Develop yourown ideas and recommendations for the effective operation of the organisation.Students are required to write, and present, an individual essay evaluating the role ofoperational and financial management in the case organisation. Students are required to employ a range of analytical techniques, communicateeffectively and demonstrate both theoretical and practical understanding of the keyissues addressed by the module.

2. Employ capital investment appraisal techniques in selecting projects and criticallydiscuss the techniques in making investment decisions.

should be qualified to BTech (Hons) level, and all supervisors should be qualified to MBA or MSc / MA in good postgraduate business management degree level. To assist with quality improvement. Mr William Wales has introduced a new quality measurement system and has set a target for defective finished products requiring rectification at a maximum of 2.5%. CustomerSupport The reputation with its customers is a crucial area for Balmoral Inc, and a customer satisfaction survey request is sent to every customer within 4 weeks of a completed sale. The target is for the proportion of customers rating the company as "Excellent" to be at least 95%. As many of the sales are direct to customers, response to customer complaint within the Customer Support team is extremely important. The Customer Support Manager Mr Harry Sussex is concerned about the speed of response to customer complaints and would like to introduce an objective of responding to all product related customer complaints within 24 hours from its current forty-eight hours. Employee retention The HR department has been looking very closely at employee retention and is concerned that there is a fairly rapid movement of skilled tech and digitally certified production workers within tech companies in the Teesside North England area. The current annual staff turnover is 15% and the objective, to support the Mission Statement, is to maintain that as a minimum while introducing further staff retention incentives to reduce that to 7.5%. CurrentDevelopments The previous Finance Director Mr Andrew Southwest has been recently dismissed, following a heated meeting with the CEO about weaknesses in budgetary reporting and control. The company has taken on a new Finance Director, Mrs Anne Edinburgh, who is a qualified chartered accountant and has also recently gained an MSc in Business Analysis. As part of his induction, Mr Charles Dickson has talked to all the key staff and has identified several areas of concern. Three areas have particularly worried him. 1. The CEO has explained that he is fully aware of the importance of an annual budgetary process and detailed budgetary control but is having great difficulties in explaining this to his fellow directors, as the overall process at Balmoral Inc has fallen into disrepute. He would also like to clearly understand 2 the number of units that the company must sell in order to achieve the target profit of 20m per annum that was set at the recent Board meeting, as this has never been properly defined. 2. In a discussion with, Mr Charles Dickson, the manager of the Digi Chips Making department, Mr Edward Southeast noted that there were major concerns about the budget control reports that were issued by the previous Finance Director. They were usually issued on the last Friday of each month, with data for the previous month. Mr Edward Southeast was very disappointed at the indication that he was doing a bad job, with adverse variances reported, when in fact his team had worked hard to achieve the level of output that had been requested of them. Mr Edward Southeast offered a copy of a recent report as an example of the issues. BUDGETARY CONTROL REPORT: URGENT Balmoral Inc would like to expand the production of current products. Four proposals have been submitted, but only one of the proposals can be accepted. The company's cost of capital is 10%. The following cash flow information in the table below was obtained for the proposals. ACC4029 N Managing Operations and Finance ECA Assignment Part B - Case Study BALMORAL INC CASE STUDY Balmoral Inc is a company, based in Teesside, Northeast England and established in 1982, that produces electronic components used in for smart phones GPS. It is an SME, company with a highly skilled work force. Despite the recent global covid pandemic, the ongoing war in Ukraine, UK high cost of energy and inflation rate currently at over 10% per annum, the company is still profitable due to its excellent products and reputation for customer service centric supply chain strategic focus. The company has seven key departments - Executive, Marketing, Customer Support, Finance, Chip Manufacturing, Tech R\&D Hub, Fulfilment Centre and HR. The company Mission statement is to "Make world best Digi Chips products at an affordable price to the customer". Keyfinancialtargets The CEO, Charles Dickson, has recently had a formal strategy meeting with his fellow directors to confirm the Mission Statement, and they have agreed that the financial targets for each of the next four years should be a Return on Capital Employed (ROCE) of 18% and a profit before tax of 20m. "With a 400 selling price per unit and a 300 variable cost per unit, we are working flat out as it is on the shop floor, and we need to spend a lot more on product development to make any significant improvements to the product." The head of the accounting department noted that expanding production facilities will increase the fixed cost to 4,000,000.00. Manufacturing issues Although manufacturing is generally very efficient, and of a high standard, the Manufacturing Director, Mr William Wales, is anxious to maintain and even improve this performance. He intends to implement a policy that all direct manufacturing staff 1 Discount rates at 10% Discount rates at 36% 3. Mr Charles Dickson general feeling from his many discussions was that the company was generally staffed with a committed team, but that the overall strategy which the Directors had developed was not clearly known to the operating teams. They were unsure what their part was in achieving the objectives of the company, hence they do not have plans or projects for improvement that aligned with company directors strategic thinking. During his MSc Business Management programme, Mr Charles Dickson had learned about the Balanced Scorecard approach and decided to consider if it would be helpful for this company. Having collected a large amount of information about the company and its issues, Mr Charles Dickson decided to free up his diary for a couple of days and think seriously about the recommendations to his fellow directors at the monthly business strategic nonitoring and review meeting