Report: Analyzing Amcor Limited's Business and Financial Strategies

This report provides a comprehensive analysis of Amcor Limited's business plan and financial strategies. It begins with an introduction that outlines the company's objectives, legal and financial requirements, business plan, and financial strategies, as well as ways to monitor the business plan. The report then delves into assessing client objectives, identifying legal and financial requirements, developing and reviewing business plans, and identifying client needs. It also covers advice on data reliability, organizational procedures, analysis of revenue and cost, and evaluation of financial performance. Furthermore, the report explores the presentation of financial performance, identification of risks, and alternative sources of finance. The analysis includes various aspects like finance options, licenses required, tax considerations, and financial strategies. The report also discusses the importance of monitoring the business plan, gathering client feedback, and addressing poor customer service. Finally, the report concludes with a discussion on conveying information to clients and identifying risks and future cash flow.

Research Assessment

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
1.1 Assessing the objectives of clients........................................................................................3
1.2 Identifying the legal and financial requirements while establishing and financing a
business.......................................................................................................................................4
1.3 Developing suitable plan for achievement of clients goal....................................................4
1.4 Reviewing of the plan and communicating the results thereof.............................................5
1.5 Identification and monitoring of clients needs......................................................................6
1.6 Continuous and regular feedback from client.......................................................................6
1.7 Poor customer services and ways to overcome those shortfalls...........................................7
TASK 2............................................................................................................................................7
2.1 Advice on reliability and accuracy of the data......................................................................7
2.2 organizational procedures, statutory requirements and standard financial reporting
principles ....................................................................................................................................8
2.3 analysis of revenue and cost in accordance to the accounting standards..............................9
2.4 Analysis of data and report in accordance with the financial analysis techniques...............9
2.5 Evaluation of information related to the financial performance.........................................10
2.6 Analyses the consistency in context to the business and personal objectives.....................10
2.7 Assess the financial potential of the business through the evaluation of business
performance...............................................................................................................................11
TASK 3 .........................................................................................................................................11
3.1 Realistic view of the business financial performance and the compliances.......................11
3.2 The methods to convey information to the clients..............................................................13
3.3 identify the risk, contingencies and future cash flow..........................................................13
3.4 Alternative sources and features of short term and long term finance................................15
CONCLUSION..............................................................................................................................15
REFERENCES..............................................................................................................................17

INTRODUCTION
Research assessment is used by the organization to find the area od development and innovation
for their company. Amcor limited is a packaging company in Australia. It used the paper, plastic
and different raw material for the packaging of the product. They provide safety to the products.
Amcor limited is a manufacturing company. The report highlights the objectives of the
organization, legal and financial requirement, business plan and financial strategies and the
various ways to monitor the business plan. It helps to understood the in which they can improve
their performance like getting feedback from clients, evaluating performance etc. it also help to
implement the business policies, different statutory bodies and accounting standards in the
organization. The report gives the various measure to evaluate the profitability, efficiency and
financial stability of the Amcor limited company. It highlights the importance and components of
cash flow and the advantages and disadvantages of long term and short term finacing.
TASK 1
1.1 Assessing the objectives of clients
a) Goals of business
The goal of the business refers to as the reason because of which the company exists and
is running the business. The vision of the Amcor is to become a premier in packaging solution
provider in each and every market in which they operates or works (Corporate Governance
Policies and Standards, 2019). Another goal of Amcor is to reduce the emission by 60 % till the
year 2029/ 30.
b) Critical things to be discussed in relation to the needs of client
The understanding of the needs and expectation of the client is very important and
necessary. This is because of the reason that the company is successful only when the customers
buy the products or the services of the company. If the customer does not like the products and
services then they will not use them and if they will not use them then the company will have to
suffer loss. Before manufacturing the products or the services the Amcor company should do a in
depth study of their consumers (Cai and Szeidl, 2016). Who they are, what they need for what
reason, what is their level of income, what they expect in the product and all the related details.

This is done in order to understand the requirement of the consumers so that they are satisfied by
the use of product or services.
c) Documentation of clients needs
Documenting is the very important step because it is not necessary that a person
remembers every thing in detail which is required by the consumers. So it is very crucial to
record or document each and every objective and the requirement of the consumers so that the
requirements are met and the company earns profits.
1.2 Identifying the legal and financial requirements while establishing and financing a business
a) Finance options for business
Finance or money is the major requirement of the company because without money not a
single task can be performed or carried forward. It is not necessary that the company has enough
funds to carry on the business for whole business life (Cheng, Yang and Sheu, 2014). It has to
borrow money form other sources for the continuation of the business. For this there are many
sources through which the money can be raised. These different options are as follows-
 Debt- this is defined as the loan taken from any person, bank or any financial institution
which provides a definite amount of money for a specified period of time (Löfsten,
2014). This money has to be paid back to the lender as and when the specified period of
time lapses. The money is to be paid along with some interest charges which the
borrower has to pay. Equity- it is the source of finance within which the company sells a part of its business to
the outsiders in form of shares of the company. In this type of finance the company does
not have to repay the amount till the company winds up.
b) Licenses required for starting a business
Before starting up the business the company has to take license form the Australian
government and also the state government where the company is operating.
c) Tax consideration for the business in accordance with Tax Assessment Act, 1997
For t he tax purpose the deferred tax assets and liabilities are taken at the tax rates
applicable to the period in which they are expected to be realized. It follows the Goods and
Service Tax policy.
1.3 Developing suitable plan for achievement of clients goal
a) Components of business plan

A business plan is a type of plan which is made by the business and this plan covers each
and every small details of the business and is made for the development and growth of the
business. This plan is made in order to clarify the strategies used by the company, the different
types of the ways through which the business can be expanded, different problems and
challenges encountered at the time of expansion, deciding which types of resources are required
in what quantity, of what quality and many more other related things. The business plan starts
with the executive summary which outlines whole plan in brief. Further there is a brief
introduction of company along with the complete market analysis of the company. Further it
contains the competitive analysis which describes the quantum of competitors. Further it
highlights the product and services types along with the complete marketing plan followed by the
company. At last it outlines the financial projection and sources of funding.
b) Financial strategies
Finance is the lifeline of any business. Without money no work can be done and
accomplished (Gamage, 2014). The financial strategy can be defined as the management of all
the money, assets and liabilities in order to achieve the desired goals and objectives. For
developing a viable financial strategy it is very necessary to have good business plan and specific
and clear business objectives (Gupta and Sharma, 2016).
1.4 Reviewing of the plan and communicating the results thereof
a) Importance of monitoring business plan
The preparation of business plan is totally based on the components of the external or the
macro environment. All the components of the business plan are a major part of the external
environment and the environment is very dynamic and always keeps on changing. By
continuously monitoring the business plan the company can keep an eye over all the changes
going on in the market and accordingly change the business plan if those changes affects the
business operations. Another reason for monitoring the business plan is to make sure that the
business is working according the plan only. Monitoring helps in ensuring that the plan is being
followed and if it is not followed than corrective actions need to be taken.
b) Budgeted milestone and how they are measured
The budget milestone report includes the complicated budget data and it concludes
information from these data in form of tables, diagrams, charts and graphs which can be easily
understood by the stakeholders and the readers. With the help of the milestone the company can

make create a timeline of their aims, objectives and the goals which are mentioned in the order of
their priority. It helps in understanding what is more important to do first and which work is to
be done later.
c) If business strategy fails what alternate course of action is taken
If one of the business strategy fails then it is the duty of the company to critically analyse
the reason for the failure of the strategy. After assessing the reason for the failure the business
needs to adopt a new strategy. This new strategy made is prepared after taking into consideration
all the drawbacks and reasons of the failure of the previous implemented strategy.
1.5 Identification and monitoring of clients needs
a) Identification of client's need
It is very necessary to identify the needs and the expectations of the clients. This is of the
utmost important because the company works with the aim of satisfying the needs of the
customers through the products or services offered by the Amcor (Tsai and Yang, 2014). The
identification of the needs of client is crucial because the goods and services are manufactured
according to the needs of the customer, so if the needs will not be identified than how will the
production takes place (Wang, 2014).
b) Relation with their objectives
The identification of the needs is very much related to the objectives of the business. This
is because of the reason that both the needs and business objectives are related. The main
objective of business is profit earning and this is only possible if sales are increased. The sales
will be increased only if the products and services delivered are according to the needs of the
consumers. So because of this reason the identification of needs is related to the objectives.
1.6 Continuous and regular feedback from client
a) Gathering of feedback from the client
Feedback refers to the reaction or the response of any person for anything. Here the
feedback refers to the response or the reaction of the consumer after the use of the product or the
service. It is the outcome of the input that is the input is the use of the product or service and
outcome is the review or the image of the product. It is very necessary for the company to gather
the feedback that how the consumers liked the product or the service.
b) Importance of taking feedback

Taking the feedback is very necessary and important because of the reason that with the
help of taking feedback the company can get the knowledge about the popularity of their product
or the service. Taking feedback is important because of the reason that feedback brings the
response of the consumer that whether they liked the product of service or not liked it. By taking
this information the company can assess the position of the product and service in the market and
in the eyes of the consumer.
1.7 Poor customer services and ways to overcome those shortfalls
a) Result of poor customer services
Customer services are defined as the process which ensures that the customer are
satisfied with the use of the product or the service. The customer service can be both good and
bad. The goodwill and reputation of the company depends on the customer services provided by
the company. If the customer services are not good then the company will lose its customer base
and will suffer from losses. Also the goodwill of the company will degrade (Campbell and Park,
2017).
b) Steps take to make sure that the customer service attains high standards
the steps involved in ensuring the customer service are as follows-
The first and foremost step is to identify the target customer and the to understand their needs
and requirements (Quinton and Wilson, 2016).
The next step is to produce the products and service in accordance with the identified needs and
requirements.
The last step is to measure the success of the products and services by taking feedback from the
customers.
c) Options to customers if they have complaint regarding customer services
If the customer have any problem then it can file complaint in the customer service
department of the company and also it can file complaint on the official website of the company
(Bresciani and Ferraris, 2016).
TASK 2
2.1 Advice on reliability and accuracy of the data
a) Implement policies and procedure in relation to business planning
The policies and the procedure are the written rules, regulation and code of conduct
which define the functioning of the organization. It describe both employee and employer

responsibilities. The policies and procedure are implemented by the top management in the
organization (Assagaf 2016). They form the policies and procedure and implement in the
organization. They force the middle management to regulate and control the policies in the firm
so the organization can efficiently and effectively rum their business.
b) Statutory body to complied in relation to remitting the correct data
Amcor limited company can use the Evidence Act 1929 and Financial Management Act
2006 as statutory body for remitting the correct data. Amcor limited company is a packaging
company which have to transfer the money and products to different countries. They can also use
the Anti Money Laundering Act in their organization to protect the firm from any fraud and
financing terrorism in the global market. The finance department of Amcor limited company
authorize the remittance in the organization after following all the legal procedures.
2.2 organizational procedures, statutory requirements and standard financial reporting principles
a) Steps for reconciling activity statement
For reconciling the activity statements Amcor limited company has to follow the
following steps :
 access the bank records to check the current status of the company.
 Access software helps to put the data in accounting software.
 Than they have to update their uncleared check so they can easily get the current cash and
debt status of the organisation.
 After updating the check they have to update their deposit in transit so they can get the
real cash flow.
 Than they have to enter the new expenses which was unexpected or omitted to record.
 Amcor limited has to enter their balance and balance the amount with the expenses.
These help them to get the exact figure about their profit and loss account.
b) Responsible accounting body for setting the accounting principles
Australian Accounting Standard Board is responsible for setting the accounting standard
and principles for the private and public sector companies in Australia (Minnis and Sutherland,
2017). AASB regulate the standard and principles in the Amcor limited company through the
Australian Securities and Investment Commission. They works to protect the Australian
investors, customer, manufacturers and creditors. They use the conceptual framework to evaluate
and develop the accounting standard. As an accountant it can be suggested that the Amcor

limited can use these accounting standard for the smooth functioning of the organization. AASB
standard is used to present the financial statements like balance sheets, budget, income statement
and cash flow.
2.3 analysis of revenue and cost in accordance to the accounting standards
a) Matching principle in accounting
matching principle refers to match the all expenses with the revenue in books of account
in the same accounting period of the organization. The Amcor limited company can use this
concept to match their expenses with the revenue. It helps to rectify the error in the books of
account. It also help to record the expenses in same accounting period in which the revenue
generate so they can get the accurate profit and loss of the organisation. It helps to estimate the
budget of the organization and prepares the plan according to their budget.
b) Difference between cash and accrual accounting
Cash accounting is only record the data when cash is received and expenses are paid.
This method does not record the accounts payable or receivable in books of account. It is easiest
method to record the transaction when transaction are occurred in cash.
Accrual accounting is a method in Which transaction are recorded when they earned
rather than they are actually received or paid. It gives more clear and realistic idea about the
income and expenses of the organization (Handley, Evans and Wright 2019).
c) Calculation for the insurance
The insurance is purchased in July month, the expenses for the July month are as follows.
Insurance amount * no. of days in month / no of days of the insurance
= $18000 * 31/365
= 1528.76
To start the insurance policy the expenses for the July month will be 1528.67 and the remainder
expenses are 16471.25 which would be carry forward to the next month and pay in installments.
2.4 Analysis of data and report in accordance with the financial analysis techniques
a) Cost, expenses, profit and taxation liabilities
To analyses the financial position of the organization the firm measure the various cost like
operating cost, manufacturing cost, transportation cost, selling and distribution cost, raw material
for the packaging cost etc. Amcor limited also measure the expenses of the organization like the
maintenance expenses, advertising and promotional expenses etc. They also measure the profit

and taxation liability for the organization. In profit and taxation liability they calculate the net
profit after deducting all the expenses, depreciation and interest from the profit than they deduct
the tax rate according to the slab.
b) Importance of measuring percentages in comparison of current and historical financial
data
The current and historical data are present in the % form. The percentage form help to
understand the real cost and expenses related to the accounting year. It helps to compare the
current year performance of the organization from the previous year performance.
2.5 Evaluation of information related to the financial performance
a) Break even point
The break even point refers to represent the sales amount. It can be represent in the units
or revenue. The total profit on break even point is zero. If the Amcor limited company produce
above the break even point it means that they have to bear the loss of manufacturing because
they are only able to get the cost from the market not any profit for the firm. It shows the stage
when the profit of the organization is zero and now the company has to stop to manufacture the
packaging items and they have to wind up their business (Kim and et.al., 2017).
b) Accounting ratio which depict the profitability, financial stability and efficiency
There are different ratio which are used by the organization to calculate and evaluate the
financial performance of the firm such as profitability ratio, efficiency ratio, financial ratio etc.
For evaluating the profitability of the organization Amcor limited use the gross profit
ratio, net profit ratio etc. The gross profit is used to analyses the performance of the organization
by comparing the gross profit with the revenues of the firm. Net profit is used to analysis the
performance of the organization by comparing the net profit with the revenue. It help the Amcor
limited company to estimate the budget for the expenses.
To calculated the efficiency they can use the debt equity ratio, inventory turnover ratio,
working capital ratio etc
Debt equity ratio help to measure the debt of the organization in compare to the equity. It
present the real debt situation so the firm can manage their debt and pay the outstanding to its
creditors. The inventory ratio helps to maintain the inventory level so they can manage their
maintenance cost and fulfill the market demand.

To know the profitability of the organization different ratio are used such ad liquid ratio,
quick ratio and current assets and liability ratio.
2.6 Analyses the consistency in context to the business and personal objectives
a) Analysis the performance of the business in accordance to the business objectives
To ensure that the organization performance is according to its business objective they
can use various tactics to measure the performance. Amcor limited company can conduct the
audit in the organization on semi annually and quarterly basis so they can get the real
performance of the organization. The auditor help them to know that the organization is
performing well in accordance to the business objective. The quarterly and semi- annually audit
defines the functioning of the organization through these audit they can compare their
performance with their objectives.
2.7 Assess the financial potential of the business through the evaluation of business performance
a) Return on investment
return on investment is used to measure the performance of the organization by
evaluating the investment efficiency by the organization. It helps to get the return amount on the
investment that means that how much organization can get on the particular investment. It is
present in the form of percentage or ratio so the form can easily get their return.
b) Leverage
Organization borrow money from the market and through different sources to invest in
the money in different activities to get the profit or return from the investment is known as
leverage. It can also explain as the amount of debt used by the firm to finance their assets. It
helps to estimate the possible return of the Amcor limited company.
c) Ensure the taxation liability when the firm fall its due
Firm can use the system and control to maintain the integrity in the reporting. In this they
can address the issues related to stakeholders (Key governance steps and processes, 2016). They
can provide knowledge to the staff about the tax related affairs to manage the tax in the firm.
They can keep the records and documentation of the organization which help them to ensure the
tax liability and treatment of tax.
TASK 3
3.1 Realistic view of the business financial performance and the compliances
a) Business performance and the different ways to measure and control the performance

Business performance refers to measure the performance of the business through various
methods and techniques. Business performance analyze the activities of the organization in
respect to its objective and how much the organization was able to get the company goal and
objectives. To measure and monitor the business performance of Amcor limited company they
have to set the target and use the performance indicators to measure the performance with target.
To control the performance they can use the Benchmark system to compare the performance
with the standard benchmark and than control it.
b) Importance of profitability
Estimate the profit for the organization is important because it helps to prepare the budget
of the organization and estimate the cost of the expenses. By estimating the profit in the
organization they can present their data in the annual report and aware their stakeholders about
the performance, profitability and productivity of the organization. Profit estimation help them to
estimate all the expenses like salary, wages, manufacturing expenses, transportation cost etc.
which provides them a clear picture about their profit and to invest them in the other activities to
get the return.
c) Calculation of tax liability