Strategic Financial Analysis of a Listed Company

This assignment is for Element 010 - COURSEWORK 3000 WORDS, where students are required to complete a report on the major factors that influenced a listed company's past three years of trading. The report must be supported by ratios and trend information from the company's accounts. The marking criteria include analysis and evaluation (20%), explanation of shortcomings and strengths with contextual explanations including illustrations (20%), demonstration of analytical techniques and use of information to reveal trends (20%), clarity and coherence of argument (30%), presentation and style (10%), and total marks (100%).

Strategic
Financial
Analysis
Department: Leadership and Management
Module Code: MOD000983
Level: 7
Academic Year: 2016/17
Semester: 1
www.anglia.ac.uk

Module Guide
Contents
1. Key information, Introduction to the Module and Learning Outcomes
1.1 Key Information
1.2 Introduction to the Module
1.3 Learning Outcomes
2. Employability Skills in this Module
3. Outline Delivery and Reading Lists @ Anglia
3.1 Outline Delivery
3.2 Reading List and Learning Resources
4. Assessment on this Module
Feedback
How to View Your Feedback in Turnitin Grademark
4.1 Assessment Information and Marking Criteria
4.1.1 Element 010 – COURSEWORK 3000 WORDS (100%)
Marking Criteria for Element 010 – COURSEWORK 3000 WORDS
4.2 Re-assessment Information
4.2.1 Re-assessment for Element 010 – COURSEWORK 3000 WORDS (100%)
5. Report on Last Delivery of Module
Links to Other Key Information
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Module Guide
1. Key information, Introduction to the Module and Learning Outcomes
1.1 Key Information
Module title: Strategic Financial Analysis
Module Leader: Jane Hancock
Campus / Building / Room: Chelmsford / Lord Ashcroft Building / MAB301
Extension: 6899
Email: [e-mail]
Module Tutors:
External Examiners DAP: Leadership and Management
Every module has a Module Definition Form (MDF) which is the officially validated record of the module.
You can access the MDF for this module in three ways via:
 the Virtual Learning Environment (VLE)
 the My.Anglia Module Catalogue at www.anglia.ac.uk/modulecatalogue
 Anglia Ruskin’s module search engine facility at www.anglia.ac.uk/modules
All modules delivered by Anglia Ruskin University at its main campuses in the UK and at Associate Colleges
throughout the UK and overseas are governed by the Academic Regulations. You can view these at
www.anglia.ac.uk/academicregs. An extract of the Academic Regulations, known as the Assessment
Regulations, is available at this website too (all new students will have received a printed copy as part of
their welcome pack).
In the unlikely event of any discrepancy between the Academic Regulations and any other publication,
including this module guide, the Academic Regulations, as the definitive document, take precedence over all
other publications and will be applied in all cases.
1.2 Introduction to the Module
This module is relevant to all Masters level business students, with or without a relevant first degree, as it
introduces the financial analysis theories and practices applicable to modern business from a strategic
perspective, then develops student's knowledge and ability to apply these techniques, and critically appraise
their validity.
All organisations will find themselves judged, regardless of their objectives, on financial grounds. In the
modern business environment it is essential that managers are fully aware of the financial consequences of
their actions and how external stakeholders may interpret financial reports. A key element in management's
awareness is the internal monitoring of performance, using all tools available, to ensure a 'true and fair'
message is given.
This module will initially use accounting history and theory to evaluate the influences on contemporary
financial reports. It will then utilise traditional uni-variate analysis to evaluate financial performance, before
moving on to market reports, non financial data and multi-variate analysis.
Finally the module will consider principle techniques for monitoring corporate performance from an internal
perspective. One of the main focuses for the design of this module has been the further development of
relevant employability and professional skills. Such skills are implicit in the learning outcomes. This module
is assessed through a 3,000 word assignment.
This module will also be on the MA CG(BL) course delivered by blended learning. The content, assessments
and outcomes content will be identical between the two courses delivery paths.
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Module Guide
Multiculturalism has been considered during the design of this module and will be considered when the
assessment brief is written.
1.3 Learning Outcomes
This module, like all modules at Anglia Ruskin, is taught on the basis of achieving intended learning
outcomes. On successful completion of the module, the student will be expected to be able to demonstrate
the following:
Knowledge and understanding
Intellectual, practical, affective
and transferable skills
LO 1. Carry out, and critically appraise the validity of, ratio analysis of
financial statements, both published and internal
LO 2. Use such analysis to draw valid conclusions on the
performance of the relevant organisation
LO 3. Analyse numerical information in a systematic manner
LO 4. Draw conclusions from such analysis and critically appraise the
validity of such conclusions
The assessment is based on meeting these learning outcomes, shown explicitly in section 4, where the
assessment task is linked to these learning outcomes.
2. Employability Skills in this Module
It is important that we help you develop employability skills throughout your course which will assist you in
securing employment and supporting you in your future career. During your course you will acquire a wide
range of key skills. In this module, you will develop those identified below:
Skill Skills acquired in this module
Communication (oral)
Communication (written) X
Commercial Awareness X
Cultural sensitivity X
Customer focus
Data Handling X
Decision making X
Enterprising X
Flexibility X
Initiative X
Interpersonal Skills X
Leadership/Management of others
Networking
Organisational adaptability X
Project Management X
Problem Solving and analytical skills X
Responsibility
Team working
Time Management X
Other
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Module Guide
3. Outline Delivery and Reading Lists @ Anglia
3.1 Outline Delivery
The table below indicates how the module will be delivered. However, this schedule is indicative and may
be subject to change.
Wk Lecture Seminar/Workshop Student-
managed
learning
1 Module introduction
How easy is Financial
Analysis?
What interferes with
Financial reporting?
Developing investment
knowledge from financial reports
2 An introduction to financial statements
3 Further concepts Discussion of application by MW
to Olam
4 Cost behaviour and forecasting
Ratio analysis and market reactions
Discussion of application by MW
to Olam
5 Use of management accounting in decision
making.
Discussion of application by MW
to Olam
6 Making sense of financial statements –
identifying performance indicators, finance risk
and operating risk.
Discussion of application by MW
to Olam
7 Introduction to Financial Markets. Financing
decisions: debt and equity finance.
Discussion of application by MW
to Olam
8 Gearing and the cost of capital; Capital Asset
Pricing Model
Discussion of application by MW
to Olam
9 The importance of Cash Flow
Cash Flow analysis techniques
Discussion of application by MW
to Olam
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Module Guide
10 Current issues and examples Discussion of application by MW
to Olam
11 Assignment workshop
12 Review of the module
The Olam Report will be used as a commercial
analysis example
3.2 Reading List and Learning Resources
Resources Notes
Key text
Holmes Sugden and Gee (2008) Interpreting Company
Reports and Accounts: Pearson
Head, A; Watson, D: Corporate Finance; Prentice Hall; 6th
edition 2013
Books
Journals
Specific journal articles
Websites
http://www.muddywatersresearch.com/research/olam/
mw-reaction-q2-2013-report/
The report on which tuition will largely be
based can be downloaded from this website
Additional notes on this reading list
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Module Guide
Link to the University Library http://libweb.anglia.ac.uk/
Link to Harvard Referencing guide http://libweb.anglia.ac.uk/referencing/harvard.htm
4. Assessment on this Module
The assessment for this module consists of one element. Final submission dates for elements of assessment
vary.
Element Type of assessment Word
or
time
limit
% of Total
Mark
Submission
method
Final Submission
Date
010 COURSEWORK 3000
WORDS
100% in hard copy NO LATER THAN:
2pm 4th January
2017
All forms of assessment must be submitted by the published deadline which is detailed above. It is your
responsibility to know when work is due to be submitted – ignorance of the deadline date will not be
accepted as a reason for late or non-submission. Any late work will NOT be considered and a mark of zero
will be awarded for the assessment task in question.
You are requested to keep a copy of your work (excluding exams).
Feedback
You are entitled to feedback on your performance for all your assessed work. For all assessment tasks which
are not examinations, this is accomplished by a member of academic staff providing your mark and
associated comments which will relate to the achievement of the module’s intended learning outcomes and
the assessment criteria you were given for the task when it was first issued. This feedback will be available
on-line via Turnitin/Grademark® or may be sent directly to your Anglia Ruskin e-mail account.
The marker of your assignment will include feedback on written assignments that includes answers to these
three key questions:
1. What is your overall feedback?
2. How does your assignment compare to the marking criteria?
3. How can you improve in the future?
Examination scripts are retained by Anglia Ruskin and are not returned to students. However, you are
entitled to feedback on your performance in an examination and may request a meeting with the Module
Leader or Tutor to see your examination script and to discuss your performance.
Anglia Ruskin is committed to providing you with feedback on all assessed work within 20 working days of
the submission deadline or the date of an examination. This is extended to 30 days for feedback for a Major
Project module (please note that working days excludes those days when Anglia Ruskin University is officially
closed; e.g.: between Christmas and New Year). Personal tutors will offer to read feedback from several
modules and help you to address any common themes that may be emerging.
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Module Guide
On occasion, you will receive feedback and marks for pieces of work that you completed in the earlier stages
of the module. We provide you with this feedback as part of the learning experience and to help you
prepare for other assessment tasks that you have still to complete. It is important to note that, in these
cases, the marks for these pieces of work are unconfirmed. This means that, potentially, marks can change,
in either direction!
Marks for modules and individual pieces of work become confirmed on the Dates for the Official Publication
of Results which can be checked at www.anglia.ac.uk/results.
4.1 Assessment Information and Marking Criteria
4.1.1 Element 010 – COURSEWORK 3000 WORDS (100%)
Describe, critically assess and evaluate the principal methods of analysing company accounts as an outsider
to the company. Link with second part.
Indicate the major shortcomings that are inherent in such processes and propose contemporary analysis
methods that will limit these shortcomings.
Illustrate your answer with worked examples of dynamic analysis for any two listed companies from the list
of six supplied (your selection should receive the prior approval of the local module tutor).
Dynamic analysis - Use two years financial within company.
The six supplied are:
Rexam; Admiral Group; Amec; Booker; Tate& Lyle; Wolseley
To be completed in 3000 words; 100% mark weighting
Hard copy assignments (Associate College partners)
This assignment is submitted via hard copy at office/location at your college. Academic staff CANNOT accept
work directly from you. If you decide to submit your work by post, it must arrive by midday on the due date.
If you elect to post your work, you do so at your own risk and you must ensure that sufficient time is
provided for your work to arrive. Posting your work the day before a deadline, albeit by first class post, is
extremely risky and not advised.
Marking Criteria for Element 010 – COURSEWORK 3000 WORDS
Mark
1. Major methods of analysis and evaluation 20
2. Explanation of shortcomings and strength with contextual explanations
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Module Guide
including illustrations 20
3. Demonstration of analytical techniques and the use of information to reveal
trends 20
4. Clarity and coherence of argument 30
5. Presentation and style 10
TOTAL
MARKS
4.2 Re-assessment Information
If you are required to complete a re-sit assessment for this module, please ensure you are aware of the
assessment (and the date if an exam or in-class test) as it will be different to the original assessment.
4.2.1 Re-assessment for Element 010 – COURSEWORK 3000 WORDS
(100%)
For a listed company of your choice (to be approved by your local module tutor) complete a report (using
the Olam/Muddy Waters Report as a guide) indicating the major factors which influenced the past three
years trading. Justify your answer with appropriate ratios and trend information drawn from the
company’s accounts (to include half-yearly data)
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Module Guide
Mark
1 Summary of trends over three years 20
2 Supporting information properly applied and derived 20
3 Strength and clarity of argument 20
4 Appropriateness of evaluative techniques 30
5 Presentation and Style 10
TOTAL MARKS 100%
Hard copy assignments (Associate College partners)
This assignment is submitted via hard copy at office/location at your college. Academic staff CANNOT accept
work directly from you. If you decide to submit your work by post, it must arrive by midday on the due date.
If you elect to post your work, you do so at your own risk and you must ensure that sufficient time is
provided for your work to arrive. Posting your work the day before a deadline, albeit by first class post, is
extremely risky and not advised.
Resit deadline is 2pm 11 August 2017
5. Report on Last Delivery of Module
MODULE REPORT FORM
Module Code and Title: MOD000983 Strategic Financial Analysis
Anglia Ruskin Department: Leadership and Management
Location(s) of Delivery:
Academic Year: Semester/Trimester:
Enrolment Numbers (at each location):
Module Leader: Clive Puttock
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Module Guide
Other Module Tutors:
Student Achievement Provide a brief overview of student achievement on the module as evidenced by the
range of marks awarded. A detailed breakdown of marks will be available at the Departmental Assessment
Panel.
Feedback from Students Briefly summarise student responses, including any written comments
Module Leader/Tutor’s Reflection on Delivery of the Module, including Response to Feedback from
Students (including resources if appropriate)
Developments during the current year or planned for next year (if appropriate)
External Examiner’s Comments State whether the external examiner agreed the marks and/or
commented on the module
Links to Other Key Information
Assessment Offences: As an academic community, we recognise that the principles of truth, honesty and
mutual respect are central to the pursuit of knowledge. Behaviour that undermines those principles weakens
the community, both individually and collectively, and diminishes our values. There is more information on
these principles and the types of Assessment Offences here: http://www.anglia.ac.uk/modguide4.aspx
Penalties for poor academic practice can be severe so ensure you are aware of what is expected and how to
reference correctly.
There is a guide to Good Academic Practice here: http://anglia.libguides.com/plagiarism
Attendance Information: Attending all your classes is very important and one of the best ways to help you
succeed in this module. Link to more details on the Attendance Requirements here:
http://www.anglia.ac.uk/modguide1.aspx
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Module Guide
Examinations: Examinations are held in January (semester/trimester 1), May (semester/trimester 2) and in
August (trimester 3). All examinations are scheduled by the Examinations Unit, the dates and locations will
be posted on the following website: http://web.anglia.ac.uk/anet/students/exams/
External Examiners: An up-to-date list of external examiners is available to students and staff at
http://www.anglia.ac.uk/eeinfo The external examiner for this module is in the Leadership and
Management department. These are academic examiners from other institutions who independently
approve and confirm the quality and standard of our modules and assessments.
How is My Work Marked and Flowchart of Anglia Ruskin’s Marking Process: After you have handed your
work in or you have completed an examination, Anglia Ruskin undertakes a series of activities to assure that
our marking processes are comparable with those employed at other universities in the UK and that your
work has been marked fairly, honestly and consistently. More information about this is given here:
http://www.anglia.ac.uk/modguide5.aspx
Module Evaluation: During the second half of the delivery of this module, you will be asked to complete a
module evaluation questionnaire to help us obtain your views on all aspects of the module, more about this
process is included here: http://www.anglia.ac.uk/modguide6.aspx
Reading Lists: These are now all available online: http://readinglists.anglia.ac.uk
Re-assessments: Re-assessment dates will be stated on e-vision, you can check the specific date your re-
assessment assignment is due in on: http://e-vision.anglia.ac.uk or alternatively, if it is an examination, these
are scheduled by the Examinations Unit, the dates and locations will be posted on the following website:
http://web.anglia.ac.uk/anet/students/exams/
University Generic Assessment Criteria: This module is at level 7, information on the criteria that the
university uses to mark your work can be found here: http://www.anglia.ac.uk/criteria
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