Which model will be suitable for the Acquisitions Analysis and why? What is the appropriate report to be prepared for the Board for its decision on the Acquisition? What other strategies could be recommended for the Parent company to use and the suitability? Sample of the suitability report.

FUTURE DEVELOPMENT

The company remains very successful not only in terms of market share and profitability but also with respect to its employee relationships, policies, and practices. Bazar has done much to change from its traditional image of the autocratic management style to a vision that encourages a more open approach to people management. All the staff who were interviewed during the research project noted that management had become more approachable and participative in its attitudes over the last few years.

Nevertheless, there are many tensions perceived between new initiatives and old practices. There remains a strong degree of centralized control and precise instructions but also a growing emphasis on the staff showing ‘initiative’. This is coupled with the threat of constant surveillance and disciplinary action for those who transgress the rules. Perhaps the tensions and contradictions are best illustrated by the concept of the customer-care program, which specifies conformance to precise working patterns but includes slogan such as ‘We trust you; The customer trusts you’.

There are other practices that could be reformed, for example, there are doubts about the effectiveness of communications between managers and their staff, and some considerations is being given to implementing a formal structured programme of team-briefing. Moreover, given the way in which training is undertaken within the stores, there is little or no opportunity for the managers to engage in any explicit team-building exercises while at work.

While the ethos of customer care is strongly expressed by managers, the actual management of customer relationships is to some degree vague. One might argue that the company’s traditional ‘plan selling’ approach is somewhat at odds with the increasingly sophisticated techniques of its major competitors. It is, therefore, making some tentative efforts to catch up. For instance, in the light of other retailers’ developing loyalty care systems, Bazar has invested in an independently owned loyalty card. This card allows users to receive loyalty bonuses from other non-grocery retailers, petrol retailers, and restaurants. Non-specific purchase behavior information is shared between the organizations involved. Each organization receives precise information on the behavior of the use of the card in their outlets. Bazar has invested heavily in the development of this card, they are hoping that this advanced loyalty card can be transformed into a smart card system, perhaps combined with a credit card in the future providing even more information on the customer’s behavior when the Ghana government digitization program is completed. Customer feedback on the use of loyalty has been favorable.

The regular unit rewards offered by the card compared poorly with other sole retailer loyalty cards, however, most users build up unit rewards and then wait for the regular special promotions that the organizations involved contribute. So for instance, a shopper at Bazar can enjoy a ‘buy one get one free meal at a restaurant that is also party to the card. At the moment, however, the company’s use of data generated by the card is rather limited.

One advantage that Bazar loyalty card has over those of their rivals is its link with national charities. For every ten unit rewards accrued, Bazars donate 2 pesewas to a national charity. The charity collects its accumulated donation in the form of a cheque at the annual award ceremony. This ceremony attended by a Senior Manager of the participating companies and the Press is a huge celebration held at the prestigious Accra Hotel and it is at this ceremony that the national charity for the following year is announced.

Finally, and most significantly, the company is considering its operation by purchasing 20 stores located along the middle Savanna Region of Ghana currently owned by Little Bee, a struggling regional supermarket. This represents a move out of Bazar's traditional heartland and it represents an ambitious and risky move. In an assessment to the board, the Director of Finance and Operations advised that the acquisition of those 20 stores should be thought of as an investment and should be appraised using appropriate methods when data is available before discussion with the governing board. She also emphasized that the high-risk nature of the strategy should be reflected in any appraisal of the investment with a clear consultant term of reference highlighting the specific deliverables and expectations including timelines.

While the stores would be re-branded, the board’s decision will be influenced by the current financial position of the 20 stores and so it has contracted a consultant to support the board with necessary acquisition research information. AB Consult & Associate has been contracted and is expected to report to the board on 5 August 2022. Below is an incomplete record prepared by the Finance Manager:

Appendix I

Bazar Profit and Loss account for the year ended 31 December 2021

Turnover	2021 GH¢’000 670,400	2020 GH¢’000 666,198
Cost of Sales	(469,280)	(466,339)
Operating Profit	201,120	199,859
Operating Expenses	(103,560)	(95,930)
Operating Profit/Loss	97,560	103,929
Interest Payable (20%)	(14,160)	(11,360)
Profit before taxation	83,400	92,569
Taxation	(20,850)	(27,771)
Profit after taxation	62,550	64,798
Dividends	(12,000)	(18,500)
Retained profit for the year	50,550	46,298
Retained profit brought forward	83,472	37,174
Retained profit carried forward	134,022	83,472