Related Diversification

Question 1

You are required to carry out brief research on these three selected companies; Secret Recipe, Killiney Kopitiam and Old Town White Coffee. For each company, analyse the corporate strategies used by these companies based on the following areas: Name of Company: Type of Strategy Current Business Example and Brief Analysis of Strategy Used

(a) Forward integration

(b) Backward integration

(c) Market penetration

(d) Market development

(e) Product development

(f) Related diversification

Question 2

Planning an audit of financial statements requires auditor to plan the audit engagement. This involves setting up audit strategy and then devising a plan in the light of strategy. As the engagement progress, auditor may feel the need to update, extend or change the planned procedures.

Discuss how this is done and what needs to be done.