Page 1 Kaplan Business School Assessment Outline
Assessment 2 Information
Subject Code: MBA402
Subject Name: Governance, Ethics and Sustainability
Assessment Title: Risk Assessment
Assessment Type: Risk Report
Choose an item.: 2,000 Words (+/-10%)
Weighting: 30 %
Total Marks: 30
Submission: Via Turnitin
Due Date: Week 10
Your Task
You are required to read the following journal article article:
1. How Risky is Your Company? HBR. May-June 1999
https://hbr.org/1999/05/how-risky-is-your-company
Ensure you click on the ‘Read More’ link to view the Risk Exposure Calculator.
You are also required to read the case study below about fictional company Property Millionaires
You must then prepare a risk assessment report on Property Millionaires
Assessment Instructions
You must then prepare a risk assessment report on Property Millionaires using the Risk Exposure
Calculator and specifically address:
A. Pressure points due to growth
i) pressure for performance
ii) rate of expansion
iii) inexperience of key employees
B. Pressure points due to culture
i) rewards for entrepreneurial risk taking
ii) executive resistance to bad news
iii) level of internal competition
C. Pressure points due to information management
i) transaction complexity and velocity
ii) gaps in diagnostic performance
iii) degree of decentralised decision making
You will be required to include a minimum of 15 references in your Risk Assessment Report at least 5 of
which must come from academic journals or textbooks.
https://hbr.org/1999/05/how-risky-is-your-company
Page 2 Kaplan Business School Assessment Outline
Assessment Case Study
Background
Property Millionaires is a company that offers ordinary people a range of real estate investment seminars
and ongoing mentoring services. The philosophy at Property Millionaires is that anybody can become a
property millionaire if they have the right mind set, education, and support.
The company was established three years ago by successful real estate developer George Kirzner. He
has grown Property Millionaires into a medium sized business employing over 100 staff with offices in
Sydney, Melbourne, Brisbane, and Adelaide. One year ago the company’s seminar sales increased
dramatically and now its operations are expanding faster than the company’s capacity to hire and induct
new staff. George considers this to be a great problem to have and continues to hold the staff accountable
for delivering strong financial performance.
But the company’s regional managers are not as thrilled as George with the organisation’s surge in
growth. The rapidly increasing need for more consultants has forced the company to lower their
employment standards, hiring many new people with little to no previous experience in sales.
Business Model
Property Millionaires gene ...
Micro-Scholarship, What it is, How can it help me.pdf
Page 1 Kaplan Business.docx
1. Page 1 Kaplan Business School
Assessment Outline
Assessment 2 Information
Subject Code: MBA402
Subject Name: Governance, Ethics and Sustainability
Assessment Title: Risk Assessment
Assessment Type: Risk Report
Choose an item.: 2,000 Words (+/-10%)
Weighting: 30 %
Total Marks: 30
Submission: Via Turnitin
Due Date: Week 10
Your Task
You are required to read the following journal article article:
2. 1. How Risky is Your Company? HBR. May-June 1999
https://hbr.org/1999/05/how-risky-is-your-company
Ensure you click on the ‘Read More’ link to view the Risk
Exposure Calculator.
You are also required to read the case study below about
fictional company Property Millionaires
You must then prepare a risk assessment report on Property
Millionaires
Assessment Instructions
You must then prepare a risk assessment report on Property
Millionaires using the Risk Exposure
Calculator and specifically address:
A. Pressure points due to growth
i) pressure for performance
ii) rate of expansion
iii) inexperience of key employees
B. Pressure points due to culture
i) rewards for entrepreneurial risk taking
3. ii) executive resistance to bad news
iii) level of internal competition
C. Pressure points due to information management
i) transaction complexity and velocity
ii) gaps in diagnostic performance
iii) degree of decentralised decision making
You will be required to include a minimum of 15 references in
your Risk Assessment Report at least 5 of
which must come from academic journals or textbooks.
https://hbr.org/1999/05/how-risky-is-your-company
Page 2 Kaplan Business School
Assessment Outline
Assessment Case Study
Background
Property Millionaires is a company that offers ordinary people a
4. range of real estate investment seminars
and ongoing mentoring services. The philosophy at Property
Millionaires is that anybody can become a
property millionaire if they have the right mind set, education,
and support.
The company was established three years ago by successful real
estate developer George Kirzner. He
has grown Property Millionaires into a medium sized business
employing over 100 staff with offices in
Sydney, Melbourne, Brisbane, and Adelaide. One year ago the
company’s seminar sales increased
dramatically and now its operations are expanding faster than
the company’s capacity to hire and induct
new staff. George considers this to be a great problem to have
and continues to hold the staff accountable
for delivering strong financial performance.
But the company’s regional managers are not as thrilled as
George with the organisation’s surge in
growth. The rapidly increasing need for more consultants has
forced the company to lower their
employment standards, hiring many new people with little to no
previous experience in sales.
Business Model
Property Millionaires generates leads by advertising free
introductory seminars that explain how real
estate investment can be used as a vehicle for achieving an early
retirement. Seminar attendees are
contacted after the introductory seminar by a consultant who
invites them to a free face-to-face
consultation. At this meeting the consultant attempts to sell the
potential new client a real estate seminar
priced at $10,000.
5. The consultants are managed by regional managers in each city.
The regional managers report to a
senior management team that includes George as the company
CEO.
Consultants
Consultants are given aggressive sales targets that are set by the
senior management team with little or
no input from either the consultants themselves or the regional
managers. They are paid solely on a
commission basis, that is, they earn a percentage of the $10,000
seminar fee for each client that they sign
up. Each month the consultants are ranked by the regional
managers according to their sales
performance. The highest performing consultants are treated
like royalty and given special treatment by
the regional managers. Because the consultants are pitted
against each other like this, the company
culture is highly competitive to the point of ruthlessness
Regional Managers
Regional managers act without a sense of the larger corporate
strategy. There are no well-defined
information channels for sharing information either between
themselves or with senior management.
The regional managers have also surrounded themselves with
“yes” men and women, and do not hear
much, if any, bad news. They tend to leave the consultants
alone because they do not understand the
sometimes complex language of the consultation process.
Managers have limited access to performance
6. data and spend much of their time trying to resolve flare ups or
unanticipated emergencies. From the
information they can access they tend to focus solely on
seminar sales figures and their monthly
performance reports to senior management are often late or not
submitted at all.
Page 3 Kaplan Business School
Assessment Outline
Senior Management Team
A high percentage of Property Millionaire’s business is based
on new seminars.
The seminars are developed by George and the senior
management team: a creative, risk taking group of
real estate business people. In this regard they do not act like a
team but are given a great deal of
autonomy and so develop seminar content independently of each
other, only returning to the group once
they have created something of substantial value.
There is an increasing frequency in the failure of new seminars.
Client Satisfaction
Client complaints are on the rise. Clients say they feel well
respected and serviced by their consultants
until they sign up for a seminar. At this point their consultant
7. seems to lose interest in them and often fails
to return their phone calls.
Risk Exposure Calculator
Be sure to include the Risk Exposure Calculator in your
assessment answer.
Page 4 Kaplan Business School
Assessment Outline
Important Study Information
Academic Integrity Policy
KBS values academic integrity. All students must understand
the meaning and consequences
of cheating, plagiarism and other academic offences under the
Academic Integrity and Conduct
Policy.
What is academic integrity and misconduct?
What are the penalties for academic misconduct?
What are the late penalties?
How can I appeal my grade?
8. Click here for answers to these questions:
http://www.kbs.edu.au/current-students/student-policies/.
Word Limits for Written Assessments
Submissions that exceed the word limit by more than 10% will
cease to be marked from the point
at which that limit is exceeded.
Study Assistance
Students may seek study assistance from their local Academic
Learning Advisor or refer to the
resources on the MyKBS Academic Success Centre page. Click
here for this information.
http://www.kbs.edu.au/current-students/student-policies/
https://elearning.kbs.edu.au/course/view.php?id=1481
Page 5 Kaplan Business School
Assessment Outline
Assessment Marking Guide
Insert rubri c here
9. Sporting Goods Proposed AIS Strategic Overview
Introductin
Dick’s Sporting Goods is an American sporting goods retailer
offering an extensive assortment of high-quality sporting
equipment, apparel, footwear and accessories through a blend of
brick and mortar in-store services, unique specialty shop-in-
shops as having a strong online presence. The Company
operates approximately 650 stores in 47 states and employs
approximately 30,000 employees. Revenues for 2018 were $7.2
10. billion.
The Company desire to leveraging all of its sales channels to
deliver a consistent, seamless and high-quality customer
experience across its store, on the web and via mobile
technology. This experience is designed to differentiate the
Company from its online-only competitors. As a result, the
Company continually seeks to upgrade website functionality,
expand assortment and content and invest in new capabilities to
maximize device shift and leverage its store network. This will
provide customers with an enhanced shopping experience that
will enable the Company’s customers to buy and receive
products where, when and how they want. The Company is also
transitioning its eCommerce platform to one that will allow it to
fully control the customer experience and maximize
profitability, while continuing store growth
Current Systems Environment
The company operates using separate software packages for
finance and accounting, inventory, and its sales order/supply
chain management processes. Currently, much of the Company’s
forecasting and sales analysis is done in a custom software
package built internally. It is cumbersome and requires much
manual manipulation of data once uploaded into the system. On
occasion due to the timing of uploads from the financial system,
errors have been noted in the reports as forecasts are not run on
the most current information. Reports are not visually appealing
and contain large amounts of information that is not well
organized.
The Company has experienced issues with manual input errors
and an inability to coordinate the work of various departments.
Under the current competitive market conditions, the Company
needs a software system that will help it operate efficiently and
productively. Our proposal recommends the implementation of
Microsoft Dynamics GP 2018 Enterprise Resource Planning
11. (ERP) package. It will integrate all available software
resources to minimize labor costs and maximize profits. ERP
provides an integrated information system for the company,
enabling them to share business data and resources. Microsoft
Dynamics GP is a complete enterprise resource planning (ERP)
solution for small to medium sized business. Dynamic GP will
help the Company gain control over its primary business drivers
– from financials and human resource management to
operations. We are recommending the Dynamics GP solution as
the Dynamics Partners will assist with the planning,
implementation, customization and support services aimed at
optimizing the solution for the Dick’s Sporting Goods specific
business.
Business Process Flows:
Sporting Goods currently has 3 separate software applications
handling its 3 main business processes. currently outsources
its payroll to a 3rd party vendor – Paychex. Our proposal
recommends we bring this process in house as the last phase of
the implementation.
Financial ManagementSupply Chain Management
· General Ledger Inventory Control
· Fixed Asset Management PO Generator
· Payables Management Purchase Order Processing/Receiving
· Receivables ManagementExtend Materials
· Revenue/Expense Deferrals
· Cash Flow ManagementHuman Resource Management (Final
Phase)
· Bank Reconciliation
· Budgeting
· Benefits Management
· Human Resources
· PTO Manager
· Payroll
12. Purchase Order Process:
Dick’s existing Accounting Package is Peachtree and the
Forecasting process is a custom built in-house software. The
main processes can be summarized with the document flow
chart presented below:
(Document Flowchart)
After the customer places an order, they are able to view a
digital copy of their sales invoice in the order history tab of
their account. Copies of the same invoice (in document format)
reaches the sales, warehouse, and accounting departments. The
sales department verifies whether the payment method can be
charged successfully with the customer’s available (if any)
funds. One copy of the sale is filed alphabetically. Next, the
warehouse department views the same invoice in order to locate
the items the customer purchased and updates inventory data
within the in-house inventory software. They package the items
and allow FedEx or UPS to take care of the shipping process,
delivering the package to the customer in a timely manner.
Finally, the accounting department examines the same invoice
and records the transaction in Peachtree, and then files it
numerically.
With the proposed system, transactions that will be easily
integrated are fulfilling customer orders and tracking of
inventory. The new AIS will eliminate much of the errors
related to manual input, upload of non-current information and
delays in obtaining current user friendly reports that Dick’s has
been experiencing. The integration of the accounting and
related functions will provide for quicker and more efficient
business processes.
System Flowchart
Microsoft Dynamics GP aims to provide its core financial and
distribution functionality to the users. Improvements to online
13. inventory and online shipping will help to automate the sales
ordering process. As a result, it would help to improve customer
service, control fulfillment and invoicing, and minimize
shipping and labor costs. The below system flow chart,
demonstrates the process for purchase requisitions from the
request to the payment process. This would be one of the
processes transitioned to the GP ERP. The Company
understands the value of documenting each of the processes
prior to the system implementation. Dynamic Partners will
review these processes and assist with customizing the
components best suited to the Dick’s Sporting Goods
environment.
Prior to consideration of an ERP package, customer information
was tracked in a separate customer relationship management
package. Upon implementation of the GP ERP package,
processing sales and updating inventory and online shipments
will be integrated with a single entry point for data. Initiation
of a purchase order will being with purchase requisition that
will be keyed into the system. The system will run the keyed
data and check it against a master list of pre-approved
customers and the master inventory database. The inventory
item would get scanned upon receipt. The system would post the
shipment to update the inventory goods. Upon receipt of the
invoice, the system would match the purchase order, receiving
order and invoice to proceed to payment processing when the 3
documents are matched.
Data Overview
Previously everything was entered manually. The employees
would have to type in what items are being ordered, the item
code, how many items, and etc. If an employee mistakenly
typed a letter wrong then the customer would have gotten the
wrong item, the inventory would also deduct the wrong item and
things will get complicated. However, by using Dynamics G,
inputting inventory and customer orders or information can be
14. done more efficiently. The new types of data that will be
required by the system are listed below:
A. Barcodes:
As DICK’S Sporting Goods expands it product offerings, it
becomes harder to track the item codes and amount for each
product in the in-house built system. The Warehouse
Management System (WMS) of Dynamics GP provides the
Barcoding
Solution
for users to customize barcodes to fit the Company’s needs. In
terms of inventory control, receiving and shipping processes,
barcoding can help to avoid manual errors when it comes to the
key data.
Inventory items will have barcode information to make it easier
and quicker to scan items into the database rather than
manually. It becomes more efficient to manage warehouse
inventory as with each purchase or sale, the inventory will be
automatically updated. This lets employees know when to
restock inventory along with totals sales for the month.
The barcodes will include information about goods name,
category, manufacturer, and pricing. DICK’S Sporting Goods’
employees could use the barcode scanner to input the data and
then use the Barcoding