Prepare a management report

University of Portsmouth

___________________________________________________________________________________

8

APPENDIX 1: Individual assignment

1. Individual Assignment (20%)

EK Toys (EKT) is in the business of producing high end action figures and it also provides

custom designed action figures. It operates from its regional headquarters located in Singapore

and it is heavily funded by its founders. Due to the rapid growth in the East Asian markets, it

had enjoyed steady revenue growth in the recent years.

EKT’s business consists of the following divisions:

i. High end action figure manufacturing (HEM). This contributes most of the

company’s revenues and earnings.

ii. Production of customised action figures (CAF).

However, the rise of low cost toy manufacturers had posed significant threats to EKT. These

low-cost toy manufacturers produced similar types of action figures which are similarly sold

in East Asian markets. The rising popularity of ecommerce had also contributed to greater

competitive pressure on EKT’s products since consumers are no longer limited to purchasing

toys from traditional brick and mortar stores.

As a matter of fact, the company had reported net losses in the recent two consecutive quarters.

Management had been alarmed by these losses and pressed to take counter action to halt the

losses. The following is a compilation of some key revenue and expense figures.

2015 2016 2017

$'000 $'000 $'000

Sales revenues - High quality action figures (HEM) 102,000 104,550 110,900

- Customised action figures (CAF) 25,500 25,500 27,864

Direct materials 42,200 44,880 58,890

Direct labour costs 3,850 4,081 5,500

Production overheads 32,000 33,400 39,900

Selling and administrative overheads 10,200 11,900 14,900

The activity drivers are as follows:

Drivers: 2015 2016 2017

Number of production operators 60 65 79

Number of (HEM) produced/ year ('000) 1,000 1,220 1,377

Number of (CAF) produced/ year ('000) 200 222 233

Number of defects/ year 30 61 90

University of Portsmouth

___________________________________________________________________________________

9

You have been tasked by shareholders to prepare a management report (ranging

between approximately 1,500 to 1,700 words). Your report must make use of the

revenue, cost and activity drivers provided in the case study.

Your report should

a) Have an introduction in the presentation with the appropriate report format. (No executive summary is necessary)

(2marks)

b) Please include a bibliography if any references had been utilised in the report writing exercise. (2 marks)

c) Your report must address the following:

i. An evaluation of the performance of the company over the past three years.

This should utilise the revenue, cost and activity data from the given case

study. (9 marks)

ii. A proposal on a strategy that the company should adopt in order to improve

its financial results. (7 marks)

(Total for this essay 20 marks = 20%)

University of Portsmouth

___________________________________________________________________________________

10

Additional notes:

 Your essay should not exceed 1,700 words.

 Include a bibliography if you use any references.

 Assessment of your assignment will take into account:

- Relevance of your essay in addressing the above key areas.

- Clarity of expression.

- Logical analysis and critical comments.

- Appropriate diagram such as the risk calculator and adequate coverage.

- Overall presentation such as format, style and structure of the essay, correct

grammar, spelling and punctuation.

- Use of sub-headings is encouraged if it makes the essay more organized.

 All students must submit their report through Turnitin.

 Please use APA referencing which can be seen by visiting the UOP Library site on

Moodle.

 All students are encouraged to research and read relevant journal papers and articles

available in the UOP online library.