Managing Finance: Data and Analytics for Decision Making
Module Code: MOD00
Reading List
Core textbooks:
Bamber, M., and Parry, S. (2014), Accounting & Finance for Managers, KoganPage, London.
Watson, D., and Head, A. (2013), Corporate Finance, Pearson.
Atrill, P., and McLaney, E. (2015), Accounting and Finance for non-specialists, Pearson Education.
Das, B., Raskhit, D., and Debasish, S.S. (2009), Corporate Restructuring Merger, Acquisition and
Other Forms, Himalaya Publishing House.
Outline Delivery
The table below indicates how the module will be delivered. However, this schedule is indicative
and may be subject to change.
| Week | Topic | Synopsis | Student managed Learning |
| 1 | Introduction to business finance and accounting |
This topic is an introduction into the role of accounting and financial management in the business. Students will be introduced to management accounting and the way that this information can be utilised by decision makers so as to support the decision making process. |
B&P (CH1), A&M (CH1) |
| 2 | Measuring and systems |
This topic builds upon the introductory topic by analysing into further detail the different types of financial statements and the limitation of their information. |
B&P (CH2), A&M (CH2) |
| 3 | Financial statement analysis |
Students will be introduced to the key financial ratio categories. Financial ratios will be explained in order for students to understand their meaning in the performance and control of the company. Furthermore, students will be introduced to the advantages and disadvantages of this technique. |
B&P (CH3), A&M (CH6) |
| 4 | Financial analysis: further consideration |
The objective of this session is to further develop an understanding of financial analysis and interpretation skills. It provides an overview of some other key forms of corporate financial communication and an introduction to some basic underlying theory. |
B&P (CH4), A&M (CH4) |
| 5 | Business planning |
To provide an understanding of how budgeting fits into the business planning process, and the different approaches which may be taken to budgeting. Students would be able to understand the role of budgeting within the business planning process and distinguish and evaluate different approaches to budgeting. |
B&P (CH5), A&M (CH9) |
| 6 | Investment decisions |
Students will be introduced into the basic investment appraisal techniques. They should gain an understanding on how to perform an investment appraisal by using these techniques. |
B&P (CH9), A&M (CH10), W&H (CH6&CH7) |
| Week | Topic | Synopsis | Student managed Learning |
| 7 | Risk and uncertainty in investment appraisals |
Risk and uncertainty will be considered in investment appraisal. Students will be able to use different techniques to consider risk and uncertainty in investment appraisal. |
B&P (CH9), A&M (CH10), W&H (CH6&CH7) |
| 8 | Financing a business and capital structure |
Various aspects of financing a business are examined, including sources of finance, short-term finance and long-term finance. Students will understand the sources of finance and advantages and disadvantages of different financing method. Students will be able to analyse leverage ratio and discuss the impact of capital structure in decision making process. |
A&M (CH11), W&H (CH3, CH4, CH5 and CH9) |
| 9 | Mergers and acquisitions |
Mergers and acquisitions (M&As) play a vital role in corporate finance. For many companies, mergers and acquisitions are a source of external growth when organic growth is not possible, whereas to other companies they represent a constant threat to their continuing independent existence. Students will gain an understanding of the justifications and motives behind M&As and why M&As fail in practice and consider the whole aspect of incorporating a target company into a business. |
W&H (CH16), D,R&D (SII, CH5) |
| 10 | Budgets & performance management |
To provide an understanding of the role of budgets, standards and variance analysis in performance evaluation. Students will cover the key points on how businesses can forecast their short-term financing needs. |
B&P (CH6), A&M (CH9) |
| 11 | Risk Management |
Exchange rate and interest rate risk management are of key importance to companies that operate internationally or that use debt finance. The need for hedging interest rate risk arises from the size and complexity of company borrowing. Students should gain a basic understanding on the importance of risk and uncertainty in organisations as well as develop the ability to select and evaluate appropriate risk management techniques according to the nature of the risk being faced. |
W&H (CH12) |
| 12 | Revision and Assignment feedback |
Assessment
Element 010 Title
Task:
Weighting: 100%
Assessment Element 010 – END TERM ASSIGNMENT 3000 WORDS (100%)
Assessment brief 010: case study
After several rounds of interview, you are successfully appointed as the CFO of the Company. The Company
has enjoyed considerable success in recent years and the board of directors have decided to adopt a growth
strategy by making further investment in their current production line and acquiring an existing company in
their industry. As the newly appointed CFO of the Company, you are tasked to evaluate the performance of the
Company and prepare a report to the board of directors with evaluation of the potential investment
opportunities.
The first investment under consideration is to make further investment in their current product, which needs
initial investment between £40,000,000 and £50,000,000 and has a life of 10 years. The finance department
appraised some other similar investments before using different investment appraisal techniques.
At the same time, the Company plans to acquire another company in the same industry in the near future.
However, the board of directors require more information for the potential target. You are tasked with the
responsibility of identifying a potential target company and preparing a report to the board of directors
justifying the choice of a target company and potential implications from mergers and acquisitions.
Required:
Suppose you are successfully appointed as the CFO for ONE of the listed companies below.
The Berkeley Group Holdings plc
InterContinental Hotels Group
Marks & Spencer Group plc
GlaxoSmithKline
Burberry Group PLC
Aviva
As the newly appointed CFO of your chosen company, you are required to write a report to the senior
management team – fully referenced, and address the following:
1. Evaluate financial performance: Choose FOUR categories from the list of five categories of
financial ratios below and use ONE financial ratio from each category to assess the financial health
of your chosen company using past 5-year financial information:
a. Profitability
b. Efficiency
c. Liquidity
d. Financial gearing
e. Investment
Note: Analyse your chosen financial ratios using information from financial statements. Considering
word limit, please choose ONE financial ratio from FOUR different categories listed above;
therefore, you should focus on four ratios in total in this part of analysis. Critical analysis of the
four ratios under four categories is required for a good work. Please critically evaluate past five-year
firm performance, i.e., 2015-2019, using your chosen ratios and discuss the problems and limitations
of financial ratios as a tool of financial analysis before make recommendation to the board of directors.
Create your own small tables, diagrams and charts in your analysis and present professionally.
Financial ratios can be collected using Osiris and Fame through ARU library
(https://anglia.libguides.com/az.php?a=o), annual reports or other professional resources.
Compare with competitors and industry will be helpful. Suggested word: 750-850 words.
2. Investment appraisal: You plan to use NPV and IRR techniques to evaluate the project. Critically discuss
NPV and IRR techniques and the implications of the investment on the Company. Risk and uncertainty
in investment appraisal should be considered before you make recommendation. The discount rate is
12% for the Company (Ignore inflation and taxation).
Note: Please present NPV and IRR results using small tables. You need to make decision on which
investment appraisal format that you will choose. The project will be based on your chosen company,
therefore, you have the flexibility to decide the project using your ESTIMATE. The investment
should be around £40m to £50m, but how the money is invested would depend on the nature of the
investment. Sensitivity analysis will be helpful to analyse different scenarios for the appraisal.
Suggested word: 600-750 words.
3. Potential acquisition: After you identify a potential target company, you will address the following in
your report to the senior management team:
a. Rationale for choosing the target company
b. The synergistic gain of the acquisition for the Company
c. Proposed deal value and finance of the acquisition
d. The potential implications of such acquisition on firm performance
e. Challenges and risk assessment of the acquisition
Note: Based on analyses of your chosen company, please identify a target company in the real
business world. Good work will provide critical analysis of the deal, rather than provide some general
discussion without in-depth analysis. Good work will also link potential implications from the deal
with your chosen financial ratios discussed in the financial performance section. Suggested word: 800-
900 words.
4. Appendix:
Supporting information to help the senior management team make their final decision. Present your
own tables and do NOT copy and paste annual report in your appendix.