Facelift Ltd- The innovative company

Facelift Ltd. is a general merchant selling office furniture in the UK market.  They have 100 stores, 8,000 employees and have projected to increase the turnover significantly. The economic downturn having affected their core business of office furniture, Facelift Ltd. has decided to diversify into the home furniture market.

You have been selected as Consultant to the Board of Directors of Facelift Ltd to advise on this diversification program. You are required to:

  1. Prepare a formal report detailing the primary and secondary data collection plan detailing the type of primary and secondary data that can help Facelift diversify into the Home furniture category. (AC-1.1, 3.4)

Describe and justify the survey methodology you will use to carry out the research.


  1. Develop a questionnaire for this research and justify its design.(AC-1.3)

(This should cover Assessment Criteria 1.1, 1.2, 1.3 & 3.4)

  Task 2- Analyzing Business Information

Facelift Ltd. has records of their office furniture sales for the last 12 months as shown in the table below:

Months Cabinets ( Million £) Chairs ( Million £)
January 145 215
February 154 325
March 179 185
April 192 332
May 215 406
June 219 522
July 244 412
August 251 614
September 204 544
October 181 421
November 152 395
December 105 255


  Create an excel sheet by summarising data using representative values. (AC-2.1)

  1. Analyse the data using tools for measures of dispersion to derive information for Facelift Ltd. (AC-2.2 & 2.3)
  2. Explain how quartiles, percentiles and the correlation coefficient can be used to draw

useful conclusions for Facelift Ltd. (AC- 2.4)

(This should cover Assessment Criteria 2.1, 2.2, 2.3 & 2.4)

 Task 3- Presentation of Business Performance


Facelift Ltd intends to sell 4 types of home furniture and their respective projected turnovers are tabled below:


             Year          Type





Beds £4M £5M £5.5M £6.5M
Sofa £6M £6.3M £6.9M £7M
Wardrobes £2M £2.1M £2.3M £2.5M
Dining Table £3M £3.5M £2.5M £2M


1.         With the aid of the spread sheet, present your information on pie charts, line graphs, bar graphs as appropriate and draw your conclusions.(AC-3.1)


2.         Demonstrate the business trends for each product and with the help of appropriate trend lines try to forecast the business for the next year. (AC 3.2)


3.         Prepare a business presentation for the above results using appropriate software and techniques to disseminate information effectively. (AC 3.3)

(Your answer should be presented in a report format with use of graphs for better presentations).

(This should cover Assessment Criteria 3.1, 3.2 & 3.3)

 Task 4 – Using Decision Making Tools

 In order to cope with the projected growth resulting from their diversification and to improve their customer service, Facelift Ltd wishes to implement a new Management Information System (MIS). Two firms have been shortlisted as suppliers of the MIS system.

Option A- ABC Systems

Initial cost of equipment and installation is £1m.

 Option B- XYZ Solutions Ltd

XYZ has quoted a slightly higher initial cost of £1.5m though this highly sophisticated system can handle overseas volume transactions in case Facelift decides to explore the international market in the future.

Projected Cash-flows from the two options are as follows:


  ABC Systems XYZ Solutions
2014 300 400
2015 350 425
2016 400 450
2017 425 475
2018 450 500

Other Information

(a)The cost of capital for both options is 5%.

(b)The project implementation schedule to be imposed on the chosen supplier of the MIS has been decided as follows:

Activities                                                      Duration                Preceding Activity


A   Obtain estimate for a

new powerful pc and wiring                       01                                   –

B   Arrange computer link with

head office                                                  05                                   –

C   Appointing new staff                                  02                                   –

D   Office alteration                                          02                                  A

E    Test computer links                                     0.5                               B, C

F    Train new staff                                            02                                  C

G   Internal re-wiring                                         01                                  D

H   Install internal computer links                     0.5                                  D

I     Install new computer                                  0.5                                  H

J     Test new computers                                     01                              F, G, I

K   Test new system                                          01                                 E, J


  1. Explain the benefits of MIS and how it can be used to manage inventory effectively.(AC-4.1)
  2. Using available investment appraisal tools, you are required to propose the best MIS investment alternative to Facelift with clear justifications supporting your proposed choice (AC- 4.2)
  3. Using a network diagram, prepare a plan on how you are going to implement the above system for Facelift and determine the critical path. (AC-4.3)

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