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Following a subsequent decision by the HiLite board, the proposed acquisition of the Comfi Stay hotel chain has recently been announced to the Deeland stock market and, generally, the market has reacted positively to the announcement.
However, there have been some negative press reports in the Deeland Daily News about the proposed acquisition,criticising HiLite. The chief executive of HiLite is very concerned about these reports and has asked the business analysis team to consider HiLite’s response.
Required:
(a) Prepare a draft press release responding to the criticisms assessing the social and environmental impact ofHiLite’s proposed investment in Veelandia, with a view to reassuring its stakeholders of HiLite’s intentions to maintain its high principles and standards in acquiring the Comfi Stay hotel chain. (10 marks)
Professional skills marks are available for demonstrating communication skills in clarifying and conveying relevant information to HiLite’s stakeholders. (3 marks)
Although HiLite’s shareholders have generally responded favourably to the proposed acquisition of the Comfi Stay hotel chain, HiLite’s board is considering how it should effectively communicate with all of its key stakeholders to ensure that they understand the strategic decisions and direction of the business.
The finance director has recently asked the board to consider the use of integrated reporting in assisting in this communication and in building relationships with HiLite’s key stakeholders.
