Financial Analysis And Management Report

Financial
Management

FINANCE 1
Question 1
A. Coles and Woolworths have been taken into consideration to understand the concept of
underpayments. According to the article of The Guardian, Coles is the retailing company that has
been caught up in the scandal of underpayment. It has been seen that Coles has been caught by
underpaid workers by $20 m over the six years (The Guardian, 2019a). In this company, Coles
has been decided to pay the $20 million to underpay. It has been seen that 5% of managers of
supermarkets and liquor stores are underpaid due to which the company has to pay large amount
that is why; it decided that the amount will change and till it is postpone (The Guardian, 2019b).
And according to the article of Woolworths of The Guardian, Woolworths underpaid the
thousands of workers by upto $300 m. According to News, Woolworths have to pay $315m to its
worker from its profit (News, 2020a). As per the inside retail, Coles has underpaid the staff with
$20 million (Inside Retail, 2020). There is one ore article which is written by Jose, and Kaye for
Coles that it provides the less amount of payment to its workers.
B. There are many principles of business sustainability performance such as diversity,
modularity, openness, matching cycles, slack resources and many others. It has been observed
that the principle of diversity is not implemented as the company does not provide the full
payment to supervisor and workers. It is observed that the companies do not use the resources
properly due to which its financial position has been affected which directly decrease the wages
of employees. The principle of modularity states that the company has to give the importance to
its employees and their support by giving them wages as per their efforts. It is observed that the
principle of Openness’s is not followed by the company as it did not analyze the external
environment to perform its services (Barral, 2018).

FINANCE 2
C.
i. Customers, Suppliers, employees, investors, government and shareholders are the six the
stakeholders of the supermarket. It is observed that the stakeholders of the company have their
own interest while spending their time and money into it. According to the Investors,
shareholders and government, it is beneficial to gets the high return due to high amount of profit
by decreasing expenditures and Coles and Woolworths has high amount of net profit with the
high brand value that is it is beneficial for the stakeholders to take interest into the publicity
company. Apart from it, the stakeholders also wants the publicity in the market that is why; it is
suitable for the company to invest in it as nowadays, the supermarkets has huge publicity in the
market due to their underpaid payment.
ii. Yes, I think the supermarkets might be prioritizing the investors, shareholders, suppliers,
consumers and government stakeholders over the employees. In all of the stakeholders of the
company, it collects the money but in terms of employees, it has to pay the amount of salaries
and wages to them due to which their net profit has been decreases that is why; it is correct for
the company to priorities the others stakeholders instead of employees.
D. Utilitarianism and Deontology are the two ethical theories those helps the companies to take
the decision. According to Utilitarianism theory, the company has to take the decision in order to
bring the happiness in the life of consumers, and its other stakeholders. In the scenario of
underpayment, it is required for the companies such as Woolworths and Coles have to bring the
happiness in the life of employees by paying them wages with the different facilities. As
Woolworth already announce the enhancement of wages of old employees but it denies after
earning the revenue which is a wrong step. As per the Deontology theory, the company has to

FINANCE 3
take the right decision that is why; it is suggested that Woolworths and Coles has to provide the
salary according their announcements.
E. Right ownership, use of information, no implied, liability and Governing Law, Severance,
Waiver are the five points that either board of directors and manager have to take from this
article in order to correct the payment method especially for staff. Use of information means the
company has to provide the correct information to employee’s weather it has the capacity to pay
the payment or not. Governing law, severance, waiver is the other point that board of directors
have to implement in order to reduce the payments such as the company has to implement the
rules and regulation for payment of employees.
F. Being the manager, I always emphasize on the some areas in which the number one is that the
company can provide the extra benefits to employees as a free services or incentives so that their
wage rate managed. The other point is that I will provide the flexible hours to the employees so
that they are able to manage their personal life with the work life. And the last point that the
company has to be take care is it can provide the allowance such as house allowance, medical
facilities so that the impact of underpayment has been reduce.
Question 2
1. There are major difference between corporate governance and corporate social
responsibilities. Corporate Governance is the combination of rules, laws and policies in which
businesses has to operates, regulate and controlled. But corporate social responsibility is the type
of social services that the business have their own aims to contribute in the social groups to attain
the global presence in the market. As both the terms have different meanings and concept to
increase the brand value of the company. The other difference between both the terms is that the