PWC Framework Analysis of Novozymes Annual Report

Running head: MANAGEMENT ACCOUNTING
Managerial Accounting
Student Name
University Name

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Table of Contents
Executive Summary.........................................................................................................................4
PWC Framework.............................................................................................................................4
Value Framework Element: Strategy & Objectives........................................................................4
Value Framework Element: Business Model..................................................................................7
Value Framework Element: Governance.........................................................................................9
Value Framework Element: Risk Management.............................................................................11
Value Framework Element: Remuneration...................................................................................12
Value Framework Element: Financial Assets................................................................................15
Value Framework Element: Physical Assets.................................................................................17
Value Framework Element: Customers.........................................................................................18
Value Framework Element: People & Culture..............................................................................20
Value Framework Element: Innovation G&S...............................................................................22
Value Framework Element: Brands & Intellectual Assets............................................................23
Value Framework Element: Processes & Supply chain................................................................25
Value Framework Element: Operational Performance..................................................................26
Value Framework Element: Economic Performance....................................................................29
Value Framework Element: Social Performance..........................................................................31
Value Framework Element: Environmental..................................................................................34
Value Framework Element: Segmental.........................................................................................36

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Report on material matters.............................................................................................................37
References......................................................................................................................................39

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Executive Summary
The PWC framework help to address and view the internal and external activities of any business
organization (Coopers-PwC 2016). The report highlights the PWC framework of the firm
Novozymes. The annual report was analyzed with the help of each of the framework. Apart from
this, level of comprehensiveness and how accessible its disclosure was, also evaluated through
this report. Both Strategic and performance elements of the firm have been evaluated.
PWC Framework
Value Framework Element: Strategy & Objectives
Report Extract
“At Novozymes, our reporting ambition is to provide one integrated report that connects the
company’s business model, strategy, targets and performance through integrated financial and
sustainability data”
Chief Executive’s Strategic Review
The board of directors of the organization have changed. However, according to them, “We
believe that businesses have a responsibility to engage with the communities in which they
operate and invest strategically in programs that create value for society”

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(Source: Report2017.novozymes.com. 2018). pp.5)
(Source: Report2017.novozymes.com. 2018 pp. 31)

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Reporting Critique:
Reporting characteristics that drive ‘Strategic & objective’ framework element
 The annual report of the organization Novozymes provides clear aims and objectives
 However, there are no short term, middle term and long term goals specified by the
management of the firm
Extensiveness & Accessibility
The strategy of the organization Novozymes is available on page 31 of the annual report. The
highlights of the firm’s strategy has been communicated in page 2 which is useful for the
readers.
Comprehensiveness
The strategy of the organization Novozymes is mainly used for their sustainable growth. The key
focus of their strategies are as follows:-
 Rally for change
 Lead innovation
 Focus on opportunities
 Grow people
Conclusion & Strength:

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It can be inferred that the strategy and objectives of the organization Novozymes has been
clearly defined in the report. Though, the objectives are not segmented as long-term or short-
term objectives, still, it can be termed as “good”
Value Framework Element: Business Model.
Report Extract
“Our business is about turning amazing science into sustainable biological answers in a growing
world. We use a wide range of enzymes and microorganisms to unlock business opportunities.
From enabling farmers to grow crops more sustainably to enabling parents to tackle mud stains
on their children’s clothes, our innovations are paving the way for a better tomorrow”
(Source: Report2017.novozymes.com pp. 26)
Reporting Critique:

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Reporting characteristics that drive ‘Business Model framework element
 The annual report of the firm provides a clear explanation how the management of the
firm creates a value by using its effective business model.
 It can be considered as a positive element in the annual report
Extensiveness & Accessibility
The organization Novozymes has communicated its business model among its stakeholders
through a full page diagram. The key elements of its business model are customers, partners,
distribution, technical services, suppliers, production, innovation and main stream.
Comprehensiveness
The business model of Novozymes highlights the interrelated performance elements which will
help the organization to attain aims and objectives. Its business model provides them a solid
foundation to meet the requirements of its stakeholders.
Conclusion & Strength:
The business model of the firm is prominent in the report. It also provides a significant depth to
the aims and objectives of the firm. Due to this reason, it can be inferred that the quality of
reporting of the business model is “good”.