The following individual financial report is designed to enable you to use the knowledge of accounting concepts to produce strong financial plan for new ventures or expanding business and gain robust understanding of investment approaches. You are required to research, critically analyse, appraise,

Assignment Brief

Title

Business Finance and Enterprise Development

Assignment Title

Financial Planning and Investment Appraisal

Assessment Information – What you need to do

Overview of assessment 2:

The following individual financial report is designed to enable you to use the knowledge of accounting concepts to produce strong financial plan for new ventures or expanding business and gain robust understanding of investment approaches. You are required to research, critically analyse, appraise, and evaluate theories while creating a financial report using a case study business example.

From the company options below, offer business development (investment) proposal to potential investors about the growth prospects of the new venture/product idea.

Future benefits upon completion of this Report:

The knowledge foundations gained from undertaking this report will give you a strong analytical skill needed in preparing investment proposals, whether that be entrepreneurially or intrapreneurially. It will also be the foundation required for the optional module BMBA5006 – Entrepreneurship Project, should that be your choice.

Business Case Study Options (Choose ONE):

Dangote Industries Ltd – Nigeria, Africa; Multiple necessity goods
Cencosud Plc – Chile, South America; Retail conglomerate
Birlasoft ltd – Pune, India;Software & IT services
Marks & Spencer PLC – United Kingdom; Multinational Retailer
Business Case Study Options: After Choosing 1 Company, choose one product/Service that can offer the chosen company competitive advantage and produce a financial report based on the following report requirements (and questions):

Report content requirements:

1. Provide detailed description of one new product or service that one of the companies can add to its product line to enhance its business competitiveness using Hemingway’s Iceberg Theory (and/or use another relevant Theory/Model/Framewor (Linked to learning outcome 3)
2. Critically evaluate the investment attractiveness of the recommended product or service in number 1 using Venture Attractiveness Matrix (VEM). Other frameworks or concepts may be considered (such as Porter’s Value Chain Analysis, Resource Imitator ladder, Strategic Opportunity Matrix (Ansoff Matrix), BCG Matrix, VRIO Framework). (Linked to learning outcome 3 & 5)
3. Critically evaluate the financial health of one company financial statements in the last 2 years using the different financial ratio analytical techniques (i.e. liquidity, solvency, profitability, and efficiency ratios). Detailed interpretation of the results expected. (Linked to learning outcome 3)
4. Develop a 2-Year pro-forma financial plan for the newly recommended product or service based on the provided financial statements. (Linked to learning outcome 1)
Does the company need extra funding for the new product or service?

(Careful review of previous/given cashflow and income/loss statement may be helpful)

Yes or No? – Give detailed reasons in this report.
5. Conduct a break-even and sensitivity analysis for the new product/service (based on pro-forma financial plan in number 4).(Linked to learning outcome 6)
Word count: 3000 words

(+/-10% of 3000 words is allowed. Less or more than this percentage will impact on you losing 5% of your financial report mark.)

Criteria for Assessment – How you will be marked

Provide detailed description of one new product or service that one of the companies can add to its product line to enhance its business competitiveness using Hemingway’s Iceberg Theory. (Other applicable theory is acceptable)
10%

Critically evaluate the investment attractiveness of the recommended product or service in number 1 using Venture Attractiveness Matrix (VEM). (Application to case)
15%

Critically evaluate the financial health of one company financial statements in the last 2 years using the different financial ratio methods (Ratio Analysis & Interpretation)
15%

Develop a 2-Year pro-forma financial plan for the newly recommended product or service based (Application of current cashflow statement free cashflow [FCF] figures and potential additional funding requirements based on FCF)
20%

5. Conduct a break-even and sensitivity analysis for the new product/service. (Analysis & Result Interpretation)
20%

Adequate research quantities achieved in line with level 7 and Harvard citation, references, and bibliography unincorporated correctly. Report formats correct and word count achieved (Academic requirements)
20%

TOTAL GRADE = 100%

Further information on University mark descriptors can be found here.

This assignment is designed to assess the following learning outcomes:

1) Conceptualise and critically evaluate the major finance concepts and financial statements within a business context. (Investment Proposal Report)

3) Respond effectively to a diverse range of business challenges and be able to analyse the performance of a business through calculation and interpretation of financial ratios demonstrating problem-solving and decision-making skills. (Investment Proposal Report)

5) Critically analyse and adapt to strategic and financial decision scenarios, appraising how firms and managers make decisions and the processes they go through. (Investment Proposal Report)

6) Evaluate and advise on different financial business models to effect financial adjustments and measurement of profit within the business context. (Investment Proposal Report)

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