Page 12 - CIMA SCS Workbook August 2018 - Day 2 Tasks

CIMA AUGUST 2018 – STRATEGIC CASE STUDY

Reference Materials - letter to FNG from Allied Investment Group

Investment Committee
Allied Investment Group
Borland

14 August 2018
A Finch Esq.
Chairman
Finch News Group
Borland

Dear Alan

Continued Investment in FNG

At the latest meeting of the Investment Committee, at which we assess the portfolio that Allied
Investment holds, concern was expressed at the most recent financial statements published by
your company, and the continuing fall in return to its shareholders. We are therefore writing to
you to express those concerns formally and offer you the opportunity to address them.

It is accepted that the newspaper industry in general is in a state of change, but we at Allied have
little insight into the formal processes in place at FNG for developing strategy. I believe that we
would have a better understanding of FNG’s future prospects if we knew more about such
processes.

The CEO’s statement in your latest annual report expresses a commitment to growing revenues
from digital news whilst continuing to remain local and retaining in-house printing processes, and
there is also welcome mention of “several significant contract printing tender wins”. However,
there is no mention of structural change. Are there plans to adapt the structure of FNG to
maximise growth in the new digital markets?

We would welcome a meeting with yourself at your earliest convenience at which our concerns
may be addressed.

Yours sincerely

Investment Committee
Allied Investment Group

26 KAPLAN PUBLISHING