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 MDB Case Analysis-July 2016 Exam

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Admin
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PostSubject: MDB Case Analysis-July 2016 Exam   Sun Jul 10, 2016 9:41 pm

link for the case analysis ppt done on 9th July

https://www.dropbox.com/s/eo2la99ueysvont/Pre%20Seen%20Analysis-July%202016.pptx?dl=0


Last edited by Admin on Sun Sep 11, 2016 8:07 pm; edited 1 time in total
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PostSubject: Re: MDB Case Analysis-July 2016 Exam   Sun Jul 10, 2016 10:03 pm

pucsl.gov.lk/english/wp.../2015/.../Long-Term-Generation-Plan-2015-2034-PUCSL.p...


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PostSubject: Re: MDB Case Analysis-July 2016 Exam   Tue Jul 12, 2016 6:35 am

Additional reading: refer pg 86 to 89
http://www.cbsl.gov.lk/pics_n_docs/10_pub/_docs/efr/annual_report/AR2015/English/7_Chapter_03.pdf

Refer Pg 89 to 92 for road/highway details
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PostSubject: Re: MDB Case Analysis-July 2016 Exam   Sun Jul 17, 2016 10:59 pm

Please find below

1. Financial Statement Analysis
2. Class Room question-Unseen
3. MM Theory Question
4. PPT on Strategic Mgt, Industry and Valuation

https://www.dropbox.com/s/torkzsfv42dloxp/Financial%20Statements-MDB-Heshana%20K.xlsx?dl=0
https://www.dropbox.com/s/dzeu773kkve07ag/Unseen%202-Discussion%20Question-Heshana%20K.xlsx?dl=0
https://www.dropbox.com/s/e5vex1rpe6in9c5/Unseen%203-MM%20Theo-Heshana%20K.xlsx?dl=0
https://www.dropbox.com/s/vs8t5zdgj8al785/Pre%20Seen%20Analysis-July%202016.pdf?dl=0
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Kasunwara



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PostSubject: Re: MDB Case Analysis-July 2016 Exam   Mon Jul 18, 2016 11:25 pm

Sir
We were unable to download the PPT file.
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PostSubject: Re: MDB Case Analysis-July 2016 Exam   Tue Jul 19, 2016 10:39 pm

Its a PDF file, not a PPT.
Others having the same issue?
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Niflan



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PostSubject: Re: MDB Case Analysis-July 2016 Exam   Fri Jul 22, 2016 11:52 am

Hi sir,
I have following concerns. Needs your assistance.

1. Whether to give company over view in introduction part in the report

2. Acquiring a real estate company is a related diversification or market development because we are already in real estate business

3. If we have to evaluate two options (real estate or power generation) where to include the MDB SBU analysis based on BCG and ratio analysis of MDB

4. If we have to evaluate two options as above, are we required to analyse more about the MDB using BCG, Ansoff,Ratio.
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PostSubject: Re: MDB Case Analysis-July 2016 Exam   Sat Jul 23, 2016 7:03 am

Niflan wrote:
Hi sir,
I have following concerns. Needs your assistance.

1. Whether to give company over view in introduction part in the report

Do not spend too much time. If you are writing to an internal party, not required at all!!!
Lets discuss what needs to be included in a typical report at the class, tomorrow.

2. Acquiring a real estate company is a related diversification or market development because we are already in real estate business

If both criteria are not "New/New" on the grid, anything can be related. I considered it as market development from the point of MDB as they can extend current product (real estate for government sector) to a new market segment.

3. If we have to evaluate two options (real estate or power generation) where to include the MDB SBU analysis based on BCG and ratio analysis of MDB

It depends on the question... But you can include any important/relevant points under other considerations. It may have an impact on the recommendation you make. Please note that you can not make  any decision turning a blind eye to current status of the company.

4. If we have to evaluate two options as above, are we required to analyse more about the MDB using BCG, Ansoff,Ratio.

It depends. Please refer above. Analysis involves present situation and future with new projects. As noted above extent of BCG/ansoff analysis etc.. depends on the question.
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Kasunwara



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PostSubject: Re: MDB Case Analysis-July 2016 Exam   Sat Jul 23, 2016 9:13 am

Sir..
1.are we need to focus on risk management concept in this case.do we need to analysis some of major risk that face by the company and some mitigation plans.we can get some sort idea about the risk in live company annual report also.
2.sir can you make a quick briefing on organizational structure theory part.whether this company is having a mulidivisional or matrix structure and based on that how it will imapct to the strategic decision making.
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PostSubject: Re: MDB Case Analysis-July 2016 Exam   Sat Jul 23, 2016 9:47 am

Kasunwara wrote:
Sir..
1.are we need to focus on risk management concept in this case.do we need to analysis some of major risk that face by the company and some mitigation plans.we can get some sort idea about the risk in live company annual report also.

For tomorrow's discussion I have included some theory part (COSO) relating to risk management, we can discuss it tomorrow.
2.sir can you make a quick briefing on organizational structure theory part.whether this company is having a mulidivisional or matrix structure and based on that how it will imapct to the strategic decision making.

There is a slide on structure as well. Please note this famous statement - "Structure follows strategy" its not other way. everything depends on strategy of the business.

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Chathuranga



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PostSubject: Re: MDB Case Analysis-July 2016 Exam   Sat Jul 23, 2016 3:14 pm

Sir...
Isn't there a possibility of going in to foreign market in construction business?

" . He also noted that the global trends indicate that by 2025, there will be 27 mega cities out of which 21 will be in developing countries" - preseen

"MDB has received public and private sector awards on many occasions and also has industry professional memberships from the Chamber of Construction Industry (CCI) and the International Federation of Asian and Western Pacific Contractors’ Associations (IFAWPCA)" - - preseen

if so what factors need to be considered ?
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manoj.thiru



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PostSubject: Re: MDB Case Analysis-July 2016 Exam   Sun Jul 24, 2016 11:47 pm

Can MDB PLC buy land in SL

MDB being a subsidiary of TMD, is a company incorporated in Sri Lanka under the Companies Act where any foreign shareholding in such company, either direct or indirect, is fifty percent or above. In such case, MDB cannot own land in SL,
But MDB can lease land for up to 99 years, paying a lease tax

(According to LAND (RESTRICTIONS ON ALIENATION) ACT, No. 38 OF 2014)

But this does not apply to an entity identified as engaged in Strategic Development Project by BOI

MDB's
-Current & Future infrastructure development projects
-Future housing- apartment investments
-Future power generation investments

could be argued as SDPs

1. Since it is in the national interest and which is likely to bring economic and social benefit to the country and which is also likely to change the landscape of the country, primarily through—
(a) the strategic importance attached to the proposed
provision of goods and services, which will be of
benefit to the public ;
(c) the substantial employment which will be generated
and the enhancement of the income earning
opportunities ; and
(d) the envisaged transformation in terms of technology

2. BOI published investment guide of October 2015 identifies these areas as investment oppurtunities.

Based on above, my argument is that there's no issue in MDB buying lands for above purposes.

Dear Sir/ Friends, pls correct me if i'm wrong.

Thanks.
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PostSubject: Re: MDB Case Analysis-July 2016 Exam   Sun Jul 24, 2016 11:55 pm


Hi All,

Final day presentation link:
https://www.dropbox.com/s/vs8t5zdgj8al785/Pre%20Seen%20Analysis-July%202016.pdf?dl=0
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roshan1979



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PostSubject: Re: MDB Case Analysis-July 2016 Exam   Mon Jul 25, 2016 5:26 am

Can any one tell

If we go for non conventional power generation, initial cost would be high comparatively and generate 10 mw to obtain agreement with CEB.What are the other considerations we must look into
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Chathuranga



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PostSubject: Re: MDB Case Analysis-July 2016 Exam   Mon Jul 25, 2016 5:16 pm

manoj.thiru wrote:
Can MDB PLC buy land in SL
..........................


Additions to the point


http://www.sundaytimes.lk/151115/business-times/sri-lanka-to-ease-land-issues-for-investors-171742.html

Sri Lanka to ease land issues for investors
View(s):

Sri Lanka government is reviewing existing laws on state-owned lands to broad-base ownership, relax the land use ceiling and remove restrictions on foreigners buying land. A new draft bill is now being prepared with the aim of providing provisions to provide ownership of land without being affected by the Land Restriction and Alienation Act.
Local and foreign investors as well as entrepreneurs will be encouraged to expand their businesses clearing impediments in obtaining land and buildings under the government’s mid-term economic plan.Restrictions on foreigners, companies and locally incorporated firms with over 50 per cent foreign ownership from buying land in the country will be removed.
Foreigners (individuals or companies with foreign shareholding of 50 per cent or more) could purchase land but with a huge transfer tax (100 per cent) since 2004 but this was removed by enacting New ‘Land (Restriction on Alienation)’ bill in parliament in 2014.
Finance Minister Ravi Karunanayake recently assured the Government would be flexible on foreigners and land ownership subject to pre-determined purposes of investment. Meanwhile the present land use ceiling of 50 acres per individual will be increased to 250 acres under the provisions of the new bill which will be presented in parliament next month, a senior government official told the Business Times.
The Land Reform law of 1972 placed a ceiling on individual ownership of land at 50 acres. It has resulted in the vesting with the state of around 560,000 acres of land under this law. In 1975, around 500,000 acres of land owned by local and foreign companies were nationalised. But it has failed to enhance their productivity levels and develop competitiveness due to politicisation of administration and management, he said adding that most of the state-owned plantation companies were running at a loss.
The government plans to provide unutilised plantation lands and state-owned barren lands to private firms and business entrepreneurs to start viable commercial and agricultural projects creating more employment opportunities for rural youth, he added. The previous government had attempted to acquire 25,000 acres of unused estate land and distribute it among youths for ‘productive agricultural purposes’ under the 2013 budget proposal.
A decision was taken at that time to distribute two acre blocks of land each in plantations among 12,500 unemployed youth but the government was unable to implement the plan due to protests of plantation companies. Under the new initiative these plantation lands will be allocated for productive purposes without just handing it over to the people considering their political affiliations.
The state land will be provided for investors who will step in to construct housing schemes for the middle class in rural, urban and semi –urban areas within the next five years.
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roshan1979



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PostSubject: Re: MDB Case Analysis-July 2016 Exam   Mon Jul 25, 2016 10:19 pm

manoj.thiru wrote:
Can MDB PLC buy land in SL

MDB being a subsidiary of TMD, is a company incorporated in Sri Lanka under the Companies Act where any foreign shareholding in such company, either direct or indirect, is fifty percent or above. In such case, MDB cannot own land in SL,
But MDB can lease land for up to 99 years, paying a lease tax

(According to LAND (RESTRICTIONS ON ALIENATION) ACT, No. 38 OF 2014)

But this does not apply to an entity identified as engaged in Strategic Development Project by BOI

MDB's
-Current & Future infrastructure development projects
-Future housing- apartment investments
-Future power generation investments

could be argued as SDPs

1. Since it is in the national interest and which is likely to bring economic and social benefit to the country and which is also likely to change the landscape of the country, primarily through—
(a) the strategic importance attached to the proposed
provision of goods and services, which will be of
benefit to the public ;
(c) the substantial employment which will be generated
and the enhancement of the income earning
opportunities ; and
(d) the envisaged transformation in terms of technology

2. BOI published investment guide of October 2015 identifies these areas as investment oppurtunities.

Based on above, my argument is that there's no issue in MDB buying lands for above purposes.

Dear Sir/ Friends, pls correct me if i'm wrong.

Thanks.

AS per information available 15% tax on 99 year lease also not applicable now.foreigner now can buy land via company where that company does not have majority stake to foreigner.
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Ivantha



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PostSubject: Re: MDB Case Analysis-July 2016 Exam   Wed Jul 27, 2016 10:26 am

roshan1979 wrote:
Can any one tell

If we go for non conventional power generation, initial cost would be high comparatively and generate 10 mw to obtain agreement with CEB.What are the other considerations we must look into

According to my view following factors can be taken into account:
* Lifetime of the project
* Future viability - When non conventional power generation methods being used, it has more viability in future than thermal power due to it align with existing government policies.
* Maintenance cost of each project
* Quality of the power generated by each option
* Required other facilities like skilled labour, lands (As an example you cannot use non conventional power generation methods in any part of the country), technical competencies etc.
* Government relief for each option
* Environmental laws and effects of them for each option
* Availability of any environmental barriers to continue projects as it is (As an example you cannot use some non conventional power generation methods continually over the period due to different weather conditions).

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PostSubject: Re: MDB Case Analysis-July 2016 Exam   Fri Jul 29, 2016 7:49 am

Firstly, Thank you all for initiating this discussion.
Hope land ownership matter has been clarified above.

Ivantha has highlighted some good points on NCRE. I 100% agree with those points.

Biggest negatives would be : Inconsistency due to weather condition (Drought Vs Hydro Power).
Also quality of power, I think it is lower when it is through NCRE.
I shared a document above 'Long term generation plan' for more information.

Some additional Points:
1. Learning curve effect, as we are still new to the area. So initial running cost may be high.
2. Possibility of getting more efficient NCRE extraction methods in the short term, as developed countries having it as a priority in their agenda.
3. Conventional power generation going to be more expensive due to scarcity of natural resources

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PostSubject: Re: MDB Case Analysis-July 2016 Exam   Fri Jul 29, 2016 8:27 am

Report-Some points

Please find below common issues identified in your reports

Issue Analysis
(1). theoretical details written (For example advantage/disadvantages of merger) without specific reference to the scenario. when you write, always link it to the case

(2) Only positive factors relating to an issue written. Not negatives.
Analysis involves looking at both positive an negative. After that Give options, if possible to capitalize or eliminate.

(3) Mostly biased towards financial numbers.

(4) When you have a strategic issue, financial justification is only one part. Consider other strategic matters such as environmental effects (PESTEL etc), industry attractiveness, industry growth and internal Strengths/Weaknesses

(5). SWOT/PESTEL etc... given as annexures, but not referred in the report. When you write your analysis/recommendation get key points from such annexures to you main body.

Recommendation

(1). You need to write recommendations for each issue
(2). Try to justify your recommendation

[b]Other

(1) Have an understanding of Ansoff model/BCG model etc and its application to the case. Some of you haven't written that area. We discussed it during class session.

(2) Ansoff is helpful in understanding growth strategies/new opportunities while BCG may be helpful in rationalizing existing business portfolio.

(3) if unseen provides you additional information on PESTEL/Industry. Analyze such information first.

(4) You can write your own findings relating to industry/pestel etc later. But point 3 above is very important and it is your priority.

(5) Answer the question that examiner has asked. Not an answer based on your own question.

(6) Don't worry.You have enough information now. You can do it!!!!

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Chathuranga



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PostSubject: Re: MDB Case Analysis-July 2016 Exam   Fri Jul 29, 2016 10:19 am

Sir....

From where have you got the industry growth rates. If we are to give those information in the report we need to support with the source ?

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PostSubject: Re: MDB Case Analysis-July 2016 Exam   Fri Jul 29, 2016 10:29 am

Industry details obtained from:
Construction-CBSL report 2015/ (FT article-presentation has the link)
Electricity- Long term generation plan doc (link given above)
Megapolis- megapolis poicy doc. Presentation has the link
Real State- LMD articles and KPMG research article
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Chathuranga



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PostSubject: Re: MDB Case Analysis-July 2016 Exam   Fri Jul 29, 2016 10:35 am

Admin wrote:
Industry details obtained from:
Construction-CBSL report 2015/ (FT article-presentation has the link)
Electricity- Long term generation plan doc (link given above)
Megapolis- megapolis poicy doc. Presentation has the link
Real State- LMD articles and KPMG research article

Thank you sir
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PostSubject: Re: MDB Case Analysis-July 2016 Exam   Sat Jul 30, 2016 12:31 pm

How did it go? Hope you all did it well...
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Ivantha



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PostSubject: Dear Sir, we have done the exam. Can you just explain what type of answer they may expect   Sun Jul 31, 2016 9:40 pm

Admin wrote:
How did it go? Hope you all did it well...
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nirosha darshani



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PostSubject: Re: MDB Case Analysis-July 2016 Exam   Sat Aug 27, 2016 12:50 am

Dear Sir,

Thank you for given us a dedicated guidance for the July 2016 examination and as a result i could be able to pass both the assignment and the case study in my first attempt.

wish INSPIRO all the best !!!

Nirosha Peiris
(case study student.)
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