*** December 2021 ACCA SBL exam – Instant Poll and comments ***

Got the Achilles case and found the case itself to be fairly straight forward, but the amount of hints in exhibits to support the tasks appeared relatively limited which is what drives it challenging.

Task 1
– Operation – board want to ‘learn more about operation’ – felt unclear what exactly question was after. Attempted various angles including the generic strategy, porter’s value chain etc.
– Performance –
a) no price increase but increased revenue hints improvement in occupancy ratio? – driven by increase marketing spend but whether this is worth it given the already high occupancy ratio.
b) what’s driving cost increase? – poor cost control? higher depreciation as seen in increase in fixed asset?
c) higher interest > despite plenty of bank deposit > should explore why?
d) overall low level of ROE / ROCE / Profit margin, reduction in these.
– Financial position –
a) high gearing but due to nature of industry – no industry comparison.
b) strong working capital thanks to strong procurement (AP) and customer booking system (deposits)?
c) plenty of cash surplus / current ratio > can be better utilised?
Felt in general not a lot to talk about.

– Governance:
Strong points: some NED, NED in 3 committees
Weak points to improve: lack of NED, lack of risk committee, 8y board. Why independence and NED is important for good governance, in light of being a listed company. Why best to recruit NED from other industries.
– Felt definitely missed stuff for this question – could have probably talked about CEO’s role in governance maybe?

Task 2:
Options:

Started with FAS criteria then half way through realised we can also perhaps use the Ansoff matrix. Basically talked the pro/con of each Ansoff sections in conjunction of source of funding.
Recommanded the partnership approach and talked about risk of partnership.

Task 3

Role of risk manager:
– Design, implement risk control > food hygiene procedures
– Monitor risk with designing risk indicators
– Support to manage risk > e.g. press release
– Support to identify risk and advocate risk culture
– Deal with insurance comp

Also talked the catering manager is not suitable for the role as not capable of doing some of above. > probably should have talked the need for training etc.

Task 4:

Why achieving performance excellence is important for Achilles and how to use the Baldrige model to achieve this.

Mind was blank with this one as didn’t focus on Baldrige model in study and there’s barely any supporting exhibit for this.

Tried to talk about the need to explore into all areas to support strategic success – especially how Achilles is a differentiation model, model supports this by promoting integrated thinking. > Then basically tried to use common sense on how each element is relevant to the company…

Was also conscious have mis-spelt Achilles in several ways multiple times…

Guys firstly I had issues where I couldn’t highlight or copy and paste from the exhibits …

However I wasn’t gonna let that make me fail I just had to double time with the typing

Task 1 : Operations and Financial performance and governance structures I think I did quite well here for 32 marks.

Task 2 : oil spillage and main risks , Stakeholder analysis

Task 3 : evaluate the proposal of acquisition, here I found numerous issues like the revenues being 71million but the passenger fees are only 1250per passager they operate 16 river with 42 cabins so the revenue seems inflated .

I also picked up on that the current owners of the river cruise wanted to sell because they want to fund their retirement with 114million which seems questionable

They also have book values which should have been net realizable values on sale

Then there were a lack of info , no liabilities how they determined the 65% dividend payout, also no prior year info to do a comparison on performance .

Financing Options was tricky cause there was nothing obvious in the exhibits .
I used issue right shares , issue new share, loan but they already had high finance costs and also retained earnings that can be used

Task 4 : Big Data slides for operational and future benefits which I hopefully made enough reference to the actual cruise company

All the best ! I am studying for AAA and SBR to write in March

so what was your exam technique please

Exam was ok.. I noticed that borrowings was higher than sales revenue, high gearing so that would’ve made an impact on financial position, raising finance etc.. Anyone else pick this up? I fee i focused more on negatives and didn’t focus on any positive’s so will get marked down, hopefully get to the 50% though 🙂

Im not sure how I did but answered them all. I struggled massively on the big data question and didn’t find the extract provided helpful. What did people put for the big data answer?

I always use the same exam technique and am always left with extra time. For SBL I did the same as normal in technique but obviously this is a different style so I had to tweak it.

In the 10 minute intro page before the exam I get my bit of paper and do a table headed with question, mark, time, time to finish. I gave myself 30 minutes reading and planning so time to finish that part was 3:30 left on the clock when I know I have to start the questions.

I then in the 30 minutes look at the requirements and right down each question number and mark (not including professional mark) and calculate time per mark by multiplying by 2.5. Then calculate time to finish each question. This gave me 10 minutes remaining at the end.

So if part 1a was 12 marks 4 prof marks I’d times 12 by 2.5 to give me then time for question and then work out time on countdown I need to finish by.

Then I read through the requirements and split it by my role, audience, format, prof skill and task for them all and fill in that info.

Then I started reading through the exhibits to understand what was going on and fitted the info in to the requirements so I knew what exhibits to use for each question. This took my 30 minutes.

Then I started answering the questions and made sure when the time to finish was reached I would move on even if I hadn’t finished.

I ended up finishing with 30 minutes spare, though I did struggle with what to put for the data question.

With my last 30 minutes I went back to any that I thought I could expand on.

Writing marks, time for questions and time to finish each question has massively helped me with time management and I’m always left with time remaining.

Hope this helps anyone. Good luck all

Q4a Why is excellence perf important for the company 1)reputation 2)profitability 3) best services to customers + notes

Q4b) HOw to implement for company? Here I took each of the Balridge points (leadreship, strategy, customers, etc…) and gave an example for each. Not sure if that is correct.

Overall a reasonable exam. I didn’t use any model which was kind of weird (except Baldridges performance excellence where it was asked for and given).

Evaluating a Risk Manager was a nice addition though, But the rest of it felt like common sense.

All by all, a fair exam I think. I got the case with Achille’s cruise

Q1a) ops and financial evaluation
ops- 1) they are operating in a niche market
2) they are structured in a divisional system with each vessel being one division
3) well automated and procurement centralized
Finan Still profitable but 1) liquidity decrease 2) gearing stable but high 3) Margins 4) interest cover at 1,21. No increase in loans but due to increased costs and stagnation of sales the margins are decreasing and most of the PBIT is abosrbed by finance costs. It is a strategic drift

Q1b) Governance question with five or six points 1) more NED’s 2) more nimination of directors (8 years is too long) 3) appoint a chairman, two other points I don’t remember

Q2) evaluation the different strategies proposed 1) build more vessel 2) buy 20% of bigger vessel 5000 people 3) to let run existing fleet in new destinations so they can work longer than six months 4) river cruises with an alliance
I think 1 and 2 are definitely out, need big investments, no debt as high gearing and also no issuance of shares as the institutionaal investors are already pissed off. 3 could eventually be possible if it does not infrange maintenance (limited option). Most suitable option 4 as it does not need high investment and it allows to diversify.

Q3a) roles and responsabilities of a risk officer for food safety. 1) review of risk register and controls in place ang get approval of Board 2) Quality control of food chain 3) induction of new crew members when they start in company 4) Quality inspection onboard of vessel 5) in charge of safety equipment onboard for example the kitchen staff to wear sanitary clothes when working in kitchen

Q3b) how to help the company for risk awareness. I explaines the awareness is from top to bottom and gave examples. I think this was the 4 lines of defense (managers, employees, internal audit, external audit) but I did not mention it.

Q4a Why is excellence perf important for the company 1)reputation 2)profitability 3) best services to customers + notes

Q4b) HOw to implement for company? Here I took each of the Balridge points (leadreship, strategy, customers, etc…) and gave an example for each. Not sure if that is correct.

Q1 was for 32 points, Q2 for 20pts, Q3 for 28 points and Q4 for 20 points, that is for the question with Achille

This is for the one with Balridge

Damn!
Man looks like we picked up some similar points, I can tell almost 60% of my points are similar to yours, probably because we took it very generally, this is my approach, I just took the questions as a consultant not tried to a super accountant, just plain consultant and coming up with solutions with logical comments and common sense

Wish you all the best bro.

Guys, do I have a chance to pass? I have not done the first question at all. I done all the rest.I think I done well with question oil spillage and main risks , Stakeholder analysis. I mentioned repuational risk, environemntal,political, financial, exchange rate risk (dont know if it’s right) as I assumed that the location where the oil spillage happened was far away so maybe they have a different currency. For stakeholder analysis I mentioned the community of the island, their high interest in the oil spillage. potential custumers, Government.
For the acquistion I used Feasibility, Acceptability and Suitability framework. Financing options did not say much apart from the Grant they could apply from the Government, looking for investors or a loan from the bank if their business plan is effective and convincing. For Big data for enlarged companies better relation with clients, comparison of financial data, effective decision making, flexible for passengers and staff, good for advertisement and gaining more passengers from social media etc.
For the Governance improvements – not enough neds, been there for 8 years, I mentioned that it would be good to have fresh pair of eyes on the business they would help with performance risk and strategy. Also., I said the utilitary board is good cause all directors are equal.

If I pass it will be a miracle but still want to know yours opinion!

Thanks 🙂

Jessica1997w wrote:Guys, do I have a chance to pass? I have not done the first question at all. I done all the rest.I think I done well with question oil spillage and main risks , Stakeholder analysis. I mentioned repuational risk, environemntal,political, financial, exchange rate risk (dont know if it’s right) as I assumed that the location where the oil spillage happened was far away so maybe they have a different currency. For stakeholder analysis I mentioned the community of the island, their high interest in the oil spillage. potential custumers, Government.
For the acquistion I used Feasibility, Acceptability and Suitability framework. Financing options did not say much apart from the Grant they could apply from the Government, looking for investors or a loan from the bank if their business plan is effective and convincing. For Big data for enlarged companies better relation with clients, comparison of financial data, effective decision making, flexible for passengers and staff, good for advertisement and gaining more passengers from social media etc.<br>For the Governance improvements – not enough neds, been there for 8 years, I mentioned that it would be good to have fresh pair of eyes on the business they would help with performance risk and strategy. Also., I said the utilitary board is good cause all directors are equal.

My answer above was for yours :’)