Puli Insurance (PI) PI only sells its own car and home insurance. It was set up as a private limited company in 1988 by Kwami Puli to sell insurance to customers in country D. Kwami was Managing Director (MD) until 2019 when he retired. His son, Idir, became the new MD. Kwami remains the largest shareholder of this family business. Timeline of PI 2020 Idir believes that PI has poor employee performance. He dismisses the Human Resource (HR) manager and adds the role to his own duties. Idir commissions an independent business analyst to report on the HR issues in the company [Appendix 1]. 2021 Idir reviews the existing organisational structure [Appendix 2] and makes recommendations to the Board of Directors [Appendix 3], which are quickly adopted. 2022 All PI managers are sent on a five day off-the-job training course to encourage intrapreneurship. Trade union membership (as proportion of total workforce) increases to 60%. 2023 Idir implements a 'paperless office' policy which orders all employees to use electronic communication whenever possible. All employees are issued with a smartphone for business use only. 2024 Idir is interviewed by a trade magazine about his first five years as MD of PI [Appendix 4]. Developing a new business strategy Idir wants to target pet owners to sell them pet insurance (to pay for medical treatment for domesticated animals). The market for pet insurance in country D is growing rapidly and is set to reach $5bn by 2026. The market segment is dominated by two large competitors and it will require significant investment to enter successfully. Idir believes that PI could gain economies of scale by selling to this market. Idir will need advice on what accounting data he should use to help him develop this new business strategy. Appendix 1 Extract from a report outlining the HR issues in PI in 2020 | PI | Industry average in country D | | --- | --- | | Labour turnover | 2% | 15% | | Absenteeism | 12% | 5% | | Lateness | 27% | 10% | | Management average emotional quotient (EQ) score | 120 | 80 | [Appendix 2 Organisational structure of PI in 2021] [Appendix 3 Summary of Idir's recommendations to the Board of Directors in 2021] [Appendix 4 Extract from a 2024 interview in a trade magazine]