Task 1:

Prepare a briefing note for the CFO which:

(a) Explains:

(i) The specific nature of the principal-agent relationship of the BCO as a charitable organisation;

(ii) The advantages for the BCO of having a two-tier board structure; and

(iii) How the BCO’s mission and strategic objectives meet its key stakeholder needs. -commercial
acumen

(b) Analyses the financial and non-financial performance of the BCO in the latest financial year,
20X1, providing reasons for and implications of the results.- analysis skills

Task 2:

(a) Prepare a report for the CFO which evaluates the extent to which the external
environment could impact on the BCO’s strategic objectives. - evaluation skills

(b)Prepare three presentation slides (with accompanying notes) which recommend, with clear
justifications,three applications of information technology that the BCO could use to enhance its e-
business capabilities.- communication skills

Task 3:

Prepare a confidential report which evaluates the BCO’s current risk register and the adequacy of
each of the risk mitigating activities, clearly highlighting whether the chairperson’s concerns are
justified.- scepticism skills

Task 4:- commercial acumen

Prepare a briefing paper for the CEO which explains:

(i) The importance for the BCO’s board of trustees to have a sufficient mix of skills and diversity;
and

(ii) The importance of continuing professional development for the BCO’s management board
members to ensure that the BCO meets its obligations to its stakeholders.
TASK 1:

“BRIEFING NOTES”

FAO: CFO

FROM: SENIOR FINANCE MANAGER

SUBJECT: Explains the principal-agent relationship advantages of having a two-tier board structure
mission and strategic objectives meet its key stakeholder needs and Analyses the financial and
non-financial performance of the BCO

DATE: 07-09-2021

This briefing notes explains the specific nature of the principal-agent relationship of the BCO as a
charitable organisation; the advantages for the BCO of having a two-tier board structure; how the
BCO’s mission and strategic objectives meet its key stakeholder needs and analyse the financial and
non-financial performance of the BCO in the latest financial year, 20X1, providing reasons for and
implications of the results.

a)

i) THE PRINCIPLE AGENT RELATIONSHIP:

The principle agent relationship is where a person employ another person to act on behalf of
him/her. Here the principle employs agent to act on his behalf.

In this case the BCO’s principle is the public and corporate doners who fund them to operate. The
agents are the board trustees and management board. They are liable to the doners to meet their
expectations. people are increasingly concerned about how charities spend their money and how
they are managed and led. Hence the agency should spend the fund in the right strategies which will
help to achieve the BCO’s objectives.

ii) Advantages for the BCO of having a two-tier board structure:

 The board of trustees could focus on the strategies rather than on day to day management
activities

 The management team could save time by focusing on the daily activities not attending the
time consuming meetings

 The board of trustee is led by chairperson which is an NED which will increase the
confidence of the doners that the fund will be used in the right way
 iii) The BCO’s mission and strategic objectives meet its key stakeholder needs:

PUBLIC:

The public want charities to make a positive difference to their causes.

In this case the mission and strategies made by BCO’s board make difference in the society and a
positive impact could be made. The strategy have objective Ensure one million people are better
connected with nature, through education and awareness of the natural world they live in. This what
public is expected from BCO.

DONERS:

The doners are funding in BCO to protect endangered wildlife around the world. The strategy also
says that within 5 years BCO ensure that Ensure that 100 threatened species are protected and
returned to their natural habitat and Invest in 100 wildlife habitat projects across the world, through
providing training and education for local staff, volunteers and communities. By achieving these
objectives the expectation of doners are met.

b) Analyses the financial and non-financial performance of the BCO:

FINANCIAL:

The financial position of BOC continues to be challenging. The reasons are below:

The income shows that it has raised but when it look into the expenditure it clearly shows that the
BOC is not happy with the income. The net income also decreased compared to 20X0. The raise of
expenditure is due to animal support cost in world park and in the field. Operating a world-class
wildlife park and global animal protection programmes is costly. The wildlife park visitors also
decreased when compared to the past year. This is because This year, BCO reluctantly raised the
price of admission to the wildlife park for the first time in five years. BCO’s wildlife park facilities
continue to be popular, resulting in increased revenues from our on-site shop and café. BCO sold
one of it’s properties in the last year and two more will be sold next year to fund the

extension of the visitor centre, which they hope will contribute to their objective of connecting
people with nature. BCO successful in securing over $2 million in grant-funded donations over the
next few years. Thus BCO hopes that it will operate smoothly in the next year.

NONFINANCIAL:
The no. of paid employees in BCO has decreased and no. of volunteers have increased this will be a
cost saving for the BCO. BCO should focus on employee training because the average training day
per staff , cost per staff training day and no. of external education training programmes have
decreased when compared to last year. BCO have invested low in the training this may cause more
cost to the company. Hence investing in employee training is more important. No. of animals
returned to its habitat has increased which will increase our reputation.

TASK 2:

a) “REPORT”

TO: THE CFO

FROM: SENIOR FINANCE MANAGER

SUBJECT: the external environment ‘s on the BCO’s strategic objectives.

DATE: 07\09\20201

This report evaluates the extent to which the external environment could impact on the BCO’s
strategic objectives using the PESTEL model.

POLITICAL:

Since the global recession over a decade ago, many countries are still feeling its effects and
governments globally have been financially under pressure. Many publicly-funded grant awarding
bodies and corporate supporters of charities have reluctantly had to reduce their support for
charities both financially and in terms of volunteering, as they have seen their own incomes reduced
by the financial crisis. This will affect badly to the strategic objectives of BCO because it funded
through both public and private doners. Hence our company will face difficulty in operation due to
short of funds.

ECONOMIC:

Geeland, as with many other developed economies around the world, has suffered from an
economic recession for several years and many charitable organisations have struggled to survive in
such difficult economic times. This is a threat to our company BOC even we implement programmes
of cost cutting, rationalisation, and more targeted and active promotion of its activities. We have an
objective of investing in 100 wildlife habitat projects across the world, through providing training
and education for local staff, volunteers and communities. Due to recession, it will difficult for us to
source found for this project.

SOCIAL:

public expectations of the work done by charities are still high, which places increased demands on
all charities, and many have found themselves at risk of being unable to meet expectations. Ensure
one million people are better connected with nature, through education and awareness of the
natural world they live in and this objective will help to aware about the nature.

Nowadays public are trusting less in charities this because of the collapse of two major health
charities amid allegations of financial mismanagement, and the general perception that some
charities are run more like clubs for old school friends, with boards of trustees being out of touch
and unskilled for the modern world in which they operate. Hence people are expecting charities to
explain how they spend their money. It is important to produce annual report so that people would
trust us.

TECHNOLOGY:

Some charities have recognised the younger generation as a potential source of donations and have
used new forms of technology, such as social media platforms and mobile technologies, to
effectively communicate and interact with a potential new source of supporter. some charities have
been slow to protect and nurture the customers and donors they already have, missing the
opportunity to build better relationships with them to encourage retention through the use of e-
marketing and communication strategies. A failure to innovate or update organisational systems to
match the needs of the society we live in may be a major downfall for many charitable organisations.
As we need funds to accomplish our objectives it important to invest in technology so that we would
may form as another source of fund.

ENVIRONMENTAL:

There is impact from environment to affect our strategic objectives. We just need to full our
objective of Ensure that 100 threatened species are protected and returned to their natural habitat.

LEGAL:

Some charities have been accused of ‘hard-selling’ their services, by

bombarding donors with requests by post, email and on the streets. Thus More legislation is
expected in the coming years to stop the use of ‘hard-sell’ marketing tactics used by some charities.
As we are not using any such strategies this legislation will not impact our strategic objectives.

TASK 3:

“CONFIDENTIAL REPORT”

TO: CEO
FROM: SENIOR FINANCE MANAGER

SUBJECT: BCO’s current risk register and the adequacy of each of the risk mitigating activities,

DATE:07/09/2020

This report evaluates the BCO’s current risk register and the adequacy of each of the risk mitigating
activities, clearly highlighting whether the chairperson’s concerns are justified.