Element

Details

%*

1. Give background to the organisation and their strategy (LO5)

· Describe the organisation and the industry/sector it operates within.

· Give an overview of products/services made/delivered and its key competitors.

· Explain key challenges (e.g., operating constraints) and strategic objectives of the organisation by reviewing executive comment and commentary from other external sources (e.g., Financial Times).

15%

2. Evaluate the company performance (LO1, LO2, LO3, LO7, LO9)

Evaluate how well the company is performing by analysing its annual report. You should:

· Analyse the profit and loss and balance sheet using current year/prior year trend analysis.

· Calculate and comment on financial ratios, using the ratios where appropriate to evaluate different segments of the business e.g., across brands, sub-businesses, countries (where appropriate). [Calculations along with formulas to be in an appendix]

· Consider performance against a “benchmark” organisation (ideally in the same sector) or an industry average.

40%

3. Calculate vertical and horizontal analysis of the financial statements and interpret the data (LO1, LO2, LO3, LO6)

With particular focus on the Income Statement, calculate the horizontal and vertical analysis and present a summary of the key findings.  Comment on comparison across Current and Prior Year(s).  [Calculations to be in an appendix]

15%

4. Comment on the drivers and consumers of cash (LO4)

Starting with cash from operations, identify the cash generating and consuming areas from the cash flow statement and discuss trends when comparing to previous year.

10%

5. Construct a forecast income statement for the chosen organisation (LO2, LO3, LO4)

Build a forecast income statement and explain your assumptions in revenue and expense build ups and gross profit expectations.  Compare and contrast the key financial ratios for your forecast compared to current performance.

15%

6. Discuss key challenges for the company and strategic marketing options (LO8)

Use your forecast income statement and findings of your strategic analysis to assess the key financial challenges in delivery of profit going forward.  Outline how you would propose to allocate the marketing expense across the different business segments.

5%