BAO5522: Evaluation of Analysis and Reporting on SCA Performance

This report evaluates SCA's performance reporting based on the PWC Value Framework, analyzing the company's 2017 annual report. It assesses various strategic and performance elements, including competitiveness, regulatory compliance, technical aspects, strategy and objectives, business model, governance, risk management, remuneration, financial and physical assets, customer relations, people and culture, innovation, brand and intellectual assets, process and supply chain, operational performance, economic performance, social responsibility, environmental impact, and segmental reporting. The report identifies strengths and weaknesses in SCA's disclosures, noting good alignment with the PWC framework in some areas but limitations in others, particularly regarding competitive advantage risks and geopolitical information. The accessibility and comprehensiveness of the reported information are also evaluated, highlighting areas where SCA provides clear explanations, historical metrics, and benchmarks, while also pointing out areas needing improvement. Desklib provides similar solved assignments and past papers for students.

Running head: EVALUATION OF ANALYSIS AND REPORTING
Evaluation of Analysis and Reporting
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1EVALUATION OF ANALYSIS AND REPORTING
Table of Contents
Executive Summary:..................................................................................................................3
PWC Value Framework Elements:............................................................................................5
Value Framework Element: Competitive:.................................................................................5
Value Framework Element: Regulatory and Geopolitical:........................................................6
Value Framework Element: Technical:.....................................................................................8
Value Framework Element: Strategy & Objectives...................................................................9
Value Framework Element: Business Model...........................................................................11
Value Framework Element Governance:.................................................................................12
Value Framework Element: Risk Management.......................................................................14
Value Framework Element: Remuneration..............................................................................17
Value Framework Element: Financial Assets:.........................................................................18
Value Framework Element: Physical Assets:..........................................................................20
Value Framework Customers:..................................................................................................22
Value Framework Element: People and Culture......................................................................23
Value Framework Element: Innovation G & S:.......................................................................25
Value Framework Bands and Intellectual Assets:...................................................................27
Value Framework Element: Process and Supply Chain..........................................................28
Value Framework Element: Operational Performance............................................................29
Value Framework Element: Economic Performance:..............................................................31
Value Framework Element: Social..........................................................................................32

2EVALUATION OF ANALYSIS AND REPORTING
Value Framework Element: Environmental.............................................................................34
Value Framework Element: Segmental...................................................................................35
Material Matters Critique:........................................................................................................37
References:...............................................................................................................................38

3EVALUATION OF ANALYSIS AND REPORTING
Executive Summary:
The framework of PWC offers the insight of both the external and the internal decision
making. It requires more complete and associated set of information to obtain a sustainable
creation of value and provide decision regarding the organizations current performance and
future prospects. The present study is aimed at assessing and evaluating the nature as well as
the quality of SCA performance reporting of the company’s health as well as the overall
organizational performance defined under the PWC framework.
To conduct an analysis of the SCA Annual 2017 to determine how each element of
framework was measured based on the level of comprehensiveness and how the company
disclosed the information on the report. The result obtained from the study stated the depth
and the breadth of disclosure was in consistent with the framework of the PWC. The report
would focus on the areas of
Strategic Elements:
a. Strategy
b. Business Model
c. Governance
d. Risk
Performance Elements:
a. Economic
b. Segmental
The study also discovers greater amount strategic elements relating to resources and
relationship framework element.
Further conclusion:

4EVALUATION OF ANALYSIS AND REPORTING
Alignment to PWC integrated reporting framework:
The degree of disclosure made by the SCA from the 2017 reporting is in compliance with
organizational health and performance elements that are contained in the PWC Value
framework. The framework provides the readers to establish a greater extent of
comprehension while determining the organizations performance.
Accessibility:
The majority of PWC framework is easily accessible in the report as in many occasions it was
presented with qualitative and graphical representation.
Comprehensiveness:
A greater amount of insight is provided for the understanding of the users of the SCA in key
business areas this includes;
 Communications and performance targets
 Offering historical metrics to enable trend assessment
 Offering benchmark to provide the perspective of environment
Limitations:
The study that is performed possess limitations and this includes;
a. Deeper level of reporting relating to the risk of competitive advantage
b. The study is largely dependent on the research interpretation

5EVALUATION OF ANALYSIS AND REPORTING
PWC Value Framework Elements:
Value Framework Element: Competitive:
Report Extract: (Page 13, SCA Annual Report 2017)
Report Critique
Reporting Characteristics that drive “Competitive” element:
a. Clear explanation of the competitive strategies to increase the efficiency and create
growth

6EVALUATION OF ANALYSIS AND REPORTING
Analysis and Accessibility:
The company has made intensive investment to improve the competitiveness. The
company’s competitive strategies are easily accessible and is communicated extensively
(Scott 2015). SCA has created value through strategic and careful application of the
investment. The strategies are aligned to develop the products and trim down the costs as this
helps in maintaining the competitiveness and profitability of the company. The company has
created a higher level of competitiveness to deliver the higher quality products that are in
demand.
Comprehensiveness:
The competitiveness element of the SCA is unmistakably lay down the growth
objectives of the company to increase the revenue of the company and profits each year
(Robson, Young and Power 2017). The company further takes steps in communicating how
well it has achieved a mix of organic growth following the cost reductions and higher degree
of competitiveness that drives growth in profitability.
Conclusion and Strength
CSA competitiveness policy of the business is extensively communicated and it is
prominent with the reporting element. The competitiveness policy of the SCA is clearly
articulated and prominent with the information that is provided in the report (Schaltegger and
Burritt 2017). It helps in offering a significant amount of depth in how the management of the
company operate or manages its business to improve profitability and cutting down costs.
The performance is interrelated with the objective of SCA goals. The overall quality of the
competitiveness reporting is good.

7EVALUATION OF ANALYSIS AND REPORTING
Value Framework Element: Regulatory and Geopolitical:
Report Extract: (Page 139, SCA Annual Report 2017)
Reporting Critique:
Reporting characteristics that drive the Regulatory and Geopolitical framework
element:
a. Auditors examining the statement of the corporate governance
b. Undertaking the guidelines and instructing the directors in matters to measure the
SCA company accountings.
c. Conducting audit in compliance with the generally accepted accounting principles
Extensiveness & Accessibility:
The company provides legal and regulatory requirements regarding the responsibility
of the auditors (Macve 2015). The regulatory and geopolitical requirements include
examinations of the corporate governance structure. The majority of the information is based
on the audit of the administrations, discharge of opinions with reasonable degree of assurance
from the managing director and board of directors.
Comprehensiveness:

8EVALUATION OF ANALYSIS AND REPORTING
The comprehensiveness of the geopolitical information is not stated and the
regulatory information is limited to only internal audit procedures (Williams 2014). There is
an absence of the geopolitical information with limited number of regulatory information
regarding the assessment of the corporate governance statement.
Conclusion & Strength:
Whilst there is no such existence of information of the geopolitical information in the
annual report, however there is a significant detail regarding the regulatory and legal
requirements. The overall quality of the regulatory reporting of CSA is bad.
Value Framework Element: Technical:
Report Extract: (Page 18, SCA Annual Report 2017):
Reporting Critique:
Reporting characteristics that drive the Technical framework element:
a. The company provides information relating to the technical upgrades of the sawmills
that have assisted in creating business values
b. The company has also established a technical environmental network to widen the
treatment of technology.

9EVALUATION OF ANALYSIS AND REPORTING
Extensiveness & Accessibility:
There is no such information relating to the technical related aspects in the 2017
annual report of the SCA (Warren and Jones 2018). Being the global firm the company has
not reported much regarding the technical information with the quality of the reporting.
Comprehensiveness:
There is no such detail incorporation of the information in the annual report regarding
the technical aspects (Hoyle, Schaefer and Doupnik 2015). The report at no stage provide
technical information relating internal system and procedures.
Conclusion:
Notably, the information of technical aspect is not expressed strategically and the
quality of the reporting in technical areas is ugly.
Value Framework Element: Strategy & Objectives
Report Extract: (Page 10, SCA Annual Report 2017)

10EVALUATION OF ANALYSIS AND REPORTING
Reporting Critique:
The characteristics of report that drives the strategic & objective element of framework
are;
a. Clear and precise explanation of the strategic objectives and goals
b. Short, medium and long term business targets
Extensiveness and Accessibility:
The corporate and strategic objectives of SCA are accessible easily and
comprehensively (Balakrishnan, Watts and Zuo 2016). SCA has comprehensively
communicated both the qualitative as well as quantitative characteristics throughout its
annual report of 2017. The strategy communicated by the company possess prominent
information for the readers.
Comprehensiveness:

11EVALUATION OF ANALYSIS AND REPORTING
The strategic review conducted by the Chief Executive is associated with the growth
of the organizations, financial models and customer emphasis (Henderson et al. 2015). It
places emphasis on the reporting of;
a. Company’s long term strategy and market presence
b. Operations inside the macro-economic and competiveness
c. Return on sales and return on capital employed
By placing focus on the previous year performance, the chief executive has offered a
qualitative view of growth outlook for the overseas expansion as well.
Conclusion and Strength:
SCA Company’s objective are communicated extensively and measured in the annual report.
While there is a lower amount of emphasis has been placed by SCA on the long run
performance, the quality of information and strategic objective is presented in a good manner.
Value Framework Element: Business Model
Report Extract: (Page 6, SCA Annual report 2017)