthorized dealings in financial derivatives by a manager in its treasury department. The company’s reported profits for the previous financial year were overstated because of these losses.

The chairman of the audit committee of ABB Ltd has resigned, accepting responsibility for failures by the committee. A newly-appointed director has been made chairman of the audit committee. He has called a meeting with you, the Finance Director. The purpose of the meeting is to review financial reporting and internal control, with a view to making recommendations to the board. ABB Ltd does not have a strong internal audit function, and the company has been using the same firm of external auditors since it acquired its listing 8 years ago.

Required:

a) Explain the role and responsibilities of the audit committee of ABB Ltd with regards to:

i) The external audit of the company’s financial statements; and (6 marks)

ii) The internal control system and internal audit function. (6 marks)

b) In relation to the possible failures in internal controls that have occurred, suggest FOUR (4) changes that might be recommended to the board at the next board meeting. (8 marks)

Login or create a free account to see answers

Login
Register

Find Related Questions by Tags, levels, etc.

Report an error
Report an error

You're reporting an error for "CSEG – Nov 2018 – L2 – Q3 – Corporate governance framework | Internal control and audit"

  • 10 Marks

CSEG – Nov 2018 – L2 – Q2b – Corporate social responsibility

Discuss how CSR initiatives by a large public company could contribute to the long-term benefits of the company.

Sampa Ltd is a large local fast-moving consumer goods company with many well-known branded products. It imports raw materials for its products from several countries, and all its manufacturing operations are based in Ghana. The financial performance of the company has been declining due to an economic downturn.

The CEO thinks that the economic recession will make all companies focus on profitability and that concerns about corporate social responsibility (CSR) will lessen. He has always held the view that CSR provided some public relations benefits but that it has no effect on the financial performance of companies or their share price.

Required:

Discuss how CSR initiatives by a large public company could contribute to the long-term benefits of the company. (10 marks)

Login or create a free account to see answers

Login
Register

Find Related Questions by Tags, levels, etc.

Report an error
Report an error

You're reporting an error for "CSEG – Nov 2018 – L2 – Q2b – Corporate social responsibility"

Elevate your professional expertise across key business domains with our comprehensive training programs

Our offerings

Contact Info

  • +233203701923
    +233543919232
  • info@knowsia.com

Customer

Get In Touch

Follow us on our social media and get daily updates.

Facebook-f Twitter Linkedin-in Envelope
Oops!

This feature is only available in selected plans.

Click here to view all plans

Click on the login button below to login if you’re already subscribed to a plan or click on the upgrade button below to upgrade your current plan.

Login
Upgrade Plan

If you’re not subscribed to a plan, click on the button below to choose a plan

Subscribe to a plan