Task: Reporting on economic, social and environmental ramification of COVID 19

You are working as a management accountant with Clean Living Limited, a large travel company that specialises in green tours- package tours to environmentally sensitive destinations. These type of tours had been growing in popularity among local and international tourists until the breakdown of the COVID 19 pandemic in December. The Clean Living Limited has branches in Australia, China, India, and Singapore. The company management had been contemplating to expand its open tours packages to the Arctic National Wildlife Refuge in Alaska and Serengeti safari park in Tanzania by the end of 2020.

However, due to the worldwide spread of the COVID 19 as a pandemic, the company's current operation has become totally stagnant. The company's management is seriously considering redesign its strategic planning and operation to minimise the damage and to ensure future sustainable operations. Remember, your report is crucial for management to undertake immediate strategic changes.

Required:

You are asked to prepare a report on the following:

1.Identify and briefly explain the possible financial, environmental, social and broader economic consequences the company is being exposed to.

2.Identify the key stakeholders of the company that are going to be affected by the pandemic

4.Highlight the possible changes to the following indicator:

(a)Return on Investment (ROI)

(b)Residual Income (RI)

(c)Economic Value Added (EVA)

(d)Earnings Per Share (EPS)

4.The company management anticipates that the situation will get back to normal by the end of September. Traditionally, the peak season starts from the beginning of November and continues until the end of March. In the meantime, they are contemplating the development on a sustainable Balanced Scorecard to regain its competitive position in the market within the shortest possible time. You are given the following list of variables related to the economic, social and environmental perspectives. Select one variable from each perspective that you consider as the most important, provide your argument in favour of your selection.

Economic

Profitability

Diversification of tourism package

Destination's competitiveness

Pricing

Social

Employment Safety Health

Environmental

Natural heritage and biodiversity of the tourist location Cultural and historical heritage

Contamination