Manage Finances: Woolworths Ltd Case Study

BSBFIM601 Manage Finances
Advanced Diploma of Leadership & Management
Module 4 Project 1
Submission Instructions:
Key steps that must be followed:
1. Please complete the Declaration of Authenticity at the bottom of this page.
2. Once you have completed all parts of the assessment and saved it (e.g. to your desktop computer),
login to the Monarch Learning Management System (LMS) to submit your assessment.
3. In the LMS, click on the file” Submit ADLM Module 4 Project” in the Module 4 section of your course
and upload your assessment file/s by following the prompts.
4. Please be sure to click “Continue” after clicking “submit”. This ensures your assessor receives
notification – very important!
Declaration of Understanding and Authenticity *
I have read and understood the assessment instructions provided to me in the Learning Management System.
I certify that the attached material is my original work. No other person’s work has been used without due
acknowledgement. I understand that the work submitted may be reproduced and/or communicated for the
purpose of detecting plagiarism.
Student Name*: Date:
* I understand that by typing my name or inserting a digital signature into this box that I agree and am bound by
the above student declaration.

BSBFIM601 Manage Finances
Important assessment information
Aims of this assessment
This assessment task covers the fundamental skills and knowledge required to manage finances in an
organisation. The focus is on budgeting and variance considerations and requires an understanding of cost
behaviour, break even analysis as well as an understanding of basic financial statement ratio analysis.
This assessment uses financial data from Woolworths Ltd as well as some fictional case studies.
Marking and feedback
This project contains 3 assessment activities each containing specific instructions.
This particular assessment forms part of your overall assessment for the following unit of competency:
 BSBFIM601 Manage Finances
Grading for this assessment will be deemed “competent” or “not-yet-competent” in line with specified
educational standards under the Australian Qualifications Framework.
What does “competent” mean?
These answers and portfolio evidence contain relevant and accurate information in response to the question/s
and task/s with limited serious errors in fact or application. If incorrect information is contained in an answer,
it must be fundamentally outweighed by the accurate information provided. This will be assessed against a
marking guide provided to assessors for their determination.
What does “not-yet-competent” mean?
This occurs when an assessment does not meet the marking guide standards provided to assessors. These
answers either do not address the question specifically, or are wrong from a legislative perspective, or are
incorrectly applied. Answers that omit to provide a response to any significant issue (where multiple issues
must be addressed in a question) may also be deemed not-yet-competent. Answers that have faulty reasoning,
a poor standard of expression or include plagiarism may also be deemed not-yet-competent. Please note,
additional information regarding Monarch’s plagiarism policy is contained in the Student Information Guide
which can be found here:
What happens if you are deemed not-yet-competent?
In the event you do not achieve competency by your assessor on this assessment, you will be given one more
opportunity to re-submit the assessment after consultation with your Trainer/ Assessor. You will know your
assessment is deemed ‘not-yet-competent’ if your grade book in the Monarch LMS says “NYC” after you have
received an email from your assessor advising your assessment has been graded.
Important: It is your responsibility to ensure your assessment resubmission addresses all areas deemed
unsatisfactory by your assessor. Please note, if you are still unsuccessful in meeting competency after
resubmitting your assessment, you will be required to repeat those units.
In the event that you have concerns about the assessment decision then you can refer to our Complaints &
Appeals process also contained within the Student Information Guide.
Expectations from your assessor when answering different types of assessment questions
Knowledge based questions:
A knowledge based question requires you to clearly identify and cover the key subject matter areas raised in
the question in full as part of the response.
Skill based questions:

BSBFIM601 Manage Finances
Where you are asked to write as though you presenting information to others, your answers must show your
ability to:
 understand other people’s perspective/views
 show empathy
 display a professional response appropriate to the context
 explain ideas clearly and simply so that others can understand the issues
Good luck
Finally, good luck with your learning and assessments and remember your trainers are here to assist you 

BSBFIM601 Manage Finances
Assessment Activity 1
Case Study
Woolworths Ltd
Activity instructions to candidates
 This is an open book assessment activity.
 You are required to read this assessment and answer all 11 questions that follow.
 Please ensure you have read “Important assessment information” at the front of this assessment

BSBFIM601 Manage Finances
The Group sales for Woolworths Ltd are provided below
Required:
1. Identify which 2 components had the largest impact on Woolworths Ltd’s revenue between the
financial year 2015 and financial year 2016 indicating if the change in each has been a positive or
negative impact on revenue and therefore profit.
As per the financial report, Petrol sales were $4.6 million for 2016 which was a decrease of 18.1% on the
previous year (volumes decreased by 9.1%). This is a significant negative impact on Woolworth’s Ltds
revenue and profitability.
Between the years 2015 and 2016, there was a noticeable difference in both operating and trading costs
which contribute to a financial loss in 2016. In 2015, Woolworths saw a large profit margin, from gross profit
to EBIT as a result of steady revenue from sales a small loss from discounted operations. In 2016 however,
Woolworths saw sales impacted by a further loss of $3,188M from discounted operations and a decrease of
sales primary driven down by lower sales in Petrol.
2. An extract of Woolworths Ltd’s Profit and Loss is provided below. The full Woolworths Ltd 2016
Annual Report is available to you on the LMS. Examine the report and explain what factors gave rise
to Woolworths Ltd generating a profit in 2015 but a loss in 2016.

BSBFIM601 Manage Finances
3. Review the Woolworths Ltd business plan (section 2 of the annual report) and describe what growth
initiatives they are planning to their continuing operations in the medium term.
Woolworths Ltd established a medium term (three to five year) target and plan in order to
successful roll out a number of new stores to achieve their growth target.
4. The Statement of Cash Flows for Woolworths Ltd is provided for you below.