Tag (SQ): GreenPath Company

Case Study: GreenPath Company Ltd
Background
GreenPath Company Ltd (GP) was established over 20 years ago to manufacture and sell naturally-based cosmetics and skin products. The first shop was opened in Great Albion. Since then, GP has successfully expanded and now trades in over 40 countries world-wide through more than 1,000 retail outlets, 75% of which are located outside Great Albion. The company has a major sales and production operation in Zamunda, based in Zamura, which serves the growing African market for GP’s products. The ecologically-friendly aims of GP have not changed since it was first established. The company campaigns against animal testing in the cosmetics industry and for human rights all over the world. It seeks to establish trade relations with overseas countries, and to integrate itself into the local communities in which it trades so that it can be more aware of the specific needs of its customers. GP prides itself on its achievements in educating staff and customers through providing information on its products and methods of manufacture.

Corporate activities
GP is intent on preserving the environment in its global operations by promoting the efficient use of energy, keeping waste to a minimum and using only renewable resources whenever possible. These basic principles have been challenged by some observers who suggest that, in the current aggressive corporate climate, GP will need to abandon its environmentally-friendly aims in order to compete. The company’s Chairman is determined that this shall not be the case and is proud of the fact that GP was one of the first companies globally to publish environmental audit reports.

GP sources high-quality raw materials directly from producers from world and carries out extensive product research and development in Great Albion and South Meridian. The results of successful research are converted into innovative products which are manufactured by GP’s Africa division production facilities in Zamura. The products are then transferred to a throughout the African continent. In addition, GP is active in health to throughout the world and, some years ago, initiated and the development.

Required: 
(a) Present a corporate appraisal for the Africa division of GreenPath Company Ltd.

(b) Comment on the two options evaluated. Your answer should

• include an assessment of the best and worst outcomes from the quality improvement option;
• express any reservations you might have about the results; and
• take into consideration the likely potential reaction of competitors if GP implements either strategy.

  (c) Recommend what information the management accountant should provide to the directors of GreenPath Company Ltd to assist them in assessing the company’s progress towards the achievement of its strategic environmental aims.

  (d) By reference to potential future market opportunities and threats, recommend a strategy which GreenPath Company Ltd may adopt in order to pursue its strategic environmental aims.