Day 1 - 3 Strategy

Question 1

Day 1: Key success factors (KSFs)

Answer 1

• effective management of fuel, disposal, and regulatory compliance costs
• strong customer relationships and local long-term customer contracts
• vertically integrating to include collection, transfer, recycling, and landfill sites

• strong local and government support for the various waste management programs,
such as recycling

• focusing on reduction of GHG emissions and other environmental initiatives

• investing in up-to-date technology, such as:
o increasing the use of automation to reduce reliance on labour, such as driverless
collection trucks, robotics for sorting and dismantling, and drones to survey
landfill sites

Question 2

Day 1: SWOT

Answer 2

S
Are they vertically integrated 
Where have their successes been - what divisions
Who is on the board and what is the relationship like
Have they converted more vehicles to natural gas
W
Where have they not been successful 
difficulty filling positions 
Still limited to NS & NB geographical regions
Have they been dumping materials?
O
Customer awareness
Government regulations
Prices
T
Inability to increases prices
Markets shrinking

Question 3

Day 1: Situational Analysis

Answer 3

• Mission and vision statement
• Core values
• Key success factors (KSFs)
• Targets
• SWOT
• High-level financial analysis

Question 4

Day 1: High-level financial analysis

Answer 4

• How much debt are they taking on in comparison to operating income
• What is their operating profit at and is it over/under goal. (2020 operating margin was 8%)
• Significant capital investments is good management
• Any dividend payments received?
• Debt to equity ratio

Question 5

Day 1: Strategy

Answer 5

4 hours total (240 mins)
60 mins outline
3 hours for writing (180 mins)

Situational Analysis
• Yes if 3 factors discussed on 3 AO’s and 1 other has 1 factor discussed or 3 attempted.
•Marginal if 3 factors discussed on 2 AO’s or 3 other AO’s have 1 factor discussed or 3 attempted.

Calculate quant
• Include supporting notes
• State assumptions in word doc
• Conclude

Qualitative Response
• Yes if 6 pros and cons discussed (three each)
• Include the why or so what
• Conclude - include both quant and qual facts

If can get yes on one of quant or qual should be able to get at least a marginal pass

Operational Issues
• Identify, explain and actions to be taken to improve
• Discuss any concerns, incorporating case facts
• Conclude

Conclude and Advise
• Summarize each recommendation made - don’t waste time to overly repeat facts
• include an explanation for how the recommendations should be prioritized
• Include discussion of issues or timing between recommendations such as financing constraints

Repeating the conclusions with no additional input will not be value added

Question 6

Day 2: Strategy

Answer 6

5 hours total (300 mins)
75 mins outline
3 hours 45 mins for writing (225 mins)

Prioritize Financial Reporting and Taxation AO’s

Financial reporting
• Handbook analysis (If 2-3 criteria, normally 2 discussed is a yes)
• Include case facts to support
• Include calculation and Adj GJ
• Conclude - Consider impact on user concerns

Taxation
• Taxable income or personal income calc: 10 discussed and reasonable calculated should be safe
• State assumptions in discussion
• Provide conclusion

Excess cash planning 
• Discuss 6 with one planning
• Discuss implications to both shareholder and company
• salaries or bonus
• dividends
• CDA
• Shareholder loan
• Planning: bonus deferral, QSBC planning

Contractor vs Employee
• Discuss 6 for yes
• include GST as a factor

Management accounting
Calculate quant
• Yes if 4 reasonably calculated 
• Include supporting notes
• State assumptions in word doc
• Conclude

Qualitative Response
• Yes if 4 pros and cons discussed
• Include the why or so what
• Conclude - include both quant and qual facts

Question 7

Day 3: Strategy

Answer 7

4 hours 3-4 cases

• Skip non-material calculations
• Focus on material numbers in calcs

Strategy & Governance
• Discuss 5 for a yes depending on size of AO
• SWOT 2 of each section for a yes

Financial Reporting
• Really depends on what is being asked. Typically about 6-7 discussed for a yes

Finance
• Really depends on what is being asked.

Management Accounting
• Really depends on what is being asked. 4-6 reasonably calculated should get a partial or yes

Audit and assurance
• 5-6 discussed points should get a yes

Taxation
• Smaller quants
• 6 reasonably calculated with support
• 6 discussed for yes on non-calcs

Question 8

Day 1 case details

Answer 8

Laura owns 40%, kingsley 60%
Goals and objectives pg 12/13
Strategy pg 12

Constraints
Annual audited FS required by bank
Financing