Module: Finance for Business Managers
Module code: BMMB7005D Contribution to Overall Module Assessment (%): 100%
Lecturer: Konstantina Mari Internal Verifier: Richard Dunstan
Assignment Title: Greenfingers plc Word count (or equivalent): 5000 words
Submission deadline: 11-4-21 Return date of provisional marks & written feedback: Within 20 working days of submission deadline
Submission method: All written assessments, where practical and possible, must be submitted via Urkund unless otherwise instructed by the Lecturer.
Late submission of the assessment will result in a late penalty mark. Penalties for late submission: Up to one week late, maximum mark of 50%. Over one week late, 0%. Only the Extenuating Circumstances Panel may approve a change to submission dates.
Academic honesty / referencing: Academic honesty is required. In the main body of your submission you must give credit to authors on whose research and ideas your work is based. Append to your submission a reference list that indicates the books, articles, etc. that you have used, cited or quoted in order to complete this assessment.
Module Learning Outcomes (from module syllabus)
1.Research, apply and evaluate a variety of financial assessment techniques for application to a case study.
2.Research, evaluate and critically discuss various issues and theoretical frameworks used in the management and control of financial resources.
3.Analyse, interpret and critically assess the financial position of a business, incorporating conclusions/recommendations and advice to managers/directors.
4.Use a variety of techniques in the provision of managerial and financial information. Evaluate, assess and advise on issues highlighted from the information generated.
Critically evaluate relevant aspects of techniques applied.
For this assignment, you will be conducting a variety of financial analysis and preparing two (2) business reports outlining your analysis and recommendations and one presentation. You should submit both business reports as one document. The breakdown of the assignment is as follows:
Part Description Report Length Weight
Financial Statement Analysis and Presentation 2,000 words 40%
Financial Statement Presentation Presentation 10 min. 10%
Greenfingers, Plc. Investment Programme 2,000 words 50%
Part 1 – Financial Statement Analysis and Presentation
For Part 1 you will be calculating and evaluating the financial management of a company.
1.Select a company whose shares are traded on the London Stock Exchange and is part of the FTSE 100 Index. Download its most recent annual report(s) including financial statements for the past 2 years. As an alternative, you may select your own company or employer. Include the financial statements in the appendix of your business report.
2.Conduct a financial analysis by calculating a variety of profitability, liquidity, efficiency, and solvency ratios. Ratios should be calculated for a minimum of the past 2 years. Include the selected ratio calculations in the appendix of your business report.
Profitability Ratios Liquidity Ratios Efficiency Ratios Solvency Ratios
1.Gross Profit Margin Ratio
2.Operating Profit Margin Ratio
3.Net Profit Margin Ratio
4.Return on Assets (ROA)
5.Return on Capital Employed (ROCE)
6.Return on Equity (ROE) 1.Current Ratio
2.Quick Ratio
3.Cash Ratio 1.Accounts Receivable Turnover
2.Accounts Payable Turnover
3.Asset Turnover Ratio
4.Capital Turnover Ratio
5.Inventory Turnover Ratio
6.Working Capital Turnover Ratio 1.Debt Ratio
2.Equity Ratio
3.Debt to Equity Ratio
4.Interest Coverage Ratio
3.Critically evaluate the calculated ratios and prepare a business report discussing your analysis. You should explain possible reasons for changes in ratios over the time period your selected. In addition, you should discuss the limitations of your ratio analysis.
4.Make several recommendations on how to improve the financial management of your selected company based on your ratio analysis.
Financial Statement Presentation
1. Create a podcast presentation (audio or video) summarising the contents of your report. The maximum length should be 10 minutes.
Part 2 – Greenfingers, Plc. Investment Programme
For Part 2, you will evaluate three investment options and propose how an investment programme might be financed for Greenfingers, Plc.
Write a business report for Greenfingers’ Directors explaining whether the company should undertake the project or look for other opportunities. The business report should incorporate the following information:
1.Include an evaluation of the three investment options using the net present value (NPV) technique, assuming the cost of capital to be 6%. (You are required to show all of your calculations.). Identify which option you would recommend and provide a detailed explanation supporting your recommendation.
2.Based on your recommendation, calculate the approximate internal rate of return (IRR). (You are required to show all calculations).
3.Interpret your results including:
a.Include theoretical arguments for the choice of net present values and the best method for investment appraisal.
b.Explain the continued popularity among decision-makers of non-discounting methods of investment appraisal.
c.Identify what other factors should be considered before an investment decision is made.
4.If funds are limited to £2,500,000 and the projects are divisible, (i.e. it is possible to undertake a fraction of a total project), calculate the optimal investment policy and the resulting total NPV from your investment policy.
5.Provide your recommendations to the Greenfingers, Plc Directors how the proposed investment programme might be financed by identifying the main sources of available financing. Additionally, include the main advantages and disadvantages of each finance source.
Greenfingers, Plc. Scenario
Greenfingers Plc., who produce a variety of high-quality outdoor rattan furniture and associated items, is considering whether or not to invest to expand the business. The directors have identified three main options for a four-year plan:
A.Expand its flourishing retail outlet to include all products.
B.Launch an eCommerce site to generate internet sales.
C.Produce greenhouses and conservatories
These three options would require an initial expenditure of (A) £650,000, (B) £1,100,000, or (C)
£1,800,000.
The most recent estimates on year-end cash flows is as follows:
Year 1 Year 2 Year 3 Year 4
£’000 £’000 £’000 £’000
(A) 300 400 450 500
(B) 500 550 700 950
(C) 500 800 1050 1200
Assume corporation tax is 25% and capital allowances are 20% on a straight line basis. All of these cashflows occur in the year that they arise.
NOTE: The guidance offered below is linked to the five generic assessment criteria overleaf.
1.Engagement with Literature Skills
Your work must be informed and supported by scholarly material that is relevant to and focused on the task(s) set; you should make use of scholarly reviews and primary sources, as appropriate (for example, refereed research articles and/or original materials appropriate to the discipline). You should provide evidence that you have accessed a wide range of sources, which may be academic, governmental and industrial; these sources may include academic journal articles, textbooks, current news articles, organisational documents, and websites. You should consider the credibility of your sources; academic journals are normally highly credible sources while websites require careful consideration/selection and should be used sparingly. Any sources you use should be current and up-to-date, mostly published within the last five years or so, though seminal/important works in the field may be older. You must provide evidence of your research/own reading throughout your work, using correctly a suitable referencing system, including in-text citations in the main body of your work and a reference list at the end of your work.
Guidance specific to this assessment: Application and critical discussion of the various techniques and methods used to assess the performance of a business and capital appraisal models and the sources of finance available. As a guide a minimum of 25 credible sources should be provided.
2.Knowledge and Understanding Skills
At level 7, you should be able to demonstrate a systematic understanding of knowledge, and a critical awareness of current problems and/or new insights, much of which is at, or informed by, the forefront of your academic discipline, field of study or area of professional practice, with a comprehensive understanding of techniques applicable to your own research or advanced scholarship. Your work must demonstrate your growing mastery of these concepts, principles, current challenges, innovation and insights associated with the subject area. Knowledge relates to the facts, information and skills you have acquired through your learning. You demonstrate your understanding by interpreting the meaning of the facts and information (knowledge). This means that you need to select and include in your work the contemporary concepts, techniques, models, theories, etc. appropriate to the task(s) set. You should be able to explain the theories, concepts, etc. meaningfully to show your understanding. Your mark/grade will also depend upon the extent to which you demonstrate your knowledge and understanding; ideally each should be complete and detailed, with comprehensive coverage.
Guidance specific to this assessment: Research the various techniques and methods used to assess the performance of a business and capital appraisal models and the sources of finance available.
3.Cognitive and Intellectual Skills
You should be able to: evaluate critically current research and advanced scholarship in the discipline; evaluate methodologies and develop critiques of them and, where appropriate, to propose new hypotheses; deal with complex issues both systematically and creatively to make sound judgements in the absence of complete data. Your work must contain evidence of logical, analytical thinking, evaluation and synthesis. For example, to examine and break information down into parts, make inferences, compile, compare and contrast information. This means not just describing what! But also justifying: Why? How? When? Who? Where? At what cost? At all times, you must provide justification for your arguments and judgements. Evidence that you have reflected upon the ideas of experts within the subject area is crucial to you providing a reasoned and informed debate within your work. Your choice of methodologies to gather data and information must be rigorously defended. Furthermore, you should provide evidence that you are able to make sound judgements and convincing arguments using data and concepts. Sound, valid, persuasive conclusions are necessary and must be derived from the content of your work. Where relevant, alternative solutions and recommendations may be proposed.
Guidance specific to this assessment: Provision of coherent, structured analysis and conclusions based upon the content provided. Following on from the analysis and conclusions a set of recommendations which address the issues/problems raised in the report covering financial performance and capital project decision(s).
4.Practical Skills
At level 7, you should be able to demonstrate originality in the application of knowledge, together with a practical understanding of how established techniques of research and enquiry are used to create and interpret knowledge in the discipline. This includes acting autonomously in planning and implementing tasks at a professional or equivalent level, originality in tackling and solving problems, and decision-making in complex and unpredictable contexts or situations.
You should be able to demonstrate mastery of the leading edge subject-related concepts and ideas as they relate to real world situations and/or particular contexts. How do they work in practice? You will deploy models, methods, techniques, and/or theories, in those contexts or circumstances, to assess current situations, perhaps to formulate plans or plausible, justifiable recommendations to solve problems, or to propose new models, or to create artefacts, which may be innovative and creative, thereby demonstrating your understanding of how the boundaries of knowledge are advanced through research and/or application. This is likely to involve, for instance, the use of real world artefacts, examples and cases, the application of a model within an organisation and/or benchmarking one theory or organisation against others.
Guidance specific to this assessment: Use of the range of ratios and their trends to provide comprehensive comment and analysis of the financial performance, covering the following five areas of Profitability; Liquidity: Efficiency: Investment and Gearing. The results of the above ratios should be linked in order to provide a comprehensive review of financial performance. Research and apply appropriate capital appraisal techniques, and sources of finance available.
5.Transferable Skills for Life and Professional Practice
Your work must provide evidence of the qualities and transferable skills necessary for postgraduate-level employment in circumstances requiring sound judgement, personal responsibility and initiative in complex and unpredictable professional environments. This includes demonstrating: the independent learning ability for continuing professional development to advance existing skills and acquire new competences of a professional nature that will enable you to assume significant responsibility within organisations; that you can initiate and complete tasks, projects and procedures, whether individually and/or collaboratively, to a professional level; that you can use appropriate media to effectively communicate information, arguments and analysis in a variety of forms for a variety of audiences; fluency of expression; clarity and effectiveness in presentation and organisation. Work should be coherent and well-structured in presentation and organisation.
Guidance specific to this assessment: Structure and presentation of a professional report (follows conventions in terms of layout and appropriate sections including correct spelling, grammar, punctuation, flow of narrative/fluency, coherence.
This section details the extent to which the assessment criteria are demonstrated by you, which in turn determines your mark. The marks available for each category of skill are shown. Lecturers will use the space provided to comment on the achievement of the task(s), including those areas in which you have performed well and areas that would benefit from development/improvement.
Generic Assessment Criteria Marks available
Marks awarded
1. Engagement with Literature Skills
. 15%
2. Knowledge and Understanding Skills 20%
3. Cognitive and Intellectual Skills 30%
4. Practical Application Skills 30%
5. Transferable Skills for Life and Professional Practice 5%
Assessment Mark (Assessment marks are subject to ratification at the Exam Board. These comments and marks are to give feedback on module work and are for guidance only until they are confirmed. ) Late Submission Penalties (tick if appropriate)
%
Up to 1 week late (40% Max)
Over 1 week late (0%)
Level 7
In accordance with the Framework for Higher Education Qualifications, at the end of Level 7 students should be able to demonstrate: a systematic understanding of knowledge, and a critical awareness of current problems and/or new insights, much of which is at, or informed by, the forefront of their academic discipline or area of professional practice; a comprehensive understanding of techniques applicable to their own research or advanced scholarship; originality in the application of knowledge, together with a practical understanding of how established techniques of research and enquiry are used to create and interpret knowledge in the discipline; conceptual understanding that enables the student to evaluate critically current research and advanced scholarship in the discipline to evaluate methodologies and develop critiques of them and, where appropriate, to propose new hypotheses. They will be able to deal with complex issues both systematically and creatively, make sound judgements in the absence of complete data, and communicate their conclusions clearly to specialist and non-specialist audiences. They will demonstrate self-direction and originality in tackling and solving problems, and act autonomously in planning and implementing tasks at a professional or equivalent level to continue to advance their knowledge and understanding, and to develop new skills to a high level. They the qualities and transferable skills necessary for employment requiring the exercise of initiative and personal responsibility; decision-making in complex and unpredictable situations/professional environments; and the independent learning ability required for
continuing professional development.
Level 7
FAIL
FAIL
MARGINAL FAIL SATISFACTORY
(Pass) GOOD to VERY GOOD
(Merit) EXCELLENT
(Distinction) EXCEPTIONAL
(Distinction)
Category 0-29% 30-44% 45-49% 50-59% 60-69% 70-84% 85-100%
Engagement with literature (including current research, referencing,
academic conventions and academic honesty) Little or no evidence of reading and/or reliance on inappropriate sources.
Views and findings mostly unsupported and non- authoritative.
Referencing conventions used incoherently or largely absent. Poor engagement with essential reading. No evidence of wider reading. Reliance on inappropriate sources, and/or indiscriminate use of sources. Heavily reliant on information gained through class contact. Inconsistent and
weak use of referencing. Engagement with a very limited range of relevant and credible sources. Some omissions and minor errors.
Referencing conventions evident though not always applied accurately or consistently. Engagement with an appropriate range of research- informed literature, including sources retrieved independently. Some over- reliance on texts. Referencing may show minor inaccuracies or inconsistencies. Engagement with a wide range of research- informed literature, including sources retrieved independently. Selection of relevant and credible sources. Very good use of referencing, with no/very few
inaccuracies or inconsistencies. Engagement with an extensive range of relevant and credible literature, informed by the latest research. Consistently accurate application of referencing. Exceptional engagement with an extensive range of relevant and credible literature, informed by the latest research. High-level referencing skills consistently and professionally applied.
Knowledge and Major gaps in knowledge and Gaps in knowledge, with Limited knowledge and Knowledge is accurate and Knowledge has a well-defined Excellent mastery of a Exceptional mastery of a
Level 7
FAIL
FAIL
MARGINAL FAIL SATISFACTORY
(Pass) GOOD to VERY GOOD
(Merit) EXCELLENT
(Distinction) EXCEPTIONAL
(Distinction)
Category 0-29% 30-44% 45-49% 50-59% 60-69% 70-84% 85-100%
understanding (A systematic, conceptual understanding of knowledge, and a critical awareness of current problems and/or new insights, much of which is at, or informed by, the forefront of the discipline; a comprehensive understanding of techniques applicable to their own research) understanding of the subject matter is not systematic.
Substantial inaccuracies. No awareness of current problems, insights or the latest research and/or advanced scholarship within the discipline. only superficial systematic understanding. Some significant inaccuracies and/or irrelevant material. No critical awareness of current problems, insights, or latest research within the discipline. systematic understanding of the concepts and principles within the subject area, which to some marginal extent, is informed by current research and scholarship. Some critical awareness of current problems and/or new insights, but often under- developed. reasonably detailed. A systematic understanding of the field of study informed by, to some extent, current research and scholarship, A critical awareness of current problems and/or new insights though this may be under-developed occasionally. focus, which is reasonably extensive, coherent and detailed, with a critical awareness of current problems and/or new insights.
Exhibits good understanding of the breadth and depth of contemporary and established views, and the work is, at least in part, well- informed by current research and scholarship. complex and specialised area of knowledge. A systematic, excellent understanding of the concepts of the subject informed by current research and scholarship. Highly critical awareness of current problems and/or new insights. A critical, awareness of how the boundaries of knowledge are advanced through research. complex and specialised area of knowledge.
An exceptionally critical awareness of current problems and/or new insights. An outstanding understanding of the concepts of the subject, well- informed by current research and scholarship. A critical, sophisticated and nuanced awareness of how the boundaries of knowledge are advanced through research.
Cognitive and intellectual skills
(Critical evaluation of current research and methodologies and develop critiques of them and, where appropriate, to propose new hypotheses; make
sound Wholly or almost wholly descriptive work. Little or no evaluation or critique or attempt at a systematic approach.
Failure to develop arguments, leading to
illogical or invalid Largely descriptive work, with superficial use of critical evaluation of research and methodologies. Absent or weak development of hypotheses and judgements.
Information accepted uncritically, uses Limited attempt at critical evaluation/ critique of current research and methodologies, tending towards description.
Limited attempt to propose new hypotheses. Can deal with
complex issues Some critical evaluation/ critique of current research and methodologies, though slightly underdeveloped in places, Proposes adequate but limited new hypotheses,
where relevant. Sound critical evaluation/ critique of current research and methodologies, Proposes new hypotheses, where appropriate. Can deal with complex issues systematically
and with some Excellent critical evaluation/ critique of current research and methodologies, Proposes innovative hypotheses, where appropriate. Can synthesise complex issues
systematically Exceptional critical evaluation/ critique of current research and methodologies, Proposes innovative hypotheses, where appropriate.
Exemplary systematic and
Level 7
FAIL
FAIL
MARGINAL FAIL SATISFACTORY
(Pass) GOOD to VERY GOOD
(Merit) EXCELLENT
(Distinction) EXCEPTIONAL
(Distinction)
Category 0-29% 30-44% 45-49% 50-59% 60-69% 70-84% 85-100%
judgements in the absence of complete data.) judgements. Unsubstantiated generalisations, made without use of credible evidence. generalised statements made with scant evidence and unsubstantiated opinions. Ideas sometimes illogical and contradictory. but not systematically or creatively. Some evidence to support emerging judgements but these may be underdeveloped or with a little inconsistency / mis- interpretation.
May assert rather than argue a case. Can deal with complex issues but not fully systematically or creatively. Ability to make judgements based on data (that may be incomplete) but with some tendency to assert/state opinion rather than argue on the basis of reason and evidence. creativity. Ability to make sound judgements based on data (that may be incomplete) and creatively. Ability to investigate contradictory or incomplete information and make strong, persuasive, arguments and sophisticated judgements. creative synthesis of complex issues. Ability to investigate contradictory or incomplete information and make strong, persuasive, arguments and sophisticated, nuanced, judgements.
Potential for journal publication or doctoral
research.
Practical skills (Originality / creativity in the application of
knowledge, tools and techniques and in tackling and solving problems in complex and unpredictable professional situations; practical use of established techniques of research and enquiry to create and interpret knowledge in the discipline.) Limited or no use of methods, materials, tools and/or techniques.
Little or no appreciation of the context of the application. Limited understanding of the application of theory to practice or making appropriate links between the two. Very weak problem-solving skills in complex
and Rudimentary application of methods, materials, tools and/or techniques but without consideration and competence. Flawed appreciation of the context of the application. Weak understanding of the application of theory to practice, with only occasional
evidence of An awareness and mostly appropriate application of well-established methods, materials, tools and/or techniques, with occasional errors.
Basic appreciation of the context of the application. Theoretical knowledge and understanding applied in practice, but not
always making An appropriate application of standard methods, materials, tools and/or techniques.
Clear appreciation of the context of the application. Mainly consistent, accurate and logical application of theory to practice, making appropriate links between the two. A very good application of a range of methods, materials, tools and/or techniques.
Very good consideration of the context of the application, with perceptive insights. Can identify problems and propose appropriate solutions in complex and unpredictable contexts. An advanced application of knowledge, methods, materials, tools and/or techniques.
The context of the application is well considered, and insightful.
Can identify complex problems and propose excellent solutions. An excellent grasp of techniques applicable to
own research or Exceptional application skills in complex, unpredictable, contexts, drawing skilfully on the latest research within the discipline.
Can identify complex problems and propose sophisticated, original solutions.
An outstanding application of techniques applicable to
own research or
Level 7
FAIL
FAIL
MARGINAL FAIL SATISFACTORY
(Pass) GOOD to VERY GOOD
(Merit) EXCELLENT
(Distinction) EXCEPTIONAL
(Distinction)
Category 0-29% 30-44% 45-49% 50-59% 60-69% 70-84% 85-100%
unpredictable making logical links Can identify Evidence of advanced advanced
contexts. appropriate links between the two. problems and originality and scholarship. scholarship.
between the two. Can identify propose mostly creativity. Shows originality Shows originality
Weak problem- problems and appropriate in application of in application of
solving skills in propose basic solutions in knowledge and knowledge and
complex and solutions without complex and techniques, and techniques, and
unpredictable fully appreciating unpredictable of how of how
contexts. the complexity of contexts, with established established
unpredictable elements of techniques of techniques of
contexts. originality. enquiry create enquiry create
and interpret and interpret
knowledge in the knowledge in the
discipline. discipline with
assimilation and
development of
cutting edge
processes and
techniques.
Transferable skills for life and professional practice
(Exercise of self- direction, autonomy and personal responsibility; plan and implement tasks at a professional level; independent learning; use appropriate media to communicate effectively and professionally to a variety of audiences; fluency of expression;
systematic Communication medium is inappropriate or misapplied.
Work is poorly structured, disorganised and/or confusingly expressed. Very weak use of language and/or very inappropriate style. Little or no evidence of autonomy (or collaboration, where relevant) in the completion of tasks. Little or no evidence of Communication medium is poorly designed and/or not suitable for the audience.
Work is poorly presented in a disjointed manner. It is loosely, and at times incoherently, structured, with information and ideas often poorly expressed.
Weak use of language and/or inappropriate style. Weak independent Can communicate in a suitable medium but with some room for improvement.
Mostly ordered presentation and structure in which relevant ideas / concepts are reasonably expressed. Work may lack coherence in places. Can work as part of a team, but with limited involvement in group activities. Can communicate effectively in a suitable format, but may have minor errors.
Mostly coherent, organised work, in a suitable structure and is for the most part clearly expressed. Can work effectively independently and/or as part of a team, with clear contribution to group activities. Demonstrates the skills Can communicate well, confidently and consistently in a suitable format.
Work is coherent, fluent, well-structured and organised. Can work very well autonomously and/or as part of a team, with a good contribution to group activities. Demonstrates comprehensive professional, postgraduate Can communicate professionally confidently and consistently in a suitable format. Work is coherent, very fluent and is presented professionally. Can work autonomously with initiative.
Where relevant can work professionally within a team, showing leadership skills as appropriate, managing Can communicate with an exceptionally high level of professionalism. Work is remarkably coherent, very fluent and is presented professionally. Can work outstandingly well and professionally within a team, showing advanced leadership skills. Demonstrates exemplary
Level 7
FAIL
FAIL
MARGINAL FAIL SATISFACTORY
(Pass) GOOD to VERY GOOD
(Merit) EXCELLENT
(Distinction) EXCEPTIONAL
(Distinction)
Category 0-29% 30-44% 45-49% 50-59% 60-69% 70-84% 85-100%
approach; clarity and effectiveness in presentation and organisation.) the skills required in professional, postgraduate employment. initiative (or collaboration, if relevant).
Limited evidence of the skills required in professional, postgraduate employment. Demonstrates some but not all of the basic skills required in professional, postgraduate employment, with some areas of minor weakness. required in professional, postgraduate employment, with some areas of strength and some of minor weakness. employment skills. conflict and meeting obligations. Demonstrates excellent professional, postgraduate employment skills and a strong appetite for further development. professional, postgraduate employment skills and a strong appetite for further development.
