SCS – Nov 2021 – L3 – Telecom Sector Challenges and Strategic Growth in Ghana

Level: Level 3
Series: NOV 2021

Summarized Case Study

The case study highlights the telecommunications industry in Ghana, focusing on COM Group Limited, the market leader. The telecom sector has evolved significantly, with liberalization efforts since the 1990s introducing competition and innovative products. COM Group has maintained market leadership but faces a rapidly changing environment, particularly in the areas of mobile money, voice, and data services.

The case explores COM’s strategy, referred to as the “BRIGHT” strategy, emphasizing customer experience, operational efficiency, commercial performance, and technology. The company faces both internal and external challenges, such as intense competition, high costs of infrastructure investment, and regulatory pressures. One of the pressing issues is the need to secure 5G licenses and financing options for the new equipment.

The company’s mobile money service has grown significantly, becoming a key strategic focus, while other areas like fixed-line services are declining. The board is keen to explore strategies to strengthen COM’s market position and address risks such as market saturation, regulatory actions, and corporate governance concerns. The company must also deal with increasing competition from over-the-top (OTT) services like WhatsApp, which have affected the traditional voice revenue streams.

The case also discusses the challenges of managing trade receivables and the options for financing 5G investments, either through loans or leasing. The management is tasked with ensuring the company adapts to these dynamic conditions while maintaining profitability and market leadership.

Full Case Study

Past Questions for SCS – Nov 2021 – L3 – Telecom Sector Challenges and Strategic Growth in Ghana

SCS – Nov 2021 – L3 – Q8 – Professional practice and codes of ethics

Discuss the merits and demerits of the rules-based approach versus the principles-based approach to setting ethical standards.

Question

COM has not had any serious corporate governance issues that have raised concerns as to potential ethical conflicts. However, the Board of Directors has raised concerns about the fact that the Finance department does not have a separate code of conduct in view of the risks associated with their work. Some are proposing a rules-based approach instead of a principles-based approach.

Required:
The CEO has approached you as a Finance professional and a friend to assist him in guiding the Board since the issue was not discussed exhaustively and there is the likelihood that the matter would be part of the next Board meeting. Write a report discussing the merits and demerits of both rules-based approach and a principles-based approach to setting ethical standards.

Answer

Tags: Corporate Governance, Ethical Standards, Ethics, Finance Department, Principles-Based Approach, Rules-Based Approach
Level: Level 3

Topic: Professional practice and codes of ethics
Series: NOV 2021

SCS – Nov 2021 – L3 – Q7b – Sources of Finance

Analyze the net benefit of the proposed factoring arrangement for COM.

Question

The management of COM is seeking advice from the finance team on whether or not to accept the proposed trade receivable factoring arrangement. The management is interested in knowing whether the factoring arrangement will benefit the company in totality.

Required:
You are the Financial Controller, and the CFO has assigned you the responsibility to determine the net benefit of the factoring financing arrangement. Prepare a brief presentation on the net benefit of the proposed factoring arrangement to be submitted to the CFO.

Answer

Tags: Factoring, Finance Costs, Financing Options, Liquidity, Trade receivables
Level: Level 3

Topic: Sources of Finance

SCS – Nov 2021 – L3 – Q7a – Sources of Finance

Analyze and recommend the most cost-effective financing option for acquiring 5G equipment: lease or borrow to buy.

Question

The management of COM requires a detailed analysis of the two financing options (borrow to buy or lease) under consideration to determine the cheaper alternative to be used to acquire the 5G equipment. The CFO has been requested to do a presentation at the next Executive Committee (EXCO) meeting.

Required:
You are the CFO, and you are to prepare a presentation to advise EXCO of the cheaper financing option. Your presentation must include detailed computations supporting your advice.
Marks: 15 marks

Answer

Tags: 5G Equipment, Borrow to Buy, Cost Analysis, Financing Options, Lease
Level: Level 3

Topic: Sources of Finance
Series: NOV 2021

SCS – Nov 2021 – L3 – Q6 – Identifying and Assessing Risk

Identify and assess four key business risks that COM faces and their impact on the company’s objectives.

Question

The board has recognized that the company faces several business risks which, individually or together, could affect COM and its objectives and/or prospects. The board needs a briefing paper from the CEO on the current significant business risks that the company may be exposed to.

Required:
You are an Advisor to the CEO and he has asked you to prepare a briefing paper to be added to the board pack identifying and assessing the impact of FOUR (4) key business risks that COM must address in order to achieve its strategic objectives. Clearly identify the specific conditions giving rise to each key risk.

Answer

Tags: Business risk, Credit risk, Liquidity risk, Market Risk, Technological Risk
Level: Level 3

Topic: Identifying and assessing risk
Series: NOV 2021

SCS – Nov 2021 – L3 – Q5 – Internal Analysis

Prepare a business plan extract with a focus on competitive and market analysis of COM Ltd.

Question

A level 300 student in the University of Ghana has approached you to assist her with her project work. She is undertaking a study of COM as a business case and she would need guidance on specific areas in the preparation of a business plan.

Required:
Prepare an extract of a business plan on the following based on the company, COM:

a) Competitive Analysis (5 marks)
b) Market Analysis (5 marks)

Answer

Tags: Business Plan, Competitive analysis, Market Growth, Market Segmentation, Telecommunications
Level: Level 3

Topic: Internal analysis
Series: NOV 2021

SCS – Nov 2021 – L3 – Q4 – Professional Practice and Codes of Ethics

Present factors that assess the independence of independent non-executive directors according to the Code of Best Practices.

Question

The board of COM currently consists of one executive director, the CEO, six non-independent non-executive directors (NEDs), and three independent NEDs. The chairman of the board has indicated that since the company is now listed, it is prudent to increase the number of independent NEDs. This, in the view of the board chairman, will ensure a ‘balance of power’ on the board so that no individual or small group of individuals can dominate decision-making by the board.

Required:
The Board chairman has approached you, a corporate governance expert and consultant, to make a presentation to the board on the factors that would be considered in selecting independent NEDs as provided in the Code of Best Practices on Corporate Governance. Limit the factors to FOUR (4).

Answer

Tags: Board Structure, Code of Best Practices, Corporate Governance, Director Independence, Governance, Independent NED
Level: Level 3

Topic: Professional practice and codes of ethics
Series: NOV 2021

SCS – Nov 2021 – L3 – Q3 – Competitive Forces

Evaluate how the competitive environment of COM affects the realization of its BRIGHT strategy.

Question

The company is facing increasing competition in its drive to remain the market leader and sustain the current competitive advantage. The market intelligence report commissioned by the board points to a highly competitive outlook. An industry analysis based on the current available information is required by the board, and the CEO has been requested to prepare a detailed presentation for the next board meeting.

Required:
Evaluate how the competitive environment of COM will affect the realization of the company’s BRIGHT strategy.

Answer

Tags: Buyer Power, Competitive analysis, Industry Rivalry, Porter’s Five Forces, Strategy, Substitutes, Supplier Power, Threat of Entrants
Level: Level 3

Topic: Competitive forces
Series: NOV 2021

SCS – Nov 2021 – L3 – Q2 – Environment Analysis

Analyze and present factors negatively impacting the strategic position of COM from both external and internal perspectives.

Question

The board members discussed the future of the BRIGHT strategy of the company in the context that the strategic position of the company continues to evolve at a rather unpredictable rate. The board is interested in gaining a thorough insight into the factors that will pose material downside and upside risk to the strategic position of the company. The chairman of the board would like to discuss the draft memorandum of the company’s strategic position with the CEO prior to the next plenary board meeting.

Required:
Prepare a draft presentation explaining to the Board Chairman the current factors that are negatively impacting the strategic position of the company from the general external environment and internal perspectives.

Answer

Tags: BRIGHT Strategy, Competitive Advantage, External Environment, Internal Environment, PESTEL Analysis, Risk Assessment, Strategy, Threats
Level: Level 3

Topic: Environment analysis
Series: NOV 2021

SCS – Nov 2021 – L3 – Q1 – Strategy Implementation

Classify and assess services provided by COM using the Boston Consulting Group (BCG) Matrix and recommend a strategy for each service.

Question

At the First Quarter 2021 Board meeting, the performance of the company was reviewed following a comprehensive presentation of the financial performance for the year ended 2020 by the Chief Executive Officer (CEO), Elikem Cubbagee. Although the directors were generally satisfied with the performance of the company and the presentation, they expressed concern that the performance of the various services provided by the company was missing in the presentation.

Required:
You are an Advisor to the Board Chairman, and he has directed you to write a report assessing and classifying the various services provided by the company using the Boston Consulting Group (BCG) Matrix. The report should include recommendations of an appropriate strategy or action the board should pursue with respect to each of the services classified in the report. Your report should contain an appendix showing the detail computations supporting your classification of the services.

Answer

Tags: BCG Matrix, Portfolio analysis, Service Classification, Strategy
Level: Level 3

Topic: Strategy implementation
Series: NOV 2021

SCS – Nov 2021 – L3 – Telecom Sector Challenges and Strategic Growth in Ghana

Past Questions for SCS – Nov 2021 – L3 – Telecom Sector Challenges and Strategic Growth in Ghana

SCS – Nov 2021 – L3 – Q8 – Professional practice and codes of ethics

Discuss the merits and demerits of the rules-based approach versus the principles-based approach to setting ethical standards.

SCS – Nov 2021 – L3 – Q7b – Sources of Finance

Analyze the net benefit of the proposed factoring arrangement for COM.

SCS – Nov 2021 – L3 – Q7a – Sources of Finance

Analyze and recommend the most cost-effective financing option for acquiring 5G equipment: lease or borrow to buy.

SCS – Nov 2021 – L3 – Q6 – Identifying and Assessing Risk

Identify and assess four key business risks that COM faces and their impact on the company’s objectives.

SCS – Nov 2021 – L3 – Q5 – Internal Analysis

Prepare a business plan extract with a focus on competitive and market analysis of COM Ltd.

SCS – Nov 2021 – L3 – Q4 – Professional Practice and Codes of Ethics

Present factors that assess the independence of independent non-executive directors according to the Code of Best Practices.

SCS – Nov 2021 – L3 – Q3 – Competitive Forces

Evaluate how the competitive environment of COM affects the realization of its BRIGHT strategy.

SCS – Nov 2021 – L3 – Q2 – Environment Analysis

Analyze and present factors negatively impacting the strategic position of COM from both external and internal perspectives.

SCS – Nov 2021 – L3 – Q1 – Strategy Implementation

Classify and assess services provided by COM using the Boston Consulting Group (BCG) Matrix and recommend a strategy for each service.

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SCS – Nov 2021 – L3 – Telecom Sector Challenges and Strategic Growth in Ghana

Past Questions for SCS – Nov 2021 – L3 – Telecom Sector Challenges and Strategic Growth in Ghana

SCS – Nov 2021 – L3 – Q8 – Professional practice and codes of ethics

Discuss the merits and demerits of the rules-based approach versus the principles-based approach to setting ethical standards.

SCS – Nov 2021 – L3 – Q7b – Sources of Finance

Analyze the net benefit of the proposed factoring arrangement for COM.

SCS – Nov 2021 – L3 – Q7a – Sources of Finance

Analyze and recommend the most cost-effective financing option for acquiring 5G equipment: lease or borrow to buy.

SCS – Nov 2021 – L3 – Q6 – Identifying and Assessing Risk

Identify and assess four key business risks that COM faces and their impact on the company’s objectives.

SCS – Nov 2021 – L3 – Q5 – Internal Analysis

Prepare a business plan extract with a focus on competitive and market analysis of COM Ltd.

SCS – Nov 2021 – L3 – Q4 – Professional Practice and Codes of Ethics

Present factors that assess the independence of independent non-executive directors according to the Code of Best Practices.

SCS – Nov 2021 – L3 – Q3 – Competitive Forces

Evaluate how the competitive environment of COM affects the realization of its BRIGHT strategy.

SCS – Nov 2021 – L3 – Q2 – Environment Analysis

Analyze and present factors negatively impacting the strategic position of COM from both external and internal perspectives.

SCS – Nov 2021 – L3 – Q1 – Strategy Implementation

Classify and assess services provided by COM using the Boston Consulting Group (BCG) Matrix and recommend a strategy for each service.

Our offerings

Contact Info

Customer

Get In Touch

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