2020年3月ACCA考試SBL戰(zhàn)略商業(yè)領(lǐng)袖真題一、案例分析題Overview

Techthere4UCo（TT4U）isafirmofinformationtechnologyconsultantsfounded20yearsago.Initiallyofferingadviceoncomputerefficiencyandsecurity,thecompanyhasexpandedtoofferarangeofservices,includingtechnologysupportanddatahosting.Itcurrentlyemploys75staffmemberswhichhavegrownfromsixsinceitsestablishment.

TT4Uhasbaseditssuccessinthepastonitsgoodknowledgeofclients’businessesanditsabilitytomatchthesolutionsitprovideswithbusinessrequirements.TT4Uhashadadiverseclientbase,operatinginawidevarietyofindustrysectors.

Thefourconsultantswhoinitiallyfoundedthecompanyremainontheboardinkeyexecutiveroles.Theboardisconstitutedasfollows:

Belowboardlevel,operationalstaffareallocatedtooneofthethreeteamsservingparticulartypesofclient.Teamsareledbytherelevantfounder-directorforthatteam.

Twoyearsago,thecompanyachievedalistingonitsnationalstockexchangeforsmallercompanies.TT4Uiscompliantwiththecorporategovernancecodeenforcedbythisstockexchange.Thefounder-directorscontinuetoownamajorityofshares,butthecompanynowalsohasexternalshareholders.Someoftheseexternalshareholdershaveindicatedthattheywouldliketoseethecompanyachieveafulllistingonthemainnationalstockexchangewithinthreeyears.

TT4U’sCEObelievesthatTT4Uneedstoundergoaninternaltransformationinordertobeabletoretaincurrentclientsanddelivertheexpansionrequiredtoobtainafulllisting.Shebelievesthatthecompany’scurrentstructuresarenowinsufficienttorespondquicklyenoughtochangesintheexternalenvironmentandmeetclients’evolvingdemands.

TT4U’sboardhasdecidedtoengageanexternalconsultancyfirm,Stubfield,tohelpinevaluatingvariousstrategicoptionsandadvisingondecisions.YouaretheleaderoftheteamfromStubfield,responsibleforproducingsectionsofareportandvariousotherdocuments.

Thefollowingexhibitsprovideinformationrelevanttothecasestudy.

Exhibit1:Transcriptofdirectors’meetingaboutissuestobediscussedwithStubfieldconsultants.

Exhibit2:SummaryofMieobedclientapproachdevisedbyBusinessTomorrowmagazine.

Exhibit3:BlogonITconsultancysectoronBusinessTomorrowmagazinewebsite.

Exhibit4:Extractofresultsofclientsurvey.

Exhibit5:DiscussionofthreateningletteraboutTT4U’slargestclient,RexInvestments.

Exhibit6:Appraisalofcloudservicesinvestmentpreparedbytherecentlyappointedassistanttothefinancedirector.

Exhibit1:Transcriptofdirectors’meetingaboutissuestobediscussedwithStubfieldconsultants.

Chiefexecutiveofficer（CEO）:

I’vecalledthismeetingtodiscusstheareasthatwewantStubfieldconsultantstoconsider.IknowthatsomeofyoufeelthatStubfieldwillbelookingatareasofourbusinesswhereweshouldn’tneedadviceandthattheymayexceedtheirremit.

Nevertheless,someofourinvestorshavecommunicatedtheviewthatweneedexternaladviceaboutourbusiness.Theyfeelthatwe’retooreliantonexistingbusinessfromourlong-termclients.Weshouldbeprovidingmorenewservicesandwinningnewclients.

We’veadvanceddiscussionsondevelopingournewcloud-basedservices.Thiswillenableustoextendthecloud-basedservicesweprovide.You’llrecalltheseincludeprovisionofprivatecloudsforspecificclientsandcloudintegrationservices,enablingclientstoconnecttheirdataandapplicationsandgivethemmoreflexibleaccesstotheirdataresources.Wehaveavailableanappraisalofourplannedinvestment.

Financedirector（FD）:

Asyou’reaware,I’vebeenonsickleavesodidn’tpreparetheappraisalmyself.Johan,whorecentlyjoinedthedepartmenttoassistme,carriedouttheappraisal.Ihaven’treviewedtheappraisalindetailyet.However,Iseeataglancethatthepaybackperiodisjustoutsidethethree-yearlimitthatweset.

Marketingdirector（MD）:

Ihadhopedtocometodaywithsomeproposalsformarketingthecloud-basedservices.However,I’vebeenspendingalotoftimedealingwithRexInvestments,which,asyouknow,isaverydifficultclient.Ithinkourlaunchoftheseservicesmustmakeabigimpactasameansofattractingthenewbusinessweneedforexpansion.

CEO:

Asyouremember,Iaskedforsuggestionsfromyourselvesaboutareaswherewecanexpandfurther.I’vereceivedtwoproposals,onerelatingtotheInternet-of-thingsandtheothertogovernmentsectorwork.

ITdirector（ITD）:

Weneedtolookbeyondcloud-basedservicesandexpandinanareawherewecanshowwecanprovidefreshsolutions.I’dbeveryexcitedaboutusdevelopingmoreexpertiseandservicesrelatingtotheInternet-of-things.Thereismassivepotentialforextendinginternetconnectivitybeyondstandarddevicestoeverydayobjects,suchashouseholdappliances,andmakingthemostofthedatatheycangenerate.Therearesomanypossiblesectors–health,construction,transport,agriculture–wherethereareopportunitiesthatwecanexplore.

Servicesdirector（SD）:

Ithinkweshouldfocusonwinningmoregovernmentsectorwork.Alotmoreisavailablenowandwealreadyhavesomeworkonwhichwecanbuild.Wehavethesizeandrangeofservicestobelookingatwinningmuchlargercontracts.Ibelieveweareinapositiontobecomeatrustedpartnerforgovernment.Thegovernmentsectorislessdemandingofinnovationthantheprivatesector.Itisthereforealowerriskoptionforus,aswecansecurethecontractsbystrongserviceperformancewithouttherisksattachedtomarketleadershipinnewservices.

CEO:

NowIwouldlikeustoconsidertheissuesraisedbytherecentclientsurvey.Iverymuchregretthatwehaven’tcarriedoutasurveylikethisforsomeyears.Forme,ithighlightstheneedtotransformourbusinesstobringourclientsmuchclosertous.

IintendthatweshouldmoveforwardbyadoptingtheMieobedapproachtoengagingwithclientstakeholdersinoursector,whichBusinessTomorrowmagazinedevised.Theapproachisbasedonbuildingopenandsharingrelationshipswithclientsthathelpthemcreatenewsourcesofvaluefortheirbusiness.

SD:

Iassumeyou’llbeconsideringhowstaffshouldbepersuadedtobuyintothetransformationbeforethenewapproachisimplemented.

CEO:

Ishall,andIshallalsobelookingathowweoperateasaboard.Threedirectorscurrentlycombineboardresponsibilitieswithoperationallinemanagementofteams.Thisisamodelwhichwe’vehadsincewestarted,butitmaynotbeappropriateanymore.IalsowanttolookatthewayTT4Uisstructuredasawhole.Ithinkweoughttobemuchmoreofamatrixorganisation,whichshouldresultinbettercommunicationandmutuallearning.

SD:

Icertainlyagreeinternalcommunicationcouldbeimproved.Iknowstaffaretoldnottositatthesamedeskseachday,buttositatdifferentdesksnexttodifferentpeople.However,weallknowthethreeteamssitinthesameareaseachday,separatefromeachother.Wehaveourintranet,butthelackofcontributionsfromstaffonitisembarrassing.

MD:

Ithinkweneedtogomuchfurtherthanhavingone-offclientsurveys.Weneedtobeconsideringthecurrentstateofrelationshipswithclientsasanagendaitemateveryboardmeeting.Wehavetodevelopkeyperformanceindicatorsbeyondclientsgainedandlosteachperiod,sothatwehaveabetterideaofhowweareperformingintheareasthatmostaffectclientsatisfaction.

Wemustalsoconsiderhowweareperceivedinrelationtoourcompetitors.Althoughwedohavearegularreportoncompetitors’newproductofferings,thatdoesn’ttellushowsatisfiedourclientsarewithourservicesincomparisonwiththeservicesourcompetitorsoffer.

CEO:

Thankyouforyourcontributions.IshallaskStubfieldfortheirviewsontherisksthatwefaceandthestrategicoptionsthatwe’vediscussed,aswellashowwecanintroducetheMieobedapproachsuccessfully.

Exhibit2:SummaryofMieobedclientapproachdevisedbyBusinessTomorrowmagazine.

Exhibit3:BlogonITconsultancysectoronBusinessTomorrowmagazinewebsite.

BusinessTomorrowNotjustservices,butserviceByAbbyUrquhart

HowcanITconsultantsstandout?

ITconsultantsarestrugglingtocometotermswithwhattheirclientstakeforgranted.ThedayswhentheycansellthemselvesonthebasisofbeingpracticalbusinessadvisersratherthanITexpertsarelongover.Consultantsneednotbothertenderingforworkunlesstheycancombinestrongclientandbusinesssectorknowledgewithawarenessofthelatestapplications.

Isleadinginnovationincloud-basedservicesthewayforward?

Anyonewhoismarketingthemselvesashavingdistinctivecapabilitiesinhelpingclientssetuponthecloudhasclearlybeenleftwellbehind.Clientsarenowexpectingthefullpackageofcloudmaximisationservices.

IstheInternet-of-thingsanareafirmscandevelop?

TheInternet-of-things,extendingconnectivityandnetworkstotraditionallynon-internetconnectedobjectssuchascarsandhouseholdlights,hasbeenthenextbigdevelopmentforsometime.However,anumberofsectorshaveclearneedsforenhancedcommunicationandmonitoring.Themedicalsectorhasbeeneagerforapplicationswhichenableremotehealthmonitoringandnotificationsifemergenciesarise.Thebuildingsectorhasbeenkeentodevelopdeviceswhichoverseeelectronicsystemswithinhomesandofficestodetectfireriskorwastefulenergyusage.

Involvementthoughremainsrisky.Developmentisdrivenmorebytechnologythanitsusefulnessforbusinesstransformation.Therearealsothesecurityandsurveillanceconcerns,thedislikeofbeingwatchedbyinanimateobjects.

Isclientservicestillimportant?

BusinessTomorrow’srecentsurveysuggeststhatclientserviceremainsaproblemformanyconsultants.Oursurveyshowsthattheconsultantswhoareresponsive,whousebusinessapproachesofclientparticipationandmutualdevelopmentlikeBusinessTomorrow’sMieobedapproach,aremakingthelargestprofits.

Whatbusinessisavailableforfirmsprovidingtop-classservice?

Lotsofwork.Therearemorelonger-termgovernmentsectorcontractsavailablethaneverbefore.Thesecontractswon’tbewonorretainediffirmsdon’tmeetgovernment’sever-stricterservicerequirements.Ultimatelyfirmscannottakeforgrantedanyoftheirclients’continuedbusiness.Manyfirmshaveseenlong-termrelationshipswithclientsendrecently.Theloyalclient,previouslypreparedtoputupwithlessthanexcellentservice,nolongerexists.

Comments（2）

KenYardley:FirmsI’vedealtwithoftendon’tseemtogetthebasicsofcommunicationright.Theydon’tanswertheirphones.Theydon’trespondtoemailswithin24hours.Theydon’tlistentowhatI’maskingortellingthem.

XinChan:ThereasonwhyInternet-of-thingshasn’tdevelopedasquicklyasexpectedisthatmanyapplicationsdon’tsurvivethepilotstage,sincemanybusinesses’systemsarenotabletocope.Exhibit4:Extractofresultsofclientsurvey.TT4U

%CommentsServiceprovisionflexibilityExcellent

Good

Average

Poor17

56

16

11‘Serviceprovisionwasexceptionallygoodwhentheyfirststartedadvisingus.Butnowwejustseemtobegettingthebasicservice.’InnovationExcellent

Good

Average

Poor9

57

22

12‘TT4Useemsgoodat,andcomfortablewith,providingthesameservicesthatithasalwaysprovided.IfIwantednewservices,I’dcertainlygoelsewhere.’InformationprovisionExcellent

Good

Average

Poor20

53

20

7‘ForanITconsultancy,itswebsiteisreallypoor–itlacksdetailedinformationaboutservices,difficulttonavigate.’

‘Itswebsitedoeslookold-fashionedandhasn’tchangedmuchforages.It’snoticeablethatotherconsultants’websitesareinteractiveandappeartoevolveinresponsetowhatuserswant.’

‘Theydon’tmakeenoughuseofmessagingandsocialmedia.’

‘Howmuchyou’retoldaboutwhatthey’redoingseemstodependonthestaffinvolved.’Staff

KnowledgeExcellent

Good

Average

Poor41

38

15

6‘Theyappeartoknowourbusinesswellandhowtomakebestuseofthetechnologieswehave.’

‘I’vemarkedthemdownbecausetheydon’tappeartoknowabouttheirownservices.I’veaskedstaffonvariousoccasionsaboutotherservicesIknowTT4Uprovidesandtheyhavehadtoringroundtheofficeforananswer.’ResponsivenessExcellent

Good

Average

Poor20

30

28

22‘Emailsareneveransweredthesameday.’

‘Theyoftenanswerthequestiontheywishedyou’daskedratherthanthequestionyoudidask.’

‘Youknowyoucanalwaystalktotheservicesdirectorwhenyouneedto.Ilikehowhe’salwayskeptintouchwithus.’ProactivenessExcellent

Good

Average

Poor16

47

22

15‘Wecallthem,theynevercallus.’

‘Iwouldhavelikedthemtohavetoldusthatweneededtoinvestinnewsystemsbeforeouroldsystemsbecametooslowandunreliable.’

‘Somestaffmembersreallymakeyoufeelyou’reworkingwiththemasateam.It’snotconsistentacrossthewholecompany,sadly.’Exhibit5:DiscussionofthreateningletteraboutTT4U’slargestclient,RexInvestments.

Exhibit6:Appraisalofcloudservicesinvestmentpreparedbytherecentlyappointedassistanttothefinancedirector.

Netpresentvaluecalculation

Notes:

1.Salesarebasedonexpectedincreasesinmarkets,clientsservedandprices.

2.Contributionisassumedtobe55%ofrevenueeachyearinlinewithcurrentmargins.

3.Marketingcostsareassumedtoincreaseinlinewithsalesuptoyear3.

4.Taxrateis25%ofpre-taxcashflows.

5.Terminalvaluerepresentsassumedrealisablevalueifservicesarenolongerviableafterfouryears.

6.Discountfactorof6%isafter-taxinterestrateoncurrentlong-termloans,asthisprojectistobefinancedbyalong-term

loan.

7.Year5–10figureispost-taxdiscountedcashflowforyear4multipliedbysix.

Paybackcalculation

Payback=3years+（803/（803+5,670））x12months=3years1month

Comments:

1.Projectshowsapositivepresentvalueafterfouryearsandamuchgreaterpresentvalueiftheservicescanbeofferedintheircurrentformbeyondfouryears.

2.Thepaybackperiodisslightlygreaterthanthetargetsetbythedirectors,whichsuggeststheprojectshouldberejected.

3.Nevertheless,sensitivityanalysisshouldbecarriedouttodeterminetheprobabilityoflossandhencewhethertheprojectshouldbeundertakeninitscurrentform.

Thecaserequirementsareincludedinthetasksbelow:（1）.TT4U’schiefexecutiveofficerisconcernedaboutthepossibilitythatmajorcontractswillnotbewonorrenewedandwouldlikeyourviewsonwhatthemainrisksareforTT4U.

Required:

（a）PreparebriefingnotesfortheboardwhichanalysethemainriskswhichthreatenTT4Ubeingawardednewcontractsandretainingcurrentcontracts.

ProfessionalskillsmarksareavailablefordemonstratinganalysisskillsinestablishingtherisksrelatingtoTT4U.

Attherecentdirectors’meeting,theinformationtechnologydirectorproposedthatTT4UshoulddevelopnewservicesinrelationtotheInternet-of-things.TheservicesdirectorproposedthatTT4Ushouldfocusonwinningmoregovernmentsectorwork.Thechiefexecutiveofficerwantsyourreporttoincludeconsiderationofthesetwostrategicoptions.

Required:

（b）Prepareasectionofyourreportwhichevaluatesthetwostrategicoptionsproposedbythedirectors.

Professionalskillsmarksareavailablefordemonstratingevaluationskillsinusingprofessionaljudgementtoobjectivelyappraisethetwostrategicoptionsproposedbythedirectors.

TT4U’schiefexecutiveofficerwouldliketohaveanindependentexternalviewonwhatwasdiscussedatthemeetingaboutthethreateningletter.Inparticular,shedoubtstheviewsofthemarketingdirectorthatTT4Ucansimplyrelyonitsdatacontrols.SheisalsouncertainwhetherTT4UshoulddisclosenothingtoRexInvestments,asthemarketingdirectorsuggested.

Required:

（c）Prepareaconfidentialemailforthechiefexecutiveofficerwhich:

–advisesontheactionswhichTT4Ucantaketoensurethatthecontrolsontheconfidentialityofdataoperateeffectively;and

–discussestherisksandethicalissuesrelatingtocommunicatingthethreattotheclient,RexInvestments.

Professionalskillsmarksareavailablefordemonstratingscepticismskillsinchallengingtheviewsofthemarketingdirector.__________________________________________________________________________________________

正確答案：（（a）Briefingnotesonriskstocontracts

ThesenotesdealwiththemainriskswhichmayaffectTechthere4UCo（TT4U）winningandretainingcontracts.

Strategic

Thefundamentalstrategicriskisfailuretofulfilclients’evolvingdemands,resultingultimatelyinlossofcontractsanddeclineinrevenues.Aspectsofthisriskincludelackofawarenessofwhatclientswant.Theremayalsobealackofresourcestorespondtoclientdemandsfornewservicesorbetterprovisionofexistingservices.Thereispossiblyalackofhigh-levelawarenessofrecentdevelopments,astherehavebeennorecentappointeesfromtheITindustrytotheboard.

Theriskisalsorelatedtocompetitoractions,ofcompetitorsprovidingnewservicesfirstorhavingabusinessmodelwhichprovidesbetterawarenessofclientdemandsandstandardsofclientcare.TT4Uhastraditionallynotdifferentiateditselffromcompetitorsbyofferingnewservicesfirst,butearlydevelopmentofnewservicesmaybeacriticalfactorinwinningnewwork.Theresultsofthesurveysuggestthatsomeclientsbelievethatthereisalackofcommitmenttoinnovation.

Operational

Intheclientsurvey,responsivenesstoclients,internalknowledge,communicationandflexibilityareallcriticised.Methodsofcommunicationwithclientsseemold-fashionedandthewebsiteiscriticisedforbeingpoorlydesigned.Ifoperationsarepoor,thesemaybehygienefactorswhichinfluenceclients’contractrenewaldecisions.

Animportantsellingpointofcloud-basedserviceswhichTT4Uplanstoofferisflexibilityandeaseofuse.Ifthecloudisdifficulttoaccessinmanyplacesortherearefrequentinterruptionsofservice,TT4Uwillnotbeprovidingperhapsthemostimportantdeliverable.

Keyperson

Keypersonriskparticularlyappliestothefounderexecutivedirectors,giventheircentralplaceinTT4Uthroughoutitshistoryandthecontactstheyhavebuiltup.ThedepartureofanyofthemcouldbeseenasindicatingthatTT4Uisundergoingaperiodofinstability.OtherstaffmayhaveparticularcloserelationswithsomeclientsorexpertisewhichmayadverselyimpactTT4Uifitwaslost,particularlyiftheyjoinedcompetitors.

Competition

TT4Umaybelessvisiblethanotherfirms.Competitorsmaybeattractingmorebusinessbybetteruseofonlinetoolssuchassearchoptimisationorbettergenerationofpublicityabouttheserviceswhichtheyareoffering.ThecommentsinthesurveysuggestthatclientsfindTT4U’swebsitepoorandbelievethecompanyisnotmakingenoughuseofothermedia.

Data

AllthedatamanagementservicesprovidedbyTT4U,notjustthoseonthecloud,generaterisksoflosstotheirclients.Theseincludetherisksoflossorcorruptionofdata,whetherduetoaccidentordeliberateactionbyhackers.Thereisalsotheriskofconfidentialdatabeingaccessedbyunauthorisedusers,andpublicisedorusedforillicitadvantage.

Reputation

BadpublicityabouttheservicesTT4Uoffersorthepubliclossofimportantclientscanaffectreputation.ItmaybeparticularlyseriousifTT4Uisassociatedwithamajorproblem,forexample,aleakageofconfidentialdata.ReputationriskcanalsorelatetocriticismsthatTT4Uisgenerallynotprovidingagoodservice.ThearticlehighlightsimportantfeaturesofserviceandtheclientsurveyindicatesTT4Uhasproblemsinsomeoftheseareas.Iftheseproblemsarepublicisedonlinebyusers,thiscanerodeconfidenceinwhatTT4Uoffers.

（b）Extractfromreportonthetwoproposedstrategicoptions

Introduction

Thissectionconsidersthetwoproposedstrategicoptionsputforwardbytheservicesandinformationtechnologydirectors.

Internet-of-thingsdevelopment

Advantagesofstrategy

DevelopingservicesinrelationtotheInternet-of-thingshasbeenhighlightedbytherecentarticleasapotentialmeansofrapidgrowththroughmarketdevelopment,fulfillingthedesireofinvestorsforthecompanytoexpand.FindinganicheandbeingabletoinnovateinitcouldenhanceTT4U’swiderreputation.

SomeoftheproblemsinrelationtoInternet-of-thingsdevelopmentappeartobeanover-concentrationontechnologyratherthanbusinessrequirements.MatchingbusinessneedswithavailablebusinesstechnologyhasbeenacorecompetenceforTT4Uinthepast.AdoptionoftheMieobedapproachwithitsfocusonenhancedunderstandingofclients’requirementstohelpthemtransformtheirbusinesswouldseemcompatiblewiththisnewdevelopment.

Concernswithstrategy

However,commitmenttoparticularmarketsmayberiskyforTT4U.Ithastraditionallyhadadiversifiedclientbase,andcommitmenttoparticularsectorsmayrequiresignificantinvestmentwithoutnecessarilyguaranteeingsuccess.If,forexample,TT4UwantstoprovidedatahostingservicesinconnectionwiththedatageneratedbytheInternet-of-things,itmayneedenhancedcapacitytoprocessandstorethedata.IfTT4Uistobeanearlymover,theremaybeproblemswiththereliabilityofthetechnology.

Whateverthesectorchosen,TT4UmayneedtorecruitstaffwithpreviousexperienceinworkconnectedwiththeInternet-of-things.Thismaybecostly,butmaybringtoTT4UvaluablenewexpertiseatatimewhenTT4Uislookinggenerallytodevelopstaffexpertisebysharingknowledgeandexperience.

Therecouldbeproblemswithsellingservicestoexistingclients.ThetechnologymaybeoflimitedapplicationtoTT4U’scurrentclientbase.TheymaylackthesystemcapabilitiestodevelopeffectivelyandproblemscoulddamageTT4U’sstandingwiththem.

Risksrelatingtosecurityandalsoprivacyhavealsobeenhighlighted.DependingonwhichservicesTT4Uoffers,itmaybemorevulnerabletosecuritybreachesandalsobreachesofprivacyregulationsthanforotherservices.Thesemayresultinlegalpenaltiesandsignificantthreatstoreputation.

Governmentsectordevelopment

Advantagesofstrategy

Thepolicyofseekingmorecontractsinthegovernmentsectorrepresentsaformofmarketdevelopmentifcontractsaretobeobtainedfrommorebodies.Seekingmorecontractssystematicallywouldrepresentamorecoherentstrategyinthisareaascontractswonpreviouslyappeartohavebeenonaone-offbasis.Winningmorecontractscanleadto‘successbreedingsuccess’withthetargetofbecomingapreferredsuppliertothegovernmentsector.

Manyopportunitiesappearlikelytobecomeavailablesooninthegovernmentsector.Havingbeensuccessfulatfulfillingsmallercontractsforthissector,TT4Useemswell-placedtoseeklargercontractsasitexpands.

Thecontractsavailablewillrepresentacashstreamwhichshouldbeguaranteedforanumberofyears.Thiscanbesetoffagainstshorter-termprivatesectorworkwhichmaybemorevulnerabletoeconomicdownturn.Someofthecontractswillbehighprofile,sowinningthemcanprovidegoodpublicityforTT4U.

Concernswithstrategy

Possibleissueswiththeworkincludeprofitability.Whatevertheexactpriorities,governmentsectorworkwillbeconcernedwiththe3Es–economy,efficiencyandeffectiveness.Becauseofthedesiretomeeteconomytargets,themarginsavailableontheworkmaybelowerthanoncommercialcontracts.Servingthegovernmentsectoreffectivelymayalsorequireinvestmentinstaffwhopossessknowledgeofthesectorbeingserved,forexample,education.

Asnotedabove,publicsectorworkishighprofile.IftherearemajorproblemswithcontractsandthesearepublicisedandblamedonTT4U,thecompany’sreputationcouldsufferseriously.

Theargumentthatneedingtoprovideinnovativeserviceswillbelessofanissueinthegovernmentsectormayhavesomesubstance.However,oneofthekeyaspectsoftheMieobedapproachisencouragingclientstounlockvalue（forthemselvesandTT4U）innewfieldsofbusinessdevelopment.Thepublicsectormayofferlimitedopportunitiesforthatapproach.

OperatingtheMieobedstakeholderapproachmaybemorecomplexinthegovernmentsectorbecauseofthedifferentstakeholderswithdifferingobjectives.TheprioritiesofthegovernmentofficialswithwhomTT4Udealsmaychangeifthereisachangeofgovernmentandnewconditionsmaybeimposed.

GovernmentsmayuseanumberofstrictindicatorsrelatingtovalueformoneywhichTT4Uhastofulfil.Itmaymeanagreaterdemandforresourcesandopportunitycostsintakingstaffawayfromotherwork.FulfillinggovernmentrequirementswillmeanthatTT4Uhastoaddressquicklysomeoftheserviceissuesidentifiedintheclientsurvey.

Conclusion

Iftheproposalsarenotmutuallyexclusive,TT4Umayconsiderinvestinginbothofthem.Theyrepresentdifferenttypesofdevelopment,soimprovingdiversification,andhavedifferentrisk-returnprofiles.InvestingintheInternet-of-thingsishighriskbutcouldgeneratehighearnings.Investmentinpublicsectorworkcouldprovidesteadycashflowstohelpfundinvestmentinotherareas.

（c）Email

To:Chiefexecutive

From:Consultant

Date:1March20X0

Subject:Responsetothreattorevealinformation

DearCEO

Youaskedmeassomeoneoutsidethecompanytogivemyviewsonthecontrolswhicharesignificantinrelationtothreatstodataandalsothecommentsmadebythedirectorsaboutthethreattorevealconfidentialinformation.

Controlissues

YourightlybelievethatTT4Ucannotjustsayithascompleteconfidenceinitscontrolsandnotgivetheissuefurtherconsideration.TT4Uhasafiduciarydutytotakesufficientcaretoensureconfidentialdataremainssecret.Inaddition,clientsareverysensitiveaboutthegrowingthreatofcybercrime,indeedTT4Uadvisesthemonhowtocombatit.IfitbecamepublicthatTT4Uhadbeenthevictimofcybercrimethroughpoordataprotectionpractices,thelossofcredibilityforTT4Uwouldpotentiallyrepresentabigrisktoincomefromexistingandnewservices.

Ihavenoreasontodoubtwhatthedirectorsaysabouttheproceduresalreadybeinginplace.GiventhatTT4Uisadvisingclientsonimplementationoftheseprocedures,itwouldbeworryingifTT4Udidnothavetheminplaceitself.However,youarerightthatthereisadistinctionbetwe