Financial Decision Making

Financial Decision Making

Table of Contents
EXECUSTIVE SUMMARY...........................................................................................................1
MAIN BODY...................................................................................................................................1
PART 1: Industry Review................................................................................................................1
PART 2: Analysis of business performance....................................................................................2
2.1 Profit and loss statement analysis.....................................................................................2
2.2 Analysis of financial position statement...........................................................................4
2.3 Analysis of cash flow statement.......................................................................................7
PART 3: Investment Appraisals ...................................................................................................10
3.1 Management Forecast and investment appraisal-technique...........................................10
3.2 Sources of finance..........................................................................................................11
REFERENCES..............................................................................................................................13
.......................................................................................................................................................14

EXECUSTIVE SUMMARY
Financial decision-making is the concept that assist the management and different
stakeholders in relation to build decisions about investment, assets, liabilities, bond and equity
funds. Ratio analysis and other tools and techniques related to this have significant contribution
in effective decision making that resultant into attainment of high amount of return (Arnold,
2012). The current report is based upon the financial analysis of the organisation named as Roast
Ltd. It is a coffee chain and having significant operations at different locations of London. The
main aim of this report is to assist the management of Starbucks in relation to frame decision
making about acquisition of Roast Ltd. Analysis of different financial aspects of Roast Ltd is
undertaken in relation to build effective decisions such as profit and loss account, balance sheet
and cash flow statements. The tools and techniques used for further detailed analysis includes
determination of different ratios, NPV and pay-back period. From the overall analysis and
attainment of the results, suggested to the management of Starbucks that viable to acquire Roast
Ltd. This will definitely provides an opportunity to attain higher amount of returns along with
competitive advantage in market.
MAIN BODY
PART 1: Industry Review
This part includes the description about information related to cafe coffee industry in UK.
This has huge importance in determination of the level of competition in industry along with
market conditions (Current coffee house industry of United Kingdom, 2019). Success of any
individual organisation depends over the adherence of analysed results. Cafe-coffee industry is
provided below:
 This includes the large number of competitors within this industry. Majorly are of them
are unlicensed. They have the operations in respect to the selling of coffee, cold drinks
and soft drinks.
 The different number of factor that have the impact over the success of he industry
players includes economical and social conditions of nation. In segregation these includes
per capital income, household income, influence of social platforms, preferences of
consumers, demand of coffee etc.
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