Business Economics and Finance in a Global Environment

BUSINESS ECONOMICS
AND FINANCE IN A
GLOBAL ENVIRONMENT

EXECUTIVE SUMMARY
Business economics and business finance provides an overall overview of economic theory
and the aspects of real business problems. This report extract the financial information of
Scylace plc which is a grocery retail industry. Company has a two alternatives as building a new
superstore and a proposal to make a takeover bid for Helibeb plc. These are the two options
available with organisation to build the superstore at one of the location. Scylace plc appointed a
management consultant in order to determine which option is most favourable for company and
helpful to attain future objectives and goals of organisation. Financial decision will be based
upon critical evaluation of using financial statements of Helibeb plc and the assessment of
financial ratios of Scylace plc.
This report is suggestive report for managers in order to recommend sustainable and
effective business option that may lead organisation towards consistent growth. In the report both
the options are evaluated on profitability, market hold and capital adequacy. The methodology in
the given study the following methods are used as business investment appraisal in resource
allocation and business goals, Cost of capital as business finance, financial statement ratio
calculation in financial reporting. Apart from it, the cause and impact of opting one option on
another also presented in such a manner so that managers be able to bifurcate the option as per
their organisational needs. In recommendation, two points are primary subject as whether both
the superstores should be build and second is at least one superstore should be built while
Scylace acquire Helibeb. The management consultant is required to suggest, either Scylace
should invest in first option of building the superstores or invest in second one which is building
one superstore with acquiring Helibeb plc.

Contents
EXECUTIVE SUMMARY.............................................................................................................2
INTRODUCTION...........................................................................................................................1
METHODOLOGY..........................................................................................................................1
Evaluation of the proposed new superstore location and prospective acquisition.................2
Recommendations..................................................................................................................8
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Business finance and finance is a branch of financial management and control in numerous
sectors. It is recognised as an internal part of traditional economical trend which helps in
conducting the planning in decision making process. An in-depth study of accounting and
economic aspects of business finance helps in conducting the value positioning and connecting
the world to global financial market (Rugman and Verbeke, 2017). Management theory reflects
on corporation, leadership, and strategy-related problems. Problems and concerns involve: an
answer of why multinational companies take shape as well as arise; why they broaden: vertically,
laterally as well as spatially; the position of innovators and business people; the importance of
structure; the relationship between firms and employees, capital providers, clients and
administration; and relationships among industries or the economic climate. In this report the
managers of Scylace plc advised that which option will bring profitability in near future for
Scylace plc. Ratio analysis, capital investment appraisal and cost of capital techniques are used
for succeeding the business projects in long term duration (Isik and Bolat, 2016). The
recommendation regarding the relevant project is provided to managers to forecast business
probability in various streams. These are considered as a qualitative technique of calculating the
probability of proposed projects options.
METHODOLOGY
There are key methodologies used in the proposed business options which are defined as
follows:
Resource allocation and business goals
Business investment appraisal technique is mainly used in this section in order to
determine the probability and possibility of future profitability by choosing better options among
available alternatives (McNay, 2015). Investment assessment is mainly centralized on the initial
stages of a venture and system therefore, it is conducted in connection to earlier work on staff
schemes and distribution proposals (Raziq and Maulabakhsh, 2015). the presence of separate
scheduling or induction phases depends completely on the magnitude of both the project.
A portfolio to create coherent evaluation in all element projects as well as programs. This
method will be implemented in the resource allocation section as there are two options are
available to Scylace plc as option A and option B.
1