Zubinos FAQ

This is the Second set of Zubinos FAQ from Amelia, please use it wisely.

1) Anita can only sell shares to other directors (pg194). Does this rule apply to KPE as well? If so, is it still possible for KPE to sell the shares to WCB, who is a not a director of Zubinos?

Good point. Firstly, it is not stated if the rule applies to KPE. But anyway what happens if the other directors do not have the money or do not wish to buy Anita and KPE shares? I suspect the other directors only have a right of first refusal and the scenario is badly worded. Otherwise as you noticed, how can Anita and KPE be thinking of selling to Whistle. I suggest we do not get over technical on this!

2) In pg145, it is stated that zubinos has problem of late payment by its customers. However, with the introduction of e-commerce in your handout, late payment will not occur anymore as customers must pay upon ordering. Is that correct?

No. Regular customers can still be given credit ( to cultivate loyalty and for customer convenience )so they may be required to only settle at say month end. So late payments can still occur. ( BTW, my handout did not introduce e-commerce. This is already in place. The handout only suggested outsourcing the call center).

3) The handout says the expansion plan in Europe is put on hold. Can we say that it is not appropriate to make the decisions of freezing europe’s expansion plan and entering into Malaysia simply based on the forecasts? To solve this, we conduct a PEST analysis with the outcome identical to that of the forecasts?

The reason for putting Europe on hold was because of the forecast downturn. So the figures forecasted for Europe in the Unseen Data will probably not be achievable. I put this in because the scenario needs to be changed otherwise you will all have the same answer as the sample answer! But of course in a case study, there is no right or wrong answer, if you can justify your position with rational arguments. If you can justify Europe, why not expand to both Europe and Msia? Or use franchising and expand to Thailand, China , etc.

Third set of FAQ from Chee Khoon ( a.k.a Ken)

1)we are need to identified 7 key issues that facing zubinos when they invest in malaysia? or identified 7 key issues that facing zubinos as a whole currently at europe? or both??

Identify the issues as at report date for the whole Company ie. including Malaysia. Should Europe be included?


2) from the information given, there are 5 key success factors (KSF) which are brand awareness, human resources, supply chain management, location and financing. when we identified the 7 key issues, do we need to consider the KSF to find out the key issues??

Yes.


3) revised cash flow given in question was year 2006 to 2010, so is it mean our current year is year 2006? If so,the melamine problem in milk products arise in year 2008 actually, so do we assume that this melamine peoblem happend in 2006???

I had to use 2006 so that the base scenario is still valid. Yes, you can assume Melamine problem occurred in 2006.


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