Assignment 1: Financial Management and Entrepreneurship

Module title: Financial Management and Entrepreneurship (FME)

Assignment weighting: Assignment 1 – 50%. Assignment 2 – 50%

The Learning outcome(s) assessed by this assignment are:

All learning outcomes assessed.

At postgraduate level you are expected to:

• Have a high standard of presentation, structure, layout and design
• Demonstrate appropriate coverage, critical appreciation and evaluation of relevant literature
• Demonstrate a critical understanding of key concepts and the application of theory to practical solutions
• Show evidence of originality of thought and approach, and of creative problem solving ability

The grade awarded for this piece of work remains provisional until ratified by LSC Exam Board.

Tasks

Format: Report

Word limit: 5000 in total (2500 Task 1 & 2500 Task 2)

TASK DESCRIPTION: Assignment ONE (50%)

2500 words maximum. +/- 10%

You work as a Financial Analyst for a firm of international management consultants. A very large multinational company has approached your firm for advice. The client is considering diversification through an acquisition strategy. As part of your assignment you should name this company (acquirer firm).

Select two companies in the same industry which must be Public Companies listed in a globally recognized stock exchange. You need to discuss key financial and acquisition aspects of the two selected potential acquisition targets in relation to the tasks shown below;

Task-1

Undertake the necessary research and write a report to the client which:

1. Critically evaluates and compares the financial performance and financial position of the two potential target companies using the published financial statements within the last three years. You should analyse the financial performance and financial position of these firms through the use of financial ratios (the detailed computations of the financial ratios should be provided in the appendix of the assignment). (Suggested word count 1100 words)

Task-2

The client is particularly concerned with one key aspect of these potential target companies, namely the management of working capital.

1. Critically analyse the importance of working capital management (suggested word count 300 words)

• Compare the working capital management of both firms over the last three years. (Suggested word count 400 words)

Task- 3

1. Your report should conclude with a reasoned argument as to which company – if either – might be the preferred acquisition target in terms of financials. (Suggested word count 300 words)

• Non-financial factors, in particular how the target acquisition fits in with the current strategy of your acquirer firm. (Suggested word count 400 words)

Please note the following when completing your written assignment:

1. Writing: Written in English in an appropriate business/academic style
2. Focus: Focus only on the tasks set in the assignment.
3. Formatting: Typed on A4 paper in Times New Roman or Arial font 12 with at least 2.5-centimetre space at each edge, double spaced and pages numbered.
4. Document format: Report
5. Ensure a clear title, course, and name or ID number is on a cover sheet and a bibliography using Harvard referencing throughout is also provided.
6. Research: Research should use reliable and relevant sources of information e.g. academic books and journals that have been peer reviewed. The research should be extensive.
7. All referencing should be in Harvard style.