Requirements -

Preliminary Case Writing Methodology

Step 1 Identify the events affecting the organization in the Introduction. Assume that we all work for the same company and you are running an executive meeting. Do not provide the background on the organization. Assume this information is known.

Events are high level activities that will affect the risk profile of the organization. It can be

external or internal to the organization.

An event can arise due to external circumstances such as a new competitor entering the marketplace in which the company competes, a shift in the value of currency making exports more or less attractive. The risk profile of the company may also change due to internal

circumstances such as the departure of a lead executive, an embezzlement, or a major

computer system upgrade.

Typically, in the case grading scheme for this course, we look for you to identify three or four events affecting the company.

Step 2 In the Analysis section of the case, provide an analysis of the activities in the firm

relative to the management models you are learning in the course.

Complete this analysis by pairing up your sentences. The first sentence should represent the deviation from or compliance to the management model you are referencing and the second sentence should identify the specific example from the case that is the evidence to support your initial statement. Use the grading rubric to determine how much evidence you require

(how many pairs of sentences).

For example: If the company is not appropriately segregating accounting duties you might

write a sentence of the following nature:

Sentence 1 -

Segregation of accounting duties requires separation of custody of the assets, from

authorization of the transaction.

Sentence 2 -

In this situation, the manager authorizing the loan was taking possession of the cash which left the company vulnerable to fraud.

In the grading scheme, each properly supported pair of sentences is worth 2 marks (one mark for each sentence). Remember, we are grading your knowledge of the models as well as the appropriate application to the business scenario hence both the knowledge and application must be demonstrated in the response.

Step 3 At the Recommendation stage, make recommendations to reduce the risk to the

organization. The recommendations should tie back to the events identified in step 1 and the analysis in step 2. No new issues should be identified at this point.

The mark breakdown is 6 marks for the introduction where you identify the 3 events (risks) affecting the company, 12 marks for the Analysis (make 3 points in the analysis, each point including a reference to a management model/theory which is then supported with facts from the case), and 6 marks for 3 recommendations on how the company should move forward. In the analysis and recommendations be sure that 2 of the 3 points relate to theory other than COSO ERM.

THANKS A LOT !!!

CASE -

TEXT -

Case Analysis- (24 marks)

Home Renovation Warehouse

In the Greater Toronto Area (GTA) home renovation spending is expected to

rise due to affordability issue related to purchasing a larger home. A study by

CIBC reported in the Financial Post (http://business.financialpost.com/personalfinance/mortgages-real-estate/renovation-spending-expected-to-rise-in-2016-aspeople-just-cant-afford-to-move) shows the following information on home

renovations in Canada:

Home Renovation Warehouse is

expanding due to the trend in

home renovation spending hoping

to capture the trend and move

their company from a privately

held company, owned by Stephan

and Sylvie Gregoire, to a larger

publically traded company. The

currently have 35 locations

spread across Canada but they

have plans to expand into the US

market as well as expand their

presence across Canada.

Home Renovation Warehouse

has issues that must be addressed

prior to expanding. The

consulting company they have

hired to advise them on expansion

plans requires them to have

audited financial statements. In

addition, they are using a periodic

inventory system which is a

barrier to optimizing their procurement activities. There are many times in which

the wrong products are ordered resulting in surpluses in inventory and stock outs

for other inventory items. This tends to frustrate the customers and the stock outs

require the company to purchase higher cost products and expediting fees. The

consultants have recommended the company implement a new computer system

that incorporates supply chain management functionality and a perpetual

inventory management system.

The Purchasing Manager, Guylaine Dumont has not taken a vacation in

several years. She is difficult to work with and the position responsible for the

vendor bidding process has been vacant for 18 months. Three employees, hired

into this position, have quit the company and Elaine La Fontaine has not

ascertained the root cause of the issue. Guylaine is opposed to changing the

inventory system as she says it is adequate for her purposes.

As the company will be competing with Home Depot and Lowes, the

consultants have recommended they implement an on-line store where customers

order products for either delivery to their home or take advantage of in-store

pickup. Currently their stores do not have an appropriate physical design for instore pickup so the current 35 stores require renovation to accommodate this new

business process. The expertise to design this business process does not currently

reside within the corporation. The Sales Manager is also not in favour of

implementing new computer systems as this is not an area of expertise for him.

To support the expanding business it is recommended for the company to

implement an ERP system however the owners are not familiar with the benefits

of an ERP nor do they have knowledge of the steps they should take to implement

as system of this nature. Sylvie Gregoire is in favour of implementing new

computer systems as she views this as a necessary event to support the expansion

plans.

Their current organization chart showing key positions is displayed below

Home Renovation Warehouse In the Greater Toronto Area (GTA) home renovation spending is expected to rise due to affordability issue related to purchasing a larger home. A study by CIBCreported in the Financial Post (http://business. financialpost.com/personalfinance/mortgages-real-estate/renovation-spending-expected-to-rise-in-2016-aspeople-just-cant-afford-to-move) shows the following information on home renovations in Canada: RENOVATION BOOM PUTS DOWN ROOTS Home Renovation Warehouse is Home Renovation Warenouse is home renovation spending hoping to capture the trend and move their company from a privately held company, owned by Stephan and Sylvie Gregoire, to a larger publically traded company. The currently have 35 locations spread across Canada but they have plans to expand into the US market as well as expand their presence across Canada. Of the Canadian homwernen ucho plan to renovate: spread across Canada but they Topfite planned home renotations? have plans to expand into the US market as well as expand their presence across Canada. Home Renovation Warehouse Of the Caradion komeonners who plati fo rnowkofe: has issues that must be addressed Tofp fice irrifants regurting homer nehomaticun: prior to expanding. The consulting company they have hired to advise them on expansion plans requires them to have audited financial statements. In addition, they are using a periodic inventory system which is a barrier to optimizing their procurement activities. There are many times in which the wrong products are ordered resulting in surpluses in inventory and stock outs for other inventory items. This tends to frustrate the customers and the stock outs require the company to purchase higher cost products and expediting fees. The consultants have recommended the company implement a new computer system that incorporates supply chain management functionality and a perpetual inventory management system. The Purchasing Manager, Guylaine Dumont has not taken a vacation in several years. She is difficult to work with and the position responsible for the vendor bidding process has been vacant for 18 months. Three employees, hired into this position, have quit the company and Elaine La Fontaine has not ascertained the root cause of the issue. Guylaine is opposed to changing the inventory system as she says it is adequate for her purposes. As the company will be competing with Home Depot and Lowes, the consultants have recommended they implement an on-line store where customers order products for either delivery to their home or take advantage of in-store pickup. Currently their stores do not have an appropriate physical design for instore pickup so the current 35 stores require renovation to accommodate this new business process. The expertise to design this business process does not currently reside within the corporation. The Sales Manager is also not in favour of implementing new computer systems as this is not an area of expertise for him. To support the expanding business it is recommended for the company to implement an ERP system however the owners are not familiar with the benefits of an ERP nor do they have knowledge of the steps they should take to implement as system of this nature. Sylvie Gregoire is in favour of implementing new computer systems as she views this as a necessary event to support the expansion plans. Their current organization chart showing key positions is displayed below: Home Renovation Warehouse In the Greater Toronto Area (GTA) home renovation spending is expected to rise due to affordability issue related to purchasing a larger home. A study by CIBCreported in the Financial Post (http://business. financialpost.com/personalfinance/mortgages-real-estate/renovation-spending-expected-to-rise-in-2016-aspeople-just-cant-afford-to-move) shows the following information on home renovations in Canada: RENOVATION BOOM PUTS DOWN ROOTS Home Renovation Warehouse is Home Renovation Warenouse is home renovation spending hoping to capture the trend and move their company from a privately held company, owned by Stephan and Sylvie Gregoire, to a larger publically traded company. The currently have 35 locations spread across Canada but they have plans to expand into the US market as well as expand their presence across Canada. Of the Canadian homwernen ucho plan to renovate: spread across Canada but they Topfite planned home renotations? have plans to expand into the US market as well as expand their presence across Canada. Home Renovation Warehouse Of the Caradion komeonners who plati fo rnowkofe: has issues that must be addressed Tofp fice irrifants regurting homer nehomaticun: prior to expanding. The consulting company they have hired to advise them on expansion plans requires them to have audited financial statements. In addition, they are using a periodic inventory system which is a barrier to optimizing their procurement activities. There are many times in which the wrong products are ordered resulting in surpluses in inventory and stock outs for other inventory items. This tends to frustrate the customers and the stock outs require the company to purchase higher cost products and expediting fees. The consultants have recommended the company implement a new computer system that incorporates supply chain management functionality and a perpetual inventory management system. The Purchasing Manager, Guylaine Dumont has not taken a vacation in several years. She is difficult to work with and the position responsible for the vendor bidding process has been vacant for 18 months. Three employees, hired into this position, have quit the company and Elaine La Fontaine has not ascertained the root cause of the issue. Guylaine is opposed to changing the inventory system as she says it is adequate for her purposes. As the company will be competing with Home Depot and Lowes, the consultants have recommended they implement an on-line store where customers order products for either delivery to their home or take advantage of in-store pickup. Currently their stores do not have an appropriate physical design for instore pickup so the current 35 stores require renovation to accommodate this new business process. The expertise to design this business process does not currently reside within the corporation. The Sales Manager is also not in favour of implementing new computer systems as this is not an area of expertise for him. To support the expanding business it is recommended for the company to implement an ERP system however the owners are not familiar with the benefits of an ERP nor do they have knowledge of the steps they should take to implement as system of this nature. Sylvie Gregoire is in favour of implementing new computer systems as she views this as a necessary event to support the expansion plans. Their current organization chart showing key positions is displayed below