The company’s brands include Smiggle, Portmans, Just Jeans, Peter Alexander, Jay Jays, Jacqui E and Dotti. In 2016, group sales revenue exceeded AUD$1 Billion for the first time (Mitchell, 2016a). Solomon Lew, the chairman and largest shareholder of Premier Investments, recently became the first Australian to be inducted into the World Retail Congress Hall of Fame (Mitchell, 2016b). As at 15 May 2017, Premier Investments’ share price was $12.70, giving the group a total market capitalisation of AUD$2.0 Billion. The group’s success in recent times has, in particular, been propelled by the success of Smiggle and Peter Alexander. These two brands now account “for the lion's share of Premier's half-year sales and earnings growth” (Low 2017) and the group plans to open further stores throughout Asia, the UK and North America (Chang, 2015; Mitchell, 2016; Low, 2017). It has been argued that Smiggle and Peter Alexander are particularly well suited to online retail and the group is targeting online sales of $100m a year by 2020 (Batholomeusz 2017).Part1-Reporting-Principles-and-Standard-Disc Premier Investments’ Board Policies include statements concerning Business Sustainability and Ethical Sourcing. Required: With specific reference to Section 5.1 of the Sustainability Reporting Guidelines of the GRI, your task is to write a report that: Provides an overview of the environmental and social impacts (positive and negative) of Premier Investments’ operations (10 Marks). Identifies and discusses four key GRI disclosures that are likely to be of most relevance to the stakeholders of Premier Investments and reviews whether this information is provided by the firm (15 Marks). Compares the quality and depth of environmental performance information provided by Premier Investments with the practices of Myer (20 Marks). Evaluates whether widespread compliance with the GRI guidelines by Australian retail businesses would benefit potential investors, current shareholders and other stakeholders of Premier Investments (15 Marks). You should make use of both financial and non-financial measures (the table below can be used to summarise your findings). Briefly discuss the key features of your scorecard and the reasons behind your chosen measures (10 Marks). Perspective Objective Measures Financial 1. 1. 2. Customer 1. 1. 2. Internal Business Processes 1. 1. 2. Learning and Growth 1. 1. 2. Part C (10 Marks) Peter Alexander offers a customisation service which enables customers to personalise their clothing purchases by adding their name or initials. Leveraging of this idea, the following discussion presents hypothetical information relating to a new proposal designed to improve the profitability of Just Jeans. The management team of Just Jeans have just received a new proposal one of the firm's marketing managers. The proposal outlines a new investment to create a Custom Finish Lab. Through the Custom Finish Lab, online customers will be able to select an option to personalise purchased jeans in a range of finishes including blast wash, faded wash, and ripped and scuffed. The selling price, cost, and expected sales volumes of these custom options is provided below: Blast wash Faded wash Ripped and scuffed Selling price $30.00 $30.00 $35.00 Labour $7.00 $4.00 $10.00 Materials $4.00 $3.50 - Variable overhead $4.00 $3.00 $6.00 Expected sales p.a. 8,000 10,000 7,000 Other costs associated with the Custom Finish Lab each year will include: Equipment depreciation $200,000 Rent $80,000 Marketing $150,000 Other $110,000 The firm’s tax rate is 30%. Required: Calculate the number of blast wash, faded wash, and ripped and scuffed finish sales that will need to be made to: break-even, and achieve an after-tax profit of $350,000 (provide workings) (3 Marks). Prepare a memo which suggests a number of possible strategic initiatives that Premier Investments could implement in relation to the Custom Finish Lab concept to enhance the break-even point and/or annual profit. These initiatives could impact the firm’s sales mix, selling prices, variable or fixed costs. Provide workings which illustrate how your proposed initiatives could influence the break-even point and forecast profit (7 Marks). Rationale Assessment Task 2 is designed to assess your understanding of the learning outcome ‘Explain and evaluate the concepts behind the management decision processes associated with the efficient allocation of business resources’ covered by Topics 5, "Social and Environmental Accounting", and Topic 6, "Management Accounting and Professional Ethics".