T4 - part B – case study report – March 2010

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T4- Part B – Case Study CeeCee - Retail fashion case – March 2010 REPORT To: Carla Celli, CeeCee CEO From: Management Accountant Date: 2 March 2010

Review of issues facing CeeCee Contents 1.0 2.0 3.0 4.0 5.0 6.0 7.0

Introduction Terms of reference Prioritisation of the issues facing CeeCee Discussion of the issues facing CeeCee Ethical issues and recommendations on ethical issues Recommendations Conclusions

Appendices Appendix 1 Appendix 2 Appendix 3 Appendix 4 Appendix 5 Appendix 6 Appendix 7

SWOT analysis PEST analysis Financial and ratio analysis Evaluation of proposed sales bonus scheme Evaluation of closure of 300 small shops and opening of 150 medium-sized shops versus refurbishment of 300 small shops Summary of effect of recommended actions on operating profit for 2010 Summary for presentation to the CeeCee Board on the proposal to close 300 small shops and open 150 medium-sized shops.

1.0 Introduction CeeCee operates a chain of retail fashion shops in Europe selling ladies’ clothes, men’s clothes, children’s clothes and home furnishings. At the end of December 2009, it had 630 shops in operation and sales of almost €2.8 billion.

1 © The Chartered Institute of Management Accountants 2010


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