Finance for Strategic Managers Sample Assignment Help

 

Assignment Detail:-

Number of Words: 3000

 

Finance for Strategic Managers

 

Sample Assignment

 

Pietro Yon, a local businessman, owns and manages a number of retail stores that sell a range of homewares.

 

Pietro is a member of the local business Chamber of Commerce and has been asked to chair a committee to research and study the success of Samsung PLC. The Chamber believes that there may be some useful learning from this study which members of the Chamber could use. You have been asked to provide specialist support to the committee and you are required to produce a range of materials for members of the committee to use.

 

You have been provided with the following link to view Samsung PLC’s annual reports and investor information.

https://www.samsung.com/global/ir/financial-information/audited-financial-statements/

 

 

Finance for Strategic Managers Sample Assignment

 

Task 1 – Financial Data and Strategic Decision Making

You must produce a presentation for Pietro Yon to use at the next meeting of the Chamber of Commerce. The presentation should be based on your research of Samsung PLC and other relevant information. It must be accompanied by supporting notes.

 

Your presentation must include the following:

  • An evaluation of the sources of financial data which can be used to inform business strategy.
  • An assessment of the need for financial data and information in relation to the formulation of business strategy.
  • An analysis of the risks related to financial business decisions.
  • A review of methods that can be used for appraising strategic capital expenditure projects and strategic direction.

LO1 AC 1.1, 1.2, 1.3

LO3 AC 3.1

 

Task 2 – Discussion Paper

A meeting has been arranged with Pietro Yon and other members of the committee and you have been asked to produce a paper for discussion which provides:

  • An interpretation of the financial statements of Samsung PLC to assess the current viability of the organisation.
  • A comparative analysis of financial data using ratio analysis for Samsung PLC.  You are advised to download consecutive year’s accounts from the Samsung PLC website.

 

Extension activities:

To gain a merit grade you must add further sections to your discussion paper that:

  • Makes recommendations to Samsung PLC based on your analysis and interpretation of the financial position.

LO2 AC 2.1, 2.2

LO2 2M1

 

Finance for Strategic Managers Sample

 

Task 3 – Information Leaflet

 

Extension activities:

To gain a merit grade you must produce an information leaflet for the Chamber of Commerce to distribute to the members. The leaflet should assess the following:

  • The impact of ‘creative accounting’ techniques when making strategic decisions.
  • The limitations of ratio analysis as a tool for strategic decision making.
  • The importance of cash flow management when evaluating proposals for capital expenditure.

 

To gain a distinction grade you must prepare an additional section for the leaflet that:

  • Recommends, with justifications, methods and tools that allow businesses to analyse financial data for strategic decision-making purposes.

LO1 1M1

LO2 2M2

LO3 3M1

LO2 2D1

 

Task 4 – Capital Expenditure Appraisal

Pietro Yon has been supplied with information from a component manufacturer who has asked for advice on the best project to accept for the purchase / replacement of a piece of machinery.

 

The company are considering selling their old machine that has a capital cost of £260 000 and replacing it with an up-to-date model costing £220 000.  For immediate purchase the company will receive £120 000-part exchange allowance.

 

Both the current and new machines are able to meet the expected company demand, estimated at:

Year Units
1 90 000
2 50 000
3 30 000

 

After three years, it is predicted that demand will be zero due to the technological developments in the industry.

 

The following data has been provided for the existing and new machine:

Current Machine

£ per unit

New Machine

£ per unit

Direct Materials 1.80 1.80
Direct Labour 0.75 0.60
Variable Overheads 0.45 0.30
Depreciation 0.35 0.55

 

Additional information

  • The selling price for each component is £5.00 and this will remain constant for the next three years.
  • The company expect the cost of direct materials and direct labour to increase by 5% each year.
  • The company predicts that repair and maintenance costs for the current machine will be £7000 per annum.
  • The current machine is expected to have a zero-residual value at the end of year 3.
  • The company predicts that repair and maintenance costs for the new machine will be £1000 per annum.
  • The new machine is expected to have a £75 000 residual value at the end of year 3.

The company’s cost of capital is 15%

Extract from the present value table for £1 at 15%

Year Units
1 0.870
2 0.756
3 0.658
4 0.572

 

Pietro would like you to produce a business report that can be given to the company offering advice on the best course of action for the purchase / replacement machine.

 

REQUIRED

Prepare a report that evaluates the capital expenditure proposals using appropriate financial techniques.

 

Extension activities:

To gain a distinction grade you must include an assessment of the impact of the business proposal on the strategic direction of the organisation.

 

LO3 AC 3.2

LO3 3D1

 

Guidelines for assessors

The assignments submitted by learners must achieve the learning outcomes and meet the standards specified by the assessment criteria for the unit. To achieve a merit or distinction grade, the learners must demonstrate that they have achieved all the criteria set for these grades. Where work for the pass standard is marginal, assessors can take account of any extension work completed by the learners. The suggested evidence listed below is how learners can demonstrate that they have met the required standards.

 

Task

number

LOs and AC Suggested evidence
PASS
Suggested additional evidence MERIT Suggested additional evidence DISTINCTION
1. LO1:

AC 1.1, 1.2, 1.3

 

LO3:

AC 3.1

 

 

 

The learner will provide an evaluation of

the sources of financial data which can be used to inform business strategy and an assessment of the need for financial data and information in relation to business strategy.  The assessment and evaluation should be balanced identifying the relative importance of different types of data in supporting and determining decisions on strategy. The learner work needs to lead to conclusions and personal judgements. The learner should use appropriate examples to illustrate the points which are made, and this will help to demonstrate their understanding.

The learner will continue with an analysis of the risks related to financial business decisions.  The analysis should be detailed and comprehensive considering the nature of different businesses and the context in which they operate.

The review must be directly related to strategic capital expenditure projects and strategic direction of businesses.  The learner needs to refer to different methods that can be used identifying any benefits and issues and lead to conclusions.

 

 
2. LO2:

AC 2.1, 2.2

2M1

 

 

The learner is required to download 2 / 3 consecutive years’ accounts for Samsung PLC using the link provided in the assignment.

The learner will carefully interpret the financial statements.  The learner must make an assessment and judgements on current viability of the business and prepare a comparative analysis of financial data using ratio analysis.

 

The learner will make appropriate specific financial recommendations.  The recommendations must be directly linked to the detailed analysis and must be relevant to the organisation.  
3. LO1:

1M1

 

LO2:

2M2

2D1

 

LO3:

3M1

 

The learner will provide a detailed assessment of the impact of ‘creative accounting’ techniques when making strategic decisions.

The learner should use appropriate examples to demonstrate their understanding of the importance of accurate financial data in formulating and delivering business strategy

The learner will assess the limitations of ratio analysis as a tool for strategic decision making leading to balanced judgements. There must be full and clear assessment of the importance of cash flow management when evaluating proposals for capital expenditure.

Appropriate examples will aid the learner in demonstrating the points which are made.

 

The learner will refer to a range of methods and tools that allow organisations to analyse financial data for strategic decision-making purposes.  The learner must justify each of the methods and tools described. Appropriate examples of the methods and tools used by public and private sector organisations should illustrate the answer.
4. LO3

AC 3.2

3D1

 

Using the data provided in the case study, the learner is required to evaluate the business proposals for capital expenditure identifying benefits and issues and reaching conclusions. The learner must use appropriate financial techniques including payback, accounting rate of return, net present value and internal rate of return.

Based on the data in the case study the learner is required to evaluate the business proposals for capital expenditure using appropriate financial techniques.  The learner could consider non-financial factors, cost benefit analysis and value for money.

 

The learner is required to provide an assessment, with appropriate justifications of the impact of a business proposal on the strategic direction of a business organisation.  The learner should use the information in the case study and refer to other examples from business. Reference to appropriate theory and research should also be made.

 

 

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