Business and financial analysis assignment problem

Assignment Help Other Subject
Reference no: EM132377756

Module

Business and Financial Analysis

Assignment Title

BFA Written Coursework Assignment

Assignment Type

Individual Assignment

London School of business and finance

Learning Outcomes On successful completion of this assignment you will be able to:

1. Identify rules and principles in the international accounting standards and financial regulations and core values in business that led to competitive advantage

2. Demonstrate an in-depth knowledge in the sphere of business and financial analysis with a view to corporate evaluation.

3. Critically assess businesses and accounting data and financial information available to make investment decisions.

4. Discuss the linkage between current theory and common practice and be able to organise appropriate evidence and reasoning to produce a balanced conclusion in business and financial analysis

5. Demonstrate problem solving and analytical approaches to facilitate effective business and financial decision-making.

Your Task Question 1

Below are presented consolidated financial statements for Nestlé, a Swiss transnational company and the world´s food and beverage leader.
The company´s headquarter is set in Vevey, Vaud, Switzerland. Nestlé prepares its financial statements under IFRS.

Balance Sheet

 

 

(In millions of CHF)

12/2017

12/2018

ASSETS

 

 

Cash and cash equivalents

7,938

4,500

Short-term investments

655

5,801

Trade and other receivable

12,422

11,167

Inventories

9,061

9,125

Assets held for sale

357

8,828

Other current assets

1,757

1,582

Total current assets

32,190

41,003

Intangibles

20,615

18,634

Property, plant, equipment

27,775

29,956

Goodwill

29,748

31,702

Investments in associates and JV

11,628

10,792

Financial and other non-current assets

8,424

4,928

Total non-current assets

98,190

96,012

----------------------------------------------------

 

 

TOTAL ASSETS

130,380

137,015

LIABILITIES & EQUITY

 

 

Trade and other payables

18,872

17,800

Financial debt

10,536

14,694

Accruals and deferred income

4,094

4,075

Other current liabilities

2,552

6,461

Total current liabilities

36,054

43,030

 

Financial debt

 

15,932

 

25,700

Employee benefits liabilities

7,111

5,919

Other non-current liabilities

8,506

3,963

Total non-current liabilities

31,549

35,582

 

Share capital

 

311

 

306

Treasure shares

-4,537

-6948

Translation reserve

-19,433

-20,432

Retained earnings

84,174

84,620

Other equities

989

-183

Shareholders' equity

61,504

57,363

Non-controlling interests

1,273

1,040

TOTAL LIABILITIES & EQUITY

130,380

137,015

Income Statements

 

 

(In millions of CHF)

12/2017

12/2018

Net sales

89,791

91,439

Other revenues

441

348

Cost of goods sold

-44,923

-46,070

Other expenses

-32,076

-31,928

Gross profit

13,233

13,789

Other operating income (expense)

-3,121

-37

Operating profit

10,112

13,752

EBITDA

9,493

12,991

Other non-operating income (expense)

824

916

Taxes

-2,779

-3,439

Profit for the year

7,538

10,468

Attributable to non-controlling interests

355

333

Attribuable to shareholders of the parent (Net profit)

7,183

10,135

Question 1a)
Identify (calculate) and critically analyse key relevant financial ratios using data provided in the statements for the two-year period. Try to include at least one ratio from each category of financial analysis: liquidity, activity, profitability, coverage. Make sure to provide formulas for calculations. In this ratio analysis, discuss also their importance and barriers.

Question 1b)
Based on different online/printed sources, financial statements, reports etc. perform a company/business and industry analyses of the Nestlé company. Please, apply SWOT Analysis and Porter´s Five Forces Analysis in your discussions.

Question 2

Senior managers of a German company specializing on atypic glass windows and doors are currently considering company´s expansion. Its main trading partners are France, Switzerland and other neighbouring countries and trading currency Euro. The company would like to expand to some non- European countries as well (such as USA but also Asian countries). This would require a large investment that company cannot finance from its own sources.

Short term funds, of up to six months, are available from a German bank at a cost of 5% per annum.

The company also needs to take into account different cultural specifics of local demand in selected countries in order to consider the change in product offer which would require (among other things) to double the number of employees (especially blue-collar workers, but also product and project managers, engineers, sales specialist etc.).

Question 2a

Explain how (using what technics) the company could identify its main risks and critically evaluate at least three of the various types of business risk the company is facing.

Question 2b

With reference to the risks identified in the previous question, critically evaluate some of the various methods the company has available to it in order to moderate the risks.

Verified Expert

This solution was based on financial ratio analysis and business risk management analysis. All the present contents are in accordance with the given and said instructions there in the assignment and rubrics and were free from plagiarism.Word count total of this solution is more than 3,500 words.The final solution to this assignment is submitted in Microsoft Office Word document file in Times New Roman 12 font size.

Reference no: EM132377756

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Reviews

len2377756

9/27/2019 10:06:13 PM

These parts also do not seem to correspond fully to the task (there was a situation of a particular company described). The answers are too general. 4) Synthesis / Creativity / Application: Author was able to apply basic models used in the text. Adding some concluding articles to each question would help the readers to get the key findings of the research. 5) Evaluation: It is evident that author is definitely trying to clearly express his own idea/comments and offer recommendations. A significant portion of the whole text is based on author´s own opinions. This must be appreciated. Author should only build his own critical reflection on deeper analyses - this would definitely improve significantly whole paper."

len2377756

9/27/2019 10:05:54 PM

SWOT analysis and Porter analysis are both adopted from one single source - author needs to search more different sources, combine then and critically evaluate in order to get more comprehensive overview about a given issue. 3) Analysis: Overall, the analytical side of the text is at sufficient level, author has answered all the posed questions. In part 1a deeper discussion about selected ratios (their importance, barriers) is missing. Parts 2A, 2B should be first better structured - highlighting key points and then particular technics for risk identification and risk management should be critically discussed.

len2377756

9/27/2019 10:05:45 PM

The text should be justified (not left aligned). In-text citations are correctly applied at adequate places in the text. The list of literature is complete but the titles should be in alphabetical order. Word limit has not been met - only 1396 words which is, unfortunately, insufficient. 2) Knowledge & Understanding: The whole text is based on seven different sources in total. Although it is evident that the author is familiar with analyzed issues, it would help the readers to receive deeper theoretical background of selected problems including terms definitions and ratios explanation.

len2377756

9/27/2019 10:05:23 PM

I need help re-writing the report as I was asked to resubmit the answers of the PDF with the notes below: "Feedback to student Samer Hassan m Almisehal: 1) Generic Skills: Communication and presentation: The text is structured logically into individual questions. The style of writing is fluent. The text itself (in part 2A, 2B) could be better structured (dividing particular parts in subparts, using bold, bullets, word/title highlighting etc.) and aligned in order to make the text more transparent and readable and to enable easier orientation in the text.

len2377756

9/27/2019 10:04:15 PM

Analysis Excellent use of theoretical and conceptual models to guide analysis linked with a critical discussion of main themes. Has demonstrated an ability to discriminate in the use of more abstract concepts and techniques. Very good use of the theoretical and conceptual models with good critical discussion. Has applied a range of analytical skills with greater independence and understanding of more abstract data or concepts. Synthesis/ Creativity/ Application Logical presentation of themes with appropriate examples being demonstrated. Very good demonstration of synthesis. Models have been clearly applied to the argument. Very good account of main themes with sound application. Good attempt at applying models to the argument. Fairly good attempt at synthesising the salient points. Evaluation Shows clear evidence of in-depth critical reflection and evaluation of the argument by providing a robust defence of the opinions presented in the assessment. Shows evidence of critical reflection and evaluation and a fairly cohesive defence of the argument

len2377756

9/27/2019 10:04:06 PM

Grading Criteria 70%+100 60-69% Generic skills: communication and presentation. Comprehensive and correctly structured assessment. Style of writing is very fluent and develops a coherent and logical argument. Excellent referencing. Well structured report which follows appropriate format but some aspects of layout and referencing could be improved. Style of writing is fairly fluent. Good referencing. Knowledge & Understanding Demonstrates excellent knowledge of theory and provides critical theoretical underpinning. Very good interpretations and summarising of main themes. Wide range of knowledge demonstrated and evidence of good understanding of the topic. Ability to interpret and summarise succinctly.

len2377756

9/27/2019 10:03:55 PM

Logical flow of ideas and treatment; appropriate selection of real world factors related to the companies under scrutiny. Evidence of additional personal research, and the ability to analyse material from a variety of appropriate relevant perspectives. Presentation, structure, appropriateness of methodology, breaking into section headings/subheadings, tidiness.

len2377756

9/27/2019 10:03:49 PM

Please read all questions and information provided carefully. Answer should be made in appropriate length keeping in view the requirement of each question and total word counts allowed. In addition, your assignment should demonstrate the following qualities: A critical appreciation of relevant literature and its use to support argument, substantiate calculations and other aspects of the assignment. Taking ownership of the content, being prepared to debate and argue a personal position, and providing evidence of evaluative skills. A submission made up of extracts from published sources which is descriptive or simply just theoretical regurgitation is not acceptable. Your submission must have interpretation and consideration of the challenges and issues of taking theory into practice.

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