Page 16 - CIMA SCS Workbook November 2018 - Day 2 Tasks

CIMA NOVEMBER 2018 – STRATEGIC CASE STUDY

TASK

Prepare a briefing paper in response to Dirk Lepain’s requests (Time allowed: 60 minutes)

(Refer to the reference materials below)

Reference materials – Letter from Grie Dee Capital

Grie Dee Capital
Cronland
24 October 2018
D Lepain
CEO
Novak
Cronland

Dear Mr Lepain,

Concerning performance of Novak share price

We are writing to you today as the holders of 5.2% of your company’s issued share capital.
Whilst we are hopeful about the launch of three new major products, we are seeking reassurance
from the Board that this trend is to continue. The company has recorded disappointing drug
testing results of late and since the last of Novak’s major successes went off patent in 2016 there
seems to be a real lack of quality research happening.

We would therefore request a meeting at which you could present to us what you plan to do
about Dr Anton Frind and his tenure of failure since 2009. He seems to be taking the research
team nowhere very fast, especially in this increasingly IT-focussed world.

Yours sincerely
Grie Dee Capital

32 KAPLAN PUBLISHING