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Question 1: Logopolls Scenarlo Logopelis Ltd have been designing, bullding and supplying luxury mobile homes since switching away from caravan production in the mod 1980 t. Athough a highly profitabie business for its first 25 years of operation, the company has atways suffered from an image problem' as it's mobile homes are hand built and have ahways been promoted to the luxury segment of the market in the UK. More recentily however the company has suffered from an inability to recruit and retain skilled staff, with the result that some orders have been detayed and the company is beginning to gain a reputation for delays and unreliability. The company is managed by two Directors, neither have any formal business training but together they manage every aspect of operations. Their reliance on skilled workers makes pricing their products compettively a ditficult task and competitors from as far away as Hungary and Belarus have recently taken over 50% of their traditional market share. The Covid - 19 lockdown was hard for the firm and experienced workers in both production and administration were made redundant, however as the market began to recover in 2021 the firm found it hard to replace or rehire these workers, many of whom had moved on to employment elsewhere. Aware of the need to refresh their business model and find ways to achieve growth and service their debts, the Directors are now locked in dispute with each other about the way ahead. One Director thinks that the best way to recover and grow is to develop a totally new product line, possibly on a franchise or licencing model, whilst the other wants to concentrate on markeling their products in Europe and grow the firm by increasing export sales. The Directors have come to you for an analysis of risks to their current operations and your advice on the way forward. Questions (50 marks) 1. From your understanding of corporate financial management and the scenario above, identify possible internal and external risks to the current and planned operations of Logopolis Ltd and explain how these could lead to corporate financial failure. (20 marks) 2. Suggest and explain two new corporate financial goals for Logopolis lid and explain in detail how these could be translated into effective company financial strategy focussing on growth and profitability. (15 marks) 3. How could progress towards these new corporate financial goals be measured and assessed and what systems could be put in place to support performance monitoring and assessment? (15 marks) Question 1: Logopolls Scenarlo Logopelis Ltd have been designing, bullding and supplying luxury mobile homes since switching away from caravan production in the mod 1980 t. Athough a highly profitabie business for its first 25 years of operation, the company has atways suffered from an image problem' as it's mobile homes are hand built and have ahways been promoted to the luxury segment of the market in the UK. More recentily however the company has suffered from an inability to recruit and retain skilled staff, with the result that some orders have been detayed and the company is beginning to gain a reputation for delays and unreliability. The company is managed by two Directors, neither have any formal business training but together they manage every aspect of operations. Their reliance on skilled workers makes pricing their products compettively a ditficult task and competitors from as far away as Hungary and Belarus have recently taken over 50% of their traditional market share. The Covid - 19 lockdown was hard for the firm and experienced workers in both production and administration were made redundant, however as the market began to recover in 2021 the firm found it hard to replace or rehire these workers, many of whom had moved on to employment elsewhere. Aware of the need to refresh their business model and find ways to achieve growth and service their debts, the Directors are now locked in dispute with each other about the way ahead. One Director thinks that the best way to recover and grow is to develop a totally new product line, possibly on a franchise or licencing model, whilst the other wants to concentrate on markeling their products in Europe and grow the firm by increasing export sales. The Directors have come to you for an analysis of risks to their current operations and your advice on the way forward. Questions (50 marks) 1. From your understanding of corporate financial management and the scenario above, identify possible internal and external risks to the current and planned operations of Logopolis Ltd and explain how these could lead to corporate financial failure. (20 marks) 2. Suggest and explain two new corporate financial goals for Logopolis lid and explain in detail how these could be translated into effective company financial strategy focussing on growth and profitability. (15 marks) 3. How could progress towards these new corporate financial goals be measured and assessed and what systems could be put in place to support performance monitoring and assessment? (15 marks)

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