INSTRUCTIONS
Background
You are an independent consultant who advises UK listed companies in respect of corporate governance and risk management issues.
You have been engaged by the Board of J D Sports Fashions plc to prepare a business report which:
critically evaluates their corporate governance practice and
advises on how the company should manage the risks associated with a potential
expansion into Brazil.
The Chair of the Board has asked you to prepare a report for the Board that reviews their current corporate governance practices. The Chair requires a report that will add value to the company.
Requirement:
The Board have asked you to write a 1,750-word business report to address the following:
Critically evaluate the extent to which the company demonstrates engagement with best practice of corporate governance in accordance with the UK Corporate Governance Code and best practice demonstrated/recognised by other companies, regulators and other commentators.
Give recommendations that will add value and which are supported by best practice (either real-world or theoretical). Analyse, with supporting evidence, the impact of implementation, covering the potential benefits, any cost implications and identifying the ease of implementation.
Your analysis will focus on the disclosures contained in the 2020 Annual report (see note 8) of the company but should also consider any wider factors which you deem to be relevant for your report. Your client is aware that you will not be able to focus on all elements of corporate governance as part of your report so require you to identify and justify the area(s) that you feel are most relevant to your company.
You have been asked to prepare 1,750-word comprehensive risk report for the Board in relation to the strategy proposal described below. The Chair requires a report that will add value to the company.
Context – Strategy proposal
The Board of Directors are considering opening several new stores in Brazil. You should assume that all financial and other metrics for the new stores will be equivalent to 20 % of the current UK operations of the company i.e. the expansion will have a material impact on the company.
Requirement:
The Board have asked you to conduct and present a risk assessment of the proposed strategy utilising an appropriate risk assessment process.
The Board expect the report to initially consider the risk environment and to identify and assess several potential risks that the company could face because of this proposal.
The Board would like you to develop the initial analysis to focus on two of the most important risks. Your report should recommend and evaluate suitable responses that you would advise the company to put in place to manage and monitor the potential impact of the two key risks discussed.
Risk identification and assessment should be supported by evidence and proposed action plans (to manage the two risks) and should consider recognised corporate practices to manage risk exposures.
Appendices should be utilised to provide supporting information, evidence of risk identification and evidence of the risk assessment process.
Guidance Notes:
The requirement is for a BUSINESS REPORT, not exceeding 4,000 words.
The word count includes all in-text references and citations. Appendices, table of contents and your references list / bibliography section are also excluded from the word count.
This assessment, although focusing on a real company, is based on fictional situations which do not necessarily represent actual current or future strategies.
You should be looking to utilise relevant literature, theory and real-life examples to strengthen your analysis, evaluation and recommendations.
As you are preparing a business report you are expected to use suitable business language and format. Recommended format is as follows :
Executive Summary
Contents
Introduction (200 word limit)
Section A. Corporate Governance (1,750 word limit)
Section B. Risk Management (1,750 word limit)
Conclusion (300 word limit)
References
Appendices
ONLY items in RED are in the wordcount. The Executive Summary is NOT in the wordcount.
Mark Scheme
Section A – 40% Section B – 40%
Introduction and Conclusion – 10%
Executive summary, References and Overall presentation – 10%
Referencing is to be done using the Harvard referencing system. Guidance notes can be found through the NTU library resources.
The use of tables and appendices is encouraged as this is consistent with a business report. However, students must ensure that the key discussion points are included within the main body of the report.
JDS Sports Fashion plc – 2020 Annual Report
You have been provided with an extract from the above report.
The table below sets out the key pages of the Annual Report which we recommend you access to inform the report to the Board.
The Overview section sets out the Company history, key products and markets and provides the business context.
pages
Overview (for background and Context)
2 to 31
Strategy
42 to 47
Principal risks
48 to 68
Our people
80 to 84
JD Code of conduct
95 to 96
Changing lives, saving lives
104 to 108
s 172 statement
109 to 110
The Board, Directors report, Governance (incl Nomination Committee on p126)
114 to 128
Audit Committee report
129 to 130
Remuneration Committee report
132 to 137, 144,145,148
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