Issue1：Whether to acquire AW Non-financial measuresSWOT analysis of acquiring AWIssue2：Papy’s two proposals on entering new area of businessThe first proposal——by SimonStrategy: recruit experts from the outside, and train the employees in Papy to develop proper personnel and help the company more familiar with the health food area of business.Advantages: Save acquisition costs.Disadvantages: Inestimably expenses on personnel training and the time cost. It may cost two more years to get the similar profit as the proposal below.The second proposal——by KarenStrategy: acquire existing stores (Health Castle) as a start, and develop the reputation from there.Advantages: Save effort in looking for suppliers, identifying consumer behavior and conducting personnel training. As the estimated profit of Health Castle is €5 million, so it will meet the second year target of Karen within just one year.Disadvantages:Successful acquisition will require Papy to pay a considerable premium. Also, because of the reputation of “Health Castle”has already existed for a long time, once Papy acquire it ,it may take a long time to combine the two different culture and make the customers familiar with the new brand of health food of Papy.Issue3: Sustainable TradingThough the global supermarket market slowly reacted to the need of sustainable trading, Papy has already realized the importance of it and took steps to make it into the long-term strategies of the company just as what the new Chief Executive Lucas Meyer expected.The efforts of Papy linked to sustainable trading:1.Recruit Arif KarpHe once was a consultant help the enterprises to improve the performance measures in sustainable trading. So he will no doubt bring contributions to the development of Sustainable trading of Papy as he is experienced. IdeasActually, his coming brings a lot of new innovation to Papy.Once the IT system—EMS (still under discussion between Arif Karp and Ziad Abbill) is established, large range of problems concerning sustainable trading can be solved more efficiently.In addition, he proposed that the majority of carbon emissions originated from the supply chain, which helps the company to attach more importance to the origination during the reduction.Also, though most companies recognized the need to reduce carbon emissions, just a few of them have the specific strategies and measures to make the obvious result. Then Arif said that Papy must set targets for the coming years and to plan how reductions in carbon emissions could beachieved. In order to achieve the targets, he is preparing to establish a multi-disciplinary team to help Papy become more sustainable and to reduce carbon emissions. This will certainly contribute to the progress.2.Make proposals to reduce carbon emissions◆change freezer cabinets◆solar panels◆Measurement of waste materialsAll statistics for waste material reduction based on weight, not volume.V olume is not stable as it can be lessened, but weight would not change easily so it will be a better standard to analyze the real reduction of waste materials.The decrease trend in 2012 is more obvious than that in 2011.So we can predict that Papy will become more experienced and have more advanced technique to reduce the waste. The prospect is optimistic.◆Management of changeTargets:change employees’ attitudes and minimize employees’ resistance Employee● focus on specific job responsibilities to meet the currentfinancial targets.★change the high standard of financial targets and establish some incentive mechanism to encourage theseemployees.● do not understand the reasons for change★1.Strengthen the culture construction of Papy to make them be more aware of what we want to do; ( Regularmeeting; Internal magazine; Large activities… )2. Make better communication between the managers andemployees.● resist take on extra work★set award for extra work.Store managers● skeptical about the cost● pressure to deliver increased profits★1. Give them clear financial analysis to make them believe the long-term benefit of the several new projectconcerning sustainable trading.municate more often with them and give themsuccessful existing examples.◆Cancellation of 2 supplier contractsMaybe this proposal is against the CSR of Papy as the two contracts can help the small-scale farmers in developing countries to obtain better trading conditions. However, these two contracts erode the margin of Papy. It isn’t the most important reason of the cancellation. The cause of the lost is the waste of fresh fruit. It is also against the sustainable trading. So, what we should do is to balance these two things. Actually, if we give up these two contracts, there will be other companies to accept it. We don’t have to worry about it because of the mature mechanism of “Fair Trade”. To the contrary, we can make more profit to put into the new proposals of sustainable trading.。