Write a business report on Metcash Limited?

Structure of the Business Report 

1. Title
2. Executive Summary
3. Table of Contents
4. Brief company and industry overview 
5. Data Analysis   
   • Value Chain Analysis
   • Working Capital Management 
6. Findings, Conclusion and Limitations of the report
7. References
8. Appendices

 Submission instructions:

1. The group report should be uploaded via Turnitin. (Marks out of 100 will be converted to 15 group marks). (15%)
2. Group members must produce 8 minutes (2 minutes x 4 members) video presentation to present the business report. The video presentation should include a brief introduction, findings, conclusion, and recommendations as a part of the business report. It must be seen(evidence) that you are doing the presentation during the presentation. (5 individual marks) (5%)

Please use the following questions and information provided below as reference points for structuring your business report. 

1. Title: Provide the title of your report followed by a logo that represents your company.
2. Executive Summary:An executive summary provides a condensed version of the main report in three paragraphs that discuss (1) the aim of the report, methods used to analyse financial data (e.g. trend analysis based on historical financial ratios); (2) findings; conclusion and recommendation; and (3) limitations of the report. (5 marks)
3. Table of Contents
4. Brief company and industry overview

• Provide a brief background of Metcash Limited (MTS).
• What industry(ies) does MTS operate in? Discuss the competitive industry landscape and provide an industry outlook (Hint: focus your discussion  on the operating or business segments/industries where Metcash is a major player. You can refer to both company annual reports, IBIS World reports or any other source as you see fit to extract information)
• Briefly list and describe important products / services of the operating divisions of Metcash.
• Who are the primary producers (major companies) in the operating segments where Metcash is a major player? Who are the primary buyers (major customers) of the products of these industries/operating segments?
• What competitive strategy is Metcash employing?

(5 Marks)

1. Data Analysis 

1. 1. • Value Chain Analysis (15+ 15 = 30 marks)
      1. Draw and explain a Porter's Value Chain Analysis diagram of Metcash showing primary and support (secondary) activities. Provide specific descriptions for each activity applying to what Metcash does rather than just stating generic terms. 

What are the advantages of conducting a Value Chain Analysis for Metcash?

(1) Prepare an analysis using quantitative (i.e. ROA, ROE, Profit Margin (please use financial data from annual reports)) and qualitative performance indicators to assess the company’s 2022 performance against its past performance results.

 Notes: please use financial data from ANNUAL REPORTS when calculating quantitative performance indicators. Clearly show the workings, not just the final answers. Marks will be deducted for answers shown without any workings.

  (2) Compare the company's current performance against two competitors. (Hint: focus your analysis  on the competitors operating in business segments/industries where Metcash is a major player. IBIS World reports might contain some useful information regarding this.).  

 (3) How might the above information/analysis be useful in value chain analysis?  

Working Capital Management (5+ 10 + 15 +15 +5 = 50 Marks)

(1) What are short-term borrowings, and what role do they play in working capital management?

 (2) Explain the usefulness of the principle of self–liquidating debt in managing a firm's working capital.

Calculate Metcash’s current and quick ratios for the last five years (2018, 2019, 2020,  2021 & 2022).

 Notes: Please use financial data from ANNUAL REPORTS. Clearly show the workings, not just the final answers. Marks will be deducted for answers shown without any workings.

(3)Calculate working capital ratios (i.e., ACP, APP, and CCC) and Company financing needs to support a firm's CCC for 2018, 2019, 2020, 2021 & 2022).

 Notes: Please use financial data from ANNUAL REPORTS. Clearly show the workings, not just the final answers. Marks will be deducted for answers shown without any workings.

(4)Based on the findings found in b & c, what is your opinion about the company's liquidity and working capital management performance ratios? (Hint: Compare Metcash’s current results with its past performance results and two of its current competitors' performances and make an informed assessment based on these financial ratios.  Focus your analysis  on the competitors operating in business segments/industries where Metcash is a major player).

(5)Discuss different strategies Metcash could employ to improve its working capital efficiency.                                    

1. Findings, conclusion, recommendations, and limitations of the report

 Summarise findings based on the analysis of liquidity position and working capital management. Identify what action the financial manager has taken to increase their performance in quantitative measures (specifically Return on Assets and Return on Equity) and qualitative measures (product quality /customer satisfaction and market share protection). Prepare and justify recommendations to management on improving Metcash’s performance in the following financial year. Further, discuss any limitations.
(6 Marks)