Investment Analysis of Organic Farm Food Plc

Running head: FINANCE FOR INTERNATIONAL BUSINESS
Finance for International Business
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1ORGANIC FARM FOOD PLC
Executive Summary
The assignment deals with the investment analysis conducted on the Organic Farm Food Plc.
a company located in the Buckinghamshire. The operations of the company were studied in
detail and the possible revenue growth of revenue in the form of expanding business services
and product portfolio diversification are some of the key aspects. The investment project was
studied with the help of application of various capital budgeting tools which helped them
asses the financial viability of the project.

2ORGANIC FARM FOOD PLC
Table of Contents
Introduction................................................................................................................................3
Discussion..................................................................................................................................4
Business Scenario and Importance of Management..............................................................4
Forecasted Financials.............................................................................................................5
Foreign Currency Risk...........................................................................................................7
Political and Business Conditions..........................................................................................8
Alternative Financing Approach............................................................................................8
Climatic Conditions and Macroeconomic Risks....................................................................9
Investment Outcome..............................................................................................................9
Conclusion................................................................................................................................10
Reference..................................................................................................................................12

3ORGANIC FARM FOOD PLC
Introduction
Organic Farm Food Plc. located in the Buckinghamshire is a organic food
manufactures operating since the year 1980. The company primary activities involves in the
production of goods and then selling it to the ultimate consumers through various retails and
wholesale chains. The development of the market in the context of the demand of the product
and the varied interest of the consumers in the product portfolio had led to the substantial
growth of the company. Development and changes are necessary in every business which
help business look for growth opportunities in the context of expanding business services.
The business environment and the macro-economic conditions under which the company’s
business operates are crucial to be analysed in order to identify the environment under which
the company is operating (Chisholm et al. 2016). The development of the company has been
in phases and in order to optimally develop the business the company needs to undergo
technological changes which will be done through capital expenditure by the company. The
capital structure of the company is dependent on various sources of capitals like Equity,
Preference Shares and Debt. Since, the company is looking for growth in business by
investing into other locations which would require capital outflow in the forex currency
which comes along with macro-economic and forex risk. The company should look out for
optimal ways in order to hedge the same so that the risk of the company does not rises.
Political Risks, Sovereign Risk, Macro-Economic Risk and Changing Climatic conditions are
some of the important points which needs to be incorporated while assessing the financial
viability of the expansion project. Several Forecast and assumptions are applied whole
evaluating and assessing the Irish Investment Project but the same were used for the Organic
Farm Food Plc. in the form of given data and information’s where it would be operating
(Akimova, Stein and Prokhorova 2015).