Questions 4.1 - 4.3

4.1 (5%)
Discuss whether Mette Villadsen should choose the private limited company form of ownership for her business.

4.2 (10%)
Create a quarterly budgeted income statement for Villadsens Gourmet for 2026.

The information you need can be found in Appendix 3 of the Excel file.
You will find a sheet which can be used for the budgeted income statement in Appendix 3.

4.3 (5%)
Explain how a larger borrowing requirement will affect the budgeted income statement.

Assignment 4

Business plan and budgeting

Mette Villadsen trained in a large supermarket, where she has headed the wine and chocolate department for the past few years. She has long dreamed of opening her own shop, and has now decided to establish a speciality shop in Odense called Villadsens Gourmet. Her plan is for the shop to sell a carefully selected range of ready-made chocolates from renowned manufacturers as well as carefully selected wines to complement the flavour of the chocolates.

The shop will focus on the finest chocolates from filled pralines and truffles to chocolate bars and toffees. In addition, the shop will offer a wide range of quality wines, including sparkling wines, dessert wines and red and white wines from vineyards around the world. This unique combination of products will enable customers to create a complete sensory experience, where wine and chocolate support each other’s flavour notes.

Mette will offer a high level of personal service, and create a welcoming atmosphere where customers can obtain expert guidance on choosing the perfect wine and chocolate pairing.

Mette lives just outside Odense in her own house with her husband and two children. She has saved up DKK 100,000 to start the shop, and has found vacant premises in the pedestrian street in Odense. To establish her business, she will need a bank loan, and for her meeting at the bank, she has to prepare a business plan. Mette has therefore prepared a draft establishment and financing budget. According to her calculations, she needs to borrow DKK 400,000, but she is now in doubt whether her borrowing requirement is, in fact, higher.

Mette’s accountant has recommended that she establish a private limited company.

Questions 3.1 - 3.3

3.1 (5%)
Explain Chokoladeværkstedet A/S’s value proposition.

3.2 (5%)
Assess the bargaining power of suppliers in the chocolate and confectionery industry.

3.3 (5%)
Assess which activities in the value chain are Chokoladeværkstedet A/S’s core competences.

Assignment 3

The company and its strategy

Chokoladeværkstedet A/S is a reputable Danish chocolate manufacturer with a proud tradition of craftsmanship and quality. Founded in 1949, the company is recognised as one of Denmark’s leading suppliers of premium chocolate products. The company is known for its passion for chocolate and its ability to combine classic recipes with innovative flavours.

Chokoladeværkstedet A/S offers a wide range of delicious chocolate products, including chocolate-coated marshmallow treats, truffles, chocolate bars and specialities created with a focus on the finest ingredients. Respecting traditional craftsmanship and quality, every single chocolate is produced with the greatest care and precision. The company uses good-quality, sustainable raw materials. The main raw material in chocolate production is cocoa. Cocoa can be sourced from many different cocoa exporters in Africa and Asia, however, there is a lack of specialist exporters who focus on quality and sustainability. On the other hand, there are many possible suppliers for the other raw materials used in chocolate production, such as sugar, milk, nuts, fruits and flavourings.

The company’s products are sold both to physical stores as well as on its own website.

Questions 2.1 - 2.3

2.1 (5%)
Calculate the variable unit costs for one box of mooncakes.

The information you need can be found in Appendix 2 of the Excel file.

2.2 (5%)
Calculate the contribution margin and the contribution ratio for one box of mooncakes.

2.3 (5%)
Explain how the average contribution ratio in KageKompagniet will be affected if the mooncakes are included in the range.

Assignment 2

Calculation and earnings

KageKompagniet is an innovative online platform that specialises in offering an exclusive selection of handmade cakes from well-known bakeries and patisseries abroad. The mission is to bring the flavours of the best international cakes to Denmark, so customers can treat themselves and their loved ones to unique and delicious sweetmeats.

The company works with carefully selected bakeries from different countries, each with their own unique recipes and traditions. This allows the company to offer a varied range including French macarons, Italian tiramisu, Spanish churros and much more. The cakes are imported directly from the producers, so customers always get fresh, authentic and tasty products.

At KageKompagniet, customers can easily order their favourites online. It is possible to choose from a wide range of cakes that can be customised for different occasions, from birthdays and weddings to everyday moments of hygge.

The range is constantly evolving, and the procurement manager is thinking about expanding it to include a Chinese ‘mooncake’. This is a traditional Chinese cake filled with sweet bean paste, lotus seed paste or egg yolks, and it has a beautiful patterned surface.

The procurement manager has obtained a quote for a consignment of 200 boxes of mooncakes at a purchase price of USD 22 per box. The exchange rate for USD 100 is DKK 668. The insurance premium accounts for 1% of the purchase price. Customs duty on the cakes is DKK 15 per box. The price for shipping is DKK 1,200, while forwarding costs DKK 800 for the entire consignment. The cakes are expected to sell for DKK 249 per box.

KageKompagniet has an average contribution ratio of 45%.

Questions 1.1 - 1.6

1.1 (10%)
Based on the accompanying material, explain which factors have impacted Odense Marcipan A/S’s financial development from 2021 to 2023.

1.2 (15%)
Analyse the development in the index figures for earnings and asset use efficiency (capital adjustment) from 2021 to 2023 based on these factors. See question 1.1.

The key figures can be found in Appendix 1 of the Excel file.

1.3 (10%)
Assess how the development in the index figures affected the profit margin ratio and the asset turnover ratio from 2021 to 2023.

The key figures can be found in Appendix 1 of the Excel file.

1.4 (5%) 
Explain why the return on equity increases from 44.5% in 2022 to 49.8% in 2023 when the cost of debt ratio increases from 0.7% in 2022 to 1.9% in 2023.

The key figures can be found in Appendix 1 of the Excel file.

1.5 (5%)
Assess which competitive strategy is being pursued by Odense Marcipan A/S.

1.6 (5%)
Assess which benefits Odense Marcipan A/S can achieve through organic growth rather than acquisitions in future.

Assignment 1

Company analysis

Odense Marcipan A/S was founded in 1909 by Lauritz Thobo-Carlsen who bought a small marzipan factory in Odense. The head office is still located in Odense, where marzipan is still produced. In addition, the company also has production facilities in Hobro in central Jutland, in Hedehusene on Zealand and in Sweden.

Today, the company is owned by Orkla Food Ingredients in Denmark, which in turn is owned by the Norwegian conglomerate Orkla ASA.

The main activity of Odense Marcipan A/S is the production and sale of marzipan, nougat, frozen cakes, jams and fruit fillings. The products are marketed and sold to the retail, bakery, foodservice and industrial markets in the Nordic region as well as on selected export markets.

The products are sold under the following four brands: Odense, Bæchs, IGOS and Frödinge, and there are more than 1,000 different product numbers.

Ever since it was founded in 1909, Odense Marcipan A/S has focused on producing branded products of the highest quality.

Odense Marcipan A/S’s mission and vision is:

“Mission
With unique products, concepts and applications as well as committed and competent employees, we add quality, competence and solutions within cakes, desserts and confectionery, thereby creating value for consumers and our customers.

Vision
We are always a natural part of cakes, desserts and confectionery with respect for quality.”

Odense Marcipan A/S’s ambition is to match the best companies in the world when it comes to food safety, and it goes to great lengths every day to ensure food safety throughout the entire value chain, from the cultivation of the raw materials until the products end up on the shelves.

In 2023, Odense Marcipan A/S had 250 full-time employees. The company posted revenue of DKK 591,213 thousand and a pre-tax profit of DKK 69,731 thousand.

This assignment comes with the following material:

Articles:

• King of marzipan posts modest growth, Dagligvarehandlen.dk, 5 July 2023
• Export breakthroughs and increased sales: Continued growth for Odense Marzipan, Jyllands-Posten, 4 July 2024

Key figures:

• Prepared accounting and key figures for Odense Marcipan A/S for the years 2021 to 2023. See Appendix 1 of the Excel file.

Instructions

This material consists of four assignments. Each assignment has a number of questions which have all been given an approximate weighting. The weightings are used in the overall exam assessment.

All the assignments must be completed independently of each other. The assignments come with an accompanying Excel file, which has a number of appendices containing data and templates. In addition, there is a Word document containing all the questions.

Download:

The Word document with all the questions can be downloaded here: Word file

The Excel document with all the appendices can be downloaded here: Excel file

Remember:

Save the files to your computer before you start to use them.

Communication with anyone else during the exam is not permitted.