HILITE

TASK 1
The board of HiLite is currently looking to develop the HiLite business model in Veelandia, a
developing country with good growth potential. However, as operating in a different country
would be a new strategic direction for HiLite, the finance director has stated that before any
such strategy is considered, it is important to understand the key factors in its home country
of Deeland, which have driven HiLite’s

(a) The chief business analyst has asked you to prepare briefing notes for the finance director,
for consideration at the next board meeting, which discusses the key factors which have
enabled HiLite to be successful in its home country of Deeland. (16 marks) +3 ANAYLYS
SKILL

BRIEFING NOTES:
TO: FINANCE DIRECTOR

FROM: A SENIOR BUSINESS ANALYST

SUBJECT: KEY FACTORS BE SUCCESSFUL IN DEELAND

DATE: 6TH DECEMBER 2022

INTRODUCTION:

This briefing notes discusses the key factors to be successful in yourd home country of Deeland

key factors which enble hiliute to be succesgful:

Internal factors
-

-
-

EXTERNAL FACTORS:
Sincerely,

CONSULTNT

(b) Using the factsheet referred to above and any other relevant information, prepare a
report for the finance director, which evaluates the proposal to acquire the Comfi Stay
hotel chain. 16+4 EVALUATION

BRIFIEINF REPORT:
TO:

FROM:

SUBJECT : EVLUTION OF PROPOSAL

DATE:

INTRODUCTION

This report evaluates the proposal to acquire the Comfi Stay hotel chain.

SUITAIBILITY : EXTERNAL FACOTRS

-Home country

Hilite is the largest hotel chain in Deeland. HILITE haas grown organically .It is facign fierce
comeptetion in hotel industry . New business models are emerging to meet the evolving consumer
needs. In order to stay competitive Deeland needs to evolve to meet customers neefs

Many of Deeland’s hotels are finding it increasingly difficult to recruit and retain individuals .

Hilite has identified four key stretgic the,es tpo ensurecontinues scuess as it focuses to grow
inetrntionally
-Target country

Veelandia has a thriving tourism industry. Veelandia is 5,000 miles from Deeland. It has a developing
economy, but low wage rates and there is some evidence of poor employment practices in the
country. As there has been evidence of use of under-age labour (in the hotel industry has been
found. Veelandia has a thriving tourist economy, which has in fact grown since the global economic
recession

-Target company

Comfi Stay is a family-run business. There are 20 oeprating over 18 yr and are located in main
coastal resorts of Veelandia. These are in premium locations . They operate mid range htoels and
are Not classed as budget hotels.

Comfy revenue has delined stealdiy in last 3 years. Comfi Stay is suffering from enrivornmetnala
sustainilbity issues, was fined by the government of Veelandia for

FEASIBILITY : INETRNALA FACTIORS

- Financial resources

Hilite should consider how the acusition will be finmancces ,as finance for this investment would be
available through a combination of equity and debt finance.

- IT/Brand

Hilite has its own fully fucntionaiong website while Comfy stay has lacked inevtsment in the last 10
years.

- HR resources

Hilite has no past experience of acquisition, as Hilite has grown organically to date .

Hilite would need to consider possibility of he staff relocation , consideration of time and expiertise
need to be undertaken as it might disrupt the existing business in Deeland

As Hilite would need to be required to carry out on-going mentoring activities also.

ACCEPTABILITY: FINANCIALS
-Acceptable to shareholders:

Listed.
As Hilite is a listed entity, before aqsuition , sharheodlers acceptability will be required. Whether
majority of Hilite sharehodlers are in favour of the decision. Shrehodler will most likely ccept the
acquqisiton if the investment will have a positive npv and return on investment, it is most likely that
investment is comfy would be accoetable by shraheolder as it genrrate a psoiivt enpv.

-Cultural differences:

Deeland and Veelandia has major cultural difference, mostl l+

few employment rights

Comfi Stay’s staff are women, who are offered few opportunities for training or staff development

Comfi Stay’s policy of only employing men as hotel managers and senior staff in its hotels would
seem to be in stark contrast to the strong focus on equality within HiLite’s employment practices.

-Financial prejections/analysis:

Npv: the npv clculte din the financial prjections shwos that the project seems fincilly vibke giving
npv of 0.3 million discounted payback a

Revenue

The co hs seen revenues decline steadily in the last three years. But the finncil rpjections shows n
uprising trend in rveneue nd shows revenue for the yer 1 nd 1 is sme nd no further details of the
berkupis givern sme geos for yer 3 ,4 5 , it shows revneu hs reimin cosnistemt .i would lie to knwot
he brekuap of these revenue figures.

-intitil investment :

No detil or brekup is given on hwo this vlue is outed.

Oeprting cost :

Oeprting cost in yr 2 re cosnisten nd nd the erst fo the projected yer re lso constnt. This is uite
strnge, and I would need to look at the cost calcuaaltions.

-no tax implcition?

There is not tax impclaition cosndiers, s it affects the npv figure ,I would lie to see this in the revised
prjecitons

-foreignc urrency risk exposuyre: we should cosndier the risk exposure s 8

Before mking ny decision on the basisi of financial rpjction. Iw oudl like to see the possible a range of
npv calc8alation based upont he best aor and worst case scnerIAO, ‘IN ADDITON.,

Payback :

- The project payback is

SICNERLEY

CONSUTLANT .

TASK 2

Following a subsequent decision by the HiLite board, the proposed acquisition of the Comfi Stay
hotel chain has recently been announced to the Deeland stock market and, generally, the market
has reacted positively to the announcement. However, there have been some negative press reports
in the Deeland Daily News about the proposed acquisition, criticising HiLite. The chief executive of
HiLite is very concerned about these reports and has asked the business analysis team to consider
HiLite’s response.

(a) Prepare a draft press release responding to the criticisms assessing the social and
environmental impact of HiLite’s proposed investment in Veelandia, with a view to reassuring its
stakeholders of HiLite’s intentions to maintain its high principles and standards in acquiring the
Comfi Stay hotel chain. 10+3 COMUNICTION

PRESS RELEASE
SOCIAL AND ENVIRONMENTAL IMPACT AT COMFY HOTEL

FROM: BERNIE VOKES, CHIEF EXECUTIVE, HILITE HOTELS

Regards to social and environmental activities. Hilite is aware of social and environmental
challengers that hotel industry faces and wishes to assure its stakeholders that hilite hotel doesn’t
wish to exploit the social and environmental issues, as it is agains our ethical values and principles.
Hilite hotel has always adopeed and maintained a high pricncipeles and standard with

SOCIAL CONSIERATION( EMOLPYEES)

We wish to ifnrom our readers regarding our staffing practices as below:

We will continue to commit to staff development opportunities which will help them realise their
potential We welcome the introduction of the new Deeland National Living Wage, which we
implemented six months in advance of the Government’s launch date.

f pay earned by their equivalent staff in Deel

ENIVORNMENTAL IMPACT

We will continue to build on our focus and reputation of operating as a sustainable and
environmentally friendly business.

We are committed to continued development and investment in sustainability and environment

management systems to reduce our levels of wastage, decrease our CO2 emissions and work
towards becoming a carbon neutral business.

To deliver logn turn sustainable return we will be we to upgrade our systems and infrastructure to
improve our sustainable position.

All of our staff will continue to be trained in environmental management and sustainability
awareness and targets will continue to be set for every hotel to encourage sustainable behaviour.
We currently provides 6.2 trianind days.and due to which our staff turnover rate is 48% lower than
industry average of 50%

b) The finance director has asked you to provide her with briefing notes which she will use to
assist her in discussions with HiLite’s Board members, which assesses the role and benefits of
integrated reporting in assisting effective communication and in building relationships with
HiLite’s key stakeholders. (12 marks) +3 EVALUATION

BRIEFIGN NOTES:

TO:
 FROM:

SUBJECR: ROLE AND BENEFITS OF INTEGRTAED REPORTING

DATE:

ITNRODUCTION:

SINCERELY,

COSNUTLANT

TASK 3
(a) The chief business analyst has asked you to write a report for the next board meeting which
discusses the potential challenges to HiLite posed by the development of the disruptive
technologies which are emerging in the hotel industry, and highlight the potential application of
disruptive technologies which may be considered by HiLite. 14+4 SKCEECCPTIN – CHLLNEGE BROD

BRIEFING REPORT:
TO:
FROM:

SUBJECT : CHALLENGERS OF DSIRUPTIVE TECHNOLIGOEIS

DATE:

ITNRODUCITON:

THRET OF DISRUPTIVE TECHNOLOFGIES

technology was likely to be a key disruptive influence on the future of the hotel industry.

d that smartphone apps are now being developed to enable smartphones to be used as an
alternative to a key for door entry systems to hotel rooms

‘Hotels can no longer simply rent rooms – we need to give the traveller more reasons to book
with us directly.’

hat HiLite could not ignore disruptive technologie

HIGHLIGHT THE POTENTIAL APPLICATION OF DISRUPTIVE TECHNOLOGIES WHICH MAY BE

CONSIDERED BY HILITE

SINCERELY,
(b) (b) The finance director has asked you to prepare three presentation slides (one for each risk
identified) and accompanying notes for the next board meeting assessing the potential outcomes
of each of the information systems risks identified by the finance director and recommend actions
for each risk which HiLite should take in order to control these risks. 12+3 COOMERCIL ACUMEN

RISK AND ACTIONS FOR INFORMTION SYSTEM

HiLite has invested significant amounts of money in its website in the last few years, it has
not developed a clear information systems strategy. Also, she expressed her concern that
control and management of the risks to its IT/IS environment have not been adequately
addressed

SLIDE 1 LCK FO FCOUSON IT

POTENTIL OUTCOME

-IT / IS STREGTGY IS MIS LAIGNED IWWTH BUSINESS STRTFEY

-LOSS OF COMP EDGE

-SIGNIFCNT INVESTMENT IN IT IS IS AT RISK

ACTIONS:

-RERUITY AN IT DIRETCOR

- IT IS STRAGT SUPOORTE BY THE BOIRD

SUPPORTING NOTES

SUPPORTING THE FUTURE GROWTH THROUGH INVESTMETN IN TECHNOLOGY IS ONE OF THE THE
KEY STRTGIC THEME TO ENSURE THE SCUESS OF HILITE . PPXO 80% OF HILITE BOOKING ARE DOEN
THROUGH WEBSITE .DISRUPTIVE TECHNOLIGIES ARE POSING SIGNIFCIANT CHAALLENHED IS
FUTURE.

HENCE WE WILL LOSE OUSE COMP EDGE IF WE DO NO POS FOCUS ON TI IS STRATEGY , HENCE LACK
FO FOCUS ON IS IT STRATEGY WITH OUR SORPROATE STRATEGY AMD EXISSITNG AND FTURURE
INVETSMENT COST IN IT IS THRET.

We must consider recuting an it irector for more support and guidance an the board should fully
support the it director in developing the IT strategy for future.
SLIDE 2
CYBER AND DATA SECUITY BREACHES HiLite has invested significant amounts of money in its
website in the last few years, it has not developed a clear information systems strategy. The
Chairman commented that HiLite has not experienced any breaches of its information system

-POTETNIAL OUTCOME

*loss of sensitive informaatiom

* business interruption

* reputtonla loss including fine and pernalties

-ACTIONS

*firewalls

* strong pw management

SUPPORTING NOTE

-Cyber and security breaches is a significant risk to Hilite as this lead to loss of sensitive customer
information which can eventually lead to reputational loss and woud disrupt our existing operations.

We should impleemtn strong password management systems to reduce the threat of data loss.
Firewalls can enhance the security. Further more, recutiitng an It director would help in enhancing
the security systems.

SLIDE 3 – BUSINESS CONTINUITY THREAT :

Potential outcome

-business interruption

-going concern issue

Actions

-implement business contuitntuiyt pln or disstorus recovery pln

-stff trinign and periodic drills

Supporting note