Operation management group project

operation management group project –Hills’ Strategy Development Framework,

Group Project – Due Monday, November 30, 2020 by 6:00 pm.

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Hills’ Strategy Development Framework

Formation of Groups for this Project will take place in class on September 28.  If you are absent on Monday September 28, you MUST advise me so I can assign you to a group.  If you do not advise me on or before 6:00 pm on September 28 you will not be put into a group and you cannot do the project on your own, nor will a make-up assignment be allowed, so a grade of zero will be assigned to you.  Under no circumstances will absent students be added to groups after September 28 as it is not fair to burden groups with making changes after that date as your organization has to be selected by October 5th so ensure you are aware of this deadline.  Also read below very carefully regarding group participation and your responsibilities.

You should start this project as soon as Chapter 3 is completed (September 28).  Have your first meeting within a week of this date.  Upload one document per group using the Moodle link in the November 30th module.

I have set up reporting dates that you need to be aware of.  Note:  If you encounter participation difficulties with any group member(s), you do not need to wait until the timelines shown below.  The sooner a management issue is dealt with regarding non-participating members, the more likely it is that we can find a solution to manage the issue.

September 28 – Group formation;

October 5 – provide me with the name of the organization you are assessing on by October 5

October 26 – update on whether or not all members are participating and what you have done to rectify the situation if problems are present.  You must keep evidence of non-participation, dates, and work submitted for each group member in order for me to assess (and the member to defend) any reported participation issues.  Your first draft should be completed by this date.

November 16 – all issues with member participation should now be resolved.  If there are any outstanding issues this the final date to resolve.  If your group is still experiencing problem(s), please suggest the action you wish to have taken towards the non-participating member(s).  Again, this needs to be evidence-based so keep track of participation, dates, and work submitted.  Your project should be completed in final form by this date other than basic editing.  If not, I can guarantee you that you will run into completion problems with one or more members of your group not submitting the required work after this date.  That will mean the balance of the group will have to pick up the slack. After November 16, the offending group member(s) will share in your grade and I will not respond to complaints/issues after November 16 as this project has had time to be managed properly from September 28 onward.   

Project Instructions:

This assignment is designed to force you to think strategically both in terms of operations and the organization as a whole. You will be applying the template from Chapter 3 – which very aptly ties in a firm’s operations strategy with its overall corporate and marketing objectives.  You should notice that you are identifying many of the topics covered in this course (eg supply chain management, inventory, processes, sustainability, etc).  You can never look at your operations strategy in isolation.  It always has to be interrelated and stem from the overall corporate objectives.  The end result of your project should be to highlight how Operations Management (design and infrastructure strategies) contribute to the overall mission, corporate strategy and marketing objectives of the firm as a whole.

You can select your firm to analyze but ensure you do not take on too big of a task – if you select a large organization it might be useful to focus on one product line or aspect of the company.  You must select a publicly traded company so I can view the sites to confirm information provided in your project. 

You are to use the Hill’s Strategy Development Framework and follow the McDonald’s example which is an exact replica/template of what I am looking for.  Where I think students might struggle is that they try to find something to put into every bullet point in the Framework template.  This is not rational or possible.  On page 61, Exhibit 3.3 you will see the first three columns help you understand the organization’s objectives, marketing strategy and “How Do Goods and Services Qualify and Win Orders in the Marketplace.”  There are 17 bullet points under this third column but if you look at the McDonald’s example (page 64, Exhibit 3.6) you will see for column 3 they have only identified 6 ways the firm qualifies and wins orders in the marketplace and they have linked these 6 methods with the corporate objectives.  They have not tried to “fit” something into each of the 17 bullet points in the generic Hill’s Strategy Development Framework template!  So use the bullet points as guidelines as to what you should be trying to find information on but address only those issues that apply to your selected organization.  You can also find other methods/activities that are not in the list but it is best to use the suggested guidelines from the bullet points first as these has been tried and tested for many major corporations and are the most common guidelines or areas most relevant to analyze.

Once you get the information gathered and can complete the first 3 columns (Corporate objectives, Marketing Objectives, Qualify and Win Orders) then you can start analyzing the operational design and infrastructure strategies and the examples of what the organizations does to help the organization achieve its overall organizational strategy.  As this is an operations course I will be looking very closely at these two columns. 

If you are looking for plentiful and fast information, go to the website for the company you have chosen.  You will see in their site a location for “Investor Relations” or “Financial Statements” or perhaps some other wording similar to this.  Find your way to the company’s financial statements and bring up the most recent ones and you will find significant information from the company – perhaps enough for all 5 columns to be completed!  You are not looking at the numbers in these statements per se; rather, you are looking at all of the preamble given to shareholders by the company CEO or President as typically these preambles very specifically outline corporate objectives, strategies, infrastructure, etc.  This is always where I go first when analyzing a company that is public.  It does not mean you cannot make phone calls or do other analysis – in fact I encourage it as you might need to do so.  But certainly make your first analysis for this project the company’s most recent financial statements.  Keep in mind that the information in the financial statements is coming from senior executives of that organization so it is slanted towards making the company look favorable; however, information about the corporation is generally accurate such as markets, growth, products, corporate objectives, etc.  It is just presented in the best light possible!

Your write-up with be in two parts. 

Part 1

Include the framework summary as shown on page 64, Exhibit 3.6 keeping in mind what was outlined above about only using assessments that make sense for your organization.  Use bullet points in the framework as you will have an opportunity to expand upon your examples in part two. 

It is best to separate your corporate objectives into sections and across from each corporate objective list the associated marketing and operational strategies.  In other words, list in the far left column the first corporate objective, then in the next column the associated marketing objective(s) and examples for corporate objective 1, then in column 3 the qualifiers and winners, and then finally in columns 4 and 5 the associated examples of operational design and infrastructure for corporate objective 1.  When you are completely finished with the assessment of all the variables for corporate objective 1, drop a few lines in your framework and start the assessment of corporate objective 2.    Repeat this process until you are finished with your corporate objectives.  If you just type in all of the strategies you found for design and infrastructure but don’t organize your findings with the specific corporate objectives it is impossible for me to pull together your connections and you will lose significant points.

Part 2

Introduce your selected company and very briefly identify the industry.  Then in the order you presented the corporate objectives in the framework, explain in more detail the operational design examples and operational infrastructure examples and how you feel they support (or do not support) that specific corporate objective.  Repeat the process for each of the corporate objectives.  This is not a marketing course so don’t spend many paragraphs discussing the marketing strategies in detail – you are aligning the operational design and infrastructure examples/strategies and this is where I want to see the details.

This project cannot be done in a few hours – just because the number of pages is suggested to be around 6-8 does not mean this is a short and easy project.  This is a 3000 level course and my expectations are that the work submitted will include 6-8 pages of high quality analysis and critical assessment (and of course you may exceed the 6-8 pages).

 

 

 

 

 

 

 

 

 

Hill’s Strategy Development Framework:

Clearwater

 

 

 

 

 

 

 

 

 

 

 

 

 

                                          Operations Management – BUSI 3308-18

                                                  Dr. Sandy Findlay-Thompson

Submitted on: November 30, 2020

 

                                                  Group Project submitted by:

                        Melissa Noble

Bhagawat Rizal

Hannah Morrissey

Andrew Pike

Xuechun Wei

 

 

 

 

 

 

 

 

 

Group Work Breakdown

 

 

Hill’s Strategy Development Framework applied to Clearwater

 

  1. Introduction (Hannah Morrissey)

 

Growth – Expand Access to Supply by targeting profitable & growing markets, channels & Customers. (Hannah Morrissey)

 

 

Economic Sustainability – Innovate & position products to deliver superior customer satisfaction & value. (Xuechun Wei)

 

Profit – Increase Margins by improving price realization & cost management (Andrew Pike)

 

Social Sustainability – Responsible Fishing practices, Caring for their Employee, Community outreach and Inclusive workplace and workforce.  (Melissa Noble)

 

Environmental Sustainability – Healthy Oceans – Ensuring that oceans remain healthy, sustainable and flourishing is a top priority for Clearwater. (Bhagawat Rizal)

 

Conclusion (Melissa Noble)

 

Andrew, Xuechun, and Bhagawat to work on final composition (edits for flow and transitions after we get the rough draft completed)

 

Goal to have a rough draft ready for November 9th

 

  1. Corporate Objectives
  2. Expand access to supply.
  3. Target profitable & growing markets, channels & customers.
  4. Innovate & position products to deliver superior customer satisfaction & value.
  5. Increase margins by improving price realization and cost management.
  6. Pursue and preserve the long term sustainability of resources on land and sea.
  7. Build organizational capability, capacity and engagement.

 

 

Table of Contents

Applying the Hill’s Strategy Development Framework to Clearwater 4

Introduction: 6

Detailed Corporate Objectives: 6

Growth. 6

(1)         Vertical Integration in the Supply Chain: 7

(2)         Increasing Capacity: 7

(3)         Inventory Control: 8

(1)         Implementing Innovative Systems: 9

(2)         Increasing Size of Workforce: 9

(3)         External R&D Partnerships: 9

(4)         Processing improvements: 9

Profit 10

(1)         Geographic Targeted Marketing. 10

(2)         Decreasing Costs Through Maximizing Margins. 10

(3)         Capital Investments. 11

(4)         Leveraging Market Position. 11

Social Sustainability: 12

Environmental Sustainability: 14

Conclusion. 15

References. 16

 

 

 

Part 1

Applying the Hill’s Strategy Development Framework to Clearwater

Corporate Objectives Marketing Strategy How Do Goods and Services Qualify and Win Orders in the Marketplace? Operating Design      Choices Infrastructure
Growth

Expand Access to Supply by targeting profitable & growing markets, channels & Customers.

Targeting international markets: Focus on markets where there is increasing demand for Seafood.

 

Implement Efficient Sales Channel: E-commerce website: increases customer base, sales, revenues and creates a new efficient sales channel.

 

Increasing Market Share: acquiring additional fishing licenses from other fisher-people and the government.

 

Diverse Customer Base: Targeting international markets.

 

  Supply Chain Vertical Integration: Clearwater harvests their own quota, process in their own facilities, and coordinates delivery to their customers.

 

Increasing Capacity: With the application of increasing customer base and E-commerce website.

 

Inventory:

Maintaining broadest, highest-quality premium wild shellfish portfolio of species.

 

 

 

 

Implementing Innovative Systems to fuel growth. Purchase of State-of-the-art harvesting vessel.

 

Increasing size of workforce to meet demand needs.

 

External R&D Partnerships:

 

Efficiency innovation focusing on processing improvements for ocean side, fleet based, land based and new product development.

Economic Sustainability        
Profit

Increase Margins by improving price realization & cost management

Focus on Asian markets especially China, where large increases in seafood consumption are projected. From 2010-2018, Clearwater sales are ~ 80% correlated to China per Capita GDP growth rates (Clearwater, 2019) Margin expansion from strong catch rates/lower cost per kilo

 

Continued focus on cost reduction, leveraging low-cost, high return CAPEX investments in automation and quality assurance

 

Leverage scarcity of seafood supply/increasing global demand to continuously improve price realization, revenue and margins

(Clearwater, 2019)

Creation of an “Audit Committee”

 

Creation of a “Finance Committee”

 

Capital investments in Clearwater-owned fleet, processing technologies, and automation.

 

Maintain vertical integration

Social Sustainability – Organization’s commitment to employees, community, inclusive and diverse workplace and partnerships. Employee Benefits & development, health and safety. Responsible fishing & MSC-certified.  Community involvement &  inclusion. Top employer

Safe and Diverse workplace

Part of Community

 

Investment in employees & training.

Sustainable fishing practices

Community outreach

Inclusive partnerships

Ongoing training, paid internship, tuition subsidies, health benefits, flexible schedules.

Charitable donations and involvement.

Teamwork

 

Environmental sustainability- Polices are in place by government and by the corporation to protect our ocean Level of innovation- Focus on sustainable harvesting and processing sea foods.

 

Implement GIC system to minimize the impact on marine ecosystem to promote sustainable fishing approach.

Quality- Hight quality sea foods which is export to international markets.

 

Environment- Protecting Oceans and Ecosystems

 

Product Variability

Scallops, Lobster, Clams, Shrimp, Snow Crab, Norway Lobster, and Rock Crab

 

Technology- Modern technology is used for harvesting and processing.

 

Reducing carbon footprint by equipping its fleet with modern technology.

 

Modern technology is used to produced high end products.

 

Learning & Innovation system- Investment in research and development.

 

All vessel has 3D imaging systems

 

 

 

Part 2

Introduction:

Clearwater Seafood Inc. operates within the Fish and Seafood Merchant

Wholesales Industry. The operational activities for this corporation include:

harvesting, processing, and distributing and marketing seafood internationally.

The main products the Nova Scotia-based company markets are Scallops, Lobster, Langoustine, Clams, Whelk, Coldwater Shrimp, and Crab. Clearwater has additional operational bases in China, UK Scotland and Argentina. They have succeeded in becoming the largest holder of shellfish licenses in Canada, exporting to over 40 countries, and employing 2,500 people. Clearwater’s climb to success began when the company was founded in 1976 by John Risley and Colin MacDonald. Risley and MacDonald began their entrepreneurial venture by selling lobsters out of a pick-up truck on the Bedford Highway. Risley and MacDonald’s modest business strategically expanded all areas of operations and morphed into the international corporation we know today; Clearwater Seafoods Inc. (Grudic, 2017). Despite their success and operational advancement, Clearwater’s mission has stayed the same – To build the world’s most extraordinary, wild seafood company, that is dedicated to sustainable seafood excellence. (Mission, Strategies & Values, 2018).

 

Detailed Corporate Objectives:

Growth

Clearwater Seafood Inc. defines one of their corporate objectives; growth as expanding access to supply by targeting profitable & growing markets, channels & customers. Furthermore, when studying the corporation’s expansion in the Fish and Seafood Merchant Wholesales industry, it is evident how this corporate objective has been executed.

 

Clearwater’s operational design choice strategy for growth has 4 key areas of focus; (1) Vertical Integration in the Supply Chain, (2) Increasing Capacity, (3) Inventory Control and (4) Maintain a diverse customer base.

 

(1)  Vertical Integration in the Supply Chain:

To remain competitive, meet demand, reduce expenses, and expand operations, Clearwater needs to have an efficient supply chain. Clearwater owns their own fishing quotas, vessels, processing facilities, and provides delivery of wild-caught and sustainably harvested shellfish to its customers around the world. The fishing vessels work simultaneously as “Floating Factories” with innovative food-safety-certified processing facilities onboard. The seafood caught can be harvested, packaged and frozen on the vessel. Clearwater’s application of a vertical supply chain paved the way for them to expand operations into one of largest corporations in the fishing and harvesting industry.

 

(2)  Increasing Capacity:

Clearwater strives towards their goal of increasing capacity by increasing their product demanded. This is executed through a growing and diverse customer base and an E-commerce website. Diverse customer base mitigates risk and adds financial security; these factors contribute to growth. Clearwater currently aims to have no one customer represent more than 7% of their net sales. To achieve this goal Clearwater export’s their seafood to over 50 different countries. Moreover, Clearwater closely monitors seafood demand in foreign countries, when demand is forecasted to increase, Clearwater initiates planning to enter the market. In recent years, Clearwater has used this forecasted demand strategy to successfully implement China’s Seafood Market. China now accounts for 37% of global seafood consumption and is the fastest growing market for Clearwater. Also, Clearwater has established innovative product process in order to expand their customer base. The creation of “High Pressure Lobster Process” enables raw lobster meat to be removed from the shell without cooking. The benefits of this process include a 2-year shelf life and expanding customer base. Clearwater has in recent years established a global distribution platform through an E-commerce website. The use of an online website helps to reach diverse customers in one convenient location, maintain and fulfill orders, show product offerings, pricing and investor’s information.

 

(3)  Inventory Control:

Clearwater operates with a unique supply and demand relationship. Currently all of Clearwater’s products are demanded at a rate higher than supply can reach. In order to operate at full capacity, they need to have an impressive inventory system. Their inventory needs to be plentiful, have diverse species and optimal storage capabilities. Furthermore, Clearwater is the largest holder of shellfish licenses in Canada. Their accumulation of fishing quotas has enabled the corporation to expand into the successful corporation they are today. In order to strive towards their corporate objective; growth, the corporation needs to continue acquiring new quotas. In 2019, Clearwater purchased an additional quota of 2,700 metric tonnes of lobster from an independent inshore fisher. This purchase will enable Clearwater to expand their inshore market share. In addition to acquiring quotas, Clearwater also needs to ensure they have ownership of quotas to key species that are highly demanded. Lobster accounted for 15% of Clearwater’s sales in 2018 and is highly demand in China. The goal of expanding access to key species quotas was also met when they purchased the lobster quota in 2019. Clearwater has the world’s largest live lobster storage facility. It can hold 1.5 million pounds of live lobster up for to six months. This inventory storage system ensures a steady supply year-round.

 

Clearwater’s infrastructure strategy for growth has 4 key areas of focus: (1) Implementing Innovative Systems (2) Increasing size of workforce (3) External R&D Partnerships and (4) Processing improvements.

 

 

(1)  Implementing Innovative Systems:

Clearwater is a leader in using innovative practices to fuel growth. Examples of this include the purchase of the “Ann Risley” – the most technologically advanced shellfish harvester in the world. This $70 million dollar investment significantly improved productivity and efficiency for Clearwater. Its features include automatic shucking system for clams, multi-beam sonar technology and advanced harvesting/processing technology. This investment allowed Clearwater to improve operational activities, reduce operational expenses and expand operations.

 

(2)  Increasing Size of Workforce:

Clearwater Seafood’s would not have been able to expansion goals without increasing the size of their workforce. Clearwater currently employs over 1,900 people around the world. This large, and growing workforce allow  them to meet their demand and achieve growth into key markets.

 

(3)  External R&D Partnerships:

In order for Clearwater to strive towards their goal of growth, they need to implement infrastructure that will support sustainable fishing practices. Clearwater focuses on outsourcing research and development information. This process will enable Clearwater to combine knowledge about industry-wide sustainable harvesting practices. This information can be used to maintain long-term growth with sustainable fishing practices.

 

(4)  Processing improvements:

Clearwater has invested in state-of-the-art vessels that harvest, process and freeze products at sea. This process improvement has allowed for optimal product quality, freshness, and reduction in operational expenses. Improved processing supports growth because the corporation is better allocating their resources, efficiently meeting customer demands, and generating higher revenues.

Profit

Another one of Clearwater’s corporate objectives focuses on increasing their profit and is defined as “Increase Margins by improving price realization & cost management”. This is achieved through strategies such as marketing their products to regions with high demand for seafood products, maximizing on economies of scale to increase margins, focusing capital investments on high return areas such as automation and quality assurance, and leveraging Clearwater’s market position to maximize margins in their pricing strategy.

 

(1)  Geographic Targeted Marketing

As mentioned above, China now accounts for 37% of global seafood consumption and is the fastest growing market for Clearwater. According to the August 2019 Investor Presentation, significant growth in seafood product demand is projected throughout Asian markets including China. This increase in demand is predicted based on data from between 2010 to 2018 that shows an increase in seafood demand with an 80% correlation to China’s per capita GDP growth rates. (Clearwater, 2019) By extrapolating this data out into the future, the Asian markets show a great potential for higher revenues as Clearwater gains access to an increasing customer base. This higher demand being realized in tandem with Clearwater’s increasing production capacity creates opportunities for increases in profit.

(2)  Decreasing Costs Through Maximizing Margins

Clearwater uses a vertical integration model to minimize costs by keeping the entire production process in-house to maintain full control over their value chain. Clearwater owns their own quota licenses, fishing vessels, processing plants, and delivery logistics. By internalizing the full value chain, Clearwater is able to leverage economies of scale at every stage of the value chain to keep costs low and thereby maximize margins. The company does not need to rely on external vendors to complete their production process, and therefore avoid slimming margins from traditional distribution stages

(3)  Capital Investments

Clearwater manages their capital expenses by choosing to invest in projects and technology that present the greatest opportunity for high returns. To oversee these decisions and ensure capital projects align to the company mandates and values, Clearwater has created an audit and a finance committee to provide oversight for these major investments. By strategically investing in new efficient technology, Clearwater is able significantly reduce overhead costs and increase efficiency. For example, investments in automated scallop shucking technology led to significant increases in productivity. This increased productivity decreased the number of vessels required from 4 to 2 which led to a savings of $80 million on capital expenditures along with millions in operating expenses. With this technology, Clearwater boasts the lowest cost per kilogram of processed scallops. Similarly, investments in clam dredging technology has reduced the number of required vessels from 4 to 3 avoiding 70 million in capital expenditures and millions in operating costs. Geographic Information system investments have led to a reduction in the number of required vessels from 5 to 1 avoiding 50 million in capital expenses and millions in operating costs. (Clearwater, 2019)

(4)  Leveraging Market Position

Entering into the seafood market has significant barriers due to the limited number of fishing license available, and the large capital investment required to enter the market. Clearwater leverages this entry barrier along with an increasing global demand for seafood products to optimize their pricing strategy with minimal competition. Another method that Clearwater uses to leverage their market position is to employ sustainable harvesting practices to maintain access to a reliable stock of product, while other harvesters face declining catch rates due to non-sustainable practices used in their licensed areas. (Clearwater, 2019)

 

Social Sustainability:

Sustainability is a core business value embedded in Clearwater’s culture and expressed throughout our mission, strategies and values. (Sustainability, 2020) Social Sustainability is included in the core values, which focuses on Employees, Community and Partnerships by creating an inclusive and diverse workplace.

Clearwater has been named one of 2020 top employers.  They view their employees as their greatest assets.  As part of their recruitment process, they offer paid internships, co-op programs and summer jobs.  Clearwater recruits through the local universities, which increases exposure for the company and increases recruitment avenues. Clearwater offers programs such as paid internships and co-op programs, which attract university students.  This is beneficial to Clearwater as many university graduates apply for work at the companies where they completed their co-op or internship. Therefore, decreasing costs associated with recruitment and training.  The benefits for the company are not just cost effective, new graduates create a surge of excitement; bring new ideas and point of views to the table.

Clearwater also understands the importance of employee retention and the benefits of long-term employees.  They recognize the desire for work-life balance, and as part of their retention process, they offer flexible work hours, compressed work weeks, and salary positions based on shorted work weeks.  They also offer employee health benefits, in-house training incentives and job-related tuition subsidies. (Leung, 2020)

Clearwater knows that a healthy and safe work environment is an essential part of providing for their employees. ‘We are proud to be a member of SEDEX, an international organization dedicated to driving improvements in responsible and ethical business practices.’ (Corporate Social Responsibility – People, 2020)  They have adjusted their operations during the Covid-19 pandemic to ensure safety for their employees, product and consumers. ‘We have implemented additional health screening and new operational protocols to maintain social distancing in order to keep our employees safe while at work in our facilities and vessels. Every day we are making changes to keep in line with the best available public health advice in each of our global locations.’ (Important Covid-19 Message, 2020)

Clearwater views community involvement as a vital part of social sustainability.  They believe being a business in a community requires them to be part of the community.  This includes hiring within the community, giving back to the community and responsible fishing.  Clearwater invests in the local community by creating jobs and when possible sourcing local goods and services.  Clearwater gives back to the community through supporting local organizations and providing donations.  Clearwater supports many charitable organizations by participating in charitable events.  Locally they participate in the IWK telethon and the Great Canadian Shoreline Cleanup. (Corporate Social Sustainability – Community Involvement, 2020)

Consumers have become more involved in educating themselves on where the products they are purchasing come from.  There has been an increase in demand for responsibly sourced products and local products. Clearwater recognizes these demands and believes in sourcing their product responsibly.  Clearwater is certified through the Marine Stewardship Council (MSC), which is a global, non-profit organization.  MSC works to ensure the sustainability of global fish stocks and the health of the marine ecosystem, and enhance responsible management of seafood resource. (Sustainability, 2020)  Clearwater has secured MSC certification for multiple species of shellfish, giving them the broadest selection of sustainably sourced shellfish worldwide.

Clearwater believes in a diverse and inclusive workforce and has partnered with 14 First Nations communities in Nova Scotia and Newfoundland.  This partnership began in 2019 with the Arctic Surf Clam Fishery and the Landmark Reconciliation Agreement. ‘As part of this Offshore Clam Partnership Landmark Agreement, Clearwater and the 14 Mi’kmaq communities have the opportunity to lead in the development of a new model of fishing and First Nations collaboration, creating valuable full-time employment opportunities for members of participating Mi’kmaq communities.’ (Careers – Diversity and Inclusion, 2020)  Clearwater has recently expanded their inclusive business partnerships with the addition of the Membertou First Nation.  This partnership has begun with the sale of two of Clearwater’s offshore lobster fishing licenses to the Membertou First Nation. ‘The transaction is part of a Clearwater project, initiated in 2019, to bring a new Mi’kmaq participant into the offshore lobster industry, the company said in a press release.’ (White, 2020)

Together Clearwater and the Membertou First Nation will work together on mutual objectives for the offshore lobster fishing.  “Membertou is pleased to make this historic strategic investment in the sustainable and well-managed offshore lobster fishery,” Membertou Chief Terry Paul said. “It further strengthens our relationship with Clearwater, leverages their expertise in offshore fisheries, and builds value for our community and provides additional employment and growth opportunities for our people.” (White, 2020)

Clearwater’s partnerships with the Membertou First Nation and local Mi’kmaq communities have flourished from their efforts in creating a diverse and inclusive company.  These partnerships have led to the sale of Clearwater Seafoods Inc.  Announced on November 9th, Clearwater Seafoods was sold to a company partnership between Premium Brands of British Columbia and a coalition of Mi’kmaw First Nations.  ‘It is “the single largest investment in the seafood industry by any Indigenous group in Canada,” said a news release jointly issued by the coalition and Clearwater.’ (Whithers, 2020)  The sale of Clearwater Seafoods is a historic moment for the Mi’kmaq communities. ‘Membertou Chief Terry Paul said the Mi’kmaq will hold Clearwater’s Canadian fishing licences within a fully Mi’kmaq-owned partnership’ (Whithers, 2020)

 

 

 

 

 

 

Environmental Sustainability:

Since 1976, a clearwater is dedicated to sustainable seafood excellence in the seafood market nationally as well as internationally (about Us, 2020). Sustainability is one of the top corporate business decisions for Clearwater, harvesting practices, seafood processing and the entire operation. They have followed all rules and regulations set by the government. They have strict rules placed in operation on handling waste on their fleet, and they are also recovering any waste they found on their way while fishing. Clearwater is investing in modern technology and in research and development to protect and save our oceans. Clearwater is the lead industry in sustainable harvesting and processing seafood. Their investment will reduce the environmental impact and contribute to the production of high-quality products.

Clearwater has heavily invested in the GIS system (Geographic Information Systems) modern technology, which resulted in cost-saving, minimized impact on ocean ecosystems, and promoted a sustainable fishing approach. Clearwater’s vessels are certified to the same inspection label as the land-based operation for product safety and quality. All vessels have a 3D imaging system, so it is easy to track where they’ve towed; they can continually harvest new areas to re-growth species, thus preserving the ecosystem (Harvesting, 2020). Clearwater supplies their high-quality products to the international markets. They harvest several different kinds of spices in a responsible way of protecting oceans and their ecosystems. Canada is one of the major seafood suppliers to China, the United Kingdom, the United States etc. There is a demand for high-quality products nationally and internationally. This is an excellent business for our province.

Clearwater has invested in technology, ensuring the ocean remain healthy and sustainable for their business. It is very important to keep the ocean healthy, so environmental awareness changes the way businesses think and make their decisions. Past 40 years, Clearwater has invested in sustainability, research, technology, and innovative solutions impacting the seafood industry. In 2007 ageing five vessels were replaced with one modernized offshore lobster fishing fleet (About Us, 2020). Now they have 21 vessels, including one for research. In 2017 Clearwater added the most technologically advanced shellfish harvester in the world (About Us 2020). Clearwater invested in modern technology to reduce carbon footprint by equipping its fleet with sophisticated habitat imaging and vessel monitoring systems. This is the best decision made by the Clearwater to combat or to protect our oceans. Clearwater uses its fleet to be fished only in the targeted area. Clearwater all their vessel used for harvesting fishing are equipped with the 3D imaging system, so it is easy to track where they’ve towed; they can continually harvest in the new areas to re-growth species, thus preserving the ecosystem (Harvesting, 2020).

Government must monitor them to make sure they are following rules and regulations under the fishery Act. Clearwater must ensure that they do their business by ensuring the ocean remain healthy, sustainable. The Clearwater approaches are known, understand the harvest area and the ecosystems, treat it with respect, and manage their operations’ impact. Clearwater approaches harvesting premium wild seafood includes responsible fishery management and practices, investment in scientific data gathering and marine ecosystem research, and continuous improvement and development of technology Sustainability, 2020).

 

 

 

Conclusion

Insert conclusion here

 

 

References

Grudic, J. (2017, November 02). Clearwater Seafoods, major seafood export company, celebrates 40 years. Retrieved from https://globalnews.ca/news/2875075/clearwater-seafoods-major-seafood-export-company-celebrates-40-years/

Mission, Strategies & Values. (2018). Retrieved from https://www.clearwater.ca/en/our-story/mission-strategies-values/

 

https://www.clearwater.ca/wp-content/uploads/2017/03/Investor-Presentation-May-3-2017-006.pdf

https://www.clearwater.ca/en/careers/#Why-Work-for-Clearwater

ca/news-releases/clearwater-seafoods-welcomes-the-anne-risley-to-its-canadian-clam-fleet-661228793.html”>https://www.newswire.ca/news-releases/clearwater-seafoods-welcomes-the-anne-risley-to-its-canadian-clam-fleet-661228793.html

https://www.clearwater.ca/wp-content/uploads/2020/03/CLR-AR-Q4-2019_FINAL.pdf

https://www.clearwater.ca/wp-content/uploads/2019/06/Investor-Presentation-May-2019-vF.pdf

https://www.clearwater.ca/wp-content/uploads/2020/03/CLR-AIF-2019_Final.pdf

 

Careers – Diversity and Inclusion. (2020). Retrieved November 2020, from Clearwater: https://www.clearwater.ca/en/careers/#Diversity-and-Inclusion

Corporate Social Responsibility – People. (2020). Retrieved November 2020, from Clearwater: https://www.clearwater.ca/en/our-story/corporate-social-responsibility/#People

Corporate Social Sustainability – Community Involvement. (2020). Retrieved November 2020, from Clearwater: https://www.clearwater.ca/en/our-story/corporate-social-responsibility/#Community-Involvement

Important Covid-19 Message. (2020). Retrieved November 2020, from Clearwater: https://www.clearwater.ca/en/

Leung, R. Y. (2020, January 8). Canada’s Top 100 Employers. Retrieved November 2020, from Mediacorp Canada Inc.: https://reviews.canadastop100.com/top-employer-clearwater

Sustainability. (2020). Retrieved November 2020, from Clearwater: https://www.clearwater.ca/en/sustainability/#Marine-Stewardship-Council-Certification

White, C. (2020, September 9). Retrieved November 2020, from Seafood Source: https://www.seafoodsource.com/news/business-finance/clearwater-sells-lobster-licenses-to-membertou-first-nation-for-cad-25-million

Whithers, P. (2020, November 9). CBC News. Retrieved November 2020, from CBC Radio-Canada: https://www.cbc.ca/news/canada/nova-scotia/mi-kmaq-purchase-clearwater-seafoods-1.5796028

 

Clearwater. (2019, August). Presentations. From Clearwater: https://www.clearwater.ca/wp-content/uploads/2019/08/Investor-Presentation-August-2019-vF.pdf

 

Harvesting. (2020). Clearwater. Retrieved from:

https://www.clearwater.ca/en/ocean-to-plate/harvesting/

 

About Us. (2020). Clearwater’s History & Achievements. Retrieved from:

https://www.clearwater.ca/en/our-story/history/#Clearwater%E2%80%99s-History-and-Achievements

 

Sustainability. (2020). Healthy Oceans. Retrieved from:

https://www.clearwater.ca/en/sustainability/#Healthy-Oceans

 

 

 

@Hannah Morrissey  This originally was ‘all’, wondering if it was a typo?  [MN1] [MN1]

 

Individual Project

 

 

The individual project will consist of a company report. You must choose a company from the following list:

 

McDonald’s

Wendy’s

Carl’s Jr.

In-N-Out

Sonic Drive In

Five Guys

Shake Shack

 

In your company report, you will be asked to provide

(1) a description of the company and its history;

(2) a competitor analysis;

(3) the company’s Product strategy;

(4) the company’s Price strategy;

(5) the company’s Place (Distribution) strategy; and

(6) the company’s Promotion strategy.

 

Your paper should be double spaced, Times New Roman, Font Size 12, 1” margins. There is no minimum or maximum page length. Typically, student submissions are around 20 double spaced pages.

 

 

 

COMPANY REPORT MARKING GUIDE____

(10 marks) Description of the company and its history

This is fairly basic – just provide some details about the company – when it was founded, where it was founded, etc. and give some information on its history – you can probably find a lot of this information on the company’s website and/or on Wikipedia.____

(10 marks) Competitor analysis

Here, you should differentiate between the fast food industry and the fast-casual industry and classify competitors accordingly. You should identify the major competitors and the more minor competitors. You should also provide a (brief) description of each competitor. ____

 

 

(10 marks) Description and analysis of the company’s Product strategy

Does the company offer high-quality products (or medium or low-quality products)? What is the company’s product assortment? Describe and discussion detail. ____

(10 marks) Description and analysis of the company’s Price strategy

Does the company have high prices (or medium or low prices)? Do they offer value meals and discounts? What exactly do they offer? Describe and discussion detail. ____

(10 marks) Description and analysis of the company’s Place (Distribution) strategy

How good is the company at distribution? There are often rankings for Distribution – you should try to incorporate these when you discuss details of the company’s distribution. Also — where does the company have its locations? Does the company have a strong international presence? ____

(10 marks) Description and analysis of the company’s Promotion strategy

What promotional elements does the company rely on? (i.e. advertising, personal selling, sales promotion, publicity or direct marketing). Describe and discuss in detail – for example, if the company engages in advertising – do they use TV ads, radio ads, social media, etc.____

(60 marks) TOTAL

 

ACCOUNTING 2020

MEMORANDUM – RISK MANAGEMENT WEBQUEST

 

 

To: Mike Jackson and Alan Prentice
From:  
Date:  
Subject: Risk Management Webquest

 

 

Purpose of this Memorandum

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Comparison between business Entities

 

Questions  Sole Trader  Partnership  Private Company 
1 Minimum # of owners?      
2 Maximum # of owners?      
3 Owners are known as…?      
4 How is profit distributed?      
5 Who pays tax on the profit – Business or owner?      
6 Is audit required according to ASIC rules. Yes or No      
7 Limited or Unlimited Liability?      
8 Advantages (at least two points) ·

 

·

 

·

 

·

 

·

 

·

 

9 Disadvantages (at least two points) ·

 

·

 

·

 

·

 

·

 

·

 

 

 

 

 

Choose ONE business structure appropriate for the VBeCommerce business you have been managing.

 

 

 

 

 

 

 

 

Select and explain 4 external compliance requirements relevant to the business structure you have suggested (With logical reasoning)

 

 

 

 

 

 

  1. 4.

 

 

 

 

 

Link 2 of the external compliance requirements you listed above to your internal controls to meet the requirements of legal obligations (as mentioned above)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Purposes of Accounting Standards

 

 

3 main Professional Associations in Australia

Ethical Principles (List and explain)
 

 

 

 

 

 

 

  1. 4.

 

 

 

Auditing in Accounting (Refer to task outline)

 

 

 

 

 

 

 

 

The role and function of ASIC

 

 

 

 

 

The role and function of ATO

 

 

 

 

 

 

Consequence of non-compliance with ATO

 

 

 

 

 

 

 

Review the document on Moodle called “Compliance and Legislation ASIC Cases”.

 

  1. Explain two situations where your business could be found non-compliant.

 

 

 

  1. What are the consequences of your business not complying? (Support your       discussion with reference to 2 cases in the document on Moodle called          “Compliance and Legislation ASIC Cases”.

 

 

 

 

Conclusion 

 

(Choose ONE business structure appropriate for the VBeCommerce business you have been managing AND give 4 logical reasons for your choice. Refer to key findings relevant to business structures and compliance issues.

 

 

Reference List

 

  • Use the Harvard referencing system – see Moodle document called “UQ Harvard Referencing Guide.pdf”
  • Include at least two (2) different sources in your reference list
  • Your sources must match your in-text references
  • Place the sources in alphabetical order
  • Use single line spacing for each individual source
  • Enter twice between each source
  • DO NOT number the sources

 

Check you have completed the following before submitting your work:         

Written and oral assessment tasks submitted or performed after the due date without an approved extension of time will ordinarily be met with a penalty of 5% of the percentage grade per working day late up, to a maximum of five working days.

 

If the assessment is submitted/performed after five working days, a grade of 0% will be applied

 

 

When you submit your assignment, it is uploaded into a program that checks for plagiarism and alerts the teacher marking it. Have you completed this assignment BY YOURSELF? Plagiarising is a serious offence and will result in serious penalties in your score and possibly 0 marks.

 

If you referred to any PDF documents and have not paraphrased (express the meaning using different words) include in-text referencing. See Moodle document called “UQ Harvard Referencing Guide.pdf” on how to in-text reference. All websites and dates have been provided to you in the PDF documents on the first page.

 

Include at least two (2) different in-text references in this memo

 

REPLACE all red text with relevant information. There should be NO RED TEXT IN YOUR FINAL SUBMISSION

 

DO NOT change the font style, font size or line spacing provided

 

Provide a reference list that matches your two (2) in-text references

 

Start your reference list on a new page

 

STD-AC-T2A-Risk Management WebQuest-(v1.0 Aug 20)-MARKING SHEET Page 1 of 3
ACCOUNTING ASSESSMENT ACTIVITY A – RISK MANAGEMENT WEBQUEST
FAMILY NAME: GIVEN NAME:
STUDENT CODE: CLASS NAME:
ASSESSOR’S NAME: DATE:
PC
Relevant part of
the activity
relating to the
criteria.
Above Satisfactory Satisfactory Not Yet Satisfactory
(U)3.1
(U)3.5 Business structures
comparison
• The student is able to make
relevant comparisons between
the ownership structures and
has included at least four (4)
points of comparison in the
discussion, two (2) of which
must be:
o The differences between
profit share (accounting
differences).
o Mandatory audit
requirements.
• The information provided is
accurate and detailed,
indicating a comprehensive
understanding of the issues.
• The student is able to make
relevant comparisons between
the ownership structures and
has included at least three (3)
points of comparison in the
discussion, two (2) of which
must be:
o The differences between
profit share (accounting
differences).
o Mandatory audit
requirements.
• The information provided is
accurate but some
explanations may lack clarity.
• The student is not able to
make relevant comparisons
between the ownership
structures or has not included
the following two (2) points in
the discussion:
o The differences between
profit share (accounting
differences).
o Mandatory audit
requirements.
• The information provided lacks
accuracy and clarity.
6 marks 5 – 4 marks 3 – 0 marks
No above satisfactory descriptor
required
One (1) relevant legal or
legislative requirement is
included in the discussion.
No relevant legal or legislative
requirement is included in the
discussion.
1 mark 0 mark
(U)1.5
(U)3.6
(U)3.7
Legislation &
Compliance
• The student is able to describe
accounting standards.
• Multiple purposes are
identified.
• The information provided is
accurate and clear.
• The student is able to describe
accounting standards.
• At least one (1) purpose has
been identified.
• The information provided is
accurate but some
explanations may lack clarity.
• The student has not described
accounting standards.
• The description provided is
unclear or inaccurate.
• The student has not provided
at least one (1) purpose in
business.
3 marks 2 – 1 marks 0 marks
• No above satisfactory
descriptor required.
• The student accurately
identifies the three (3)
professional associations for
accounting.
• The student does not
accurately identify the three (3)
professional associations for
accounting.
1 marks 0 marks
• The student has correctly
identified more than three (3)
ethical principles for
accountants.
• The explanation provided for
each is accurate and clear.
• The student has correctly
identified at least three (3)
ethical principles for
accountants.
• The explanation provided for
each is accurate but some may
lack clarity.
• The student has correctly
identified less than three (3)
ethical practices for
accountants, or
• The explanations are
inaccurate or
incomprehensible.
4 marks 3 – 2 marks 1 – 0 marks
No above satisfactory
descriptor required.
• The student has correctly
described an audit and
identified who performs it.
• The student has not correctly
described an audit or has not
correctly identified who
performs it.
2 marks 1 – 0 marks
STD-AC-T2A-Risk Management WebQuest-(v1.0 Aug 20)-MARKING SHEET Page 2 of 3
(U)2.1
(U)2.5
(U)3.3
(U)3.4
Legislation &
Compliance
• The student has provided at
least four (4) external control
compliance requirements
which are relevant to a chosen
business structure.
• The student has provided
logical links between the
external controls and the
choice of internal controls
used for the business, on at
least two (2) occasions.
• The student is able to
accurately describe the role of
ASIC. The response covers all
ASIC’s main functions.
• The student is able to
accurately describe the role of
ATO. The response covers all
ATO’s main functions.
• The student has correctly
identified at least two (2)
consequences of noncompliance to external
regulations.
• The student’s response
contains at least two (2)
relevant intext references.
• The student has identified at
least three (3) external control
compliance requirements
which are relevant to the
chosen business structure.
• The student has provided at
least one (1) logical link
between the external controls
and the choice of internal
controls used for the business.
• The student is able to describe
the main function of ASIC but
the response contains few
details.
• The student is able to describe
the main function of ATO but
the response contains few
details.
• The student has correctly
identified at least one (1)
consequence of noncompliance to external
regulations.
• The student’s response
contains at least two (2)
relevant intext references.
Minor non-systemic errors are
permissible.
• The student has failed to
identify three (3) external
control compliance
requirements which are
relevant to the chosen
business structure.
• The student has not provided
logical links between the
external controls and the
choice of internal controls
used for the business.
• The student has not been able
to describe the main function
of ASIC.
• The student has not been able
to describe the main function
of ATO.
• The student has not identified
any consequences of noncompliance to external
regulations.
• The student’s response does
not contain at least two (2)
relevant intext references. Or
if it does there are major nonsystemic errors.
12 – 8 marks 7 – 5 marks 4 – 0 marks
Conclusion
The student has demonstrated
the ability to take all important
relevant facts from the
comparisons and link these in a
convincing and logical manner to
a personal position.
The student has demonstrated
the ability to take some relevant
facts from the comparisons and
link these to a personal position.
The personal position is logical,
although some ideas may not be
well supported by the evidence.
The student has not
demonstrated the ability to take
relevant facts from the
comparisons and link them to a
personal position.
5 marks 4 – 3 marks 2 – 0 marks
Whole submission
No above satisfactory descriptor
required.
The student has demonstrated
effective planning and
organization skills by submitting,
by the due date, a memo which
follows the organizational
structure provided in the task
description and is relevant to the
task.
The student has not
demonstrated effective planning
and organization skills because
the memo was not submitted by
the due date, did not follow the
organizational structure provided
in the task or was not relevant to
the task.
1 mark 0 marks
References No above satisfactory descriptor
required.
The student has provided a
reference list with a minimum of
two (2) sources. Minor nonsystemic errors are permissible.
The student has not provided a
reference list. Referencing has
major errors in style.
1 mark 0 marks
Whole submission,
Technology,
Terminology
The student submitted a final
version of the memo to Turnitin.
No significant matches were
identified.
The student submission was
created using the Microsoft word
and followed all the formatting
requirements in the task
description.
The student submitted a final
version of the memo to Turnitin.
No significant matches were
identified.
The student submission was
created using the Microsoft word
and followed the formatting
requirements in the task
description. Minor deviations are
permissible.
The student did not submit a final
version of the memo to Turnitin.
Or
if a document was submitted,
significant matches were
identified.
The student submission was
created using the Microsoft word
but did not follow the formatting
requirements in the task
description.
2 marks 1 mark 0 marks
STD-AC-T2A-Risk Management WebQuest-(v1.0 Aug 20)-MARKING SHEET Page 3 of 3
TOTAL MARKS /38
Assessor’s Comments (Strengths/Areas of Improvement)

 

STD-AC-AAA-Risk Management WEbQuest-(v1.0 Aug 20)-TASK SHEET Page 1 of 2
ACCOUNTING ASSESSMENT ACTIVITY A – RISK MANAGEMENT WEBQUEST
AUGUST STANDARD 2020
TASK DETAILS:
DUE DATE:
Assigned date: Monday, 19 October 2020
Due date: Friday, 20 November 2020
ASSESSMENT TYPE: Research Assignment
ASSESSMENT
WEIGHTING: 15% weighting of the subject grade
RESOURCES REQUIRED: Computer or laptop, Internet and Moodle Accounting access
TASK OUTLINE
Scenario
The owner of the VBeCommerce business, Mr. Ownereski informs you that he will be selling his business in six months, as he has plans
retire. He has offered you the opportunity to purchase the business for $50 000.
You and several other employees have been discussing whether or not buying the business would be a good investment. During your
discussion, you discovered the following information:
• Mike Jackson has $25 000 to put into the business as capital, but he has very little experience in the retail industry.
• Alan Prentice has $15 000 to put into the business, and has worked in the retail industry for over 20 years in various positions ranging
from adverting and marketing to sales.
• You have $10 000 to put into the business and have an accounting degree and access to a huge database of business contacts.
You need to decide whether or not you want to buy this business by yourself or go into business with Mike and Alan. To assist with your
decision-making, you now have a mission to complete a Webquest in fact-finding the following information:
1. What are the main business structures in Australia? And, considering the given scenario, which is the best option?
2. What are the relevant business legislation and compliance?
Guide:
1. Using the recommended resources for this Webquest, research and summarise the key features of the main business structures in
Australia.
2. Compose a memorandum (memo) to be sent to Mike and Alan outlining your findings about suitable business structures.
3. Your memo should include:
a. an introduction stating the purpose of your memo
b. the body consisting of a relevant comparison between sole trader, partnership and private company structures
➢ you must compare mandatory audit requirements of each business structure including the relevant legislation
➢ you must compare profit distribution of each business structure
➢ you must compare two (2) other features of each business structure
➢ Suggest a business structure that would be appropriate for the VBeCommerce you have been managing.
4. Research and select four (4) compliance requirements relevant to the business structure you have suggested. What are some of the
business legal requirements relevant to the business structure you have recommended and why is it important to comply with them?
Compliance requirements:
Corporations Act 2001
Anti-Discrimination Act 1991
Work Health and Safety Act 2011
Privacy Act 1988.
Competition and Consumer Act 2010
GST Act 1999
Record keeping requirements for ATO
5. Your answer must include:
a. Accounting standards requirements:
i. What are Australian Accounting Standards and provide two reasons why you should include them in your business.
ii. Identify three (3) main Accounting professional associations recognised in Australia.
iii. Identify and explain four (4) ethical principles for accountants.
iv. Discuss the purpose of an audit in accounting. Explain what an audit is; who would conduct an audit; what is the difference
between an external and internal audit; and provide one reason why you may want your business books to be externally
audited.
STD-AC-AAA-Risk Management WEbQuest-(v1.0 Aug 20)-TASK SHEET Page 2 of 2
b. Legal requirements:
External stakeholders have a significant influence on internal processes in a business organisation. If you take the time to
understand what is required, you can make the best decisions for your business.
i. What external control compliance requirements would you need to follow for the business ownership structure you have
chosen for your company? Make sure you read and research from the provided sources relevant to the ATO and ASIC.
ii. Discuss the internal controls you will establish for your business and how those will be influenced by the external controls
you have mentioned from the above question.
iii. Suggest two situations where your business could be found non-compliance. Next, discuss what are the possible
consequences of failing to comply with business legislation. Support your discussion with reference to two cases as
examples of consequences of non-compliance.
6. Write a conclusion by providing a recommendation of one (1) business structure for your business with reasoning to support your
recommendation. Your reasoning should refer to your evaluation of key findings relevant to business risks and business compliance
issues.
7. Include at least two (2) in-text references within the content of your memo, in which the sources should be presented as a reference
list on a separate page. Follow the Harvard referencing style.
Your response must:
1. Use the memo template provided on Moodle.
2. Use a formal memo structure.
3. Use at least two (2) in-text references and your reference list must be in Harvard-referencing style.
Submit your work to Turnitin Moodle.
TASK DOCUMENTS:
(on Moodle)
Moodle >Assessment >Risk Management Webquest
SUBMISSION METHOD: Submit the completed task to Turnitin by the due date
LATE SUBMISSIONS:
Written and oral assessment tasks submitted or performed after the due date without an approved
extension of time will ordinarily be met with a penalty of 5% of the percentage grade per working day
late up, to a maximum of five working days.
If the assessment is submitted/performed after five working days, a grade of 0% will be applied.
Requesting an assignment extension: if a student wishes to apply to an assignment extension, they
need to fill out and submit the “Assignment Extension Application” form found in Student Support
on Moodle at least 24 hours before the due date of their assessment item and provide any relevant
supporting evidence (e.g. medical certificate, letter from parent/homestay).

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