For information and reference only – not to be submitted as your own work.
This model-answer extract shows how an OTHM Level 4 Diploma in Business Management “Business Operations” report can be built around one real Maltese organisation, Simonds Farsons Cisk plc. It follows the three-task structure of the brief, which we hold in the Malta assignment questions archive. For the step-by-step method behind it, read our companion guide, how to write the OTHM Level 4 Business Operations assignment.
What the assignment asks
| Task | Assessment criteria | Core demand (paraphrased) | Approx. words |
|---|---|---|---|
| Task 1 | 1.1 to 1.4 | Weigh up business sectors, types and legal structures, then justify the sector, type and structure of your chosen organisation and link them to its market and objectives. | 500 |
| Task 2 | 2.1 to 2.4 | Explain the organisation’s functions, how they work together, draw a structure chart and justify the structure given the organisation’s size and the weight of each function. | 750 |
| Task 3 | 3.1 to 4.4 | Define internal and external environments, explain why they are measured, apply suitable techniques to quantify them and assess the impact on operations and goals. | 1,750 |
The extract below is condensed. Each task is shown in the order a marker reads it, with the evidence that earns the higher grade bands. Sources were checked on 16 October 2026.
Task 1 extract: sector, type and legal structure (AC1.1 to 1.4)
Sector. Economic activity is commonly divided into primary, secondary and tertiary sectors, and into private, public and third (voluntary) sectors (Johnson et al., 2023). Simonds Farsons Cisk plc, the listed parent of the Farsons Group, sits in the private, for-profit sector. Its core activity is secondary: it brews and bottles beverages. Its importation and distribution arm, Farsons Beverage Imports, adds a tertiary, service-based layer (Farsons, n.d.a).
Type and legal structure. The Companies Act (Cap. 386) provides for companies and for commercial partnerships, namely the partnership en nom collectif and the partnership en commandite (CC Malta, n.d.; Government of Malta, n.d.). A sole trader is not a separate legal person, so it cannot raise equity from the public. The comparison below shows why each form fits or fails Farsons.
| Form | Liability | Raising capital | Fit for Farsons |
|---|---|---|---|
| Sole trader | Unlimited, owner personally liable | Owner’s own funds and loans only | Poor: the scale of brewing plant and licences needs far more capital |
| Partnership en nom collectif | Joint and several, unlimited | Partners’ contributions | Poor: unlimited exposure for a large asset base |
| Partnership en commandite | Unlimited for general partners, limited for limited partners | Limited partners can invest without managing | Partial: but ownership cannot be spread across a public market |
| Private company (Ltd) | Limited to unpaid share capital | Private shareholders | Possible: limited liability, but shares cannot be offered to the public |
| Public company (p.l.c.) | Limited to unpaid share capital | Shares may be offered to the public | Strong: matches its listing |
Farsons chose the last route. In 1995 it became the first private-sector company in Malta to list its equity on the Malta Stock Exchange (Farsons, n.d.b). Its ordinary shares carry a nominal value of €0.30 (Simonds Farsons Cisk plc, 2025), and its disclosures are made under the Capital Markets Rules issued by the MFSA under the Financial Markets Act, Cap. 345 (Simonds Farsons Cisk plc, 2025).
Link to market and objectives. Farsons states a vision of growing locally and internationally and a mission built on world-class brands and fair returns to shareholders (Farsons, n.d.a). A public limited company supports both aims: it can raise equity and it must report to shareholders. The market logic is just as clear. Farsons has brewed Carlsberg under licence since 1978 and bottles key Pepsi-Cola brands under an exclusive franchise, while its own brands, Cisk and Kinnie, anchor the portfolio (Farsons, n.d.a; Farsons, n.d.c).
Task 2 extract: functions and structure (AC2.1 to 2.4)
Functions and purpose. A functional view groups work by specialism. The functions below are an analytical grouping built from the group’s public description; Farsons does not publish its internal departmental list, so the allocation is illustrative.
| Function | Purpose | Key dependency |
|---|---|---|
| Production and brewing | Produce beer and soft drinks to licence and quality standards | Needs sales forecasts from Marketing and Sales; needs funding from Finance |
| Marketing and sales | Build Cisk and Kinnie, serve trade and hospitality customers | Needs product availability from Production and Distribution |
| Imports and distribution | Import and distribute international brands for principals | Needs stock-level data and credit control from Finance |
| Finance and company secretarial | Budget, report to shareholders, comply with listing rules | Needs data from every other function |
| Human resources | Recruit, train and retain staff in a tight labour market | Needs workforce plans from all functions |
Relationships. The functions form a chain. A demand forecast from sales sets the production schedule, production sets purchasing and packaging needs, and finance converts both into budgets and reported results. If sales over-forecast during the summer tourism peak, the cost lands on production (idle stock) and finance (working capital). This is why coordination mechanisms, such as monthly sales and operations planning, matter more than the boxes on a chart.
Structure chart (illustrative text format).
| Level | Role | Reports to |
|---|---|---|
| 1 | Board of Directors | Shareholders |
| 2 | Chief Executive Officer | Board of Directors |
| 3 | Heads of Production, Marketing and Sales, Imports and Distribution, Finance, Human Resources | Chief Executive Officer |
| 4 | Department managers and supervisors | Relevant head of function |
Why structured this way. A tall, functional structure suits a firm with a large fixed plant, tight quality standards and licensor audits, because each specialism needs depth. The cost is slower cross-functional decisions. Since the food business was spun off into Quinco Holdings plc in 2025 (Farsons, n.d.c), the group is more focused on beverages, so a leaner functional model with product-based commercial teams is a reasonable recommendation. Johnson et al. (2023) describe this trade-off between functional and divisional forms.
Task 3 extract: internal and external environment (AC3.1 to 4.4)
Meaning and purpose. The internal environment is everything the organisation controls: resources, capabilities, culture, structure and systems. The external environment is everything it does not control: politics, economy, society, technology, law, ecology, competitors and customers. Measuring both shows whether strategy fits reality and where to act first.
Internal technique: McKinsey 7S with a weighted SWOT. The 7S model checks alignment of strategy, structure, systems, shared values, skills, staff and style (Waterman, Peters and Phillips, 1980). Farsons states six values: success, teamwork, respect, integrity, dynamism and excellence (Farsons, n.d.a). Scores below are illustrative judgements to show the quantification method, not company data.
| Factor | Type | Evidence | Weight | Rating (1 to 5) | Weighted score |
|---|---|---|---|---|---|
| Home-grown brands (Cisk, and Kinnie since 1952) | Strength | Farsons (n.d.a; n.d.c) | 0.25 | 5 | 1.25 |
| Long-term licences (Carlsberg 1978, Pepsi) | Strength | Farsons (n.d.c) | 0.20 | 4 | 0.80 |
| Capital-market access and governance | Strength | Listed since 1995 | 0.15 | 4 | 0.60 |
| Dependence on licensors and principals | Weakness | Licensed portfolio | 0.20 | 2 | 0.40 |
| Labour and cost pressure on margins | Weakness | Rizzo Farrugia (n.d.) | 0.20 | 2 | 0.40 |
The weighted total is 3.45 out of 5, which indicates a position that is sound but exposed on margins and dependence. For context, the group reported revenue of €141.5m and operating profit of €18.8m for the year to 31 January 2025, before the food business was shown as discontinued (Rizzo Farrugia, n.d.).
External technique: PESTLE.
| Factor | Evidence | Impact on Farsons |
|---|---|---|
| Political | Malta joined the euro area on 1 January 2008 (ECB, 2008) | Removes currency risk on euro-priced imports and sales |
| Economic | Malta’s GDP grew 4.0% in 2025 against 1.4% for the euro area (Malta Business Weekly, n.d.); HICP inflation was 2.4% in September 2025 (Malta Invest, 2025) | Strong demand, but input and wage costs also rise |
| Social | 4,022,310 inbound tourists in 2025, up 12.9%, spending €3,904.4m (NSO Malta, 2026) | Large on-trade demand for beer and soft drinks, concentrated in summer |
| Technological | Not quantified from public sources | Assessed qualitatively: automation can offset labour pressure |
| Legal | Companies Act Cap. 386; Capital Markets Rules under Cap. 345 (Simonds Farsons Cisk plc, 2025); sector-specific rules not examined here | Compliance cost and disclosure duties |
| Environmental | Group sustainability pillars cover energy, renewables, water and packaging (Farsons, n.d.a) | Packaging and energy costs shape capital plans |
Competitive pressure. Porter’s (2008) five forces add an industry lens. Rivalry from imported brands is strong, buyer power sits with large hospitality and retail accounts, and supplier power matters for packaging and malt. Management itself lists strong competition, regulation and labour market pressure as headwinds (Rizzo Farrugia, n.d.).
Unsure whether your own SWOT or PESTLE goes deep enough? Our essay and report writing support can review your structure, evidence and Harvard referencing.
Assessment and impact (AC3.4 and AC4.4)
Overall, the external environment is favourable on demand and supportive on currency and growth, while the internal analysis shows margin and dependence risks. The recommendation is to protect margin through process efficiency, protect brand equity in Cisk and Kinnie, and widen the portfolio only where a licence adds clear volume. This links the analysis to the ability to operate and to the stated aim of regional growth.
How this extract earns marks
| Criterion | What the extract does | Why a marker credits it |
|---|---|---|
| 1.1 to 1.2 Sectors and types | Places the firm in sector and type with a comparison table | Shows comparison, not description |
| 1.3 Legal structures | Compares five Maltese forms against needs | Applies Cap. 386 to the case |
| 1.4 Link to market | Ties p.l.c. status to licences and growth aims | Justification, not listing |
| 2.1 to 2.2 Functions | Maps purpose and dependencies | Shows interrelationships |
| 2.3 to 2.4 Structure | Chart plus reasoned recommendation | Evaluates fit with size and strategy |
| 3.1 to 3.4 | 7S and weighted SWOT with a total score | Quantifies and assesses |
| 4.1 to 4.4 | PESTLE with dated Malta data and five forces | Current evidence, honest limits |
| Referencing | Harvard in-text and a full list | Academic practice |
About the expert
Business questions like this are covered by Dr. Nathan Borg, a Strategic Management and Business Consulting specialist who holds a PhD in Strategic Management from the University of Malta. His listed specialisms are strategic management, business consulting, corporate governance and organisational strategy, and his profile shows 920+ orders completed.
For guidance on choosing an organisation and the right analysis tools, see our business and strategy assignment support.
References
CC Malta (n.d.) Commercial partnerships in Malta. Available at: https://www.ccmalta.com/Publications/malta_commercial_partnerhsips (Accessed: 16 October 2026).
European Central Bank (2008) Cyprus and Malta join the euro area, press release, 1 January. Available at: https://www.ecb.europa.eu/press/pr/date/2008/html/pr080101.en.html (Accessed: 16 October 2026).
Farsons (n.d.a) Farsons Group: our companies and brands. Available at: https://www.farsons.com/about/farsons (Accessed: 16 October 2026).
Farsons (n.d.b) Heritage. Available at: https://www.farsons.com/about/heritage (Accessed: 16 October 2026).
Farsons (n.d.c) Timeline. Available at: https://www.farsons.com/en/timeline (Accessed: 16 October 2026).
Government of Malta (n.d.) Companies Act, Chapter 386 of the Laws of Malta. Available at: https://legislation.mt/eli/cap/386/eng (Accessed: 16 October 2026).
Johnson, G., Whittington, R., Scholes, K., Angwin, D. and Regnér, P. (2023) Exploring strategy. 13th edn. Harlow: Pearson Education.
Malta Business Weekly (n.d.) Malta’s growth eases in 2025 as productivity slows, PwC Malta’s most recent economic update reveals. Available at: https://maltabusinessweekly.com/maltas-growth-eases-in-2025-as-productivity-slows-pwc-maltas-most-recent-economic-update-reveals/30538/amp/ (Accessed: 16 October 2026).
Malta Invest (2025) Maltese inflation lags eurozone but outpaces EU average, 17 October. Available at: https://maltainvest.mt/maltese-inflation-lags-eurozone-but-outpaces-eu-average/ (Accessed: 16 October 2026).
National Statistics Office Malta (2026) Inbound tourism: December 2025, news release, 12 February. Available at: https://nso.gov.mt/inbound-tourism-december-2025/ (Accessed: 16 October 2026).
Porter, M.E. (2008) ‘The five competitive forces that shape strategy’, Harvard Business Review, 86(1), pp. 78-93.
Rizzo Farrugia (n.d.) Simonds Farsons Cisk: full year results. Available at: https://rizzofarrugia.com/announcements/full-year-results-54/ (Accessed: 16 October 2026).
Simonds Farsons Cisk plc (2025) Company announcement: annual report and financial statements 2025, 28 May. Available at: https://www.farsons.com/media/articles/2/26/161_SFC_Company_Announcement%20-%2028%2005%202025.pdf (Accessed: 16 October 2026).
Waterman, R.H., Peters, T.J. and Phillips, J.R. (1980) ‘Structure is not organization’, Business Horizons, 23(3), pp. 14-26.
