Reference no: EM133160576
Question - Tesco Marketing Ltd is using an Ansoff marketing matrix as a framework for deciding upon its potential strategies for future growth.
A series of Ansoff growth strategies can set the direction for the company's strategy such as market penetration (project A), market development (project B), product development (project C) and diversification (project D).
At present, the company is not willing to consider project C (product development) and D (diversification strategy) owing to the risks involved in manufacturing, launching and marketing new products.
Following market and financial research conducted by the company, the expected cash flows of two marketing projects (A and B) for the next ten years are provided in the table below.
As the accounting consultant of Tesco Marketing Ltd, you are required to provide critical advice to a client on the best investment decision, on whether to invest in marketing projects A or B.
In order to maximize the investment return to your client, you are required to employ five main investment appraisal techniques such as the techniques of PP (Payback Period), ARR (Accounting Rate of Return), NPV (Net Present Value), IRR (Internal Rate of Return) and Discounted PP.
With the prevailing interest rate in the lending and borrowing markets, as a professional accountant, you consider that the cost of capital (r or i) at present is 5 per cent.
Period
|
Project A (£)
|
Project B (£)
|
Year 0
|
-1000
|
-1000
|
Year 1
|
70
|
100
|
Year 2
|
80
|
0
|
Year 3
|
90
|
400
|
Year 4
|
100
|
0
|
Year 5
|
110
|
100
|
Year 6
|
120
|
200
|
Year 7
|
130
|
0
|
Year 8
|
140
|
100
|
Year 9
|
150
|
0
|
Year 10
|
210
|
300
|
Required -
You are required to calculate the PP, ARR, NPV, IRR and Discounted PP of each project.
Discuss the detailed advantages (strengths) and disadvantages (weaknesses) of each method of investment appraisal techniques.
You are required to comment on the stability and the sensitivity analysis of the project.
Show the ranking of the projects using all the above criteria, and as a professional accountant, critically advise your client on the best investment action, on whether to invest in project A or B.
Discuss the organization tyson foods
: 1) Discuss the organization Tyson Foods (background information).
|
Explain the consumers environment
: With relevant examples explain the consumers' environment.
|
Discuss the types of training and appropriate approaches
: Discuss the types of training and appropriate approaches that would best suit the following learners:
|
Multi-level approaches include targeting the parent country
: Multi-level approaches include targeting the parent country, the host foreign country, and third-country nationals.
|
Calculate the pp, arr, npv, irr and discounted pp
: As the accounting consultant of Tesco Marketing Ltd, You are required to calculate the PP, ARR, NPV, IRR and Discounted PP of each project
|
Responsibility of hiring 50 new accountants
: You are the hiring manager at the Michigan Division of Arthur Anderson and are task with the responsibility of hiring 50 new accountants for tax season.
|
Interpret performance respective level
: All performance improvement programs should have a measurement component or Key Performance Indicators (KPIs) to ensure quality.
|
Amount of empowerment in the strategic management process
: Provide examples of companies that are actively trying to increase the amount of empowerment in the strategic management process throughout the organization.
|
Demonstrate ability to analyze the facts in the question
: The assignment is a fact pattern that requires you to recognize employment discrimination claims we have discussed in class, apply the facts to them, and reach
|