hello everyone welcome back to yet another video this is yet another Preen analysis that we are analyzing for you so this is the Preen analysis for the operational case study exam coming up in May 2024 and August 2024 the Preen company given to us is called Canon it is a company that makes saddles for horseback riding now this is going to be yet another very inclusive very Innovative and very very informative pre-seen analysis that we are creating for you because our prein analysis is very different it is one video taking the exact SEMA preene and adding our E1 P1 and F1 topic relations to ensure that when you have gone through the preene it's like a simple movie that you've seen which has given you a great idea of what are the topics which I need to study what are the topics which are most prevalent to come up in the exam what are the scenarios which can come up in the exam and most importantly what is the nature of my company so it's going to be something that we have created in a very simple way for you to follow you don't have to do anything just tune in and listen to my explanations you will see the value that they add because these topics these E1 P1 and F1 relations we have been making since a very long time and know what comes up in the exam we know and rather we've been able to very successfully just understand the exam pattern structure system and shape our course to include the important topics in our preene and in our mock questions before we move ahead let me introduce a new revamped Mini that we have it's a completely free mini course that we have created to give you access to a lot of bonus material to a lot of our material absolutely free so this comprehensive mini course that I'm speaking about the link to register for this mini course is in the description box itself so just move to the description box and you'll see a link it will take you to our website and you can access the mini course for free there is no cost this mini course includes an extra industry analysis which I will mention a lot about in the preene so if you've seen the industry analysis it will really benefit you it includes an explanation of the SEMA blueprint explanations the I can statements it includes the top 10 issues video which is part of the mini course itself so it it will add Great Value to because knowing top issues that can come up in the exam so you can revise them is a great you know resource you also have mock writing tips and tricks a video on that created by me in the mini course to top it all off you have a free mini mock which is timed on our exam software exactly like the exam and we will give you personalized feedback if you submit that mock so everything will be given to you step by step in the free mini C it's great value it's something that that's really going to help you and you know you're studying with a registered provider you you'll be studying and accessing resources created by us who have held the global pass rate Excellence award for 2 years in a row now so you are definitely going to get value from this material and it's absolutely for free there is nothing to lose try it out you will 100% find it helpful without further Ado let begin with the Preen analysis let's start now the very first thing that we start with is going to be your role so what is your role in this Preen context or in this case study context that will be explained first while going through the entire preene we are going to keep relating to a E1 P1 and F1 syllabus perspective so please make sure that you have a pen or a paper or a Word document or anything open where you are writing down the conjunction topics which I'm mentioning for example if I mention budgets then write down budgeting P1 if I mention variances then write down P1 variances when I'm mentioning a topic please have a habit of writing down the topics as a list so you understand while you are revising that these are major areas that you cannot compromise on and that's the entire advantage of studying with fin tutors because very slowly we'll break down everything for you and give you important topic areas as well so as we already know you are a finance officer working within the finance department of Canon so finance officer is your role let's think if you know any finance officer designation around you somebody who holds this designation you'll see that generally their role is you know short-term decisions costing variances working capital help help with creation of financials help with some I's ifrss some standard practices right now just think logically if you look at the role of the finance officer in front of you you see the topics there you will see that they very clearly relate to your E1 P1 and F1 syllabus so to be a good finance officer it's very clear that you need to have good E1 P1 and F1 knowledge if you don't have this knowledge how are you going to support the finance manager how are you going to support the finance department so the very important First Step the first place to start with is revision I've already mentioned the pattern of revision I've already explained the importance of revision but this is pointing it out to you in the flash so a finance officer's role is very much technical based and for you to understand that your technical Bas is only going to be developed if your E1 P1 and F1 knowledge is strong so you are principally involved in the preparation of management accounting information and providing information to manag to assist with decision making so preparation of management accounting providing information and decision making all three are in your P1 syllabus so as we know the major Foundation pillar of this exam and the principal role given to uh you know given to you revolves around P1 so if you don't have strong P1 knowledge you are going to face problems in this exam so throughout this preene we have boxes like this which we have created to add ideas to add knowledge and to tell you that okay these are the focus areas for you same way you will also be expected to assist in financial statements and queries regarding financial statements so this is very clear that it's part of your F1 syllabus I will just move my video around to the other side now to make it easier for you as well to understand or see rather so for any case study exam it will be important to immerse yourself into the details of this company and only then will you be able to present answers that are specific for your company if you don't know what Canon does if you don't know what your company is along with you your technical knowledge then you cannot do well on a case study exam and these are the business skills that are often tested in the exam when you do my mock questions we will also test you on E1 P1 and F1 on business skills we will test you on various areas but for that your technical background based knowledge has to be strong so E1 P1 and F1 form the pillar of this exam plus knowing the company very well is also very important let's start with the introduction now so Canon is a company that designs makes and sells saddles for horse riding now you already know the business of horse riding equipment and horse riding saddles because you have done the industry analysis with me those who have done my industry analysis will already have great ideas in your mind right now about what this industry is the strengths the weaknesses the opportunities in this industry and all of that I've covered in my 30 minute industry analysis so you're already one step ahead if you have done my industry analysis if you haven't please go through the industry analysis first let's continue so you are part of an organization that designs then manufactures and then sales so keep this in mind and the topics that are manufacturing related from your E1 P1 and F1 syllabus become more important when you're are going through P1 E1 and F1 there are a lot of topics which are related to manufacturing companies and a lot of topics which are related to service businesses you are not a service business you're a manufacturing organization so your topics related to manufact facturing like capacity planning for example like your different variances like your different uh let's say costing systems become even more relevant production systems becomes even more relevant so keep this in mind I am a manufacturing organization when you are doing your revision as well keep this in mind that you're working for a manufacturing organization it also means that we are a vertically downward vertically integrated company meaning every single part of this product is controlled in-house designing inhouse making in-house selling in-house this has various advantages such as you have your customer information customer direct access you have the knowledge of buying patterns you have the knowledge of controlling the entire production process it also has various drawbacks like Capital requirements reduced flexibility very high operating costs so when you are controlling everything there are various advantages various disadvantages which I discussed with you because I wanted to drive the point of having and controlling the Strategic Supply wheel and Supply Chain management issues this is your E1 syllabus what is my Supply wheel like what is my Supply Chain management problems that I might face so this is your E1 syllabus coming into the the picture here next Cannon only makes Saddles it does not make bridles so we are only making Saddles not other accessories like bridles like rains like stirups nothing like that again those who've done my industry analysis know these wordings that is why the industry analysis is very very important so we only make saddles we don't make accessories companies such as Canon are known as saddles makers so our differentiating Factor could be that we focus on quality and Saddles only but this would also mean that one's product segment is being ignored which could be a lost revenue for the business because we are not focusing on accessories yes we are expertise saddle makers that's right but can we have you know through our industry analysis we already know that the horse equipment Market all together is growing so is this a revenue that we are missing out on because we are only focusing on Saddles so future expansion into this segment can be an exam scenario that there is an expansion into now making uh other horse riding equipment for this we are going to need working capital how do you think our working capital supply chain or our working capital chain works for example for this you'll have to know the working capital concepts of receivables pay tabls in your F1 syllabus plus you will need to know our business which I'm going through with you part by part by part so while going through the preene I am pointing out important syllabus areas plus I'm giving you exam scenarios which do come up can come up so you you're you're getting a lot of information through this preene so please go through it carefully the company is based in land a country located in Mainland Europe and has K doll as its currency from our industrial analysis again we know that the horse riding equipment Market in Europe is huge it's very very prevalent in Europe so it's going to be very it's a comparative advantage for us that I'm already situated in a country where horse riding is deep rooted in the culture and there is going to be inherent demand so from this we understand that because keeland is based in Europe it's situated in a developed economy which means people have the interest and the money to spend on Innovative quality oriented and Niche products like horse riding saddles it's part of their culture so the trend in the culture will be such that people will be used to these kind of you know specialist saddle maker Saddles that Canon is is producing so segmentation and external market analysis is going to be very important over here Canon is located in a developed economy so it opens up advantages such as better infrastructure very high skilled Workforce because that's that's the characteristics of a developed economy right but we also need to take into consideration High regulation High safety considerations High factors of production you know high costs so when I'm looking at all of this like the external market like the segmentation these are topics in my E1 syllabus because if I don't know my market well if I'm not breaking down my market well then how will I serve my customer next Canon was founded in 1906 by William Canon so it's a family business as you can see the family name is the name of the business and it was founded back in 1906 so we have been in the market for8 years now a business can only survive for so long because it has garnered a set of loyal customers and a growing brand image which all amounts to increasing Goodwill which means I have been in the market for so long naturally I have to be successful because do you know any business that survives for so long and is not successful it's not possible so please remember this as your core competency as a business that you have been able to survive through the toughest of times through economic upturns economic downturns and all of that your business has been able to survive keep that in your mind now everyone now please remember I am going through the entire preene with you first to help you understand our company very normal natural for the case study second I am pointing out important E1 P1 and F1 syllabus areas for you to note as important areas which can be tested in the exam third all of this information that I'm giving you is helping you understand our company in a better way what's the use of this when you actually sit the exam or when you take my mock questions I want to make sure that you use this information you entangle this information and actually naturally organically bring out this information when you are writing your answer so for example when you are writing your answer you can start your answer by saying Canon has been in the business for 118 years which showcases our strength to deal with with Market issues or economic upturns or downturns for example I'm saying when you include this in your answer it tells the examiner that this person knows our company has spent time on the preene has spent time studying the company that's your business skill so please remember whatever you write has to be very relevant to Canon and the best way to do that is taking ideas from the preene and then using it in your answers so three reasons please remember them clearly as to why the preene is so detailed when you doing with us first to know the company obviously second important E1 P1 and F1 topics third to have business skills in your writing so you can use all of these ideas remember that so Williams started his working life as an apprentice Saddler and after completing his apprenticeship at a local company started his own business making saddles for the keeland Army so he started as a small business and is grown tremendously so William Will Will Be a key person for this business as he has worked through the Inception to the success of the business so he's the person who started the company and naturally has led the company so far now what I want to point out over here from the E1 syllabus perspective is that understanding the structure of the organization as we move deeper into the preene is going to be important while doing that it's important to also understand that throughout this 118 years the roles of different functions within the organization will have greatly greatly changed for example HR is not like it was before Finance is not like it was it was before manufacturing itself is not like it was before so the changing roles of different functions is going to be very important to keep in your mind so the changing of roles the structure of the organization all of this is part of your E1 syllabus and that is why I am mentioning it next he purchased a site on the outskirts of his local town and built a workshop that's how small businesses generally start the company remains on his original site although it has expanded over the years to incorporate a production facility inventory warehouses and offices so it remains on the same side but there has been expansion so we have our own production facility so inventory scheduling working capital Labor Management variances will be regular occurrences for example I have my own facility where I'm receiving Goods where I'm going to pay for those Goods so this is my working capital cycle on the other hand I have my own Factory so I will have Labor I will have material I will have idle time so all of this can create variances because of the manufacturing nature of my company this is your P1 and F1 fac uh syllabus sorry because we have our own facilities many Concepts including assets you know recognition of assets is-16 Pro uh capital raising taxation related issues can be raised and we will be speaking about these Concepts one by one by one when they come up deeper in the preene but I'm just giving you an overview of it right now because you are a manufacturing organization these things become reality so your variances topic working capital topic from your P1 F1 syllabus are important now we have one production facility meaning that we are reliant on one production unit to run all production assembly functions it's a small business right now so there is one single production facility fine but if we are looking to expand into the horse uh equipment Market you accessories Market as we call it then we might have to look at another Factory or another small production unit or we can expand the current production unit itself so let's start to think about benefits and limitations of having one single centralized unit versus two units because can this one site continue to meet the demand as we grow might not be possible right so when we make any production related decisions like right now it is important that relevant costs be considered whether to have one unit whether to have two units you need to consider relevant costs the relevant costing concept from your P1 syllabus is very very important it's often tested so rather than making some elements inhouse you can also look at make versus buy decisions this is also your relevant costing concept make V buy decisions in your P1 syllabus you need to know which costs are relevant which costs are not relevant what is the opportunity cost you need to know those Concepts from the P1 syllabus nobody's going to ask you to calculate the opportunity cost no calculations at all but the concept of which cost is relevant which cost is not relevant is very important because without that you can't write your answer so during the 1920s and 30s the customer Bas widened to include civilian customers and customers in other European countries it's not only keeland we are selling in other European countries as well as well as civilian customers we started with the Army but now we have civilian customers and other European countries so different currencies coming into the picture here because you are selling to different countries though in Europe there are different currencies right Hungary has a different currency Switzerland has a different currency there are different currencies coming into the picture so during this time the company became known for its quality and stylish Saddles so please remember your culture please remember your business so we are known for our high quality and stylish Saddles it's not only uh you know a brand but it's a brand that focuses on quality and style so this is our competitive ADV advantage that we very clearly need to be know uh need need to be knowing sorry I have given you the PDF of this preene that I am screening so whatever is just right behind me you can look at that on your screen or you can look at the PDF which I have given you ensuring that you don't miss out on anything so this is our comparative advantage and the culture of my company within the port's generic strategy this is known as a differentiator or premium quality Focus this also showcases our premium pricing strategy because if you have high quality High style it's generally going to be a higher price as well so knowing what the different strategies are knowing what the different pricing strategies are from your P1 syllabus E1 syllabus very very important different pricing strategies is in E1 different pricing methods is in P1 as well they overlap between E1 and P1 but these are important Concepts I'm pointing it out to you from now itself now the Saddles which are made and sold by Canon today are based on traditional designs but they are high quality and are marketed as general purpose Saddles rather than specialist Saddles their more traditional design means that Canon saddles have limited appeal in modern markets so a drawback a threat a weakness is coming up very clear about my company that I have not been uh investing very largely in your technology because our Saddles are more traditional in our industry analysis it was very very clear that without technology Investments uh you know rather in technology investment is this this business's success so if you don't invest in technology you're going to be left behind like sensors on Saddles like we spoke about in the industry analysis this is something that my business is not doing right now the Innovation and developments seen in the products offered by other saddle makers but lacking in canons Saddles are thought to be the reason why Canon sales have not increased so the market is growing at 4 to 5% from the industry analysis we know that but if you don't focus on the major growth trends like I have explained then you are not going to benefit from the growth in the market so the general perception in the market is that although Canon Saddles offer value for money the company has significantly fallen behind the times so it is very clear that our external market analysis has failed and that is why we don't know what the market really wants what the customers really want that is why we are falling behind right so the pestel analysis might not have been done properly by the business our data Gathering techniques have failed because if you would have gathered proper data you would know what the market wants it infrastructure within the organization is weak and hence technology Technologies driving the digital world have not been focused on like big data data mining data analysis this problem would never have occurred if this existed and new type of Marketing Systems have also not been Incorporated because if you are marketing on the same thing and it's going and it's failing then naturally if you would have had that data if you would have had that marketing data as well you know that I need to change but the business has not done that so far so all of these Concepts like data data mining Big Data new types of Market marketing pestel analysis Again part of your P1 E1 syllabus moving on a saddle consists of a tree which is the inner skeleton of the saddle webbing and leather pieces which are stitched together to create a saddle the company currently offers a range of three different styles of saddles and different options in respect of the tree and the quality of the leather used so different products different styles are being offered today Canon Saddles tend to be used by amateur equestrians who typically use them for hacking which means going for a trail ride Leisure purposes and occasionally for very lowlevel competition so we are again looking at the generic market and not specific uh equestrians who are looking to compete on the national or International level so our focus is on amateur equestrians for hacking and low-level competition we need to expand our ideas and Market prospects greatly to increase Canon sales you can't only be focusing on one Niche you should and rather could be looking at uh you know saddles for competition specific Saddles Saddles which are Innovative as the business expands we will need to look at capacity plan and risk related decision making it's very clear right now that there will be an exam scenario where they will tell you that we are now looking to you know in some way incorporate technology or in or start making uh horse riding other equipment or looking at specific sadles for competition it's looking like a very clear Direction because of everything that they have mentioned so there could be a question in this scenario related to capacity planning or risk related decision making so your knowledge of payoff tables very very important a very favorite question in the exam risk-based decision making different risk attitudes is very very important before making the final call on which product to go ahead with which product to manufacture that's what payoff tables are that's what uh different risk attitudes entails different uh risk related decision making entails this is of your P1 syllabus and and very important yes when you do mock questions with me we will test you on how to read a payoff table we will teach you as well don't worry but have that knowledge that this is an important concept and I should have revised it so throughout the company's history it has been owned and managed by the Canon family only so it's a familyowned business it can be so what is a family-owned business rather let's you know quickly look at it a family-owned business may be defined as any business in which two or more family members are involved and they have majority ownership of the business what is the natural advantages they will have common values they will have strong commitment the business will have stability what would be the disadvantage there might be lack of skills or experience not everybody in the family will have the same level of experience or the skill to run the company there can be family conflict which can you know eventually affect the business there can be problems in succession planning so we need to keep in mind that we are a family business these are advantages these are disadvantages just briefly next the company's current managing director is John Canon John has a sister n and they hold 80 and 20% of can cannons sorry Equity shares respectively so majority owned by or pretty much all owned by the Canon family only an is a successful author of romantic novels and has no interest in horses or equestrian Pursuits she's not involved in the management of Canon she only holds a part of ownership again one of the disadvantages if this percentage was owned by somebody else who was interested in the business maybe Canon would not have fallen behind like it has they've told us right our sales have suffered on the previous page so one of the disadvantages of a family business John's daughter Freya Canon has participated in equestrian Sports from when she was a small child she is now an international show jumper and represented Keelan at the recent World Equestrian Games so she is a person who is interested in horse riding at least freya's medal winning performances in individual and team events at the world Equestrian Games led to her inclusion in keeland Olympic team so she's part of the Olympic team as well and she is related to the name Canon obviously so it's going to help our business right it's like free marketing for the business Freya is an international show jumper and holds accounting and finance knowledge that they have told us in the next paragraph Freya can be a good marketing aspect of our business she's also included in the Olympic team so how much time does she have to give to the business some something to think about so Freya sporting press is matched by her intellect like I said she recently graduated from a prestigious keeland University with a first class honors degree in accounting and finance but does she know how to run the business does she know about production does she know about management we don't know this could be factors which are holding the business back after graduation Freya started working at Canon although she does take substantial periods of leave to continue her equestrian career so again time is the issue John is immensely proud of his daughter's academic and equestrian achievements and welcomes her involvement in the company and he admits that the business all together the business as a whole has an aging profile which needs new ideas so John knows the business is being held back so HR will be an important role at this stage because the organization is expected to change for this your HR topics from E1 become important your marketing techniques new marketing techniques in your Ean uh syllabus become important as the business grows there might be the need for a new costing technique as well so small business overhaul is on the horizon which is going to lead to a lot of changes in the business in my opinion and hence new methods could be tried out and your E1 P1 F1 syllabus becomes greatly testable so I'm thinking about exam scenario now so in exam question revolving around this situation like changes in the organization is very much on the horizon expansion can lead to Capital requirements such as F1 property plant and Equipment recognition F1 production planning P1 a lot of situations are coming to my mind we'll test you on all of them in our mock questions don't worry but right now while going through the discussion it's important to recognize this so since the topic of expansion is prominent in discussions can can there be an opportunity to Outsource certain business units for example let's Outsource our marketing department because marketing is not my core activity but still I need to greatly improve on it advantages will be controll cost better Advantage better efficiency they will be the experts I can think of this so Outsourcing advantages and disadvantages from your E1 syllabus are important next they have given us extract from keelan's Pony Club manual so this is a pony Club manual which is distributed in keeland and they have picked the extract from there and put it in our preene so chapter 3 says the general purpose European style saddle so general purpose European style saddle the image that you can see is designed to accommodate different writing styles and disciplines it is important to understand the different areas of a saddle when looking after your horse we have a numbered list of different areas of European style Saddles which images they have made it clear for you as a student to understand what a saddle you know actually looks like because you might not know these technicalities the seat of the saddle is where the rider sits it has to be comfortable simple second number two is the candle you can see the image over here on the right hand side with the number two corresponding to it the candle provides support and security for the rider keeping them in place during the riding the height of the cantle has to be matching to the rider's position let me again just move around my video so it's easier for all of us then there is pommel this is raised front portion of the saddle seat then there is a tree this is the internal framework of the saddle that gives its shape and structure it's a crucial Ro role in distributing the rider's weight evenly across the back of the horse a well-designed tree is very important important now these technical words might seem boring to you I know that but it's important from the case study perspective because they might tell you that the tree of our Saddles is now going to incorporate let's say for example uh software chips to gauge the riding performance for example I'm saying now if you don't know what the tree is you'll be picturing an actual tree we don't want that situation so these technicalities are very important for us to understand over here next there is the gullet so this is the channel which runs along the length of the saddle but underneath the seat it provides clear clearance for the hores spine ensuring there is no pressure on the horse's back so very important again the tree the gullet very important six the flaps these are large leather panels that hang down on both sides of the saddle seven you have knee rolls and thigh blocks knee rolls and thigh blocks are pared areas on the front of the saddle flaps they provide additional support and stability for the rider's legs and eight there is paneling the panels are padded areas which come into different into direct contact with the horse's back they should be designed to distribute the rider's weight evenly and provide cushioning now after a saddle has been assembled it is then stuffed with flocking to provide padding in the seat flocking can be wool or synthetic material or a mixture of both now since we are talking about mix over here mix of wool mix of synthetic material and different materials the variances topic again comes into the picture material usage material wastage you know mix variances so with different processes products needs and expansion comes issues in production and this needs to be managed well which is possible if variances are understood well so your material variances labor variances mixed variances become very important again P1 syllabus there will definitely be a variance question in the exam if you get it in your variant okay if you don't get it in your variant you know okay but if you get it if you already revised it guess what you will be in a great position to replicate that knowledge article in keeland equestrian news next we are coming up with an article so how have European Saddles developed over the last 500 years Ella winter Baka for the keeland equestrian news reports that horse riding saddles have a rich history dating back Millennia and their design has evolved significantly over the last 500 years we have been in business for 118 years so so 1/ fifth of the time we have been in the business so we are a legacy business we know how the business is changed and we know the culture this development has been driven by the changing needs of riders improvements in materials and a deeper understanding of horse anatomy and biomechanics this looks set to continue so the business is changing managing change managing uncertainty dealing with risks will be very important because like I said for my business also it's going to change it is changing vastly it is changing so very very important that the risk concept from P1 is revised the medevial era saw Saddles which were simple and practical and as the illustration shows were designed mainly for use of military high pommels and candles provided stability for knights in armor stups introduced around the 9th Cent cury were pivotal in improving control and balance so every part of the saddle the eight parts of the saddle that we went through all are very very very important the 16th and 17th centuries in the Renaissance and Baroque periods saw Saddles becoming more decorative and focused on Rider comfort so it changed from use to comfort the rise of equestrian arts and a desire for Elegance led to to Saddles being elaborately adorned so then came your how they look the Age of Enlightenment which is the 18th and 19th centuries saw more advancements with shadows becoming lighter and more Balan so after look came again reducing the weight and more balance with better weight distribution the introduction of the wooden saddle trees and developments of design these are all allow these all allowed greater freedom of movement for the writer so Saddles have been changing changing changing in our industry analysis as well we know that nowadays it's greatly changed because of technology in manufacturing and technology in use so saddle design continued to be revised during the 20th century with disciplines like Dr show jumping and Eventing driving the creation of specialized Saddles so in this segment they give us information about what a saddle is and the history of saddles now we are moving to the industry so this is a small industry segment or an industry analysis segment they have given you a spot of the preene but get but guess what if you've done my industry analysis then you have already had a great bunch of ideas a great bunch of knowledge to help you make even more sense of what is over here in front of you so let's start Canon's market share is ke in keeland is relatively small in the number of volume of saddles sold this is I understandable one because we have a premium price and second our sales are falling there are two reasons for this however there is a flourishing equestrian Market in keeland so keeland Market is growing $4 billion is the size of this market so approximately 1% of the 26 million household in keeland own horses with an average of 2.4 horses owned by each household so there is huge opportunity in this market which we are missing out on because of the problems that the business is facing so very big Market with new opport unities we must look at evolving our business firstly second we should look at growing market segments as well like for example the accessories Market or geographical expansion in places that we were not selling before countries with a tradition of horse ownership usually have saddle makers which only sell into their domestic Market but we have saddle makers which sell globally as well we know the competition in this market is going to be high from again the industri analysis saddle makers typically sell Saddles to wholesalers and retailers of equestrian equipment so growth Avenues tradition Global players also included in this market increasing demand for sophisticated and technologically advanced Saddles and population is large who own horses so they will need saddles so there are huge growth Avenues present in keeland itself how are we taking advantage of this this we need to ask or this we need to you know debate as to what are we going to do moving forward so as we learned on the previous page there is uh these saddle manufacturers sell to retailers wholesalers such equestrian equipment retailers usually have their own in-house saddle Fitters who will connect with the end user to make the sale saddle makers do not usually sell directly to the end user they'll sell to wholesaler or a retailer who will then then sell it to a customer that's the business traditionally so relationship management with retailers with wholesalers will be very important because they are selling my product if I don't have a good relation with them why will they sell my product so relationship Management in your E1 syllabus is important also receivables management because they will be selling it to the customer and we need to recover that money from our wholesaler resaler is going to be important so receivables management F1 syllabus becomes again very important today individual Riders may have multiple saddles for one horse with each designed to improve performance in a specific discipline for example show jumping saddle is different resar saddle is different both are different but for the same horse so in addition riders with multiple horses are also likely to have spef Saddles which are specifically sized for that horse because each horse has a different size right so the move to Riders having specific horses per specific disciplines has driven the sales for Saddles so there is lots of uh evidence that this Market is growing this Market is in the right is moving in the right direction but we as a company need to position ourself to take advantage of that growth so saddle manufacturing industry as a whole uh it has many national and Global manufacturers we learned about this in the competition analysis in my industry analysis itself there's a high concentration of Saddle makers in areas such as USA Australia South Asia and Europe where equestrian uh you know equestrian sport has been in their tradition however the equestrian saddle Market is very diverse and includes different separate equestrian Pursuits such as poloo horse racing European riding western riding so lots of different niches manufacturers in each of these individual Fields do not compete in most cases with only a very few Global firms operating in more than one market as you can see Canon right now they told us we only look at nonevent man saddle manufacturing which is generally used for hacking or a Leisure ride or a trail ride we are not we are not a player who is looking at different markets right now so very big Market with new opportunities we must look at evolving and growing market trends we are not doing it night now doesn't mean we can never do it product expansion can be seen as the next stage developments are being seen in the saddle industry in both product and in design production which has previously been labor intensive is now becoming more and more and more automated however despite this the production of a staddle still relies heavily on the skilled labor of Saddle makers so technology is being used but a lot of labor intensive uh nature of this industry also remains so more automated techniques would mean better production and with better production comes better costing needs if everything is becoming more and more automated the switch to activity based costing for a modern business can be seen as the next step when we go deeper into the costing segment after the financials we will have a deeper detailed ABC analysis for you don't worry but the uh costing system and the activity based costing system as a whole from your P1 syllabus is a very important exam favorite topic design improvements are being seen in the use of high-tech materials for instance carbon fiber in tree manufacturer rather than wood to obtain a lighter and stronger tree is being used there have also been moves to introduce more Automation in the produ in the production process so more automation means move towards modern manufacturing techniques such as jit eqm lean manufacturing quality circles when we go deeper into understanding what exactly my company Canon's production process is we want to see do we have modern manufacturing techniques if not then major again Trend in the industry we are missing out so this is your E1 syllabus your cost of Quality quality related decision making E1 syllabus is very very important prevalent over here here after that we have extract from Canon's sales brochure so in the Canon sales brochure they're explaining our saddle range so at Canon our long history as equestrian saddle makers shows in our range of traditional Saddles and Designs each saddle has evolved with the aim of helping the horse and the rider so the key words so far which I have picked which Define my strategy as a business is premium quality uh premium designs and traditional saddles for leisure activities let's remember this so we offer you three different styles of saddles each named after horses that have been owned by the family astral meteor and Comet there are two models of Astral two models of meteor one model of comet so total of six products are sold by the business right now each model uses a different grade of leather e type A type and either type one type two or type three saddle tree so there are only six major products but inside of each product you can choose your leather quality or the saddle tree type so under astral you have type one type two good leather and D quality leather on the meteor you have C and B under Comet you have the best quality which is premium Leather So each model is available in different sizes to allow the Saddles to fit different heights and different Riders different sizes of the horse as well so we have different categories of products under each category we have subcategories of products so very many different products are being sold by the business this tells us that is going to be very important that if you have five six major products then understanding the costing of each product and understanding uh you know how each product which is the most profitable product with accurate costing systems is important and again the need for activity based costing can arise in the future something for us to keep in mind because it's an indication that they're giving us so all these indications which I'm pointing out through the preene have been given to us and if we are not smart enough to pick them up and then revise them and then a question comes up based on them in the exam then we have nobody to blame but ourselves so let's ensure that we pick these ideas up carefully so that has brought us to the end of this Preen analysis part one this is only part one we have part two coming up which is another hour hour and a half and part three which is the financials which is another 45 minutes so every single word of the preene that SEMA has released will be very carefully analyzed by us will be very carefully gone through by us and we have you know just ensured that everything is covered again we are registered tution providers and we have won the Excellence award for pass rate percentage for 2 years in a row now you're in the right place you're learning in the right way just ensure that you focus on the details that we give you if you already have not signed up with us then uh I you to do so visit our website or write to us on helps.com somebody will definitely you know get back to you soon and help you sign up our full Preen analysis with all of our full mock questions are there to assist you and you can already see the quality that we deliver so with full commitment let's ensure that part one is clear then move on to part two and part three no hurry