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1.Itis1.ItisapparentthatthedownturninSmartWear'sperformancecaninpartattributedbeyondthecompany'sdirectArecentnationalnewspaperarticlefurtherconfirmsthattheeconomicsituationinNoriahasmadetradingconditionstoughforbusiness.Therefore,agoodunderstandingofthoseexternalenvironmentalfactorsnegativelyaffectingtheSmartWearbusinessmodelisessentialsothatactioncanbetakentoremedythecurrentsituationandimprovethefutureprospectsforthecompanyanditsinvestors.TheboardofSmartWearwantstofullyunderstandhowthegeneralenvironmentisimpactingonthecompany,asthiswilldirectlyinfluenceitsabilitytoenablethebusinesstosucceedandprosper.Theboardhasaskedyoutobrieftheboardonthisissuefortheirnextboardmeeting.2019Prepareabriefingpaper2019Prepareabriefingpapertobepresentedatthenextboardmeeting,(a)AnalysestheenvironmentinwhichSmartWearoperatesandconsiderthis.(10themajorriskspresentedbySmartWear'scurrentbusinessmodel,appropriatemitigatingactionstomanagetheserisks.(10marks)ProfessionalskillsmarksareavailableforidentifiedrisksatSmartWearobjectively.(4marks)skillsbyassessing(24(a)Analysesthe(a)AnalysestheenvironmentinwhichSmartWearoperatesandconsiderhowthis.(10(a)(a)Briefingpaper:EnvironmentalanalysisTheoperatingenvironmentthatSmartWearhasbeenexperiencinghasbeenverychallengingandcouldexplaininpartthereasonsfortherecentdownturninitsbusinessfortunes.Althoughcompetitionwillundoubtedlyhaveasignificantparttoplay,allbusinesseswillhavebeenexposedtothesamegeneralenvironmentalconditions.So,gainingabetterunderstandingoftheenvironmentwillhelptheboardtodecidehowbesttosuccessfullyadaptthecurrentoperationsofSmartWear,andtakeadvantageofopportunitiesemergingfromtheexternalenvironment.TheuncertaisituationoftheTheuncertaisituationofthecoalitiongovernmentinNoriahascreatedasenseofuncertaintywithinthebusinesscommunity.Withoutconfidenceinpoliticalcontinuityinvestorsarelessinclinedtorisktheirmoney.Thiswillmakeitmoredifficultforcompanies,likeSmartWeartoraisethenecessaryfinancetogrowthebusinessfurther,orevensustainitscurrentposition.【MJ：套路】Thehighlevelsofgrowthwhichhadbeenpreviouslyachievednolongerappeartobeachievable,sotheSmartWearboardmayneedtothecompany’sstrategicgoalsandfocuscompany’spositioninthemarketduringthisdifficultanduncertainpoliticalperiod.【MJ：思維】Thecurrentrecordhighlevelsofunemployment,highinflationThecurrentrecordhighlevelsofunemployment,highinflationandaresultantdeeprecessiondoesnothelptheretailsectorinNoria.However,itisreasonabletoassumethatwithlessdisposableincome,consumerswouldbemoreinclinedtopurchasetheirclothingneedsfrombudgetretailerslikeSmartWear.Indeed,thecompanyhasbenefitedfromthiseconomically-drivenbehaviouralshift.Theboardshouldconsideritsinternationalportfolioofbusinessesinordertomanagetheriskassociatedwithdiversenationaleconomies,sincecurrentlyinflationandismuchlowerthaninTherefore,anyplannedstrategicexpansionshouldbeinmarketsratherthandomestically.developments【MJ：其實(shí)有點(diǎn)developments【MJ：其實(shí)有點(diǎn)牽強(qiáng)。而且和后面的，競(jìng)爭(zhēng)險(xiǎn)，很雷同。完全是自己參考答案，犯自己吐槽的毛病Thedemandfromconsumersforcheaperclothinghasrequiredtheseitemstobesourcedfromlowcosteconomies.Therehasbecomeanexpectationthatclothingwillremainlowpriced,whichlimitshowcompanieslikeSmartWearcancompete.Thisintothelowendofmarketandsuggeststhatonlythosecompanieswhoareabletowillsucceedinthelongrun【MJTheboardneedstobearallofthisinmindwhenitisconsideringitsgrowthplansanddecidinghowbesttosatisfyconsumerdemandsgoingOncedeveloped,anyonlineOncedeveloped,anyonlineplatformcanbeextendedtoinclude,thereforenewclothinge-retailerscanemergefrompreviouslynoncompetingbusinesseswhohavesimplybroadenedtheirproductoffering.TheresultantincreasedsupplyofclothinggoodstothemarketwithpotentiallycontractingdemandwillputdownwardpressureonpricessqueezingthemarginsofallcompaniesincludingSmartWear.【MJ：套路&思維】TechnologicalThegrowthofe-commerceinthegeneralretailsectorhascompletelyalteredthecompetitivedynamic.【屌絲答案-Case】Theconvenienceandqualityofservicethatthesee-retailersprovidehasproventobeveryappealingtomanyoftraditionalcustomers,whohaveshiftedtheirshoppingpatterns.TheboardisadvisedtoconsidertheopportunitiespresentedtoSmartWearfromasthiscouldallowforsubstantialrevenuegrowthwithouttheneedtoestablishacostlynetworkofretailoutletsandwouldallowarationalisationoftheportfolioofphysicalretailoutlets,toreleasefundsandreduceoperatingcosts.2019Prepareabriefingpaperto2019Prepareabriefingpapertobepresentedatthenextboardmeeting,(a)AnalysestheenvironmentinwhichSmartWearoperatesand(10marks).(10themajorriskspresentedbySmartWear'scurrentbusinessappropriatemitigatingactionstomanagetheserisks.ProfessionalskillsmarksareavailableskillsbytheidentifiedrisksatSmartWearobjectively.(4marks)(24marks)TomitigatetheseriskstheboardneedstorethinkitsTomitigatetheseriskstheboardneedstorethinkitswholestrategicapproach.ItforSmartWeartodeviseastrategytodifferentiateitsbusiness,asthiswouldcausebrandconfusiontoitscorecustomerbaseandrequiresignificantinvestment.【MJ：不A1MajorrisksarisingfromtheSmartWearbusinessmodelStrategicriskThecompanycurrentlypursuesacostleadershipstrategywhichenablesittocompetitivelypriceitsproductsinitstargetmarkets.However,costleadershipmeansthatSmartWearmustbethelowestcostsuppliertothemarket,whichisonlypossibleifittoabsorbitscostHowever,withthegrowingemergenceoferetailersinthemarket,whodonotneedtoemploysalesstafforoperatecostlyretailoutlets,itTomitigatetheserisks,thecompanyshouldfocus,withanyavoidableextractedfromthebusinessmodel.Atthesametimethecompanycouldcontinuetoinvestinthoseoverseasmarketswhicharemorereceptivetothecurrentbusinessmodel.Thiswouldresultinfurtherscaleeconomies,particularlyifnoncorebusinessfunctionsarecentralisedratherthanduplicated.ThereisahighdependencyThereisahighdependencyonoverseas,southeastAsia,supplierstoprovideSmartWearwithclothingitemstosellinitsEuropeanretailoutlets.Thesemanufacturersarebasedaconsiderabledistancefromthecoresalesmarkets,whichcanmakethesupplyleadtimeverylong.ThiscouldleadtotheaddedriskthatifgoodsarethenanysurplusoverdemandmayneedtoromtheToreducetheexposuretothis,SmartWearneedstofocustoaccuratelypredictthecontinuousdemandlevelsforallclothingitems.Thisshouldensurethatthereisneithera‘stockout’norexcessiveinventoryheld.wouldprovideinformationonlevelsofstockheldineachretailoutletsothatthesecouldbeinternallyredistributedratherthanrequiringnewproductstobeordered.ThemanufacturersofallSmartWearproductsarebasedinAsiaandwillexpectpaymentintheirfunctionalcurrencies.Therefore,thecurrentbusinessmodelexposestheThemanufacturersofallSmartWearproductsarebasedinAsiaandwillexpectpaymentintheirfunctionalcurrencies.Therefore,thecurrentbusinessmodelexposesthecompanytovolatilityintherelativemovementofexchangerateswhichcouldpotentiallyresultinToreducethepossibledamagingconsequencesofforeignexchangemovementsonSmartWear’sbusinessoperationsandreportedperformance,theboardshouldensurethatithaswillensurethatanytransactionexposure,deemedtooriskyforthecompany,ishedgedusingappropriatefinancialinstruments.MarketMarketThisrelatestotheriskofchangingconditionsinthemarketplace,suchastheincreasingtendencyofconsumerstoshoponline.ThisparticularaspectofmarketriskpresentssignificantchallengestotraditionalretailbusinesseslikeSmartWear,wherefailuretosuccessfullyadaptcouldmakethecurrentbusinessmodelobsoleteoverarelativelyshortperiodoftime.Toreducethemarketrisk,SmartWearneedstoadaptandembracethegrowingonlineshoppingpublicasthiscouldresultinsubstantialrevenuegrowth,whichiscoretoachievingitsstrategicgoals.Theboardneedstocommissionmarketresearchandevaluatetheoptiontodevelopandmanageitsownonlinesalesplatform.risk【MJrisk【MJ：不用寫(xiě)，但作為 Prefer的屁話思 Competitionisnormallythegreatestrisktoanycommercialorganisation,sincethereisalimitedamountofmarketavailableforalltocompetein.TheSmartWearbusinessmodelhassuccessfullypositioneditselfatthelowendofitstargetmarket,whereithasbecomethemarketleader.However,duringtheeconomicrecessioninNoria,itislikelythatmanyestablishedcompetitorswillalsoseektogainmoreofthelucrativebudgetconsciousendoftheclothingmarket.ThisisdirectlytargetingSmartWear’sdominantposition,whichhasalreadyresultedinanerosioninitsmarketshare.Theriskisthatunlessactionistakenbytheboard,thesituationwillworsenandSmartWearwillceasetobemarketleader.Tolimitthepotentialdamagingeffectofcompetition,SmartWearneedtoengagemorecloselywithitscustomers.Byanticipatingandsatisfyingthechangingdemandsfromitscoremarkets,thecompanycanstayaheadofcompetitionbysuccessfullyadjustingitsmarketingmix.Althoughthereisnoguaranteeofcustomerloyalty,suchaproactiveapproachwillmakethecompanymoreawareoftheriskspresentedbycompetitionanddealwiththemmoreeffectively.TheTheboardisbecomingawarethatNoriamaynotbethesuitablecountrythatitwas15yearsagoforabusinesslikeSmartWeartooperatesuccessfullyin.ThefinancialperformanceofSmartWearinSouthlandissignificantlybetterthanthatbeingachievedinthemoreestablishedhomelandofNoria,orinitsotherEuropeanmarketslikeCentrum,sotheboardhasaskedyoutohelpthemunderstandwhythisisthecase.Tohelpwiththistask,youhavegatheredsummarisedinformationonthecountryofSouthland,whereSmartWearopeneditsfirstretailoutletsixyearsago,togetherwithcomparativedataforNoriaandtheneighbouringcountryofCentrum.Thecompanynowhasover30retailoutletsinallmajortownsandcitiesacrossthecountryofSouthland,wheretheeconomyisbooming,andSouthlandgeneratesthemostofSmartWear'srevenueasanationalmarketafterNoria.Preparefortheboard,Preparefortheboard,inwhich(a)Analysethecompany'sstrategicpositionintheSouthlandmarkettodeterminewhySmartWearappearstobeperformingsowellinthisparticularcountrycomparedtoNoria.(8marks)ProfessionalskillsmarksareavailablefordemonstratinganalysisskillsindeterminingSmartWear's(2A2To:TheBoardA2To:TheBoardRef:SouthlandThisreportprovidesananalysisofSmartWear’sstrategicpositionintheSouthlandmarket,withaparticularemphasisonwhythisspecificcountryappearstobeasuitablelocationforaclothingretailer,anddiscussestheimplicationsofwithdrawingfromthemarketinCentrum.ThebasicandThebasicandadvancedfactorsdescribethecountry’sresourcesandhowitchoosestoinvestinitself,whichcanoftenberelevanttothecompetitivenessofparticularindustries.Thefactorsvaryinnatureandrangefromavailabilityofhumanresources,levelsofeducationandknowledgetoinfrastructure,liquidityonstockmarketsandavailablenaturalresources.AlthoughSouthlanddoesnothaveaparticularlylargepopulation,around60%areofworkingageandover90%oftheseareinemployment.Thisgroupwillforallclothingretailers,suchasSmartWear,whocouldrefinetheunder30yearoldagegroup.Inparticular,consumersSouthlandhavehighpercapitadisposableincomeandrelativelylowItisalsoclearthatthecountryhasextensivetransportationlinksbetweenitspopulationcentres,whichisofcriticalimportanceforSmartWearinallowinggoodstobemovedtomarketcheaplyandquicklyDomesticdemandDomesticdemandconditionsinanycountrycanbeamajorsourceofcompetitiveadvantageforthatcountry.ItisnotonlythesizeofthemarketDomesticdemandDomesticdemandconditionsinanycountrycanbeamajorsourceofcompetitiveadvantageforthatcountry.Itisnotonlythesizeofthemarketwhichisimportant,butalsotheofdomesticTheconfigurationofamarketoftenshapeshowcompetitorsinterpretandrespondtocustomers’demands,whichinturnencouragescompaniestobeinnovativeandenhancetheircompetitivepositionsandmeetthehighstandardsrequiredforservicedelivery.TheexistenceofavibrantandcompetitivedomesticretailindustryinSouthlandissuggestedbecauseretailingisoneofthecountry’sdominantbusinesssectors.Consequently,itislikelytohavethepositivecharacteristicswhichshouldmakeitanattractivepropositionforSmartWeartooperateitsbusinessmodelRelatedRelatedandsupportingThesuccessofanymarketdependsbothonthepresenceofsuppliersandrelatedsupportindustrieswithinthecountry.Therefore,apartfromaccesstoavailablesourcesofdirectsupply,anetworkofrelatedandsupportingorganisationsisequallyimportantifacompanyistosucceedinaparticularcountry.Intheretailsector,wherethecompaniesonlysellwhatothersmake,itisvitalthattherearereliabletransportanddistributionsystemstocontinuouslysupplytheretailoutletswithgoodsforitsshelves.Also,thereneedstobewelldevelopedmarketingmediaaccessibletoeffectivelypromotethebusinessofferingstoawideconsumeraudience.Southland,beingadevelopedEuropeancountrywithgoodtransportlinksandconcentrationsofpopulationinmajorcities,isverylikelytohavetherightinfrastructuretosupportavibrantretailindustry.Thedevelopedcapitalmarketsprovidecompanieswithasourceoffinancewhichisnecessarytopromotetheirbusinessinafreemarketeconomy.Therefore,itseemstobeanideallocationforSmartWeartofurthergrowitsbusinesssuccessfully.Firm,Firm,strategy,structureandThisaspectisconcernedwithhowbusinessesareorganisedandmanaged,andtheculturetheyadopttoachievecorporatesuccess.Thesecanvaryconsiderablybetweencountries,withculturalaspectsinparticularsignificantlyinfluencinghowcompetitiondevelops.InSouthland,whereSmartWearnowoperates30retailoutletssinceitopeneditsfirststoresixyearsago,itisdeliveringsignificantlybetterfinancialperformancethanathome.ThissuggeststhattheSmartWearbusinessmodelsuitstheretailenvironmentandcultureinSouthland,soitisasuitablecountrytofurthergrowthebusiness.TheboardagreedthataradicalresponsetothecurrentsituationwasrequiredtoreassureinvestorsandthestockmarketbyshowingthemthattheSmartWearboardremainedincontrolofthebusiness,TheboardagreedthataradicalresponsetothecurrentsituationwasrequiredtoreassureinvestorsandthestockmarketbyshowingthemthattheSmartWearboardremainedincontrolofthebusiness,andwaswillingtotakeessentialactionwhennecessary.Theboarddecidedthatthecompanyneededtorationaliseitsoperationsbyclosingthe20worstperformingretailoutletsinNoria,andwithdrawingentirelyfromtheneighbouringcountryofCentrum,whereSmartWear's15retailoutletswereallsufferingheavylossesandshowingabsolutelynosignofrecovery.(b)EvaluateclosuresinNoriaandthewithdrawalfromCentrum.(12marks)ProfessionalskillsmarksareavailablefortoSmartWearoftheplannedskillstotheissuesandproblemswhichmayarisefromthisstrategicdecision.(2(b)Thedecisiontoclosethe20worstperformingretailoutletsinNoriaandwithdrawandcloseall15stores(b)Thedecisiontoclosethe20worstperformingretailoutletsinNoriaandwithdrawandcloseall15storesinthecountryofCentrum,presentsanumberofstrategicimplicationsforSmartWear.Theseclosuresrepresentareductionofbetween15%and20%ofcurrentbusinessoperations.Althoughthisdoesnotnecessarilyequatetoasimilarreductioninrevenue,andmay,itwillgivetheimpressiontothemarketthatthebusinessiscontracting.AssuchitmightbemoredifficultforthecompanytoraisefinancefromnewinvestorsThefinancialresourceswhichwouldThefinancialresourceswhichwouldbereleasedfromthesaleanyredundantproperty,aswell,bereassignedtomorelucrativeandprofitableareasofthebusiness.Alternatively,thesefundscouldbeusedtoinvestandgrowthebusinessincountriesmoreconducivetotheSmartWearbusinessmodel,such.InanyservicecompanylikeSmartWear,wheretheyareheavilyreliantontheperformanceoftheiremployees,itInanyservicecompanylikeSmartWear,wheretheyareheavilyreliantontheperformanceoftheiremployees,itisessentialthatstaffremaincloselyengagedinthebusinessatalltimes.Therefore,theboardwillneedtobesetasidesufficientresourcesforwhichnotonlycoversplannedclosuresbutalsomanagestheremainingbusiness,andcommunicatestherationalebehindthedecisiontoThedecisiontoclosesomanyretailoutletsatonetime.Therefore,theboardwillneedtobesetasidesufficientresourcestocommunicattherationalebehindthedecisiontothem.Itmightalsobenecessaryforapublicrelationsexercisetobeconductedtopreservethecompany’swidermarketplace.inTherecouldTherecouldalsoberesidualtaxationissueswhichneedtobeaddressedbeforetheSmartWearcanrepatriateitsinvestedfundsandcompletelywithdrawfromCentrum.【MJ：AFM】Withdrawingentirelyfromacountrymayhaveconsiderableimplicationsonthecompany,bothfinanciallyandlegally.Therewillundoubtedlybestatutoryredundancypaymentsdue,andthesemaybesignificantdependingonthenumberofstaffemployedandtheirlengthofservice.Theremaybeaprescribedredundancyproceduretofollowtoensurethatthecompanyisfullycompliantwithlocalemploymentlaw.sarisingfromsarisingfromthedecisiontobothreduceinNoriacloseoperationsentirelyinCentrumshouldbecarefullyconsideredasitispragmatic,inapurelybusinesssense.SmartWeariscurrentlyincurringheavylosses,whichcanbeattributedtotheunderperformingoperationsinNoriaandCentrumandtherearenoreliablesignsofrecoveryorturnaround.Consequently,thedecisionisinthebestinterestsofinSmartWear,towhomtheboardhasafiduciaryThefairnessofthedecisiondependsonwhoseperspectiveisbeingconsidered.ThoseemployeeswhoaretobemaderedundantmayconsiderthattheyhavebeentreatedunfairlybySmartWear,however,ifobjectivecriteriahavebeenappliedwhentakingthedecision,thenthecompanycannotbeaccusedofactingunethically.3.Thereappearsto3.ThereappearstowhythecompanycannotreduceoperationsinNoria,withdrawfromCentrumandmakestaffredundant.So,providedthatSmartWearhasstrictlyadheredtorelevantemploymentlegislationthereisnolegalimpedimenttotakingthisdecision.Thedecisionmayultimatelypreservefarmorejobselsewherethroughoutthecompanyoverthelongrun.Therefore,onbalancethedecisionisthecourseofactionforthecompanyifitwillhelpittoprosperandremainagoingThesocialfootprintwhichwouldbeleftfollowingSmartWear’swithdrawalfromCentrummayhaveresidualdamagingconsequencesforthatcountry’seconomy.Withrisingunemployment,itisquiteprobablethattheredundantstaffwillfinditveryViewingallofthenationalinfluencingfactorsholistically,itisapparentthatSouthlandoffersagoodbusinessenvironmentforaclothingretailerlikeSmartWear.ResultsoverthefirstsixyearsthatSmartWearhasbeenoperatinginthiscountryillustratethatthemarketiswellestablishedandagoodstrategicfitfortheSmartWear’sbusinessmodel.Viewingallofthenationalinfluencingfactorsholistically,itisapparentthatSouthlandoffersagoodbusinessenvironmentforaclothingretailerlikeSmartWear.ResultsoverthefirstsixyearsthatSmartWearhasbeenoperatinginthiscountryillustratethatthemarketiswellestablishedandagoodstrategicfitfortheSmartWear’sbusinessmodel.IftheboardisconsideringfurthergrowthopportunitiesthendevelopingtheSouthlandmarketfurtherappearsasuitableoptiontopursue.ThedecisiontoreducecapacityinNoriaandwithdrawcompletelyfromCentrumseems,onbalance,tobeethicallyacceptable.Theconsequencestothoselosingtheirjobsmayseemharsh,buttheoutcomemayultimatelydeliverthegreatestgoodtoSmartWear,itsinvestorsanditsmanystakeholders.TheexecutivesummaryofaninternalauditreportonSmartWear'ssupplychainmanagementhasbeengiventoyoubythechairoftheauditcommittee.Thereportidentifiedanumberofsignificantissuesinareassuchasanappraisalofexistingsuppliers'performanceandinternalTheexecutivesummaryofaninternalauditreportonSmartWear'ssupplychainmanagementhasbeengiventoyoubythechairoftheauditcommittee.Thereportidentifiedanumberofsignificantissuesinareassuchasanappraisalofexistingsuppliers'performanceandinternalreportingprovisions.Onbehalfoftheboardofdirectors,thechairoftheauditcommitteehasaskedyoutoprovidewithanobjectiveappraisalofthesupplychainmanagementarrangementsatSmartWeartoeffectivelyaddressthevariousissuesraisedinthereport.Drafttothebuyingandmerchandisingdirector,whichofinternalcontrolsystemsattheparticularlyontheprocurementside,improvementstorectifytheidentifiedareasofconcern.(12Professionalskillsmarksareavailableauditreport.(4tothoseissueshighlightedintheTo:To:BuyingandmerchandisingdirectorFrom:ConsultantRef:SupplychainmanagementTherecentinternalauditreportonthesupplychainmanagementarrangementsatSmartWearhighlightedanumberofissueswhichrequireyourimmediateattention.TherewerethreeareaswhichclearlyindicateinternalcontrolweaknesseswiththeprocurementprocessesatSmartWearthatillustrateoperationalinefficienciesandhavenegativeimpactsonthecompany’sfinancial(i)Cost(i)CostTheinternalauditreportclaimsthata‘cultureofcarelessness’hasdevelopedamongSmartWearbuyers.Theresultisthatthecostofindividualsupplycontractsisnotperiodicallyreviewedorcomparedagainstindustryaverages,andonlyrenegotiatedwhentheycomeupforrenewalafterseveralyears.ThismeansthatSmartWearcouldbe,andaSupplycontracttermsandconditionsstipulateminimumstandardsforthetreatmentofasupplier’sworkforce.However,recentreportshaveclearlyindicatedthatsomeSmartWearsuppliershavebeeninbreachofthiscontractterm,butthebuyingteamhasnotchallengedthesemanufacturers’Thiscouldbebecausethebuyingdepartmentisunderpressuretomaintainlowcosts,sotheydonotwishtoimposeadditionalcostsonthesupplierswhomayattempttopasstheseontoSmartWear.Astatedstrategicgoalofthecompanyinitsmissionstatementistofunctionatthehigheststandardsofsocialresponsibility,andtoexpectthesamefromitssuppliers.ItisthereforewhollystocontinueforfinancialKeytoanycontrolsystemisregularandperformancesothatanyproblemsorseriousissuescanbeidentifiedandrectifiedwithoutunnecessarydelay.AtSmartWearonlythoseissueswhichareconsideredtobeofaseriousnaturearebroughttotheattentionoftheboardandseniormanagement.However,thebasisuponwhichtheterm‘serious’isdefinedisopentowideinterpretation.Theresultisthatlowlevelstaffaredecidingwhichmattersneedtobeescalated,andthisinturncouldleadto(i)CostThebuyersneedto(i)CostThebuyersneedtobetaskedtointheirmanagementofsupplycontractstoensurethatthecompanyisgettingbestvalueforContractperiodscouldbeshortenedtoallowforanypotentialcostsavingstoberealisedmorefrequently.ThecarefulmonitoringofthequalityoftheproductsmanufacturedandtheefficientdeliveryofordersplacedshouldensurethatthesuppliersaimtocontinuouslymeetthetermsoftheircontractswithSmartWear.Thebuyersrequirecarefullydraftedjobdescriptions,settingouttheexpectationsandcompetencesneededtofulfilthisimportantroleatSmartWear.Managementshouldthensetindividualobjectivesandtargets,withperformancebasedrewards,tomotivatethebuyingteamtodeliverresultswhichwillultimatelyimprovecorporateperformance.ThosesupplierswhoareinclearbreachoftheirsupplycontractneedtobeformallyadvisedThosesupplierswhoareinclearbreachoftheirsupplycontractneedtobeformallyadvisedthattheymustimmediatelybringtheworkingconditionsattheir,or.However,theirremedialactionswillneedtobeindependentlyvalidatedandthatthismightbestbeachievedthroughSmartWearauditorsmakingperiodicunannouncedspotchecksatsupplierfactories.AconcertedpublicrelationseffortwillneedtobemadetoreassurethebuyingpublicandinvestorsthatSmartWearhastakenthenecessaryactiontodealwiththeissue.Thiswillrequirethedraftingofaclearlywordedstatementcommunicatedonthemost.Itisalsoimportanttostresstothebuyingdepartmentthatalthoughprudentfinancialmanagementofthesupplychainiskeytobusinesssuccess,anyunethicalbehaviourpresentsamajorrisktothecompany.Standardisedprocurementreportsshouldbeproducedandsubmittedtoseniormanagementonafrequentbasis.Thesereportsmustprovideanupdateonallcurrentsupplycontracts,andremoveanysubjectivitybydefiningthereportingparameters.Thiscontrolwillensurethattheprocurementteamdonotbecomecomplacentandmanagethesupplychaineffectivelyandinthebestinterestsofthecompany.ThroughthesereportsofthisaspectoftheSmartWearbusinessmodel,andsocantakeappropriateactiontooptimiseoperationalandfinancialperformance.RecentlyRecentlycommissionedmarketresearchhasconcludedthatSmartWearappearstohavenoclearunderstandingoftheprofileofitscustomermix,andasaresultoperatesquiteunsophisticatedandineffectivemarketingcampaigns.RecentfinancialresultsindicatethatSmartWearisfindingithardtobothretainandgetrepeatbusinessfromexistingcustomers,andthecompanyisclearlylosingmarketsharetobothestablishedcompetitionandnewere-retailers.Thesalesandmarketingdirectorhasbeenconsideringthedevelopmentandimplementationofasophisticatedcustomerdatabasemanagementsystem(CDMS),incorporatingacustomerloyaltyscheme,toreplacetheexistingverybasiccustomerdatabase.Themarketingdepartmenthasundertakenafinancialappraisalofthisproposaltosupplementthemarketresearchfindings,andthisindicatesthatitisfinanciallyviableinnetpresentvalue(NPV)terms.YouhaveadvisedthesalesandmarketingDirectorthatfortheboardtoagreetotheproposal,aclearlystatedbusinesscaseandmorereliableevaluationofthefinancialviabilityoftheprojectwillbeneeded.Sheagreedandaskedyoutohelpherinthisregard.寫(xiě)的不寫(xiě)的不好（太籠統(tǒng)），寧愿不Writeareportonbehalfofthesalesandmarketingdirector,fortowhichachievesbothofthe(a)Describesthebenefitsofintroducingacustomerdatabasemanagementsystem,includingtheloyaltyscheme,forSmartWear.(6marks)ProfessionalskillsmarksareavailableforcommercialacumenskillsbydemonstratingawarenessofbusinessandwiderexternalfactorsimpactingonthedecisiontoimplementtheCDMS.(2marks)(b)EvaluatesthemarketingthatsupportsCDMSinvestment,questioninganyunderlyingassumptionsmade.(10Professionalskillsmarksareavailablefordisplayingscepticismaboutthecashflowforecastusedtosupporttheproposal.(2marks)From:SalesandmarketingRef:BenefitsofacustomerdatabaseTheevaluationofanymajorbusinessinvestmentmustconsiderawiderangeofstrategicandoperationalfactors,anditseemsapparentfromthecurrentperformanceofSmartWearthatthecompanyisnoteffectivelyengagingwithitscustomerbase.Thedevelopmentofacustomerrelationshipmanagement[CDMS]system,whichincludesacustomerloyaltyprogramme,wouldhelptoattractn