5M Leadership

The Corporate Simulator · Stitch In Time

Would You Sign This Board Pack?

You sit on the board of AB Hailogix, a regional logistics and courier group. Management asks for AfK.15 million to expand into two new countries, and the board pack looks strong. You may open three of five sealed envelopes before you vote. Then you read the report twelve months later and see the result of your vote.

A director at a boardroom table reads a board pack while a colleague lays a clear sheet with red handwritten notes over the page.

AB HAILOGIX

Logistics and courier group

Board of Directors · Meeting pack

Thursday 14 November

Item 4: Regional expansion

Decision sought: approval of AfK.15 million

Confidential
AB HAILOGIXBoard pack · Item 4 · Page 7

Regional expansion: request for approval

Paper from the chief executive · Board meeting, 14 November

Decision soughtApprove AfK.15 million to open operations in two new countries

Summary

AB Hailogix has had its strongest year. Revenue is up 18 per cent and customer retention stands at 93 per cent. The transformation programme is on track, the succession plan is strong and operations are ready to expand.

Revenue, AfK million
182197214253 2023202420252026 +18%
Customer retention
93% Clients kept, past year

Status

Transformation programmeOn track
Succession planStrong
OperationsReady to expand

Key risks

  • Currency movements in the two new markets. Monitored each month.
  • New competitors in the courier market. Prices under review.

Delivery partner

A preferred partner has been chosen to run the new regional hub. The contract will be signed subject to board approval.

Recommendation

That the board approves AfK.15 million for the regional expansion, with work to begin in the first quarter.

KofiChief Executive, AB Hailogix
Directors' notes

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