CIMA Strategic Case Study - Steelcast

Scenario 3

Steelcast is considering the acquisition of another business which is into making of smart watches. This would help Steelcast to focus on its conventional watch designs, while the other business would create smart models and penetrate this new market. The company will use its brand name with that of Steelcast for the new products.

You are required to answer the following:

- What strategic risks do you envisage in such arrangement with the new business?

- What key factors do you consider while deciding upon to proceed with the proposal. Your answer should also justify the factors?

Scenario 4

The new design testing has not come upto the expectations. It appears that the design will blend the technological and advanced features requirements and fit the size to bring a smart look. Already, significant investments have been made, and the failure of the technology does not sound well, especially when the shareholders were expecting a positive result of the outcome of the research. The information is still confidential of course.

I need your report suggesting the following:

- Should we make a public announcement of this information? Also, please mention of any impact on relationship with our shareholders and any ethical issues that may be considered while discussing this

- How does it impact our share prices considering that the announcement is made?

CIMA Strategic Case Study Nov 2017 - Steelcast

Scenario 1

Steelcast has been considering the use of technology through making of smart watches for the entrepreneurs who are young and wealthy. It has been thinking of tapping this market before its competitors in the high-end markets approach with a new design. However, doing this may result into Steelcast moving out of its conventional designing of watches and offer a smart, sophisticated watch.

While the Steelcast's management is keen to explore this idea, there could be a risk of losing its reputation of manufacturing the classic watches with conventional appearance.

You may draft a report suggesting whether the decision above is going to impact the share prices adversely or positively? Your report should also contain the possible challenges associated with above decision and the ways how these should be addressed.

Scenario 2

The new product has worked well with the upcoming economies, seeking demand for Steelcast new range of smart watches. However, customers find it inconvenient to to pay in H$, and therefore Steelcart does not have a choice but to invoice the customers in their local currency. This adds to the risks of foreign currency exposure already faced by the company. Additionally, the repair work undertaken for the customers may be done at the authorised centers at respective locations across countries. However, those authorised dealers also expect the proceeds to be received in their local currency rather than in H$.

The company is considering whether or not to hedge for such exposures, since the currency fluctuations may be positive or negative.

You are required to discuss the implication of not hedging for such risks. Include those risks which have a high impact and a high possibility.

You are required to discuss the

CIMA Nov 2017 ZX - Case Study Questions

"The cost and working capital investment is significant in our processes. We can not let the financial perspective ignored for the sake of providing value to our customers. We may need to sell the furniture that may not be up to the mark. While this may have some problems for our customers, we achieve a short term profitability and liquidity essential to stay in business against the competition".

Suggest the relevance of Balanced Scorecard for the ZX's business considering the above decision making.

ZX has started looking for outsourcing model for the furniture making considering the investments in working capital. Discuss the advantages and disadvantages of outsourcing to ZX in respect of the above decision.