Analysis of Novozymes Performance Using PWC Value Framework Report

This report offers an in-depth analysis of Novozymes' performance, focusing on its organizational health and alignment with the PWC value framework. The analysis is based on Novozymes' 2016 annual report and evaluates various elements, including strategy, business model, governance, risk management, financial and physical assets, customers, people and culture, innovation, brand, process, operational and economic performance, social and environmental aspects. The report assesses the comprehensiveness and accessibility of the information presented, examining both qualitative and quantitative aspects to provide a comprehensive understanding of Novozymes' performance. The report also discusses the integration framework of reporting from the financial report of 2016 that are in compliance with the organizational health and performance.

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Managerial Accounting
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Executive Summary:
The value framework of the PWC provides the users with the internal and external ability of
decision-making. This often requires clear, concise and detailed information to obtain the
sustainable method of value creation and facilitating decision making relating to the current
performance of the organization and its upcoming prospects. The present study is based on
the assessment of the nature and quality of information presented by Novozymes in the
direction of organizational health and performance in compliance with PWC framework. To
better understand the performance of Novozymes the annual report for the year 2016 is
considered to assess the elements of framework to better measure the qualitative and
quantitative aspects. The report will further assess the comprehensiveness of the information
presented together with the accessibility of disclosure made in the report. Performance is
discussed in the areas of
Strategic elements
a. Strategy
b. Governance
c. Business risks
d. Business models
Performance elements
a. Economical
b. Segmental
Alignment with the PWC framework of integrated reporting
The analysis brings into line the PWC integration framework of reporting from the financial
report of 2016 that are in compliance with the organizational health and performance.

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Table of Contents
Executive Summary:..................................................................................................................1
Introduction:...............................................................................................................................4
Value Framework Elements: Strategy and Objectives...............................................................4
Value Framework Element: Business Model:............................................................................6
Value Framework Element Governance:...................................................................................7
Value Framework Element: Strategy: Risk Management:.........................................................9
Value Framework Element: Remuneration:.............................................................................10
Value Framework Element: Financial Assets:.........................................................................12
Value framework Element: Physical Assets............................................................................14
Value framework element: Customers:....................................................................................16
Value framework element: People and Culture.......................................................................17
Value Framework Element: Innovation...................................................................................19
Value framework element: Brand and Intellectual Assets.......................................................20
Value framework element: Process and Supply Chain............................................................22
Value framework element: Operational Performance..............................................................24
Value framework element: Economic Performance................................................................26
Value framework element: Social............................................................................................30
Value framework Element: Environmental:............................................................................32
Value Framework Element: Segmental...................................................................................34
Reporting of materials:.............................................................................................................35

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Conclusion:..............................................................................................................................36
Reference List:.........................................................................................................................37

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Introduction:
The current report is based on the analysis and assessment into the quality and the
nature of the Novozymes performance reporting of the firm health in respect of the PWC
framework. Novozymes is regarded as one of the international market leader in the biological
solutions that produces a large variety of industrial enzymes and microorganisms. The
company offers solution to assist the customers in generating more from less, adapting to the
market changes, enabling the product known to customers and lowering down the costs. The
report will offer a in depth understanding of the performance information which is the vital
element and factor in decision making structure of the company with correct responsibility.
Value Framework Elements: Strategy and Objectives
Report Extract: Page 33:

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Report Critique:
Reporting characteristics that stimulates Strategic and Objective framework element:
a. There is a clear statement relating to strategic objectives and goals
b. Short, medium and long term strategic business targets
Extensiveness and Accessibility:
The strategic objective of Novozymes is to render improved performance every year
as the company has placed strategic partnerships and networks with the customers,
governments, suppliers and others that surround the company to make sustainable difference
(Lai et al., 2016). The company has indulged in lead innovation that are tailored to meet the
market needs. The corporate strategy of the company can be obtained easily and
comprehensively. The company has undertaken both the qualitative and quantitative aspects
of communicating its strategy and objectives in its annual report of 2016. The organization
strategy is initially communicated on page 33 which makes it prominent for the readers and
sets down the tone of the overall report. Additionally detailed strategic and objective goals
are stated in the Chairman’s report at page 49 section of the report. The strategic objective of
Novozymes is linked with the Key Performance Indicators (KPI).
Comprehensiveness:
The Chairman’s strategic review is liked with the organizations growth, business
model, and innovation and customer-oriented through reporting of;
a. Lead innovation
b. Emphasis on opportunities
c. Partnerships and networks with customers
d. Improving the capabilities and motivation of organizational growth

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Beside placing emphasis on the performance of the preceding years, the chairman of
Novozymes has provided a qualitative outlook relating to the strategic partnerships and
networking creation (Linder & Williander, 2017). The Chairman has additionally emphasised
on the sustainable environmental development in respect of the global management standard.
Conclusion and Strength:
The annual report of Novozymes for 2016 has provided explanation relating to the
strategic organization goals and objectives. The report is appropriately formatted and
straightforwardly understandable. Both the qualitative and quantitative aspects of the report is
related with the business goals with “good” overall presentation of the information.
Value Framework Element: Business Model:
Report Extract: Page 29
Reporting Critique:
Reporting characteristics that drive the Business Model framework element:

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a. Clear and vivid explanation of the business model that builds wide range of industrial
enzymes and microorganisms.
Extensiveness and Accessibility:
The business model of the company is communicated with the help of full one page
diagram inside the heads of Business Model in the annual report of 2016 (Bocken et al.,
2014). The information relating to the business model of Novozymes can be obtained through
table of contents under the “Our Business”. The model is lucidly formatted with sufficient
explanation of customers and partners, distribution, technical services, innovation, production
and suppliers.
Comprehensiveness:
The figure above explains the circular flow of business model where the company
engages with its customers and partners for promoting sustainable and efficient production
process (DaSilva & Trkman, 2014). The production and innovation strategy helps in building
long term business value by efficiently linking the organizations strategy with business goals.
Conclusion and strength:
The business model of Novozyme is clearly defined in one page which makes it easy
and comprehensive for the readers to understand. The elements surrounding business model
is evidently explained and the overall quality of the presentation is “Good”.
Value Framework Element Governance:
Report Extract: Page 49
Report Critique:
The governance structure of Novozyme states that the organization is remain
committed towards the transparency in reporting. The governance structure of Novozyme lay

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down the rules that regulates the governing of documents, annual general meeting, and
nomination of the committee members and policies of the board of directors (Aguileraet al.,
2018).
Comprehensiveness:
The corporate governance of Novozyme is evidently stated in the “Board of Directors
Composition and Responsibilities”. Novozyme in agreement with the Danish Legislation has
two tier system of management that comprises of the Board of directors and executive
leadership teams (Armstrong et al., 2015).
Novozyme implements the below stated corporate governance code of principles:
a. The audit committee is accountable for assisting the board of directors in monitoring
the accounting related aspects such as internal control and financial reporting.
b. The executive leadership team is accountable for ensuring appropriate management of
the organizational structure
c. The board of directors are accountable for overall administration and strategic
expansion of the company.
The governance structure of Novozyme provides that nominations are based on the
assessment of the factors namely the competencies, diversity and independence. The
governance structure provides qualitative info relating to the composition of the firm and
activities of every committee members.
Conclusion and strength:
The corporate governance report of Novozyme lay down the in depth explanation of
the numerous roles and responsibilities of the executives and directors towards transparent

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flow of information with greater degree of commitment and regulatory policies. Hence, the
quality of the exhibition is “Good”.
Value Framework Element: Strategy: Risk Management:
Report Extract: Page: 35
Report Critique:
The risk management process of Novozyme consists of the risk identification,
assessment, and reporting and risk mitigation.
Extensiveness and Accessibility:
The major risk and uncertainties of the Novozyme can be accessed in page 36 of the
report under the heads “Key Risks for 2017” which provides the readers with the easily
comprehensive understanding of the organization and mitigation process (McNeil et al.,
2015).

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Comprehensiveness:
Novozyme provides an in depth explanation of the main risk faced by the business.
The company identifies and mitigates that risk as early as possible that forms the integral part
of business and its partners (Hopkin, 2017). The annual report contains the two page detailed
description of the probable risk faced and potential impact faced by the business with process
for risk mitigation.
Overall conclusion:
Novozyme has placed its commitment in providing detailed explanation of risk and
measures adopted to mitigate risk. The risk management section of Novozyme is visibly
formatted with appropriate headings and charts which makes it easy for the readers to
understand. Therefore, the overall quality of information is “Good”.
Value Framework Element: Remuneration:
Report Extract: Page 50:

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Reporting critique:
The remuneration report of Novozyme lay down the method of rewarding and
remunerating its employees along with the senior executive of the organization.
Extensiveness and Accessibility:
Novozyme chairperson is accounting for recommending the remuneration of the
board of directors and executive leadership teams (Guillen et al., 2015).
The remuneration committee report consists of the following;
a. The remuneration policy for executive leadership teams