Evaluating Business Performance for Strategic Growth BUS402

Module Learning Outcomes

LO1

Critically analyse Financial Accounting Principles to measure Bottom Line impact and develop competitive strategies.

LO2

Critique the relevance and significance of Budgeting Process, Techniques and Methods in driving Organizational Performance.

LO3

Evaluate Financial Statements and business performance using Ratio Analysis.

LO4

Evaluate investment appraisal techniques to support decision-making.

TO BE FILLED BY THE ASSESSOR

Assessment Types

Marks

Marks Achieved

Organizational Study (Project Format)

1. Introduction

10

1. Application of Financial & Management Accounting Principles and Core Finance Strategies to measure Bottom Line Impact and Decision Making.

25

1. Ratio Analysis & Financial Interpretations

25

1. Budgeting Practices

25

1. Investment Appraisal Techniques.

15

Overall Score

100

Overall Grade

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Plagiarism Report

Summative Feedback by Assessor for further improvement

Assignment

Accounting for Next Generation Leaders

Learning Outcome 1: Critically analyze Financial Accounting Principles to measure Bottom Line impact and develop competitive strategies.

? PC 1.1: Evaluate the financial and operational performance of an organization

? PC 1.2: Critically review the influence of Accounting Standards and Accounting Policies in a financial and (macro) economic environment.

? PC 1.3:Critically discuss financial accounting and management accounting practices that highlight the use/ misuse of financial data.

? PC 1.4: Discuss how a plan and execution strategy can ensure competitive financial management.

Learning Outcome 2: Critique the relevance and significance of Budgeting Process, Techniques and Methods in driving Organizational Performance.

? PC 2.1: Critically analyze the relevance of Traditional Budgets versus new age Alternative Budgeting Types and Techniques.

? PC 2.2: Conceptualize the budgeting approaches required to link performance management to improved operational planning and management strategies.

? PC 2.3:Apply Smart Technologies in Budgeting, Forecasting and Management Control Processes to investigate performance management issues.

Learning Outcome 3: Evaluate Financial Statements and business performance using Ratio Analysis.

? PC 3.1: Apply Ratio Analysis to interpret the historic business performance of your chosen organization

? PC 3.2: Critically discuss how forefront developments or disruptions in the external operating environment have impacted the financial performance of your chosen organization.

? PC 3.3: Evaluate future strategies for financial changes that will improve organizational sustainability.

Learning Outcome 4: Evaluate investment appraisal techniques to support decision-making.

? PC 4.1: Critically discuss the importance of investment appraisal techniques when approving capital expenditure investment proposals.

? PC 4.2: Conduct discounted and non discounted flow analysis.

PC 4.3: Evaluate at least two investment appraisal techniques and apply them to your chosen organization.

Assignment Task: Read the following Scenario, and prepare a Formal Business & Financial Review Document with the guidelines provided.

Assignment 100 Marks [4500-5000 Words]

Scenario:

The assignment below will help you to review and critically analyze financial and management accounting principles, relevant accounting standards/ policies applicable, and apply the relevant knowledge to evaluate the overall business and management performance based on the current complex, volatile, competitive and uncertain economic/business environment by reviewing their impact on businesses.

You are required to present a Formal Business Report, that would contain a neatly designed Table of Contents to capture the main and sub-topics in an orderly fashion which should adhere to meeting the assessment standards and grading criterion:

Required: Choose a public listed corporation related to your current work domain or preferred area of industry. Questions below would require candidates to research relevant financial and operational performance of the organization by reviewing and understanding the report of the company for any two latest consecutive years. The facts and figures will help the candidate to answer below questions, and validate them with relevant statistics for analysis or examples (where applicable).

1. Introduction[500Words]:Introduce the organization in the context of prevailing macro-economic and business conditions by discussing the vision, mission and planning strategies of the company. For the chosen organization, evaluate the financial and operational performance of the organization by reviewing the companys annual performance (use financial data/annual report of the company for any two latest consecutive years for specific information. ) [10 marks].

1. Financial Principles and Bottom-Line impact [1000 words]:Demonstrate meaningful understanding of accounting policies and accounting standards by critically reviewing academic and non-academic literature pertaining to its implications on the financial and macro-environment.Critically debate the use and misuse of financial data in the practice of management accounting and financial accounting.

Discuss how a plan and its execution can lead to a respectable competitive financial management in the chosen company.(Students can use financial and strategic information of the chosen company to validate their explanations).[25 marks].

1. Ratio Analysis & Financial Interpretations [1500 words]:For the question below use financial data of any two latest consecutive years for specific information.

Calculate two ratios for liquidity, profitability, activity, capital structure and growth which should be critically interpreted and evaluated by comparing each ratio between the chosen organization and the industry benchmarks.Critically discuss how the external operating environment can impact the financial performance of this chosen company.

Finally, evaluate and recommend future strategies which will improve organizational sustainability. [25 marks].

1. Budgeting Practices [1000 words]: Carry out a critical analysis which exhibits a suitable understanding of current issues/concepts that are relevant for investigating existing practices of Traditional Budgets versus Modern Agetypes of alternative budgeting techniques in large corporations.

Contextualize these budgeting approaches which can lead to enhancing operational performance, by linking them to the overall operational strategies & decision-making of the companies.

Review the impact of smarter technologies performance in the overall budgeting processes, when examining forecasting and management control processes.(Students may use examples from chosen organization)

[25 marks].

1. Investment Appraisal Techniques [700 words]: If you were a Director of a public listed company and had to present a significantly high value capital expenditure proposal to the CEO, how would you critically evaluate investment appraisal techniques that remain important when seeking an approval from the CEO. Evaluate at least two popular investment appraisal techniques that can be used & considered by managers/decision-makers in the light of dynamic business & economic conditions. (Examples/data from the chosen organization can be used to support the explanations.)

Any capital expenditure involves protecting shareholder interests & maintaining a careful balance between risk and rewards, using the concept of time value of money, to study the impact of choices between discounted cash flows and non-discounted cash flow methods.Therefore, conduct a discounted and non-discounted cash flow analysis. [15 marks].

Note: Presentation & References: You should present the whole document in methodical manner and should remain aligned to appropriately demonstrate correct application of the Harvard Referencing System (HRS).

Assessment Criteria

_(70-100%)

_{Work of an outstanding, excellent & v. good standard (*)}

_(60-69%)

_{Work of a good standard.}

_(50-59%)

_{Work of a pass standard.}

_{D (40-49%)}

_Fail

_{E (0-39%)}

_Fail

Introduction & Financial Accounting Principles and alignment of strategies to measure Bottom Line impact.

(35%)

Assignment produces an excellent factual analysis of companies operational and financial performance by reviewing the relevant Annual Reports which presents necessary accounting and management decisions in a well explained manner to present its significance, by draw comparisons across peer group companies within the segment. Additionally domain specific industry reports are reviewed to narrate current macro-economic events which provide and propose reasons for changes with comparisons by stating means of improvement futuristic goals.

Excellent understanding demonstrated to critically examining judgements and estimates used for arriving at preparation of Financial Statements, along with review of key financial metrics on the strength of financial notes, accounting standards to assess the impact and review appropriate financial strategies

Assignment produces accurate & relevant information to evidence and support factual analysis of companies operational and financial performance by reviewing the relevant Annual Reports which produced accurate accounting and management decisions ,that have been reasonably explained as to their share its significance, draw comparisons within the segment. Additionally domain specific industry reports have been reviewed to capture the current macro-economic events in a satisfying manner to provide and propose reasons for changes with comparisons by stating means of improvement futuristic goals.

Good understanding demonstrated to critically examining judgements and estimates used for arriving at preparation of Financial Statements, along with review of key financial metrics on the strength of financial notes, accounting standards to assess the impact and review appropriate financial strategies. Grammar & spelling accurate and fluent. Thoughts and views clearly expressed. Presentation is orderly and of good standards, minor syntax errors sighted.

Assignment produces a fairly good narrative to support factual analysis of companies operational and financial performance by reviewing the relevant company websites & Wikipedia sources in a limited manner to produce necessary details of accounting and management decisions , which have reasonably explained as to demonstrate its significance, but a bit inconsistent, when drawing comparisons within the segment. Some errors spotted in grammar and syntax

Fairly reasonable understanding demonstrated when commenting on judgements and estimates used to review the preparation of Financial Statements, along with examining key financial metrics on the strength of financial notes, accounting standards to assess the impact and review appropriate financial strategies. Some inconsistencies in grammar & syntax observed.

Assignment produces a poor review in support of factual data analysis with respect to companys operational and financial performance. Evidence presented is of limited manner in not reviewing necessary Annual Reports to produce required details of accounting and management decisions .Explanations are in a language that is not fluent to contain inaccurate grammar Some errors & inconsistencies sighted in information produced.

Presentation is poor in structure relevant concepts when reviewing the judgements and estimates and includes errors in grammar and syntax. Not very coherent as language is inconsistent.

Assignment fails to provide any significant review to support factual data analysis with respect to companys operational and financial performance. Structure, language grammar and presentation of information is not of an acceptable standard including faulty syntax.

Purpose of the analysis to present necessary views and opinions on judgements and estimated presented in poor and disorderly manner. Language is unclear and incorrect usage of grammar and syntax.

Ratio Analysis & Financial Interpretations

(25%)

Assignment produces an excellent analysis of the companys performance which includes relevant ratios , which have been explained as to their role, comparisons provided and proposed reasons for changes, differences with comparisons and means of improvement

Assignment produces a very good analysis of the companys performance which includes most of the relevant ratios , explanations of their roles, comparisons, proposed reasons for change, differences with comparisons and means of improvement

Assignment produces an analysis of the companys performance which is based on a sufficient number of the relevant ratios , explanations of their roles, comparisons and proposed reasons for change, differences with comparisons and means of improvement

Assignment produces a limited analysis of the companys performance which misses some of the key elements and supporting detail.

Assignment produces a limited analysis of the companys performance which misses most of the key elements and supporting detail.

Relevance of Budgeting in driving Organizational Performance

(25%)

Assignment produces a clear and concise critical analysis of the strengths and weaknesses of the current budgetary process. This analysis recognises changing economic environments, weakness with traditional budgeting processes and proposals for changes. Excellent clarity of expression. Consistent/ accurate use of grammar and spelling using an academic writing style. Presentation standard of the assignment is excellent; consistent with academic protocol. Referencing clear, relevant and consistently accurate using the Harvard system

Assignment produces a clear and concise analysis of the strengths and weaknesses of the current budgetary process. This analysis recognises some of the issues around the changing economic environments, weakness with traditional budgeting processes Thoughts and ideas clearly expressed. Grammar and spelling accurate and fluent. Presentation overall of good standard with few errors in grammar and syntax. Referencing relevant and mostly accurate using the Harvard system.

Assignment produces an analysis of some the strengths and weaknesses of the current budgetary process. This analysis recognises some of the issues around the changing economic environments, weakness with traditional budgeting processes. Presentation has limitations including some errors in grammar and syntax Minor inconsistencies and inaccuracies in referencing using the Harvard system

Assignment produces an analysis of a few the strengths and weaknesses of the current budgetary process. This analysis fails to recognise the main issues around the changing economic environments, weakness with traditional budgeting processes. Meaning apparent
but language not always fluent, grammar and spelling is often inaccurate.

Presentation is poor in structure and includes errors in grammar and syntax. Referencing present
having many inconsistencies
and inaccuracies

Assignment fails to produce an analysis of the strengths and weaknesses of the current budgetary process. This analysis fails to recognise the main issues around the changing economic environments, weakness with traditional budgeting processes. Purpose and
meaning of
assignment unclear.
Language, grammar
and spelling poor. Structure and presentation is not of an acceptable standard including faulty grammar and syntax. Referencing mainly inaccurate or absent

Investment Appraisal Technique

(15%)

Excellent Academic Debates are presented when reviewing necessary challenges and inherent difficulties in decision-making process whilst approving Capital Expenditure Proposals.

Harvard Referencing System followed in a systematic and accurate manner

Suitable recommendations on ideal investment appraisal techniques, post reviewing each technique considers merits c time value of money concept , cash flows to distinctly clarify positions on risks versus rewards, rate of return, to be well supported with empirical evidence when contemplating on long term decision-making .

Sound Academic Debates are presented when reviewing necessary challenges and inherent difficulties in decision-making process whilst approving Capital Expenditure Proposals.

Errors in Harvard Referencing, along with minor flaws grammar and syntax observed.

Suitable recommendations post reviewing each investment appraisal methods considering time value of money concept clarifies positions on risks versus rewards, rate of return, is well supported with empirical evidence to support long term decision-making.

Reasonably Good Academic Debates are presented when reviewing necessary challenging and inherent difficulties in decision-making of Capital Expenditure Proposals.

Limited Harvard Referencing & recommendations are placed post reviewing each investment appraisal methods to support long term decision-making.

Errors in Grammar and syntax

The purpose of this task does not meet acceptable standards. Lack of Academic debates sighted. Limited understanding exhibited with poor language carrying confused meaning and no structure or pattern followed when discussing the relevant investment appraisal techniques. Poor Grammar and syntax errors observed

Recommendations are not in line with the academic thinking to support investment appraisal techniques for supporting long term decision-making.

The information placed fails to meet desired expected standard. Language, structure and presentation of thoughts are not fluent and is unclear. Poor use of grammar and syntax