Evaluation of Financial Goals and Decision-Making in Organizations

Accounting
And Finance
For Managers
Contents

INTRODUCTION...............................................................................................................5
Section 1............................................................................................................................5
Evaluation of Success indicators, financial goals and decision-making in respect of
respective organisations...........................................................................................5
Evaluation of organisational performance with help of provided ratios....................8
Investment opportunity in chosen best performing organisation............................14
Section 2..........................................................................................................................14
Different Sources of Financing................................................................................14
Long term financing affecting interests of stakeholders............................................2
CONCLUSION...................................................................................................................3
REFERENCES..................................................................................................................4

INTRODUCTION
Financial statements plays crucial role in growth and development of an
organisation. There are various forms of financial statements which need to be prepared
so that organisational performance and profitability can be identified for long lasting
period. In this respect, financial goals, sustainability and decision-making of A.G. Barr
Plc, BRITVIC Plc and COCA-COLA EUROPEAN PARTNERS Plc is discussed in this
report with help of different financial ratios and performance analysis. Also internal and
external sources of financing available to a company is been analysed in order to
identify which source is most suitable to respective organisations for their future growth
prospects.
Section 1
Evaluation of Success indicators, financial goals and decision-making in respect of
respective organisations
BARR (A.G.) PLC
A.G. Barr PLC is one of soft drinks manufacturer which was founded in 1875 by
Sir Robert Barr (Ali, 2017). Its product ranges are carbonated soft drinks, fruit
drinks, cocktails, energy drinks and juices.
Financial goals
The company earned GBP255.7 million pounds in 2020 which is decreased by
8.4% from 2019 financial year. Also its operating profits have been decreased as
compared to 2019 by 1.3% and respective net margins have also declined by 1.1%. It
can be seen that its financial performance is not meeting its targeted goals. It has
implemented long term sustainable delivering plan where it has prioritized connecting
with customers, developing relationships with customers and driving efficiency in order
to cope with deviation in its actual performance and targeted goals (Our strategy, 2020).
Success indicators
Financial growth: In recent time, it is determined that the company has faced
decline in net profits due to increased cost of goods sold which has reduced
existing income generation capacity of such organisation (Basfirinci and Uk,
2017).

Financial sustainability: By making adequate improvement in financial structure
and operations of the company, it is determined that respective organisation
needs to implement long term financial sustainability policies in order to compete
in competitive environment of the company.
Financial performance: During the financial year 2020, A.G. Barr Plc has
performed in declining trend which has caused it loss of revenue and increased
cost of goods sold. Total revenue earned by company was 8.4% lower than its
previous year revenue (Boesen, Bey and Niero, 2019).
Decision-making strategy
As per the above analysis, it is identified that organisation needs to implement
long term and short term decision-making in order to identify its future growth prospects.
Such as increasing market share, new investments and so on.
BRITVIC PLC
It is one of the most stable soft drinks manufacturer based in UK which has been
established in 1845 in order to grow at wider level in respective industry. It has various
operating segments which are GB stills, GB carbs, International and Ireland.
Financial goals
The company has been aimed at maintaining its revenues in order to promote
long term market share retention (Caivano and et. al., 2017). In order to grow in upward
direction, it is necessary to earn adequate amount of profits so that it can promote
healthy business environment. In it is analysed at organisation has faced declined trend
of operating profits and net margins by 2.6% and 2.6% respectively. Therefore it needs
to manage its operations in effective manner so as to reduce operational based costs
and promotion of profits in this respect.
Success indicators
Financial growth: There is reportedly downward movement in financial position
of the company. It is analysed that the earning per share is decreased from 2018
to 2019. It reported 0.44 earnings per share in 2018 whereas in 2019 it was
decline to 0.30. Also dividend per share has risen in 2019 which has reduced
total earnings of the company. It suggested that the company needs to manage
its policies in appropriate manner.