Business Performance

Assessment $1$

Case study

Freedom Camping Supplies Limited

Freedom Camping Supplies Limited $($FCS$)$ is a medium$-$sized sporting equipment and camping supplies retailer based

in New Zealand. FCS has a year end of $31$ December for financial reporting purposes.

It is March $2024$ and you have recently been employed as a management accountant at FCS$.$

Industry background $$ sporting equipment and camping supplies

Businesses in the industry purchase sporting equipment and camping supplies from wholesale suppliers for retail sale

to consumers in stores and online. Key products include equipment used for fitness, camping, climbing, fishing, golf,

water sports, snow sports, and skateboarding. The industry does not include sale of apparel or footwear.

The industry is worth $$1\mathrm{.}4$ billion in New Zealand and has shown steady growth of $2\mathrm{.}6\%$ per annum from $2016$ to $2023.$

This growth is due to increasing discretionary incomes, a growing awareness of the importance of maintaining a healthy

lifestyle, increasing participation in sport and outdoor recreational activities, and the increasing popularity of camping.

Currently, the industry is seeing increased competition, with department stores stocking popular equipment and online

retailers offering competitive prices. Despite this, there are still a limited number of dominant players in the industry,

which allows smaller retailers to successfully serve regional areas. Key success factors in this industry are those that

enable high inventory turnover, by targeting the right customers and keeping inventory costs down. These include clear

market positioning, good inventory control, good customer experience, strong financial controls and monitoring, and

attractive store presentation.

History of FCS

Piper Clairmont founded FCS as a retail store five years ago in Kaiteriteri, in the South Island of New Zealand. Piper is

an outdoor sports and recreational activities enthusiast. Through working as a guide in the Abel Tasman National Park

for companies who provided hiking and kayaking adventure tours, she came to realise that many of their clients were

frustrated at the lack of access to quality equipment and supplies. While she enjoyed working as a guide, Piper saw an

opportunity. She researched successful businesses online, particularly those with founders who created a business

from their passion. Inspired by her research, Piper opened FCS while continuing to work as a guide. Her extensive

knowledge of the region$$s wide range of activities made her very successful.

Mission and strategic goals

FCS$\text{'}$s original mission statement was:

TO PROVIDE SPORT AND CAMPING EQUIPMENT SUITED TO NEW ZEALAND$$S WEATHER

CONDITIONS, BACKED UP WITH EXTENSIVE CUSTOMER SERVICE AND KNOWLEDGE.

$2024$ Chartered Accountants Australia and New Zealand ABN $50084642571.$ All rights reserved.

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BP$\_$T$124\_$A$1\mathrm{.}2\mathrm{.}1\_$Case study V$3-2$

FCS is passionate about supporting the environment and is determined to support New Zealand businesses. Piper's

networks allow her to source sporting equipment and camping supplies directly from manufacturers in New Zealand.

Piper focuses on stocking high quality products with long lifetimes $($rather than products of inferior quality which will

quickly be disposed of in landfill