[Insert Course Name]
Work Sample – Virtual Classroom Case Study
 This contains select slides to illustrate a Virtual Classroom Case Study with a
fully supported Facilitator Guide.
 We developed this material for the Virtual Classroom format through a deep
analysis of the business and the role and system requirements.
 It incorporates best practices on interactive, team-based Virtual Classroom.
SAY: Welcome to Independent Business Review Best Practices.
 For the next 90 minutes you will actively conduct an IBR and help resolve a
business challenge.
 You will be working with your peers and apply the best practices that you have
learned from the Independent Business Review Best Practices elearning and
reading you have done.
 These skills will be critical to continue to develop as you work with clients.
 This virtual classroom will help you hone your skills and provide you with
additional support and practice.
1
REVIEW the agenda items.
EXPLAIN that we are now beginning the “Introduction.”
2
EXPLAIN: The first module is the Case Overview.
3
SAY: The Marketing Director is confident about the Company’s ability to
turnaround and strongly believes in the new business opportunities with the new
Balotelli product.

The MD focuses on margin and has little regard for cash since it has not
historically been an issue of the business.

This behaviour is evident in the deals which the MD has agreed with suppliers
for bulk deliveries at low prices. He has not considered the cash required for
these large orders.

He knows very little about the forecasting process and considers that to be
the FD’s role.
4
SAY: The Finance Director has a good grasp on the financials but is frustrated by
the MD’s cavalier approach, particularly to cash.

The FD feels left out of negotiations with suppliers and customers.

The forecast is based on conversations held with the MD rather than the
contracts.
5
EXPLAIN: Share the current forecast that shows facility usage, the Company’s
overdraft limit and their proposed overdraft limit.
ASK: What initial questions you have for the Management team? Start to type
them into the chat.
6
EXPLAIN: Share the summary Profit and Loss statement for FY 11 to FY13 and
explain that the higher anticipated gross profit is driven from the new product
Balatolli, as discussed.
ASK: What other questions do you have for the Management team? Start to type
them into the chat.
7
RECAP: As per the script below, address the questions on the prior slides on
cash flow and P&L, which participants should have started to answer in the chat.
SAY: So what is your initial reaction to the Company’s situation?
•
What concerns or questions do you have, especially in light of the new
information you have learned from hearing the MD and FD and the cash flow
and P&L?
ACKNOWLEDGE: Thank each participant by name for their contribution and build
upon their responses as appropriate.
8
EXPLAIN: The next module is Sales and Margin Analysis.
9
SAY: For the case study today, you will be in teams of 4 broken out alphabetically.
– This means that x, y, z (list the first set of participants names) will be in Team 1.
– Team 2 will comprise of x, y, z (list the next set of participants names).
– Team 3 will comprise of x, y, z (list the next set of participants names).
– Team 4 will comprise of x, y, z (list the next set of participants names).
Below are roles we encourage you to have in your breakout teams:
– Leader: Responsible for granting microphones, facilitating the discussion and saving to
agenda.
– Scribe: Responsible for capturing team input.
– Participant: Responsible for actively participating in the activity. Note: everyone in the group
is considered a participant and should be actively involved, even if not given a specific role
– Presenter: Responsible for debriefing/reporting activity results to the larger group.
EXPLAIN that participants should reference the Breakout Room Quick Reference Card (QRC) to
help navigate and use the breakout tools to successfully complete the activities. Tell participants
how to access the QRC.
 The Breakout Room QRC support tool is located on the eroom and should be “pushed out” to
participants for more guidance. Speak with your TLS representative on how to “push out” a
document. You can also include the QRC in Focus as a separate document or in the
Participant Manual.
10
SAY: In your teams, you will complete these steps of an IBR on sales and margin.
Be prepared to present your findings to the larger group.
Next we will learn more from the MD and FD.
11
SAY: The Marketing Director is confident about the Company’s ability to sell
Balotelli to Silva at a higher price and secure raw materials for a good price.

The MD strongly believes the Company can sell 2.0 million tonnes to Silva at
£15 per tonne.

The £5 per tonne for raw materials is not confirmed but is his opinion following
conversations with Mourinho, the supplier, because the supplier is struggling
in Spain.
12
SAY: The Marketing Director is confident about the Company’s ability to sell
Balotelli to Silva at a higher price and secure raw materials for a good price.

The FD agrees that 1.8 million is a prudent estimate of volumes because
Silva, the customer, is desperate for Balotelli.

The production costs for Balotelli exclude the increase in direct overheads as
a result of the new RVP machine. Although the machine is effective, it uses a
lot of electricity; consequently an additional 50p per tonne should be added to
the production cost.
SAY: A summary of the FD and MD comments as well as the breakout activity
instructions are on a handout for this class.
PRODUCER: Make the following attachment available for participants to
summarize the information just learned from the MD and FD.
VC_IBR_Participant Additional Info_Global.pdf.
13
SAY: You have 15 minutes in your teams. Be prepared to deliver a very short,
concise recap to the whole group.
14
ASK: Team #3 to present. Encourage them to use the whiteboard and annotation
or to share their screen as appropriate.
15
ACKNOWLEDGE: Thank the team for sharing and build upon their responses
highlighting any omissions or clarity as per the information below and on the
screen.
SAY:
 The key driver of the high margin is the selling price (as discussed above), and
low production costs of only £1.7 per tonne compared to the Company’s other
products with an average of £3.0 per tonne.
16
SAY: While going through the case, can you foresee any potential issues or
omissions do you see with their margin assumptions? Answer via the chat box or
the phone.
NOTE TO FACILITATOR: This activity can be omitted due to time constraints.
17
SAY:
 Discussions with Management has indicated that the new RVP machine is
likely to increase electricity consumption significantly. Initial calculations
suggest that this could result in an additional cost of £0.50 per tonne. This has
not been included in the forecast assumptions
 Following discussions with Management, we understand that the cost of raw
materials for Balotelli was £4.60 per tonne during FY12 but this represented a
20% discount to Mourinho’s normal selling price. This suggests the selling price
could be £5.75 per tonne compared to Management’s assumption of £5.00 per
tonne
18
SAY: What sensitivities do you think you should perform? Answer via the poll that
will be loading shortly.
DEBRIEF: The first three responses are correct and the fourth wasn’t a main
concern found in the analysis so far.
NOTE TO DEVELOPER:
Build the poll as follows:
What sensitivities could you perform? Select all that apply
1.
Increase production costs by £0.50 per tonne; and
2.
Increase raw material costs by £0.75 per tonne
3.
Increase volumes from 1.8 million tonnes to 2.0 million tonnes
4.
Decrease volume to 1.0 million tonnes
19
ACKNOWLEDGE: Identify which options had the most responses. Build upon
their responses using the charts on the slide, highlighting any areas as needed.
EXPLAIN: These are the most likely sensitivities to conduct.
20
EXPLAIN: The sensitivity analysis results on cash flow using the information
below and the charts on the slide.
SAY:
 The sensitivity analysis indicates that the Company will require an overdraft
facility by September 2013. This could be extended to October if the increased
volumes to Silva can be achieved.
 Regardless, the Company may have a cash requirement of £3.8 million by
December 2013.
21
EXPLAIN: This is our last module.
22
SAY: What did you find most surprising or difficult with this case study?
Respond via the chat.
23
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