logo

5UEFM Level 5 Effective Financial Management

   

Added on  2020-10-26

22 Pages5908 Words1273 Views
June 2020 Centre nameOxford College of Business Learner’s nameSandini Paramullage First Name Last NameABE membership number6 3 8 2 0 1 your ABE membership number – i.e. 123456Learner StatementAll work that learners submit as part of the ABE assessment requirements must be expressed in their own words and incorporate their own judgements. Direct quotations from the published or unpublished work of others, including that of tutors or employers, must be appropriately referenced. Authors of images used in reports and audio-visual presentations must be acknowledged.☒By ticking this box, I Sandini Amasha Paramullage Insert your full nameam confirming that the work I am submitting is my own and I have acknowledged ALL the sources of reference I have used in constructing my assignment. Date: 08 06 2020 DayMonthYearFor ABE use onlyABE 2ndmark ABE mark (if applicable) 5UEFM Level 5 Effective Financial Management Open-book exam question and answer booklet

Important information Before taking an ABE open-book exam, learners will need to read the Open-book Assessment Guide to Study and Examination. This guidance document provides important information on how to prepare for, take and submit an ABE open-book exam. Instructions Make sure you read and understand each question before answering. When answering questions, address all question requirements in order to optimise marks scored. Pay attention to question command words. You may use resources such as books, dictionaries, notes or any other written materials while sitting the exam. All used resources must be referenced. Select and organise notes you wish to reference while completing the exam. Begin each question response in the allocated section below each question. ABE reserve the right to investigate and penalise plagiarism and collusion as appropriate. Please consult the Open-book Assessment Guide to Study and Examination for full information on referencing best practice, in order to avoid committing plagiarism. If your exam is handwritten For learners completing the exam in handwriting, please ensure all pages are included in the final submission. For learners handwriting the exam, you may need to expand sections prior to printing out the answer booklet to allow space to use the word count designated to each question as fully as you need. Only final version of your answers should be included in the submission. Use note paper to draft your answers first. Leave margins on both sides of the page. Write only on one side of the paper. Use blue or black ink, if completing the exam handwritten. Do not use pencil.

General overview The word count for this examination is 3,500 words (-/+ 10% tolerance, i.e. your submission must not be less than 3,150 words and must not exceed 3,850 words). There will be word count requirements indicated next to each question. Markers are instructed to stop marking when the maximum word count is reached. NOTE – Appendices and the References list (if used) are all excluded from the overall word count, i.e. the full word count allowance is for the main body of your submission. Use allocated space for the business profile of your chosen organisation. Write your answers to each question in the specified location. It is important that the marker can easily identify which question is being answered otherwise the submission will not be marked. Context – Organisation Summary You must choose an organisation on which to base your answers, i.e. your answers must be set in the context of this specific organisation. Choose an organisation with which you are familiar. It must be a real organisation and the type of organisation you choose must be relevant to the questions. All your answers must be based on this organisation unless the question instructs you differently. You must provide a summary of background information on your chosen organisation (200 words). This must include: Name of the organisation Size of organisation Main markets where it operates (geographical locations) Examples of products and services Key competitors Main customer segments In addition to the above, you can include any other information which might be useful for the marker to understand the context of your answers. Your organisation summary is not included in the overall word count. Syllabus Content Before you answer the questions it is strongly recommended that you familiarise yourself with the study content relating to the unit. This content can be found in the Qualification Specification. Understanding this will help you to construct your answers and will ensure the content is relevant to the questions set. NOTE – The organisation summary must be completed and must accompany the submission otherwise the assessment will not be marked.

Business profile (200 words) Coca-Cola Corporation is a beverage retailer, producer and marketer of concentrates and syrups for non-alcoholic beverages. There are 500 bottlers and 183,000 employees in the U.S. with retail sales of 61,000,000,000. American soft drinks consume on average 55 gallons per person per year. It is home to over 500 brands of drinks, some 20 of those billion dollar brands, including four of the top five soft drinks: Coca-Cola, Diet Coke, Fanta, and Sprite. It also markets water, juice drinks, energy and sports drinks, milk and vegetable drinks, and ready-to-drink teas and coffees, in addition to soft drinks. Minute Maid, Powerade, Dasani, Honest Tea and Vitamin Water are some of the top brands. The Coca-Cola Company is based in Atlanta, Georgia. Its stock is listed on the New York Stock Exchange (NYSE) list. Coca-Cola manages six (mostly geographically based) operational segments, including Europe, the Middle East and Africa (EMEA); Latin America; North America; Asia Pacific; Bottling Investments; and Corporate. Coca Cola soft drinks are primarily intended for all consumers, but there are areas where Coca Cola targets specific consumers. For example, the Coca Cola diet is intended for the entire market, between the ages of 25 and 39 years. The biggest rival of Coca Cola is Pepsi, which markets almost the same product and is in direct competition with us. Red Bull, Vitamin C and Energy Drinks are indirect competitors. OPEN BOOK EXAM QUESTIONS START ON THE NEXT PAGE

Question 1 20 Marks Assess the objectives of financial management and the role of different stakeholders in the financial strategy of your organisation. (700 words) Financial management refers to the process of preparing, budgeting, and reviewing a company's financial resources to help attain the goals and objectives set. The application of models of financial management enables businesses to control their funds and to prevent risks and losses in their business. Coca-Cola has managed to draw many investors with its successful financial management models, and is collaborating with different stakeholders around the world. Although the Coca-Cola Company faces high competition from its key rivals, such as Pepsi-Company, effective financial planning and forecasting has been adopted by the company management, and this is important for firm success. Coca-Cola’s success is the backbone of their effective financial planning. The company has different business resources and this is used to promote marketing, the development of human resources and the company's research activities. Budgeting and cost forecasting have allowed the organisation to reduce resource wastage. Every department has its own budget at the firm. The firm also considers foreign currency fluctuation, interest rates as well as economic rates of various countries where it operates with its global operations. Because of this, the profitability margin for fir is higher in all areas of the globe than its rivals. The management of the company has taken on stable management of the assets, and this is the reason behind its overall growth rate. As an objective of financial management, market effectiveness can be defined as the degree at which the market prices are a true representation of exactly what's on the market. Then the available information is expressed in the business cycle and it is balanced out, no over or undervalued. Through its successful financial control structures, the Coca Cola Company has gained business success. The company and its creditors have a full understanding of industrial ration research. Cash flow information is summarised on a cash flow statement, and is provided annually for Coca Cola Company, for example, within a specified period. It shows how much money was spent, the net profits and the new investments that were made. The company's net cash flow revenue rose between 2017 and 2018 due to an effective and productive financial management process. Between 2017 and 2018 the firm experienced a tremendous increase in profits. Coca cola has met the goals of its three key stakeholders. Customers, it has been providing its customers with quality products and putting customer confidence at the top priority. Coca Cola has invested heavily in its R&D area to produce high quality beverages. It has recognised its employees as an asset and grasped the fact that a motivated employee strives for the company's growth. It has taken various measures to satisfy the needs of its employees and provide them with a route for communicating and expressing their feelings. Shareholders, they want their investment to return big. As is apparent from Coca-Cola growing and developing. It is working very hard to optimise shareholder capital. Organisation performs value scanning and for effective decision-making by stakeholders. Stakeholders have rights and can have a huge effect on the decision of the company. Shareholders, employees, customers, community, lenders, suppliers and government are involved. Since they have significant interest and power, shareholders and lenders can affect organisational decision making. Second important stakeholder is tremendous power and interest from organisation customers and holder. Thirdly, the employees that require proper salaries and benefits against their services. All three stakeholders can influence organisational decision-making; therefore, organisations should conduct stakeholder analysis before making strategic decisions to achieve their long-term goals.

Porter 1998 states that the organisation is preparing its strategy to distinguish itself from its competitors in order to gain competitive advantage through such strategies that an organisation can provide its customers with different set of values. Every stakeholder has different set of organisation-related goals. Shareholders' interests are wealth maximisation and company growth. It appears from the case that Coca cola has achieved tremendous growth over the years and is widening its market world as it serves consumers in over 200 countries and 400 non-aphonic drinks are on the product list. In conclusion, financial management is of paramount importance in all organisations. It helps to gain and use money, make sound business decisions, invest more and prepare financially properly. The Coca Cola Corporation is one of the most successful financial management cycles companies that has helped to improve their cash flow and boost business efficiency. The Coca-Cola Company continues to experience massive economic growth. This is also clear that companies are able to devise and execute successful capital management plans through financial planning.

End of preview

Want to access all the pages? Upload your documents or become a member.

Related Documents
5UIBP Level 5 Innovation and Business Performance
|15
|5404
|866

4UDBE - Dynamic Business Environments
|19
|5317
|541

Measurement Techniques for Business Performance | Bank of Maldives
|19
|5746
|1

Bridging Gap for FNS50320 Principles of Finance and Mortgage Broking Management (PFMBM) Student Assessment Booklet
|14
|3369
|169

The earnings management practice
|22
|3655
|16

Finance Broking in Practice (FBP) Student Assessment Booklet
|24
|4656
|254