Applying Irac Method to Case Study

Investigative Consulting Report

For Company S – Owned by Mr S

Prepared for

Alison McCourt

Prepared by

ID: 9338505

Word Count

1974

Background

Company S (the Company) is a limited liability trading company which focuses on importing and exporting of fast moving commodities. Its head office is based in Hamilton, New Zealand and the branch office is in New Delhi, India. Mr S is the sole-director and owns all of the company’s shares. Mr S and his wife live in New Zealand and Mr S’s father manages the Indian branch.

Mr S is also an employee of Company G (Employer). He is the Quality Manager and has been working with the employer for approximately 5 years. The employer is a New Zealand owned business that has been operating for approximately 70 years. It has several business arms including engineering, security management systems, plastics, and fuel products, and exports globally.

The employer manufactured and sold household clothing pegs (the Product), however due to high overheads and low returns, the employer decided to stop manufacturing and selling the product. The employer’s Chief Executive Officer (the CEO) knew that Mr S’s company could possibly manufacture the product from India and import them for sale in New Zealand and approached Mr S with the proposal to manufacture the products through his personal company. The CEO offered the equipment at no cost to assist in manufacturing the product, in return for a small percentage of the sales of the product. The CEO also promised Mr S rights to the distribution arrangements that the employer had in place with supermarkets throughout the Waikato region.

After completing an in-depth cost analysis for manufacturing, importing, royalties, distribution and supermarket margins, on behalf of the company, Mr S accepted the offer made by the CEO and began the process of manufacturing pegs from India, and importing them to New Zealand for sale. The arrangements were made verbally and there is...