Accounting & Finance for Managers: Strategic Plans and Performance Evaluation of AG Barr Plc., Britvic Plc. and Coca Cola Plc

Accounting & Finance for
Managers

Table of Contents
INTRODUCTION...........................................................................................................................3
Section A..........................................................................................................................................3
Question 1....................................................................................................................................3
1a Strategic Plans of AG Barr Plc., Britvic Plc. and Coca Cola Plc............................................3
1b Critical evaluation of the performance of the companies using latest three year financial
and non-financial data..................................................................................................................5
1c Why best performing company would/ would not be a positive investment opportunity....14
SECTION B...................................................................................................................................15
Question 2..................................................................................................................................15
2a. Critical evaluation of long term sources of finance.............................................................15
2b. ..............................................................................................................................................16
CONCLUSION..............................................................................................................................16
REFERENCES................................................................................................................................1

INTRODUCTION
Business finance refers to the funds which is availed by the business owners to meet its
operational as well as financial goals. The report will discuss the strategic plan, financial goals
and ratio analysis of three company i.e., AG Barr Plc., Britvic Plc and Coca Cola Plc in order to
rank company between first to third. Further, the report will also discuss why investing in best
performing company is would or would not be a positive investment opportunities. The report
will also discuss the long-term finance sources available to company.
Section A
Question 1
1a Strategic Plans of AG Barr Plc., Britvic Plc. and Coca Cola Plc
Strategic Plan of AG Barr Plc.
Financial Goals of company:
 The company wants to launch new flavour of soft drinks in order to increase the organic
revenue from 4% to 6%.
 The company also looking forward to saving funds to pay off retirement liabilities of
employee s (Islami and Rio, 2019).
Measurable success indicator
 The company will use financial ratios such as Earning per share to measure its financial
growth.
 In order to measure the financial sustainability, the company will analyse its current ratio.
 The company uses net profit margin to measure financial performance of company.
Nature of Decision
 The financial goals of the AG Barr company require both short-term and long-term
decision.
Impact of decision on both financial goals and performance
 The short-term decision regarding launching of new flavour of products help the
company to increase revenue percentage.
 The long-term decision regarding creation of saving fund account help the company to
achieve its retirement liabilities goals (Guo and Wang, 2019).

 This decision increases the gross and net profit margin of the company which is currently
46.52% and 14.52% and also reduces the earning per share of the company.
Strategic Plan of Britvic Plc.
Financial Goals of company:
 The Britvic company wants to expand its business worldwide and for this they want to
restructure its capital sources.
Measurable success indicator
 The Britvic company benchmark their own company against competitors to measure its
financial growth.
 Operating surplus ratio is used by the company for measuring financial sustainability.
 In order to measure financial performance, the company will use debt to equity ratio to
which is 163.8 in the year 2019 (Cashwell, Copley and Dugan, 2019).
Nature of Decision
 In order to achieve the expansion and capital restructuring financial goal the company
require long-term decision.
Impact of decision on both financial goals and performance
 This decision regarding analysing and restructuring capital sources helps the company to
achieve its expansion goals.
 The impact of this decision over the business is that their debt-equity ratio get change
which may be higher or lower when compared to current year ratio of 163.8 (Krauß and
Vetter, 2020).
Strategic Plan of Coca Cola Plc.
Financial Goals of company:
 Coca cola aims to maximize their profits from 12% to 15% and also the earnings per
share from 12 to 20 while maintaining a long-term sustainability growth within beverage
industry.
 In order to do so, the company will allow discounts to customers on drinks for the period
of winter which further increase its sales.
Measurable success indicator