Reference no: EM132478831 , Length: 2000 words
BNEA041 - Construction Financial Management - Glasgow Caledonian University
You are a Management Consultancy practice and have been approached by McTavish and Company to advise them on future strategy. This should be undertaken by groups of three to five students. Details of the company with accounts and project profile were enclosed in Teaching Paper Number One.
The Report should seek to address the current trading and financial difficulties faced by the company and should focus on the following:
• The type and scale of contracts that the company should concentrate on in the future, and also the geographical scope of the contracts bid for.
• The bidding strategy for contracts, the target profit margin, the method of allocation of overhead cost.
• The strategy for speculative housing work, the target profit margins, possible land purchases etc.
• The financial strategy to accomplish the above strategy, the requirements for working capital, sources of funding and likely costs.
• The management and organizational structure suitable to implement the above, the scope for the use of consultants rather than employing staff, etc.
The above could take account of the national and local economic environment and be referred to relevant forecasts and projections. The financial implications of the strategy should be taken into account. For example, an aggressive marketing strategy for speculative housing will require expenditure on advertisement. Equally, a proposal to expand geographically will certainly increase overhead costs.
Deliverables
The key deliverables are as follows:
1) The type and scale of contracts that the company should concentrate on in the future, and also the geographical scope of the contracts bid for.
The report should contain recommendations as to which type of project, client, and procurement route should be encouraged, accepted or avoided. It should also detail the preferred project size and duration and upper and lower limits that is acceptable for each. The preferred geographical scope of the company should be specified.
Attachment:- Construction Financial Management.rar