Element 2: Report
A. Report Question
In this report you must use the information provided in the examination paper. You must also use the figures which you have calculated in the examination.
You will be penalised if you use figures which are not consistent with your examination answers.
You will not be further penalised in the report exercise for using figures which you have submitted as examination answers, even if your submitted answers contained errors.
Further information: Scylace plc has total assets of £312 million, including £14 million in cash, with total liabilities of £98 million.
B. Report Exercise
You have been engaged as a management consultant by Scylace plc, a grocery retail chain. You have been asked to evaluate two alternative proposals for building a new superstore and a proposal to make a takeover bid for Helibeb plc. You have the option to build the superstore at one of two locations. Using the figures which you have calculated in your examination, write a report with recommendations on whether to build either or both of the two superstores and on whether to make a bid for Helibeb plc. If you recommend that
both superstores should be built or
(b) at least one superstore should be built while Scylace also seeks to acquire Helibeb
you must provide a recommendation on which investments should take priority if resources are insufficient to make all the investments you are recommending.
Your report must contain:
An executive summary (up to 300 words)
2. An introduction (up to 200 words)
3. A methodology for evaluating the proposed new superstore locations and prospective acquisition, in the light of available finance (up to 500 words)
4. An evaluation of the proposed new superstore locations and prospective acquisition (up to 1,000 words)
5. Conclusions (up to 250 words)
6. Recommendations (up to 250 words)
7. References
