Copyright 2015 Jack M. Kaplan & Anthony C. WarrenResource

Copyright 2015 Jack M. Kaplan & Anthony C. Warren
Resource Management
Patterns of Entrepreneurship Management
5th Edition, Chapter 9
Chapter 9
Financial
Statements
Financial
Analysis
Budget
Projections
Cash Flow
Forecasts
Managing Money and People
Building the
Culture
Hiring and
Firing
Conflicts of
Interest

and Ethics
Legal
Matters
Presentation Outline
• Understanding Financial Statements
– The Value of the Balance Sheet
– The Value of the Income Statement
– The Value of the Statement of cash flows
• Preparing financial projections
• Preparing Budget projections
• Prepare a Forecast of cash Flow
• Building a Culture for Innovation
• Human Resources Management
– Hiring, Interviewing, Firing and Resignations
– Conflict of Interest Resolution
• Important Legal Documents
Chapter 9

Financial
Statements
Financial
Analysis
Budget
Projections
Cash Flow
Forecasts
Building the
Culture
Hiring and
Firing
Conflicts of
Interest
and Ethics
Legal
Matters
The Three Basic Financial Documents
1. The balance sheet (also called the statement
of financial position)

2. An income statement or profit-and-loss
(P&L) statement.
3. The statement of cash flows (also called
source and use of funds).
Chapter 9
Financial
Statements
Financial
Analysis
Budget
Projections
Cash Flow
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Building the
Culture
Hiring and
Firing
Conflicts of
Interest
and Ethics
Legal
Matters

➢ Balance sheet = Liabilities + Shareholders
equity
➢ Book Value = total of the tangible assets less
subtracting all the liabilities
➢ Book value does not include intangible assets
like Intellectual Property and goodwill
➢ Goodwill includes factors like brand, market
share, and human capital
Value of the Balance Sheet
Chapter 9
Financial
Statements
Financial
Analysis
Budget
Projections
Cash Flow
Forecasts

Building the
Culture
Hiring and
Firing
Conflicts of
Interest
and Ethics
Legal
Matters
How to use Ratios for Financial
Analysis - 1
➢ Current Ratio ➔ total current assets divided by the
current liabilities
➢ Quick Ratio ➔ Only liquid current assets such as cash
and account receivables divided by current liabiliti
Financial Ratios are used by managers to monitor
the health of the company and its operations. They
are often used by bankers when lending to the
company.

These Two Ratios are used as a guide to the health
of the company’s balance sheet:
Chapter 9
Financial
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➢ Current Liabilities to Net Worth
➢ Total Liabilities to Net Worth
➢ Fixed Assets to Net Worth
Analysis - 2
Chapter 9
Financial
Statements
Financial
Analysis
Budget
Projections
Cash Flow
Forecasts
Building the
Culture
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Conflicts of
Interest
and Ethics
Legal

Matters
These Three Solvency Ratios are used to
gauge the sustainability and financial health
of the company:
➢ Return on Investment (ROI) ratio
compares the net profit of the business to
the investment (net worth) of the business.
It is calculated as net income after taxes
(from the income statement) divided by
total owner’s equity (from the balance
sheet)
➢ ROI = Net Income
Shareholders’ equity
Chapter 9
Financial
Statements
Financial

Analysis
Budget
Projections
Cash Flow
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Building the
Culture
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Conflicts of
Interest
and Ethics
Legal
Matters
Analysis - 3
EBITDA is the earnings before interest
expense, interest income, income taxes,
depreciation and amortization. It measures
the profitability of a company’s operations

without the impact of its debt, investments
and long-term assets. It is the basic
measurement of the day-to-day health of the
company’s operations.
Financial Definitions - 1
Chapter 9
Financial
Statements
Financial
Analysis
Budget
Projections
Cash Flow
Forecasts
Building the
Culture
Hiring and
Firing
Conflicts of
Interest
and Ethics

Legal
Matters
• A Break-even analysis is the point at
which a given output results in neither
profit or loss.
• It is a decision-making tool that helps
the entrepreneur determine whether a
certain volume of output will result in a
profit or loss, or the minimum volume
necessary to be just profitable.
Chapter 9
Financial
Statements
Financial
Analysis
Budget
Projections
Cash Flow
Forecasts

Building the
Culture
Hiring and
Firing
Conflicts of
Interest
and Ethics
Legal
Matters
Financial Definitions - 2
The formula: the price per unit (P)
multiplied by the number of units sold
(X) is equal to the fixed costs (F) plus
the variable costs (V) multiplied by the
number of units produced expressed as
the following formula:
P(X) = F + V(X)
The Break-even Formula
Chapter 9
Financial
Statements

Financial
Analysis
Budget
Projections
Cash Flow
Forecasts
Building the
Culture
Hiring and
Firing
Conflicts of
Interest
and Ethics
Legal
Matters
As an example, if fixed costs (F) are $40,000,
the variable costs per unit (V) are $15 and the
price per unit (P) is $20, the break-even point
(X) can be calculated by plugging these
values into the equation:
➢20(X) = 40,000 + 15(X)

➢20X – 15X = 40,000
➢5X = 40,000
➢X = 8,000 units
Example of Break Even
Chapter 9
Financial
Statements
Financial
Analysis
Budget
Projections
Cash Flow
Forecasts
Building the
Culture
Hiring and
Firing
Conflicts of
Interest
and Ethics
Legal
Matters

Young companies are usually short of cash and
therefore it is important to forecast cash needs long
before starting to raise capital as equity or debt.
A Forecast of Cash Flow is a month to month
projection of receipts and disbursements activity
including:
• Receipts from Sales. The detail from sales, the payment
terms the company extends its customers, and the
company’s collection history
• Other Receipts. Other receipts include bank loans, equity
investments, tax refunds or any other inflows of cash
• Disbursements from Expenses. The detail from expenses
and the payment terms
• Other Disbursements. This includes capital equipment
acquisitions and payment of debt.
Forecast of Cash Flow
Chapter 9
Financial
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Financial
Analysis
Budget

Projections
Cash Flow
Forecasts
Building the
Culture
Hiring and
Firing
Conflicts of
Interest
and Ethics
Legal
Matters
• The annual budget presents a month-by-month
projection of revenues.
• It is used for planning and control. Each month
compare actual with budget and make adjustments
as necessary.
• The budget is the foundation for projecting the
other financial statements.

• An entrepreneur must always be aware of how long
the current cash reserves will last…..the cash
“runway”.
• It always takes much longer to raise funds than
planned.
Annual Budget
Chapter 9
Financial
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Building the
Culture
Hiring and
Firing
Conflicts of
Interest

and Ethics
Legal
Matters
Developing a Culture for
Innovation
•The ability to lead an organization on a mission where
everyone
is involved everyday in moving forward toward clearly defined
goals makes the difference between success and failure.
•There are 10 leadership attributes that, above all others, should
be practiced within companies to insure successful innovation.
•Building a culture Is a top-down, everyday leadership
responsibility.
•EVERY action must reflect the culture that you are building
and
there should be NO inconsistences in behaviors.
Chapter 9
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Financial
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Building the
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Interest
and Ethics
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Matters
10 Attributes of a Successful
Innovative Company-1
Attribute Definition Example
Honesty Degree to which employee
has confidence in integrity,

ability, and character of
others within the
organization
“I trust people I work with
and find it easy to be open
and honest with people
from all over the company”
Alignment Degree to which the
interests and actions of each
employee support the
clearly stated and
communicated key goals of
the organization
“We have clear aims and
objectives which everyone
understands; we build
consensus around key
objectives; we recognize
and reward loyalty”

Risk Degree to which
organization and
individuals take risks
“I am encouraged to
experiment; we take
calculated risks; we
encourage and reward
error”
Chapter 9
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Building the
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Hiring and
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Conflicts of
Interest
and Ethics
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Teams The degree to which team
performance is
emphasized over
individual performance
“We promote teamwork,
it’s the center of
everything we do”
Empowerment The degree to which each
employee feels empowered
by managers and the org.
“As a manager I’m

expected to delegate; we
have a no-blame culture;
we allow our staff to make
decisions
Freedom The degree to which self-
initiated and unofficial
activities are tolerated and
approved throughout the
organization
“I’m allowed to do my
own thing; we encourage
people to take initiative;
we recognize the
individual”
Chapter 9
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Building the
Culture
Hiring and
Firing
Conflicts of
Interest
and Ethics
Legal
Matters
Support The degree to which new
ideas are welcomed from
all sources and responded
to promptly and

appropriately
“We encourage fresh
ideas; we reward
innovative individuals and
teams”
Engagement The degree to which all
levels of the organization
are engaged with the
customer and the
operations of the
organization
“Management understands
the operations of the
company; I can share my
problems with my
managers; I know my job
is important”
Stimuli The degree to which it’s
understood that unrelated

knowledge can impact
product, service, and
operations improvements
“I am encouraged to search
externally for information
and obtain data from many
sources; we listen to
suppliers’ suggestions”
Chapter 9
Financial
Statements
Financial
Analysis
Budget
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Cash Flow
Forecasts
Building the
Culture
Hiring and
Firing

Conflicts of
Interest
and Ethics
Legal
Matters
Communication The degree to which there
is both planned and
random interaction
between functions and
divisions at all levels of
the organization
“I am kept in the picture
on how we’re performing;
we have excellent formal
channels of

communication; we use
best practice knowledge
transfer between our
departments; we actively
manage our intellectual
assets
•Does your leadership style exhibit these attributes?
•Work on demonstration each of these EVERY day
•A vibrant culture results from top-down leadership
Chapter 9
Financial
Statements
Financial
Analysis
Budget
Projections
Cash Flow
Forecasts
Building the
Culture
Hiring and

Firing
Conflicts of
Interest
and Ethics
Legal
Matters
Hiring
• Your company is only as good as the
people that you hire
• Use networks to access potential hires
• Beware hiring friends and family
members
• Hire to match your culture
• Values are inherent, skills can be learned
• If in doubt, don’t hire for expediency
Chapter 9
Financial
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Financial
Analysis
Budget
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Forecasts
Building the
Culture
Hiring and
Firing
Conflicts of
Interest
and Ethics
Legal
Matters
Interviewing
• Be prepared and punctual
• Relax the candidate by telling YOUR story
• Clearly establish the cultural values of the company

• Invite them to tell their story
• Explore values, creativity and ambitions
• Use open-ended questions, challenge, change topics
• Invite their questions before summarizing
• Record impressions immediately
• Act promptly whether no or yes
• Check references if a hire is contemplated
• Seek second opinion if possible
Chapter 9
Financial
Statements
Financial
Analysis
Budget
Projections
Cash Flow
Forecasts
Building the
Culture
Hiring and
Firing

Conflicts of
Interest
and Ethics
Legal
Matters
5 Reasons to Fire an Employee
• The company is short of funds
• The company is changing direction and
no longer needs their specific skills
• Repeated poor performance
• Disruptive behavior
• For actual cause
Chapter 9
Financial
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Financial
Analysis
Budget
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Cash Flow
Forecasts
Building the
Culture
Hiring and
Firing
Conflicts of
Interest
and Ethics
Legal
Matters
Firing Procedures
• Try to avoid surprises. Have a warning system. It is
better to help someone perform better than to fire them
• When there is no alternative, act promptly
• Remind them of their contractual obligations
• If you have to fire someone, keep the discussions
unemotional, and try to retain trust

• If possible, allow them to preserve their self-esteem
• Offer to help if appropriate
• Ask them to leave the premises immediately
• “The day you enjoy firing someone, its time to leave
yourself”
Chapter 9
Financial
Statements
Financial
Analysis
Budget
Projections
Cash Flow
Forecasts
Building the
Culture
Hiring and
Firing
Conflicts of
Interest
and Ethics
Legal

Matters
Dealing with a Key Person
Resignation
• Agree the procedures for hand-over
• Avoid taking it personally
• Keep the door open, you may want to re-hire them
later
• Celebrate and let everyone know that you regret the
decision but you wish them success
• Conduct an exit interview
• Remind them of their contractual obligations
• Analyze what went wrong – learn.
Chapter 9
Financial
Statements
Financial
Analysis
Budget

Projections
Cash Flow
Forecasts
Building the
Culture
Hiring and
Firing
Conflicts of
Interest
and Ethics
Legal
Matters
Conflicts of Interest
• Be continually aware that you may slip
into a “conflict of interest” situation
• Carefully analyze any situation where a
conflict may arise
• Even if there is no real conflict, others
may not understand – make a point of

explaining the issues and your position
• Take steps to resolve any perceived or
actual conflict quickly
Chapter 9
Financial
Statements
Financial
Analysis
Budget
Projections
Cash Flow
Forecasts
Building the
Culture
Hiring and
Firing
Conflicts of
Interest
and Ethics
Legal
Matters

Three Steps to Resolve Ethical
Dilemmas
• The “Gut-feel” test. If you have a feeling that there
is a conflict or ethical issue, then there most likely is.
Don’t try to hide it – deal with it.
• Stake-holder analysis. There are no GRAY or
FUZZY LINES. Understand who is affected, how,
and what obligations all parties have to each other.
• Full Disclosure. Expose and discuss the issues and
concerns with ALL possible affected stakeholders. If
in doubt, tell more parties than less, and provide more
information, not less.
Chapter 9
Financial
Statements
Financial
Analysis
Budget
Projections

Cash Flow
Forecasts
Building the
Culture
Hiring and
Firing
Conflicts of
Interest
and Ethics
Legal
Matters
Key Legal Documents -
Employment Agreement
• Every employee should execute this agreement
which must contain at least these five
obligations:
- Confidentiality during and after employment
- Return all company materials when they leave
- Cannot work for another business

- Cannot compete while employed or for an agreed
period after leaving
- All inventions must be assigned to the company
Chapter 9
Financial
Statements
Financial
Analysis
Budget
Projections
Cash Flow
Forecasts
Building the
Culture
Hiring and
Firing
Conflicts of
Interest
and Ethics
Legal
Matters

Consulting Agreement
• Work-for-hire requirement
• All work output belongs to the company
• Confidentiality is required
• Project is clearly defined
• Consultant must keep records of time spent
and out-of-pocket expenses
• Company is not responsible for insurances and
taxes other than those required by the law
Chapter 9
Financial
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Financial
Analysis
Budget
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Cash Flow
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Building the

Culture
Hiring and
Firing
Conflicts of
Interest
and Ethics
Legal
Matters
Key Legal Documents –
Separation Agreement
• Used when an employee leaves voluntarily or is fired
• Re-define both parties obligations with regard to
confidentiality
• Re-assert non-compete obligations with specific terms
and conditions
• Agree and define any public statements that either may
make
• General release from all other future legal obligations

by both parties
Chapter 9
Financial
Statements
Financial
Analysis
Budget
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Forecasts
Building the
Culture
Hiring and
Firing
Conflicts of
Interest
and Ethics
Legal
Matters
Sales and Marketing Agreement

• An agreement between two companies, one of
which will market and sell the products or
services of the other
• Important to clearly define the responsibilities
of both parties
• Exclusive or not?
• Define products, pricing, payments, regions,
commissions, publicity, quality, support etc.
• State term, renewable options, and
terminatioin procedures
Chapter 9
Financial
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Financial
Analysis
Budget
Projections
Cash Flow
Forecasts
Building the

Culture
Hiring and
Firing
Conflicts of
Interest
and Ethics
Legal
Matters
Confidentiality Agreement
• Entered into between two or more parties to
protect exchange of information needed to
explore a possible business relationship
• May protect the information of one or more
parties
• Defines the information to be disclosed and
procedures for its treatment and return
• The term for confidentiality must be stated

together with legal ramifications if the
confidentiality is breached
• Also known as a “Non-Disclosure Agreement”
Chapter 9
Financial
Statements
Financial
Analysis
Budget
Projections
Cash Flow
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Building the
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Conflicts of
Interest
and Ethics
Legal
Matters

Stock Option Agreement
• Used to incentivize key employees
• Component of compensation that can help preserve cash
reserves
• Only available to employees of the company
• Two forms, ISO and NSO – differ in their tax implications
• Need to be approved by board and stock-holders
• Usual to set aside 10-15% of the outstanding shares of the
company held in a pool for future key employees – this
must be disclosed and approved by potential investors
• The tax implications can be complex and the entrepreneur
should get professional advice when setting up the plan.
Chapter 9
Financial
Statements
Financial
Analysis
Budget

Projections
Cash Flow
Forecasts
Building the
Culture
Hiring and
Firing
Conflicts of
Interest
and Ethics
Legal
Matters
Final Points
• A young company should try to minimize its legal
costs as they can rapidly escalate
• But it is important that the legal affairs of the
company are well managed
• Learn to use free legal documents whenever
possible, but if in doubt, seek legal counsel

• Develop a relationship with a law firm that has
experience with young companies – often they will
reduce their fees in the hope that you will be a
large client sometime in the future
• A good law firm can be invaluable in providing
sound advice and access to their networks.
Chapter 9
Financial
Statements
Financial
Analysis
Budget
Projections
Cash Flow
Forecasts
Building the
Culture
Hiring and
Firing
Conflicts of
Interest

and Ethics
Legal
Matters
Group Project Report 1
Group Project Report
WOODMATE PAPER EXPORT CO.
Export to Australia
The Business School | Centennial College
Principle of Freight Forward
INTL 729 (Sec 005)
Sushma Marllyn Phillip Charles 300991148
Sumant Jasra 300988297
Hardik Sonera 300989418
Manpreet Singh 300990716
Kanika Sharma 300984511
Submitted to
Mauro Spies
December 08, 2018

Conten
YExecutive
Summary:................................................................................
....................................3
Buyer and Seller
Details:...................................................................................
............................3
Product:..................................................................................
........................................................3
Letter
Head.......................................................................................
..............................................4
Shipment
Timeline:................................................................................
........................................4
Incoterm® being used
(CPT):....................................................................................
..................5
(CPT- Carriage Paid
To):........................................................................................
..................5
FLOW CHART SELLERS WAREHOUSE TO BUYERS
WAREHOUSE…..…………...6,7
Vessel Routing and Lead
Times:....................................................................................

...............8
How was the CN rail strike
addressed?...............................................................................
........9
Calculations…………………………………………..………………
…………………....9,10,11
Questions need to be
answered……………………………………………………….....11,
12,13
Documents……………………………………………………………
…………………..13,14,15
Reference……………………………………………………………
………………….............16
Executive Summary
Our company Woodmate Paper Export Inc. is the leading paper
exporters in Canada. Since the time the
company has been formed, it has seen a lot of success in the
Canadian market, and due to this reason
the company is planning to go into export sector, thus
changing the name of the company from
Woodmate Paper Ltd. to Woodmate Paper export Co. The
following report lists about the facts and
figures related to an order from a company based in Brisbane,
Australia.
The report shows the Incoterm the company will use, the

product to be shipped, mode of
transportation, dimensions and quantity of the product being
shipped, as well as the calculations related
to this order. Ideally, the company had planned to transport the
shipment to the port of Montreal via CN
railway and then further transportation would be done via ocean
transport. However, due to the strike of
CN railway, the company as immediately acted and decided
to ship the container via road transport.
Hence, the transport till port of Montreal will be done using
truck and then after ocean transport will be
taken.
Buyer and Seller Details
Product
The product for this shipment comes under the category of
‘Paper’.
Name of the Product: Woodmate 15DP009T, Printer Paper Copy
Paper.
HS Code: 656839029
Seller Buyer
A Exporter (Seller):
Name: Woodmate Paper Export
Inc.
Address: 37 Markham Road,
Toronto, ON M1G 3N1, Canada
E-Mail: [email protected]
B Importer (Buyer):

Name: Rainbow Paper Ltd.
Address: 96F Bedivere Road, Brisbane.
RH11 0FX, Australia
E-Mail:
[email protected]
Letter Head
37 Markham Road, Toronto, ON M1G 3N1, Canada
[email protected], +1-647-884 6612
mailto:[email protected]
Ocean Carrier Contact Details
Exporting Country:
Name: Meridian Cargo Ltd.
Phone: +1 (514) 636-8282
Destination Country:
Name: Seabridge Global Logistics
Phone: +6 (173) 860-8100
Freight Forwarder Contact Details
Exporting Country:
Name: Anchor International Freight Service Inc.

Address: 2 Carlton St, Toronto, , ON, M5B 1J3,
Canada.
Phone: (416) 367-2118
Destination Country:
Name: Tradewise Global Logistics
Address: 1001 Londor Cl, Brisbane,
Australia.
Phone: +6 (113) 005-0098
Incoterm Being Used
CPT: Called as carriage paid to, is an Incoterm under
which the exporter takes up the
responsibility to arrange for the transportation of the goods and
pays the freight for goods to a
particular point as decided by the parties, mostly which is in the
destination country. Apart from
paying the freight for the journey, seller also assumes to
pay for the services like export
packaging, marking and labeling, any documentation fees for
the freight forwarder, and loading
charges at the seller’s location. Under CPT, once the
goods are loaded into the vessel, the
responsibility of the seller finishes, and it is the transportation
carrier who is responsible for the
delivery of goods at its destination. Since the seller is no more
responsible after the goods being
loaded, the buyer takes the risk of any kind of loss, or any extra
cost incurred. This Incoterm can
be used with any transportation mode, and also with the
multimodal movements. Under CPT
terms, the seller has no obligation to insure the shipment.
In terms of action responsibilities, division of costs and
passage of risk, CPT terms may be

illustrated as follows where the principal modes of
transportation are airfreight and ocean freight:
Description Dates
Order Received 27 November, 2018
Order Processing/ Packaging 12 December, 2018
Estimated Delivery Date 29 January , 2019
Flow Chart depicting the Route
Shipment Begins --------------
from warehouse- 18 Dec,
7 Hours
travel time Via Road
Reaches Port of Montreal------ - 18
Dec.
2 days Idle at Port for Port Procedures
Container loading on vessel--
.
Quebec Express, HAPAG
LLYOD
1ST Port of Calling -------------

Panama, on 4 Jan
Port of Destination ---------- Reaches Brisbane,
Australia on 28 Jan
Clearance at POD-----------
documentation at.
. Port of Brisbane, (Idle Time – 2 Days)
. 8 Hrs. on
truck or rail
Final place of Destination-
Jan. (Buyers
Warehouse)
Vessel Routing and Lead Times
Vessel Name: Quebec Express
Carrier: HAPAG-LLOYD
Voyage No. Internal Voyage
No.
Service Departure Arrival Transit Time
2.70E+05 18233 AT2 MONTREAL, QC BRISBANE DAYS

Port Arrival Date Time Status Departure Date Time Status
MONTREAL, QC Tuesday 18 Dec,
2018
16:00 Actual Arrival Friday 21 Dec,
2018
6:30 Actual
Departure
PANAMA Friday 04 Jan,
2019
11:00 Estimated
Arrival
Monday 07 Jan,
2019
15:00 Estimated
Departure
BRISBANE Saturday 28 Jan,
2019
20:30 Estimated
Arrival
N/A N/A N/A N/A
In total, it will take 41 days and 13 hours of travel for the
shipment to reach Brisbane, Australia from
Montreal, Quebec. Since, the incoterm is CPT, the exporter will
be responsible for the shipment only till

port of Montreal and after that the risk will be transferred to the
buyer. This means that we will not be
responsible for insurance of the shipment. However, it will be
our responsibility to bear the cost of
transportation till the buyers said location in the destination
country, i.e., in this case port of Brisbane.
We will bear the cost till the container reaches port of Brisbane,
Australia.
How the CN rail strike addressed?
Due to the strike caused by the workers of CN rail, the company
initially had three alternatives to choose
from. The first alternative was to wait for the strike to finish,
which could take weeks or months. Second
alternative with the company was to go with Canadian Pacific
Rail. But according to the Intermodal
Domestic Schedule, there was no route applicable for Toronto to
Montreal. The third alternative being
the road transportation was chosen by the company as it was
most viable for the company. Moreover, it
takes less time to deliver the goods to Montreal port.
Calculations
Number of sheets in each pack = 5000 sheets
Number of packs in each case = 12 packs
Dimensions of each case = 11”x8”x6”
Weight of each case = 30 kgs

Size of pallet = 48”x40”
Number of cases organized on a pallet = 16 cases
(4 pallets in one layer, with a height of total 4 cases)
Container to be used= 40 Ft. container
Number of pallets that can be fitted into one container = 20
pallets
Number of cases to be transported = 20 pallets x 16 cases in
each pallet = 320 cases
Dimension of each pallet = 48”x40”x28”
Actual Weight = 30 kg x 320 cases = 9600 kg
Total Volume = (48”x40”x28”)x 20 pallets
= 1075200 cubic inches
Total Volume in cubic feet = 1075200/ 1728
= 622.22 cubic feet
Total Volume in cubic metres = 622.22/ 35.3
= 17.63 cubic metres
Volume capacity of a 40 Ft. container = 45-50 cubic metres
Weight capacity of a 40 Ft. container = 25000-30000 kg.

Since the weight and volume of the shipment can be easily
fitted into one 40 Ft. container, thus we will
use one full 40 Ft. container.
Cost of one pack = CAD $ 75
Number of cases = 320
Total cost of the goods = 320x US $75
= CAD $ 24000
Cost of shipment
Description Cost (CAD)
Cost of goods 24000
Ocean Freight 8000
Domestic Freight 2000
Packaging Cost 1000
Road Transport 1000
Handling fees 500
Fuel Surcharge 500
Insurance 108.75
Total Cost 37617.25
Working Note for Insurance Calculation:

Commercial Invoice Value= $ 24,000
Cost of ocean Freight = $ 8,000
Domestic Freight = $ 2,000
Total = $ 34,000
Rate = $ 0.29%
Insurance (estimated = $ 98.6
Insurance premium)
CIF (cost, insurance, = $ 34,098.6
Freight)
Plus 10% as per valuation = $ 37508.50
(110% of $ 32093)
Rate = 0.29%
Insurance Premium = $ 108.75
List of questions for effectively and efficiently moving the
cargo.
What alternative would you suggest to the issue of CN rail
strike and Why?

To address this issue the first option available is the rival of CN
Rail that is the Canadian Pacific
Railways but if we look the case the strike is just one day
before the loading of the container, so
it is a time sensitive issue that requires an immediate
alternative.
So to address this issue we will choose the flexible mode that
is the road transport by the use of
truck, ideal for the short distances like Toronto to Montreal.
Though it will cost more than the rail but will eliminate the
delay as it is faster than the
railways.
How would the protection and safety of the goods would be
ensured?
Palletizing and Unitizing the Cargo:
quantities with good quality Kraft
paper or shrink-wrapped in plastic.
gummed
tape or pressure sensitive
adhesive tape for the final securing.
lamination shall be used for skid
wrapping.

- fibreboard, corrugated,
single wall board with one
corrugated sheet between the two flat sheets shall be used.
identified as to contents
and banded packages must contain the precise number of
specified units.
What guidelines would be given regarding the unloading of the
cargo?
Unloading instruction
secure, weather protected
horizontal surface.
desired cargo
discharge.
What if the goods get damaged during the transit?
If the goods are damaged during the transit then our incoterm
CPT covers the insurance, so it
will cover the loss if any such incident happens during the
shipment.
How will be the goods marked and labelled to ensure proper
guidelines for delivery?
display the contract number,
description of the contents, the number of items and the

consignee's address.
ep dry’ shall be used for the precaution to avoid
any damage from water and
moisture to the printing papers.
Documents
1. Commercial Invoice
Commercial
Invoice.pdf
2. Packing List
Packaging List.pdf
3. Bill of Lading
Sample Ocean Bill
of Lading[4519].pdf
4. Export Permit/Declaration
Export Declaration
Final.pdf
5. Certificate of Origin
Final Certificate of
Origin[4518].pdf

6. Letter of Credit
TD Canada Trust
TD Canada Trust, 7670 Markham Rd, Markham, ON L3S 4S1
Tel: 1800-565-4563| Website: www.tdcanadatrust.com
Swift:TDAAHH5
Advice Number: HTH2018
Amount
Advice Date: Sept 30,2018
CAD $ 37617.25
Issue Bank Ref:
Expiry Date: Nov 20, 2018
Beneficiary Address
Woodmate Paper Export Inc.
Address: 37 Markham Road, Toronto,
ON M1G 3N1, Canada
Applicant address
Rainbow Paper Ltd.
Address: 96F Bedivere Road, Brisbane. RH11 0FX, Australia
Irrevocable Letter of Credit
This is the following Letter of Credit that is being Issued;-
Commonwealth Bank
400 George St, Brisbane City QLD 4000, Australia

Take Into consideration the following Terms and conditions: -
By negotiating your draft, you can get a letter of credit and
when you present the
following documents you can get the full amount of the Invoice.
1. Commercial Invoice = 2 Copies
2. Export declaration Document = 1Copy
3. Packing List = 1 Copy
4. Certificate of Origin Document = 2 Copies
5. Bill of Lading = 1 Copy
Evidence of transport 320 Cartons having 9600 sheets of paper.
Goods are transported from Canada, Port of Montreal to
Brisbane, Australia.
The Shipment date for transportation is 21st December 2018.
Partial shipment is not allowed.
All costs that are incurred outside Canada is borne by
Beneficiary.
We agree that this letter of credit will be honoured upon
presentation at the applicable
date and time on or before the expiration date.
In the event of a draw under this letter of credit, the Beneficiary
is required to present the
original letter of credit, including any amendments issued after
the date of origin and
other documents as per the requirement of the crediting
institution.

Please read the following instructions carefully. If you don’t
comply with the documents
you may further contact the buyer.
TD Canada Trust
Hardik Sonera
Authorized Signature
References:
INCOTERMS. (n.d.). Retrieved from
http://actlogisticsinc.com/incoterms/
LTD, S. (n.d.). Current Market Rate. Retrieved from
https://www.searates.com/reference/portdistance/
Customer Resources (n.d.). Retrieved from
https://www.cpr.ca/en/customer-resources-
site/Documents/intermodal-domestic-schedule-october-2018.pdf
https://www.searates.com/reference/portdistance/
http://actlogisticsinc.com/incoterms/
Exporting from Canada Assignment
A Capstone exercise both based on INTL704/222 (ITT) and
INTL729/233 (EFF) CIFFA education courses.
Hand in soft copies of your (i) report and appendices in one file
Scenario
You are a graduate from seneca College. Your Graduation from
Global and International Business Management is a proof that

you worked hard, and you are confident that a great future is
waiting for you. You received an e-mail from an old Professor
who is consulting for an important company which is looking to
export the following product:
5 Skids of Pfizer Vaccine for Hospitals Treating COVID-19
weighing 3.7 tonnes and having dimensions of 40” x 48” x 56”
high
Your Customer, Doctors Without Borders, is located in Port-au-
Prince, Haiti
Your Professor was recently promoted, and now (s)he is
Director of Global Exporting for Apotex Pharmaceuticals
(Toronto) and his/her potential customer is in the country you
have chosen. They need a freight forwarder and they are
thinking of working with you to manage managing the exporting
of this product(s) from Canada.
In order to convince him and his managers that you are a
suitable business partner and that you have a team that is
capable of handling the job, he asks you for a Sales Presentation
and Team Report to be Submitted to his Management Team.
You have a short period to get everything done so you need to
get started now.
With the knowledge acquired at Seneca, your understanding of
Canadian and International Logistics, the desire to succeed in
the business field, and a network of Seneca colleagues (team
size fixed maximum 6 students! (don’t ask). You must finalize
your teams by the end of week 2 (or you will be automatically
enrolled in a team).
You accept the challenge. Success here holds the key your
career and you are in control. To get you started, your former
Freight Forwarding Professor offered to help you and prepared
the following spreadsheet:

1
A CHECKLIST WITH
THE IMPORT/EXPORT TRANSACTION PARTNERS AND
THEIR ROLE
PLAYERS IN THE IMPORT/EXPORT BUSINESS
ROLE
EXAMPLE DOCUMENTS
WHAT YOUR TEAM SHOULD DO
WHEN AND HOW YOU COLLECT DATA
SELLER/SHIPPER EXPORTER (your professor)
Manufactures or distributor;
Attend/assess your presentation, assess your proposal,
Prepares, packages & labels the goods for export
Identify a suitable CIFFA Freight Forwarder
All documentation to be completed by the seller’s agent
(below), SLI
Sign a clear sales contract, Invoice
Market Research, Product Development
Storage and Warehousing needs
BUYER/
IMPORTER
Receive Good Quality Goods on time and in good condition
RFP, Prepare a clear sales contract
Research the Role
Send a request for quote (RFQ)
(include the e-mail )
SELLER’S AGENT (FREIGHT FORWARDER,
CUSTOMS BROKER & BONDED WAREHOUSE)
(your team)
Find the best the carriers, route, risk analysis
Calculates the freight rates.

Arranges Insurance
HS Tariff classification;
Clears the goods for customs.
Where you will store the goods, tariff deferral
Quotation, Sales Presentation, Import/Export Business Licence,
Commercial Invoice, Export Permit, Export Declaration…
Letters of Introduction, marketing materials
AWB, BL or multimodal transport documents
Insurance Certificate…
Warehouse receipt
Prepare an introduction letter, quotation, transport document(s)
Identify HS code and put it in the documents
Research the warehousing needs and explain what service is
needed
CIFFA site, membership
EXPORT REGULATORS &
AGENTS
Regulators who you contact issue food inspection certificates,
CofO,
Quality, Export Permit
CofO, Export Permit, Inspection certificate, other certifications
depending on your product and the terms of the letter of credit
Identify the specific
Foreign agencies to receive import approval
Research the export requirements for the product
BANKER
Financial Institution(s) to arranges credit, loans and advice
about payment method
Provides the Letter of Credit, Credit Insurance
Contact a bank branch, (or BDC and EDC) talk with a Business

Manager;
Call, visit
IMPORT REGULATORS &
AGENTS
Protectionism (local manufacturers/jobs), policies,
Trade Agreements
Import Permits, consular invoices, all documentary
requirements for import, import customs broker
Identify the specific
Agencies in country to receive export approval
MIGRAS, gov’t website
ANY OTHER PARTIES (depends on your product) and should
be included above.
SUGGESTIONS ON DIVIDING UP THE WORK
Team Report & Appendices
1. Team Leader: specify his/her responsibilities including the
Incoterm, HS Code, Chargeable Weight, calculation of costs,
routing and completion of a 1-page executive summary.
Assemble the report and appendices into one document.
2. Other Team Members: assigned to a particular function (or 2)
of this exercise based on your abilities and previous work/study
knowledge and experience.
3. Pamphlets, business cards and evidence of your research
contacts along with completed documents are important to the
appendices.
Audio/Video Presentation: In this component you need to focus
on selling the merits of your freight forwarding service to me,
your potential client (the seller). By now you should have a
clear idea of the benefits that the “Architects” of logistics and
create a convincing marketing pitch to convince your client that
your team will provide the highest value, has experts speaking
in each area, and you should be chosen for the role of this
exporting adventure. Maximum 2 slides per person, max. length
= 10 minutes. Please choose an appropriate platform because
your client does not have the time to wait 10 minutes for a file

to download.
Individual Reports: An individual report (1-2) pages, concise,
with what your own professional contribution to the team is and
the importance of teamwork in the business world. (Use the
form provided in the last page of these instructions.)
Project Mark Breakdown (see also the published rubrics
attached to the assignments):
Section
Mark
Written Report:
Organized, complete, professional with Exec. Summary,
Introduction/Clear Purpose, Business Case/CREEEPSS Risk
Analysis, Description of each function including contacts,
recommendations & conclusions and NO documents (see
below)…
/5
Appendices complete, accurate, well organized set of Import &
Export Documents, evidence of contacts, APA sources…
/5
Audio/Video Presentation: Clear, concise, convincing, Quality
content in the PP slides and the flow of your exercise (max 10
minutes).
/5
Individual Report: Professionalism: grammar, spelling,
contribution, teamwork problems, key learning, next steps,
etc…
/5
Case Total
/20%

Copyright 2015 Jack M. Kaplan & Anthony C. WarrenResource

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