In this assignment you will critically interrogate the nature and quality of a company’s performance...

Question

In this assignment you will critically interrogate the nature and quality of a company’s performance reporting on the key elements of organisational health and organisational performance – the things that drive and shape sustainable value creation – as outlined in the PWC Value Framework (below).

The objective is for you to learn from measurement and reporting practice while developing and applying technical, analytical, problem solving and communication skills.

Appendix 1 – Assessment task 2: Case study part 1; individual assignment 1. The big idea: – identify and discuss the ‘good, the bad and the ugly’ of the quality of a company’s reported performance information In this assignment you will critically interrogate the nature and quality of a company’s performance reporting on the key elements of organisational health and organisational performance – the things that drive and shape sustainable value creation – as outlined in the PWC Value Framework (below). The objective is for you to learn from measurement and reporting practice while developing and applying technical, analytical, problem solving and communication skills. 2. The PWC Value Framework (see Topic 1 notes for more detail) 3. The assignment report From your allocated company’s reporting: for each of the 17 elements in the PWC Value Framework concerning organisational health (the elements in the strategy and resources & relationships dimensions) and concerning organisational performance (the elements on the performance dimension); and for the additional concept of ‘materiality’: Identify one example of how that element is ‘measured’ (qualitatively or quantitatively) and reported. Note: if the report does not contain anything about a particular element or materiality, state that fact and briefly explain why the missing information might be relevant to decision makers like investors or creditors. Insert that example into your assignment report (using a function like snipping tool on a PC or shift-command-4 on a MAC) Critique the quality of that piece of performance information as something that can inform your decision making about the company’s current performance and future prospects – i.e. how well does the content of the example tell the aspects of story in terms of: · comprehensiveness (what is in it – how comprehensive/complete is the content? are any connectivity’s between the element and others particular element explicitly noted? can you identify things/aspects that should be added or deleted?); and · accessibility (how easy is the information to find in the report and how well is it formatted for understanding? - can you identify ways in which accessibility could be improved? · come to an overall conclusion as to whether the quality of performance information for that element in the Value Framework is good, bad or ugly (‘ugly’ being missing entirely) Be very clear – you ARE commenting the quality of the performance information provided; you are NOT commenting on whether the company performed well in terms of ‘good news versus bad news’. You are evaluating ONE company, the ‘comparison’ company in the list below is for your information only. 4. Structure Your report should be about 20 pages long assuming (excluding references): · an introductory page one · one page each of the 17 elements for organisational health and organisational performance in the PWC Value Framework taking one page (about ½ the page for the insertion of the item and ½ page for discussion of the comprehensiveness and accessibility) · one page on materiality (here note what materiality is in a paragraph, and insert an example from the report if the company is explicit about materiality) Note: your report may be more than 20 pages if the insertion of an item takes up more than ½ page in order to make it legible. The structure of your assignment report should be: Page 1 · Your name, student ID and assessment title · Name of company interrogated · Executive summary (sub heading) – what you were doing, why, and the essence what you found and your overall conclusion about the quality (comprehensiveness and accessibility) - 1/2 page Each of the next 17 pages (headings in each page) · Dimension & element (the main page heading e.g. Resources & relationships – customers) · Example (under this subheading insert your chosen example: figure/table/paragraph etc.) · Comprehensiveness (under this subheading critically discuss the comprehensiveness) · Accessibility (under this subheading critically discuss the accessibility) The final page on materiality · One paragraph explaining the nature of materiality and how it is connected with decision making · Insertion of an example from the company report – if the organisation discusses materiality 5. Mark allocation Marked out of 100 as follows: (factored in final results to a mark out of 20) Executive summary: What 2; why 2; conclusions 610 Critical discussion about comprehensiveness for 17 elements or materiality17X3 = 51 Critical discussion about accessibility for 17 elements or materiality17X2 = 34 Critical discussion about materiality 5 100 7. Choice of company In session 3 you will be allocated a company whose measurement and reporting you will interrogate from the list below (taken from annual reports 2016; http://www.reportwatch.net/best-annual-reports/) – you should choose the LATEST annual report from that company (i.e. 2016 report if available rather than 2015 report): Company – VOLVO Country – SWEDEN Report Rating – A+ Microsoft Word - Example #1 of assessment 2 - higher distinction.docx BAO5522ManagerialAccounting Interrogation of the quality of performance information contained within the 2015 Halma plc. Annual Report Acriticalanalysisofthe2015HalmaAnnualReportagainstthePwCValue Framework(Strategy,Resource&RelationshipandPerformancedimensions) 2 Contents (optional) 1.0Executivesummary..........................................................................................................................3 2.0 PwCValueFrameworkElements...................................................................................................5 1.ValueFrameworkElement:Strategy&Objectives............................................................5 2.ValueFrameworkElement:BusinessModel......................................................................7 3.ValueFrameworkElement:Governance............................................................................9 4.ValueFrameworkElement:RiskManagement................................................................11 5.ValueFrameworkElement:Remuneration......................................................................13 6.ValueFrameworkElement:FinancialAssets....................................................................14 7.ValueFrameworkElement:PhysicalAssets.....................................................................15 8.ValueFrameworkElement:Customers............................................................................16 9.ValueFrameworkElement:People&Culture..................................................................17 11.ValueFrameworkElement:Brands&IntellectualAssets..............................................19 12.ValueFrameworkElement:Processes&Supplychain..................................................20 13.ValueFrameworkElement:OperationalPerformance..................................................21 14.ValueFrameworkElement:EconomicPerformance......................................................23 16.ValueFrameworkElement:Environmental.............................

unifolks_636418283327950675_81942_1.docx unifolks_636418283327950675_81942_2.pdf

David · Accepted Answer

Running Header: Volvo Group – PWC Value Framework Analysis		1
Volvo Group – PWC Value Framework Analysis	18
Volvo Group – PWC Value Framework Analysis
Executive Summary
This study was undertaken to pursue a detailed and comprehensive value framework analysis proposed by PWC. This value framework analysis comprises of seventeen different elements in relation to the internal context of a company spanning across the broader contexts of strategy, resources & relationships, and performances. The company identified for this analysis is the Volvo Group based in Sweden. The latest annual report of the company available for the period ending 2016 has been used for this purpose. This report presents critical analysis of these frameworks with each of the seventeen elements being assessed in terms of the extracts with key details from the annual report concerning the specific element, the discussions and analysis with respect to comprehensiveness and accessibility leading to the outcome on the rating ranging between “good”, “bad”, and “ugly.” Overall it has been determined that the company has highly effective value framework with each of these factors being presented in its annual report to sufficient and required levels of comprehensiveness with the accessibility being seamless and without any intentional / unintentional complexities. At an overall level of the value framework analysis, it can be stated that all of the elements of the value framework is evidently “good.” In specific, the further sections of this report offers a detailed, specific element wise assessment of the value analysis and presents the outcome of analysis with respect to comprehensiveness, accessibility and conclusion. 
Table of Contents
Executive Summary	2
1.	PWC Value Framework Analysis – Volvo Group	7
1.1.	Strategy & Objectives	7
Comprehensiveness	7
Accessibility	8
Conclusion	8
1.2.	Business Model	8
Comprehensiveness	9
Accessibility	9
Conclusion	9
1.3.	Governance	10
Comprehensiveness	11
Accessibility	11
Conclusion	11
1.4.	Risk	12
Comprehensiveness	12
Accessibility	13
Conclusion	13
1.5.	Remuneration	13
Comprehensiveness	14
Accessibility	14
Conclusion	15
1.6.	Financial Assets	15
Comprehensiveness	15
Accessibility	16
Conclusion	16
1.7.	Physical Assets	17
Comprehensiveness	17
Accessibility	18
Conclusion	18
1.8.	Customers	18
Comprehensiveness	19
Accessibility	19
Conclusion	20
1.9.	People & Culture	20
Comprehensiveness	20
Accessibility	21
Conclusion	21
1.10.	Innovation – G&S	21
Comprehensiveness	21
Accessibility	22
Conclusion	22
1.11.	Brands & IA	22
Comprehensiveness	23
Accessibility	23
Conclusion	23
1.12.	Processes & Supply Chain	24
Comprehensiveness	25
Accessibility	25
Conclusion	25
1.13.	Operational	26
Comprehensiveness	26
Accessibility	27
Conclusion	27
1.14.	Economic	28
Comprehensiveness	28
Accessibility	29
Conclusion	29
1.15.	Social	29
Comprehensiveness	30
Accessibility	30
Conclusion	30
1.16.	Environmental	31
Comprehensiveness	32
Accessibility	32
Conclusion	32
1.17.	Segmental	33
Comprehensiveness	34
Accessibility	34
Conclusion	34
2.	Critique of Materiality	35
3.	References	36
1. PWC Value Framework Analysis – Volvo Group
1.1. Strategy & Objectives
Extract
Source: (Volvo Group, 2017)
The above extract summarizes the strategy pursued by Volvo Group as presented in its annual report for the year 2016.
Comprehensiveness
The company’s annual report offers a detailed overview of its strategy by presenting the broader vision, mission and aspirations initially and later provides a strategy statement detailed with specific actionable, measurable and relevant objectives which total seven in number. This section is very comprehensive offering a clear, detailed, and well-aligned strategy of the company.    		
Accessibility
In terms of accessibility, there is no ambiguity or complexity. The annual report opens with a table of contents that easily guides to the strategy section and its sub-section offering a clear and seamless access. 	
Conclusion
Overall based on the review presented, the conclusion is that this element of the value framework is evidently “good.”		
1.2. Business Model
Extract
Source: (Volvo Group, 2017)
The above extract presents the illustration of the business model that is employed by Volvo Group as presented in its annual report for the year 2016.
	
Comprehensiveness
The business model presented by the company in its annual report is very comprehensive in its nature and is presented as a value chain and further description under the individual subsections of customers, purchasing, product development, production / logistics, reuse, and retail / service. Each of these business model components are further detailed in a clear, specific and comprehensive manner. 	
Accessibility
The business model is presented as part of the strategy section and is easily accessible in a seamless manner with guidance from the table of contents and is placed at the right sequence for easier access.	
Conclusion
Overall based on the review presented, the conclusion is that this element of the value framework is evidently “good”	
1.3. Governance
Extract
Source: (Volvo Group, 2017)
The above extract presents the illustration of the corporate governance model that is employed by Volvo Group as presented in its annual report for the year 2016.
Comprehensiveness
The corporate governance section of the company is presented in the section under the same name and is detailed in a relevant and useful manner that discussed the effectiveness of the governance at the organization by presenting factual events, their implications, the model for governance employed by the company, the various elements of this model and its relevance in overall scheme of things specific to the previous year as well as future outcomes. 	Overall, the detailed discussion is presented under the subsections of significant events 2016 (governance related events discussed), the Swedish statutory code for corporate governance that is relevant to the company and the status of compliance, corporate governance model, shares & shareholders, general meetings, election / audit / remuneration committee related updates, board of directors, audit updates,  group level management issues,  the structures of the organization, the guiding principles for corporate governance at the organization, etc.
 
Accessibility
Like the other sections described in the annual report, the accessibility to the governance section is easily visible, seamless in its accessibility and well located.
	
Conclusion
Overall based on the review presented, the conclusion is that this element of the value framework is evidently “good”
1.4. Risk
Extract
Source: (Volvo Group, 2017)
The above extract presents the illustration of the overall risk management dashboard for Volvo Group as presented in its annual report for the year 2016.
	
Comprehensiveness
The risks concerning the business of Volvo Group is presented as part of the report from board of directors. The same is presented in a clear and unambiguous manner classifying the risks under various sections like short / medium term risks, longer term risks, risks of operational nature, risks of strategic nature, risks of compliance nature, risks of financial nature, the definitions concerning these risks, their management and drivers of the risks. In addition the section also detailed the details of team managing the risks, the detailed discussion of the risks of various natures under distinct headings. Overall, in summary, the section offers both critical and elaborate overview into the risks facing the business, the management of these risks and the relevant actions, etc.	
	
Accessibility
In terms of accessibility, even though the section is presented within the board of director’s report for 2016, the same is made clearly visible in the table of contents and is easily accessible. There are no issues with respect to accessibility and the same can be suitably found in the document.
	
Conclusion
Overall based on the review presented, the conclusion is that this element of the value framework is evidently “good”
1.5. Remuneration
Extract
Source: (Volvo Group,

Appendix 1 – Assessment task 2: Case study part 1; individual assignment 1. The big idea: – identify and discuss the ‘good, the bad and the ugly’ of the quality of a company’s reported performance...

Answer To: Appendix 1 – Assessment task 2: Case study part 1; individual assignment 1. The big idea: – identify...

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