L7 – Finance for Strategic Managers Assignment – FINAL
The Rules of the assignments
- Tutor MUST STICK TO GUID file instructions
- Tutor must answer all questions and do all requirement
- Tutor must use Harvard style in references and citations
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L7 – Finance for Strategic Managers Assignment – FINAL The Rules of the assignments Tutor MUST STICK TO GUID file instructionsTutor must answer all questions and do all requirementTutor must use Harv
Unit 2 Finance fo r Strateg ic Manag ers Assig nment v1.0 13/02/23 For: ATHE Level 7 Diploma in Strategic Management ATHE Level 7 Extended Diploma in Strategic Management Unit 2 Finance for Strategic Managers Assignment Assignment Scenario Pietro Yon, a local businessman , owns and manage s several retail store s that sell a range of electronic goods . 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 Electronics Co. Ltd . The Chamber believes that there may be some usef ul learning f rom this study which members of the Chamber could use. You have been asked to provide specialis t support to the committee , including produc ing a range of materials f or members of the committee to use. You have been provided with the f ollowing link to view Samsung Electronics Co. Ltd annua l reports and investor inf ormation. https://www.samsung.com/global/ir/financial -information/audited -financial -statements/ Task 1 You must produce a presentation f or Pietro Yon to use at the next committee meeting . The presentation should be based on your research of Samsung Electronics Co. Ltd. and other relevant inf ormation. It must be accompanied by support ing notes . Your presentation must include the f ollowing : • An evaluation of the sources of financial data which can be used to inf orm business strategy • An assessment of the importance of financial data and inf ormation in the f ormulation of business strateg y • An analysis of the risks related to f inancially based business decisions. • A review of techniques that can be used to apprais e strategic capital expenditure projects Learning outcomes and assessment criteria LO1 AC 1.1, 1.2, 1.3 LO3 AC 3.1 Task 2 A meeting has been arranged with Pietro Yon and other members of the committee and you have been asked to produce a discussion paper which provides: • An interpretation of the f inancial statements of Samsung Electronics Co. Ltd. to assess the current viability of the organisation Unit 2 Finance fo r Strateg ic Manag ers Assig nment v1.0 13/02/23 • A comparative analysis of f inancial data using ratio analysis f or Samsung Electronics Co. Ltd. You are advised to download consecutive year’s accounts f rom the Samsung Electronics Co. Ltd. website Extension activities To achieve a Merit , you must : • Add f urther sections to your discussion paper that makes recommendations to Samsung Electronics Co. Ltd. based on your analysis and interpretation of the f inancial position • Produce an inf ormation leaf let f or the Chamber of Commerce to distrib ute to the members. The leaf let should assess the f ollowing : o The limitations of ratio analysis as a tool f or strategic decision making. o The importance of cash f low management when evaluating proposals f or capital expenditure To achieve a Distinction , yo u must prepare an additional section f or the leaf let t hat recommend s methods and tools that allow businesses to analyse f inancial data f or strategic decision -making . Learning outcomes and assessment criteria LO2 AC 2.1, 2.2, 2M1 , 2M2 , 2D1 LO 3 3M1 Task 3 Pietro Yon has been supplied with inf ormation f rom a component manuf acturer who has asked f or advice on the best project to accept f or the purchase / replacement of a piece of machinery. The company is considering selling its 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 can meet the expected company demand, estimated at: Year Units 1 90 000 2 50 000 3 30 000 Af ter three years, it is predicted that demand will be zero due to the technological developments in the industry. Unit 2 Finance fo r Strateg ic Manag ers Assig nment v1.0 13/02/23 The f ollowing data has been provided f or 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 (1) The selling price f or each component is £5 .00 and this will remain constant f or the next three years. (2) The company expect the cost of direct materials and direct labour to increase by 5% each year. (3) The company predicts that repair and maintenance costs f or the current machine will be £7 000 per annum. (4) The current machine is expected to have a zero -residual value at the end of year 3. (5) The company predicts that repair and maintenance costs f or the new machine will be £1000 per annum. (6) The new machine is expected to have a £75 000 res idual value at the end of year 3. The company’s cost of capital is 15% Extract f rom the present value table f or £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 of f ering advice on the best course of action f or the purchase / replacement machine. You must: • Prepare a report that evaluates the capital expenditure proposals using approp riate f inancial techniques Extension activities To achieve a Distinction , you must include an assessment of the impact of the capital expenditure proposal on the strategic direction of the organisation in your business report . Learning outcomes and assessment criteria LO3 AC 3.2 , 3D1 Note : When citing sources of inf ormation that you have used, provide a ref erence using an appropriate f ormat, e.g., Harvard. Unit 2 Finance f or Strategic Managers Assignment v1.0 13/02/23 Guidelines for assessors The assignments submitted by learner s must achieve the learning outcomes and meet the standards specif ied by the assessment criteria f or the unit. To achieve a merit or distinction grade, the learners must demonstrate that they have achieved all the criteria set f or these grades. Where work f or the pass standard is m arginal, 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 . The command verbs contained within the AC are highlighted in bold in the suggested evidence boxes. 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 AC1.1 The learner will provide an evaluation of the sources of financial data which can be used to inf orm business strategy . AC1.2 The learner should provide an assessment of the need f or f inancial data and inf ormation in relation to business strategy. The assessment and evaluation should be balanced leading to conclusions. The learner should use appropriate examples to illustrate the points which are made, and this will help to demonstrate their understanding. AC1.3 The learner will continue with an analys is of the risks related to f inancial business decisions. The analysis should be detailed and comprehensive. AC3.1 The learner should review techniques that can be used to appraise strategic capital expenditure projects giving examples of how these can wo rk in practice. Unit 2 Finance f or Strategic Managers Assignment v1.0 13/02/23 2. LO2 AC 2.1, 2.2 2M1 , 2M2, 2D1 LO3 3M1 AC2.1 The learner is required to download 2 or 3 consecutive years’ accounts f or Samsung Electronics Co. Ltd. using the link provided in the assignment. The learner will caref ully interpret the f inancial statements . AC2.2 The learner must mak e an assess ment and judgements on current viability of the business and prepare a comparative analysis of f inancial data using ratio analysis. 2M1 The learner will make appropriate f inancial recommendations . The recommendations must be directly linked to the detailed analysis and must be relevant to the organisation. The learner should use appropriate examples to demonstrate their understanding of the importance of accurate f inancial data in f ormulating and delivering business strategy . 2M2 The learner will assess the limitations of ratio analysis as a tool f or strate gic decision making leading to balanced judgements. 3M1 There must be f ull and clear assessment of the importance of cash f low management when evaluating proposals f or capital expenditure. Appropriate examples will aid the learner in demonstrating the po ints which are made. 2D1 The learner must recommend methods and tools that allow businesses to analyse f inancial data f or strategic decision -making. They must assess and justif y each of the methods and tools recommended . Appropriate examples of the meth ods and tools used by public and private sector organisations should illustrate the answer. Unit 2 Finance f or Strategic Managers Assignment v1.0 13/02/23 3. LO3 AC 3.2 , 3D1 AC3.2 Using the data provided in the case study, the learner is required to evaluate the business proposals f or capital expenditure identif ying benefits and issues and reaching conclusions. The learner must use appropriate f inancial techniques including payback, accounting rate of return, net present value and internal rate of return. 3D1 The learner is required to provide an assessment , with appropriate justif ications of the impact of a capital expenditure proposal on the strategic direction of a business organisation. The learner should use the inf ormation in the case study and any other appropriate theory and research.