SOLUTION

AND MARKING GRID

Mock Exam 3
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The solution that follows is a comprehensive answer showing the range of points and calculations you could undertake. As the marking grid shows, in the exam you would not need to make all the points in order to be awarded high marks.

ANSWER TO QUESTION 1A
REPORT To: Board of Directors

From: Senior Management Accountant Date: September 2013 Contents 1 2 3 4 5 6 7 Introduction Terms of reference Identification and prioritisation of issues Approaches to resolving the main issues Ethical considerations Recommendations Conclusion

Appendices 1 SWOT analysis 2 Mendelows Stakeholder Analysis 3 Froth Shoes 4 Bonus Scheme 5 Nearshoring

INTRODUCTION
Despite stabilising its position in the years following its management buy-out in 2004, N is still struggling to find a viable competitive position in its domestic market. Ns sales growth is well below its competitors, and it has weaknesses in on-line sales growth, the integration of its multi-channel sales platform and unfashionable clothes ranges. N needs to create a sustainable competitive position either in terms of differentiation or cost leadership (Porter) or it will become stuck in the middle. In the challenging economic conditions within Country Z, even well-known companies that are stuck in the middle will struggle to survive; this is illustrated by the failure of many established high street retailers in the UK, such as Woolworths, in recent years.

TERMS OF REFERENCE
This report identifies and evaluates the issues facing N and offers appropriate recommendations.

Mock Exam3: Solutions and Marking grids

3 IDENTIFICATION AND PRIORITISATION OF ISSUES

The issues below have been prioritised, based on the potential impact each could have on N, combined with their urgency. A full SWOT analysis is presented in Appendix 1.

3.1 Froth Shoes first priority

This is the most important issue facing N because if Froth Shoes is liquidated N is likely to suffer a loss in present value terms of approximately Z$30m. However, appropriate action taken promptly could convert this into a benefit of Z$20m. Froth Shoes is considered an important concession strategically as well as financially, as it attracts significant footfall into the stores. A decision as to whether to invest in Froth Shoes is required by the administrator within the next week.

3.2 M-commerce second priority

This is the second most important issue facing N as the company is already lagging behind its competitors in this strategically vital area of the business. However, the trial in the new flagship store has produced poor feedback. It is essential that the problems are identified and resolved before the roll out. An analysis of this issue has been requested by the Finance Director as a decision on how to proceed is required within the month.

3.3 Bonus scheme third priority

This is the third most important issue facing N because N differentiates on the basis of quality of service, and low staff morale represents a threat to that. The solution proposed by the HR Director may be effective but too expensive. Alternative approaches could be equally effective at a much lower cost. There is no specific deadline on a decision, so it has been ranked below the first two issues.

3.4 Nearshoring fourth priority

This is the least important of the 4 key issues as this particular contract is relatively small for a company of Ns size. However, in the longer term, costs of production are likely to continue to increase in South East Asia, so this contract may present an opportunity to gain experience of nearshoring and increase the flexibility of the supply chain.

3.5 Other issues facing BVS

There are issues which have not been prioritised in this report as they are seen as less urgent or as having a minor impact on the organisation. Global Textiles Marketing campaign Ethical issues facing N will be discussed in section 5.

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APPROACHES TO RESOLVING THE MAIN ISSUES

4.1 Froth Shoes first priority
Impact The Froth Shoes situation can be seen as both a threat and an opportunity. The threat relates to the potential losses should the company go into liquidation. However, purchasing Froth could lead to higher profits and gaining control of an important supplier. This was the view taken by Debenhams when faced with the failure of Principles in 2009 and Faith in 2010, both of which it decided to purchase. Suitability Froth represents a good strategic fit with N. The two companies have co-ordinated products. The Froth Shoes brand is highly valued by Ns customers and supports wider womenswear sales. As a parent, N has a lot to offer Froth. Froth Shoes failed through poor financial management. With access to Ns skills in this area and Ns greater financial backing, the two companies could fit well together. Froth would also be able to benefit from Ns greater purchasing power. On the other hand N has a number of strategic problems of its own to address, for example its weakness in its integration between its on-line and stores based systems. It could be argued that taking on a significant challenge such as this could be a distraction from the core issues that N is facing. Acceptability Appendix 3 demonstrates if the company goes into liquidation and N takes over the floor space it would generate a loss of shareholder wealth of around Z$31m, greater than the cost of buying Froth. If the acquisition goes ahead, it should generate an NPV of around Z$26m. Even allowing for the uncertainties in the forecast, the financial argument for acquisition is hard to refute. Customers would also find the purchase acceptable since they value the brand and will appreciate that N stepped in to save it. This could generate good publicity and further sales. Feasibility The main issue here is the cash necessary to fund the acquisition. However, with the revolving credit facility standing at Z$530.1m as at 31 March 2013, there should be sufficient of funds available. If not, given the overwhelming financial benefits it is possible that the shareholders would be willing to provide any additional finance required. Often a stumbling block to successful acquisitions is integration of the new purchase. However, this should not be a problem here. Froth Shoes only trades out of N stores and the CEO of Froth was an ex-employee. It is likely that the cultures, values and processes of the two companies are very similar.

4.2 M-commerce second priority

Impact Debenhams now has wi-fi in each of its 167 stores and M&S is in the process or rolling it out, following a successful trial. Debenhams claims that sales taken over mobile phones now accounts for 20% of its total revenue. Clearly this demonstrates that there is a huge demand for M-commerce provided it is done properly, and that the HR directors fears of price comparisons are unfounded. This move would represent a market penetration strategy (Ansoffs Grid), and as such is relatively low risk since it is addressing Ns current products and markets.

Mock Exam3: Solutions and Marking grids

Financial The figures provided by the Finance Director demonstrate a clear financial benefit to the investment. Given the need to catch up with our competitors the financial justification is less crucial, but it is reassuring that the investment should be beneficial even if some of the costs prove higher. Results of the trial Before the scheme is rolled out on a wider scale it is important that the in-store app is improved, as it is currently not offering sufficient added value to customers. Providing too much information on products will just slow the app down and deter customers from using their phone. Too much text on a small screen may actively deter use. Value added information should be provided, perhaps fashion tips or suggestions to match potential purchases with other garments and accessories also available in store.Given that customers could use internet access to search for similar items available elsewhere more cheaply, giving customers access to discounts or vouchers, perhaps by QR codes displayed by the rails is more likely to result in sales. Improving ease of access is important too. Most free access supplied by businesses for customers is available without the need for a password. Further risks Any large scale IT project will carry risks. This particular project will require software development and investment in hardware. This requires strong project management skills to ensure the project is delivered on time and to budget. Given this is the first use of M-commerce for N it may be wise to seek external consultants to advise on the technology issues. Rolling out the system more slowly will enable time for technical issues to be resolved while they are still small, but would increase the time taken to catch up with the competition and reduce the potential marketing impact of a big bang changeover. Security It will be necessary to ensure that customer data is held securely and any personal details stored on the system, including credit card numbers, are encrypted. It is important the wi-fi installed in the stores complies with the latest security protocols, although most wi-fi available in shops and cafes is not very secure. Reliability Like the EPOS system and the online channel, it is important that the M-commerce system is available on a reliable basis. While it is not as business critical as the tills, if customers perceive it as unreliable they may not bother using it and sales will be lost. Reliability can be achieved via good design and maintenance, thorough testing before launch and adequate duplication of hardware to deal with e.g. server failure.

4.3 Bonus scheme third priority

Impact Since customer service is key to Ns differentiation and given the changes to their role with the introduction of things like M-commerce and employee tablets, it is important to keep staff motivated and wanting to help the company move forward. Option 1 The bonus scheme Appendix 4 demonstrates the impact on profit of the proposed scheme. One concern is that the scheme will pay out Z$7.2m even if the original forecast sales are achieved. Nearly Z$5m is paid out if sales fall by 2%. This seems to defeat the object of motivating staff to worker harder. Given the challenging retail environment, it might be argued that managing to achieve the forecast sales is worth rewarding as sales are harder to come by. It would partly depend on whether the additional cash is to encourage greater effort, or merely to make employees feel better about their job (4J might be concerned if this was the main motivation). On the plus side, if the staff are motivated to increase sales, the increased profit outweighs the cost of the bonus. The net increase in profit should sales increase by 10% would be Z$79m, enough to fund the next dividend.

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Option 2 Alternatives Most staff are not in a position of much power, particularly given the high unemployment across Europe. Mendelow would regard them as a Keep informed stakeholder with regard to this issue. Various management theorists have looked at what motivates employees. Hertzberg regarded salary as a hygiene factor rather than a motivator. He argued that workers could only be motivated by being empowered to make decisions and by being given responsibility. However, that is probably more true of management grades rather than shopfloor staff. It is common practice to reward sales staff using some kind of sales linked pay. Another way to motivate staff to want to buy in to the companys goals is through improved communication. Marks and Spencer managed to increase staff morale, despite 1200 job losses and 27 store closures. This was done by increasing communication at all levels. Regular meetings take place between the employee representation group and directors. Directors regularly visit individual stores and meet with employees and much greater use is made of conference calls and instore briefings. This has enabled M&S to raise staff satisfaction without expensive bonus schemes. On the other hand, John Lewis, on the back of a 9.1% rise in sales, recently announced a bonus for staff amounting to 17% of their salary.

4.4 Nearshoring fourth priority

Impact Although the amounts involved here are relatively small, this contract could be seen as the start of a longer term move to manufacture clothes nearer to Z. Given the constant battle to balance quality, flexibility and cost, nearshoring is an important opportunity. Suitability One of the big limitations to profitability in the fashion industry is the wastage inherent in seasonal collections that must be ordered a long time in advance. Some companies, such as Zara, have abandoned this traditional industry model and aim to turn stock over on a much more regular basis; every few weeks. Smaller orders can then be placed. This limits the impact of stock losses should garments not sell, but enables further orders where a line proves popular. The problem with manufacturing in East Asia is partly the time delay involved in shipping the goods, which can take several weeks. Manufacturing nearer to the domestic market enables shorter transport times but still with lower labour rates. Clothcuts is clearly more suitable here, as it enables the smaller order size, and possible reorder. Acceptability Which option is the most acceptable is harder to say. In the event of high sales the lower manufacturing cost outweighs the benefit of flexibility. However, in the event of low sales, the fact that N still has to pay Fazza for 32,000 garments means Clothcuts is the better option. Clothcuts is also more acceptable in terms of quality. Even if its quality was comparable, the closer the supplier is, the quicker it is to get replacement of a faulty batch. The recent collapse of the Rana Plaza shone a spotlight on the poor working conditions and safety standards in Bangladesh. A supplier in Turkey is more likely to have the higher ethical standards our customers expect. Nearshoring should also be more acceptable to consumers generally, as the reduced transport will reduce the carbon footprint of the supply chain. Feasibility Given other companies in Z have used Clothcuts it seems feasible to place a contract with them, particularly as the contract is not a big one for N, and would be done to trial a new idea. Marks and Spencer recently

Mock Exam3: Solutions and Marking grids

moved production of dressing gowns from Sri Lanka to Turkey, which allowed it to test different colours before needing to place significant orders, increasing sales by 11%.Given the likely continued cost of fuel and the possibility that wage inflation will spread from China to other countries in Asia, the cost advantages of manufacturing a long distance from the market are likely to be further eroded in the future. There may be feasibility issues in dealing with a new country, such as language but communication should be possible in English, and time differences will be reduced. The smaller time difference will make communication between the design department and the factory easier during the setting up process. Finally N needs to remember that some of the countries that have been used for nearshoring, such as Syria and Egypt, are now unstable. Turkey has its own political problems and will need regular monitoring.

ETHICAL ISSUES
5.1 Global TextilesWhy this is an ethical issue
While the legal responsibility for breach of any law lies with Global Textiles, it is within Ns power to ensure fair treatment of its employees. By not taking a stand, N would effectively condone abuse of workers and so allow it to continue. Next, Gap and Primark have all had similar problems to these in their supply chain and all have taken steps to prevent the problem in future. Recommendations for this ethical issue Global Textiles should be contacted by the Procurement Director who should demand a written guarantee that its treatment of staff will improve and that it will comply with local labour laws and the industrys ethical code. He should require the company to agree to random checks so that N can monitor the companys adherence to the requirements of the Ethical Trading Initiative. A press statement should be prepared making it clear that N was shocked at the revelations and is taking steps to ensure its garments are manufactured in ethical conditions. Future contracts should clearly stipulate the need to adhere to ETI standards.

5.2 Marketing campaign

Why this is an ethical issue This is an ethical issue because the company should behave as a responsible citizen. There has been increasing criticism of the use of airbrushing to portray models in unrealistic degrees of perfection and how this is adversely pressuring young people to try to match these unachievable standards. Britney Spears is one of several celebrities who have published unairbrushed photos of themselves in order to highlight the issue. Debenhams recently announced it would no longer accept airbrushed models and has also used more larger sized and disabled models. Recommendations for this ethical issue It is recommended that the swimwear campaign does not use airbrushed pictures. While the Sales and Marketing Directors views might have been accepted in the past, societys view of this issue is changing and apart from any ethical imperative, it is unlikely to cause any damage to sales by using the original pictures. The Sales and Marketing Director should instead consider how the marketing campaign could use the ethical stance of the company as a positive message to increase sales.

RECOMMENDATIONS
6.1 Froth Shoes first priority
Recommendation for this issue
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This report recommends that N purchases Froth Shoes. Justification The financial benefit is overwhelming and because the company should be relatively easy to integrate with N then there should not be a significant distraction from Ns core business. Actions to be taken The administrator should be informed in writing within the week about the intention to purchase. Lawyers should be appointed to oversee the purchase. This is likely to be the first acquisition undertaken by N and external skills will be required in drafting the contract and ensuring there are no regulatory barriers to the transaction. A press statement will be required. This can be used to generate good publicity, portraying N as saving a much loved brand from extinction. The transaction will probably require shareholder approval so a general meeting may be required. The HR director should consider alignment of employee terms and conditions since, the Froth employees will be part of the N group and be working alongside N employees. The IT director will need to consider the process of integrating the Froth sales system into Ns.

6.2 M-commerce second priority

Recommendation for this issue It is recommended that the M-commerce system is rolled out across all 160 stores. Justification It is clear from the results competitors have achieved that this retail channel is already generating significant revenue and has great potential for the future. However, before rolling out, the software needs to be significantly improved. Actions to be taken Firstly the system should not require password access. If anyone can ask a member of staff for the password and be given it, it is not clear how the password adds any level of security but it does act as a deterrent to use. Secondly the features available need to be radically improved. This should be done partly through a benchmarking exercise against competitors, and also by the use of customer focus groups and external consultants. To ensure the project is delivered on time and on budget, a project management methodology should be adopted, with regular status reports to the Board. The risk assessment stage of such a methodology should ensure that problems are anticipated and overcome and that adequate levels of security and reliability are built into the system. Finally the system cannot be developed in isolation, but needs to be properly integrated with the other channels so that purchases bought on line are visible to staff in stores, allowing a more flexible returns policy. The process would be enhanced by following Marks and Spencers example of recruiting a specific director of Multichannel E-commerce.

6.3 Bonus scheme - third priority

Recommendation for this issue

Mock Exam3: Solutions and Marking grids

This report recommends non-financial solutions should be used to motivate staff in conjunction with a cheaper bonus scheme linked to sales levels. The expensive bonus scheme suggested by the HR Director should only be used as a last resort if morale declines further. Justification Marks and Spencer has clearly demonstrated that it is possible to improve staff morale without using bonuses. However, improving staff happiness is not the same as motivating them to sell more, so a combined approach is likely to be more effective. Actions to be taken An employee representative council should be formed, comprising of elected representatives of the staff, the HR director and some representatives from management and finance. A regular conference call briefing should be implemented where local managers can raise concerns with regional management. A schedule of visits by directors should be implemented. With regards the bonus, it is recommended that a bonus is only paid for beating the 2014 forecast, and that the percentages are reduced, with a maximum payout of 5%.

6.4 Nearshoring fourth priority

Recommendation for this issue It is recommended that Clothcuts is chosen for the suits order. Justification Although the financial benefit depends on the actual sales achieved, this contract should be seen as an experiment in using smaller orders and responding to sales data. It is likely that in the longer term the cost advantages of places like China and the Indian sub-continent will be eroded by increased fuel and labour costs. Actions to be taken Clothcuts should be contacted so that the necessary due diligence can be done. Although the contract is relatively small, N still needs to go through the correct vetting process before classifying Clothcuts as an approved supplier. A factory visit should be arranged so that one of the procurement team can ensure the factory complies with the necessary safety and ethical standards, and samples of production should be checked to ensure the necessary quality standards. Any contract with the supplier will need to include clauses to cover compensation for late delivery and ensure protection of IP on the designs. Once the suits are delivered sales will need monitoring at least weekly to see if the second order will be required.

CONCLUSION
The recommendations made in this report aim to assist the Board in dealing with the strategic issues that have arisen recently. By following the recommendations, the worst of the impact will be mitigated.

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Appendix 1: SWOT analysis

Strengths Spare finance available via the revolving credit facility Ms Bilders turnaround experience New flagship store Weaknesses Long lead times Poor feedback from the M-commerce trial 2 Declining staff satisfaction - 3

Opportunities Nearshoring with Clothcuts - 4 Purchase of Froth Shoes - 1

Threats Competitors with better multichannel operations Collapse of Froth Shoes Potential reputational damage from Global Textiles

Appendix 2: Mendelows matrix

Key stakeholders are: High Power, High Interest - Key Players The Board of N High Power, Low Interest - Keep Satisfied 4J Administrator of Froth Shoes* Low Power, High Interest - Keep Informed Store staff Head office staff Clothcuts *It is arguable how to regard the Administrator. Clearly it has the power to decide what happens to Froth but presumably have no interest in who buys Froth as long as it is sold.

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Appendix 3: Froth Shoes

If Froth is liquidated: T0 Z$m Bad debt Loss of concession income (W1) Loss of margin on womenswear (4% x Z$282.4m) Profit on replacement sales (W2) Total Discounted at 10% -10 1.000 -10 NPV -30.9 13.0 -11.1 0.909 -10.1 17.3 -6.8 0.826 -5.6 17.3 -6.8 0.751 -5.1 -10 -12.8 -11.3 -12.8 -11.3 -12.8 -11.3 T1 Z$m T2 Z$m T3 Z$m

W1 Loss of concession income = floor area per shop x number of shops x sales/sqm x concession fee percentage = 100 x 160 x Z$2000 x40% = Z$12.8m W2 Profit on replacement sales = floor area per shop x number of shops x sales/sqm for N products x GPM on Froth Shoes = 100 x 160 x Z$1800 x 60% = Z$17.3m (x 9/12 in T1 due to lead time in filling space)

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If Froth is purchased: T0 Z$m Acquisition cost Gross profit on sales (100 x 160 x 2000 x 70%) Total Discounted at 10% -30 1.000 -30 NPV 25.7 22.4 2.487 55.7 -30 22.4 T1-3 Z$m

Appendix 4: Bonus scheme

Sales level (Z$m) 2039.0 2080.6 2122.2 2184.6 2288.7 Bonus % 2 3 5 7 10 Bonus cost (% x Z$240m) 4.8 7.2 12.0 16.8 24.0 Increase in GP (Z$m) -20.6 0.0 20.6 51.5 103.0 Net change in profit (Z$m) -25.4 -7.2 8.6 34.7 79.0

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Appendix 5: Nearshoring
High sales (35,000 units) Initial order size Sales revenue Manufacturing cost 32,000 x 93 15,000 x 135 Transport cost 32,000 x 5 15,000 x 3 Profit exc. Initial set-up costs Set-up costs Profit on initial order Profit on additional order of 20,000 units =2,430x 20/15 Total profit Fazza 32,000 Z$000 9,600 2,976 2,025 160 6,464 50 6,414 45 2,430 100 2,330 3,240 5,570 Fazza better by +844 Clothcuts 15,000 Z$000 4,500`

6,414

Low sales (15,000) Initial order size

32,000 Z$000 4,500 2,976

15,000 As above Z$000

Sales revenue Manufacturing cost 32,000 x 93 15,000 x 135 Transport cost 32,000 x 5 15,000 x 3 Initial set-up costs Total

160 50 1,314

2,330

Fazza worse by -1,016

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Appendix 6: Bonus scheme

To: HR Director, HR Management Team From: Senior Management Accountant Date: September 2013 Re: Bonus Scheme This email summarises my views on the proposed bonus scheme. Financial considerations Sales level (Z$m) 2039.0 2080.6 2122.2 2184.6 2288.7 Bonus cost (Z$m) 4.8 7.2 12.0 16.8 24.0 Net change in profit (Z$m) -25.4 -7.2 8.6 34.7 79.0

The major concern from a financial perspective is the paying out of a bonus even if sales do not better the 2014 forecast. However, at higher levels of sales the benefits do outweigh the costs. Given that particularly retail salaries are generally low, it is likely that an element of bonus would be greatly valued by staff. Non-financial solutions If the objective is to increase morale rather than to boost sales, a bonus may not be the most cost effective method. Employee satisfaction is increased by enhanced communication and being made to feel part of a team. Communication can be enhanced through: Greater use of briefings Site visits by senior management Forming a meaningful employee forum Recommendation Primarily non-financial approaches should be used, with a bonus scheme also employed but only for beating forecast, and with a lower percentage payout. If you wish to discuss this further, please feel free to email me.

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Marking Grid for Mock Unseen

Criteria Technical Issues to be discussed SWOT/PEST/Ansoff/Porters 5 forces/Porters generic strategies/Mendelow/Suitability, Acceptability, Feasibility/ BCG/Balanced Scorecard/Life cycle analysis/Marketing knowledge 1 mark for EACH technique demonstrated SWOT to get full 3 marks the script must include all the Top 4 issues Other Technical Knowledge applied to case material in a meaningful relevant way on merit Marks Total marks available for criterion

1 each max 5

Max = 5

Application

13 12 Max 5 for application of theory 3 2 3 4 17 1 mark each example used on merit 1 1 1 1 Max = 5 Max = 15

Calculations: NPV of liquidation NPV of acquisition Bonus Nearshoring Total marks available (but max = 15) Diversity Display of sound business awareness and relevant real life examples related to case Major issues to be discussed Froth Shoes M-commerce Bonus scheme Nearshoring Total marks available. 5 marks if the 4 most important issues are discussed Prioritisation 5 marks if 4 issues are prioritised and the rationale for ranking is good AND the top 2 issues are ranked in the correct order. 3-4 marks if top 2 priorities are in top 3 but ranking rationale is weak. 2 marks maximum (marginal fail) if EITHER of the top 2 issues are not in top 3 priorities, irrespective of quality of rationale for ranking of other priorities

Max = 5

Focus

Max = 5

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Criteria Judgement

Issues to be discussed 4 key issues and one minor issue available for detailed analysis in this case: Marks on merit based on depth of analysis and commercially realistic comments Froth Shoes Should discuss why the company would be a good purchase from both a financial and strategic perspective. M-commerce Should cover how to deal with the current failings of the system and suggest value added ways of improving it. Answer should also cover wider project management issues and IT risks. Bonus scheme - Solution should comment on the calculated profit impact, make reference to motivation theory, and provide practical alternatives to bonuses. Nearsourcing Solution should recognise that the main reason for nearshoring is the future potential rather than the particular contract. Given the uncertain demand it is not possible to predict which will be the better option financially, but that isnt really the point. Global Textiles unseen makes it fairly clear there is no real commercial risk to this issue, so a max of 1 mark can be awarded for discussion of impact of reputational damage. Total marks available (but max = 20)

Marks

Total marks available for criterion

06

06

05

Max = 20

04

01

22 12 if weak 35 if script is good

Integration

Judge script holistically and whether recommendations follow on logically from analysis of the issues and refers to data in appendices. How well written is the report: professional language? Recommendations (Marks on merit. Max 1 mark if only an unjustified recommendation is given) Froth No marks if recommend allowing the company to liquidate. M-commerce No marks if recommendation not to pursue M-commerce. Recommendations should cover both improvements to the system and project management issues. Solution should recommend integration with other channels.

Max = 5

Logic

Max = 30 Q1 20 Q2 10 06

05

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Criteria

Issues to be discussed Bonus - Recommendation should recognise the proposed bonus is too expensive and favour alternatives. However, credit should be given for any commercially sensible approach here. Nearshoring Either company would be suitable with respect to specific order of suits and would be a valid answer. However, solution should recognise the longer term necessity for greater nearshoring. Global Textiles for any well justified recommendation but not if points just repeat those made in the Ethics section. Total marks available (but max = 20)

Marks

Total marks available for criterion

05

04

01 21

QUESTION 1b

1 mark for email format. Up to 2 marks for including a table with summarised data (not all the columns from appendix 4 are required). Up to 1 mark for each point expressed briefly. 1 mark for recommendation. Total marks available (but max = 10) 10 Up to 5 for identification and discussion of issues Up to 5 for recommendati ons on how to address those issues Max = 10 Ethical issues in case include: Global Textiles no marks for considering impact on reputation or risk of losing contract. Recommendations should be practical but scope for several points here. Airbrushing models discussion should focus on corporate citizenship and reflecting the wider values of society.

Ethics

NO MARKS for any section that appears commercial even if it relates to an ethics topic. Total

100

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