Accounting and Finance for Managers: Financial Performance and Decision Making

Accounting and Finance for
Managers
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Table of Contents
Table of Contents.............................................................................................................................2
INTRODUCTION...........................................................................................................................3
SECTION 1.....................................................................................................................................3
Identifying the certain indicators, financial goals and decision making in respect of
organisation..................................................................................................................................3
Analysing organisational performance with the help of ratios........................................................5
Investment opportunity in best performing company..................................................................9
SECTION 2.....................................................................................................................................9
Sources of financing....................................................................................................................9
Long term financing affecting interest of stakeholder...............................................................11
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12
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INTRODUCTION
Financing is important part in the company that used in company to run and plays critical role.
They were need to use efficiently to avoid the wastages in the funds and fulfil the objective in
long term. In this report, it is being studied about the three company such as A.G Barr Plc
(Finkler, 2017). BRITVIC Plc and COCA COLA European partners. All these are manufactures
of soft drinks in the UK and it is being studied their financial performance through evaluating the
financial ratios and identify its financial goals and measurable success indicators in the relation
to financial growth. Apart from that determine the most appropriate source to different
companies for their potential development strategies should be developed and adopted to
increase their efficiency and effectiveness. Strategies has been formulated to develop the internal
and external stream of finance stream available to an enterprise has also been identified.
SECTION 1
Identifying the certain indicators, financial goals and decision making in respect of organisation
BARR plc- This company is founded by the A.G Barr PLC, a fizzy drinks maker in 1875.
Company follows the portfolio that comprises carbonate soft drinks, fruit drinks, juices, energy
drinks and cocktails.
Financial goals- As, this organisation reported the revenue of GBP255.7million for fiscal years
ended January 2020 and had decrease of 8.4% over in financial year 2019. Apart from that in the
financial year 2020, operating margin is 16% and in 2019 it is 14.9%. This indicates that the net
profit and gross profit has decreased by the 2.6% and lower down in the year from 12.8% to
11.7%. So it need to focus on generating more revenue and reducing the operating cost.
Success indicators
Financial expansion- According to the financial statements, firms’ earning is decreasing and did
not able to use its resources effectively. It earned 0.44% per share in the year 2018, but just 0.30
in the year 2019. In that year it should be observed that company has increase its dividend policy
which shows that it has better results and able to distribute its profit effectively to its shareholder.
Financial sustainability- Company also has implemented local and global premium brands and
encouraging the people to live happier environment and create development of new spaces to
achieve long term sustainability and long term performance. This will help in developing the
overall efficiency and increase its brand value by providing best quality of soft drinks.
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Financial efficiency- Maintain the proper financial system will help in formulating the best way
to use the sophisticated standard of tactical effective strategies and useful in greater performance.
Company able to produce enough profit and help in sophisticated standards to handle strategies
and allowing it for greater performance in the company.
Strategy for making the decision – To achieve the goals and objective the need ti make is to
fulfil the short-term and long-term judgement in order to determine its potential growth and
opportunities to increase the market share and profitability (Mburayi and Wall, 2018).
BRITVIC Plc
It is one of the most successful soft drinks manufactures in the UK and deals in energy drinks,
mineral water, syrups, juice and sparkling soda. Through licensing agreement with PepsiCo also
produces and sells soft drinks brands such as Pepsi MAX, 7UP, SoBe and Mountain Dew.
Financial goals- The company goal is to expand the sales and its market share in long term. To
gain this, it is important to boost the stable economic climate in order to progress in un upward
direction. It is being observed that operating margin and net profit has decreased by the 2.6% and
2.6% respectively. So, company has to focus more on its operational efficiency.
Success indicators
Financial expansion- In the company the net earning is decreasing and nor able to fulfil the
needs and requirement of the company and not perform in its operational efficiency. The need is
to reduce the cost and will increase current income generating capability.
Financial sustainability- Company has develops certain models to develop the effectiveness in
the organisation and in order to increase the market suitability in proper manner, Through this, it
will help in developing the profitability from certain sources. This assist in improving practice
and overall efficiency by giving best services and products to the costumer.
Financial performance- The performance of the company is essential to make the effective use
of all resources and will help in fulfilling the goal and objectives. This helps in maintaining the
reputation among the market and will lead to certain issues and helps in developing the financial
performance.
Decision making strategy- This is important to maintain and take informed decision to face the
appropriate steps and will help in achieving the efficiency of the company. Effective decision is
important to develop the overall profitability in ling term and gives the possible outcome of
results.
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