Managing Financial Resources and Decisions - Shaping Your Future

This assignment report is based on a BTEC Level 5 HND Diploma in Business, specifically Unit 2: Managing Financial Resources and Decisions. The assignment requires an understanding of financial planning, sources of finance, and investment appraisal. The report addresses various learning outcomes, including identifying sources of finance, assessing their implications, evaluating appropriate finance for a business project, analyzing the costs of different sources of finance, explaining the importance of financial planning, assessing the information needs of different decision-makers, and explaining the impact of finance on financial statements. The report also includes competitor and market analysis, SWOT and PEST analyses, and details on operations and logistics. The 'Shaping Your Future' section serves as a case study, and the report explores financial ratios and investment appraisal techniques.

London School of Science & Technology
Assignment front sheet
Qualification Unit number, title and level
Pearson BTEC Level 5 HND Diploma
in Business (QCF)
Unit 2: Managing Financial Resources and
Decisions
Level : 4
Student name and ID number Assessor name
Simon Masuku
Interval Verifier Alan Jeffery
Date issued Completion date Submitted on
1st May 2015 3rd July 2015 before 12:00
midday
Assignment title Managing Financial Resources and Decisions - Shaping
Your Future – A Vocational Scenario
LO Learning
Outcome
Assessme
nt
Criteria
In this assessment you will
have the opportunity to
present evidence that shows
you are able to:
Task
no. Evidenc
e
(page
LO1
LO2
Understan
d the
sources of
finance
available
to a
business
Understan
d the
importanc
e of
financial
planning
and
informatio
n needs.
1.1 Identify the sources of finance
available to a business
1.2 Assess the implications of the
different sources
1.3 Evaluate appropriate sources of
finance for a business project
2.1 Analyse the costs of different
sources of finance
2.2 Explain the importance of financial
planning
2.3 Assess the information needs of
different decision makers
2.4
Explain the impact of finance on
the financial statements
LO3
Be able to
make
financial
decisions
based on
financial
informatio
n
3.1 Analyse budgets and make
appropriate decisions.
3.2 Explain the calculation of unit costs
and make pricing decisions using
relevant information.
3.3 Assess the viability of a project
using
investment appraisal techniques.
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LO4
Be able to
evaluate
the
financial
performan
ce of a
business.
4.1 Discuss the main financial
statements.
4.2 Compare appropriate formats of
financial statements for different
types of business.
4.3 Interpret financial statements using
appropriate ratios and
comparisons, both internal and
external.
Instructions
 An electronic copy of your assessment must be fully uploaded by the deadline date and
time.
 You must submit one single PDF or MS Office Word document. Any relevant images or
screenshots must be included within the same MS Office Word or PDF document.
 The last version you upload will be the one that is marked. Your paper will be marked if you
have indicated this as your final submission.
 Review the mitigating circumstances policy for information relating to extensions.
 The file size must not exceed 20MB.
 Answer the criteria in order, clearly indicating the pass criteria number.
 Ensure that all work has been proof-read and checked prior to submission.
 Ensure that the layout of your documents are in a professional format with font style Arial,
font size 12 for the text, font 14 for sub heading and font 16 for main heading, line spacing
1.5 and justified.
 Use the Harvard referencing system; otherwise it will be considered as plagiarised work.
 Ensure that you back-up your work regularly and apply version control to your documents.
 Ensure that any file you upload is virus-free, not corrupted and not protected by a password
otherwise it will be treated as a non-submission.
 You must NOT submit a paper copy or email of this assessment to any member of staff at
LSST.
 Your work must be original with the appropriate referencing
Learner declaration
I certify that the work submitted for this assignment is my own and research sources
are fully acknowledged.
Student signature: Date:
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In addition to the above PASS criteria, this assignment gives you the opportunity to submit evidence in order to
achieve the following MERIT and DISTINCTION grades
Grade Descriptor Indicative characteristics Contextualisation
M1Identify and apply
strategies to find appropriate
solutions
Effective judgements have
been made.
M1: To achieve M1, you are required to match the above
ratios (i.e., current ratio, ROCE etc.) to the following interested
parties; suppliers, investors and competitors. Provide clear
justification for your answer. (Task 4)
M2 Select / design and apply
appropriate methods /
techniques
A range of sources of
information have been used. M2: To achieve M2, in a report format, assess the reasons why
the other sources of finance would be considered inferior to
the ones selected in 1.3. Justify your position, explaining why
you have arrived at your conclusions with reference to the
organisation outlined in the” Shaping Your Future” future
plans. Present your answer in a report format. (Task 1)
M3 Present and communicate
appropriate findings
The appropriate structure
and approach has been used.
M3: To achieve M3, you will identify the individual needs of the
stakeholders in The organisation outlined in the” Shaping
Your Future” section. This will be presented in a suitable
business format (a report or a formal letter) or a comparison
table and will include business terminology accurately. (Task 3)
D1 Use critical reflection to
evaluate own work and justify
valid conclusions
Conclusions have been
arrived at through synthesis
of ideas and have been
justified.
D1: To achieve D1, this question relates to 3.3. Justify the use
of investment appraisal techniques and other financial
planning methods in the process of strategic investment
decision making for a business. (Task 3)
D2 Take responsibility for
managing and organising
activities
Importance of
interdependence has been
recognised and achieved.
D2: To achieve D2, Use the draft balance sheet below.
Please note that the balance sheet does not balance. Include
a recent loan of £7,000 which will be paid back in 3 years’
time with a fixed charge of £1500 per year payable at year
end. Show all your calculations that enable the financial
report below to balance.(Task2)
D3 Demonstrate convergent Effective thinking has taken D3: To achieve D3, explain the differences (and the
Unit 2: Managing Financial Resources and Decisions Level 4 May 2014 3

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/lateral / creative thinking place in unfamiliar context. importance of this differentiation) between:
I. Current and acid test ratios
II. Gross profit and net profit (Task 4)
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Assignment Brief
Unit number, title and
level
Unit 2:Managing Financial Resources and Decisions ;
Level : 4
Qualification BTEC Level 5 HND Diploma in Business
Date issued 1st May 2015
Completion date 3rd July 2015 before 12.00 midday
Assessor Simon Masuku
Internal Verifier Alan Jeffery
Assignment title Managing Financial Resources and Decisions –
Shaping Your Future- A Vocational Scenario
Level : 4
Purpose of this assignment –
This unit is designed to give learners a broad understanding of the sources and
availability of finance for a business organisation. Learners will learn how to evaluate
these different sources and compare how they are used. They will learn how financial
information is recorded and how to use this information to make decisions for example
in planning and budgeting. Decisions relating to pricing and investment appraisal are
also considered within the unit. Finally, learners will learn and apply techniques used
to evaluate financial performance.
Instructions
The pages which follow under the heading Shaping Your Futures section needs to be
to be developed as part of your learning journey. Once written, the aim is that the
plan is revisited occasionally and, towards the end of your course, it will act as a
portfolio document. This document will reflect and evidence your learner’s journey,
demonstrating the application of the relevant learning outcomes to the business
depicted in the Shaping Your Future section of this paper. It is envisaged that you will
able to use this document as an accessible illustration of your learning and
understanding.
Please carry out the following steps in order to complete the Shaping Your Future
section:
1. Select an organisation. The organisation that you chose should be either an
organisation that you own, an organisation that you would like to own, or one that you
work for.
2. Complete the Shaping Your Future section before attempting to answer any of the
questions. Many of the questions in this paper will require that you refer to the
information in the Shaping Your Future section
3. Please read all the questions in this paper and apply your learning to the Shaping
Your Future section. This section will act as the case study for your assignment
paper.
Please note that LSST will not publish or use this information for commercial purposes.
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Shaping Your Future
The Background Information
Whose plan is this?
Business and owner details:
Business name:
Owner(s) name:
Business address and postcode:
Business telephone number:
Business email address:
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Section one
Executive summary
1.1 Business summary:
1.2 Business aims:
Additional Information:
Details of future training courses you or your team want to complete:
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Section two
Products and services
2.1 What is the nature of your business?
a product
a service
both
2.2 Describe the different types of product/service you are going to be selling:
2.3 Additional information:
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Section three
The business environment
3.1 Who are your customers:
individuals
businesses
both
3.2 Describe your typical customer:
3.3 Where are your customers based?
3.4 What factors help your customers choose which business to buy from?
3.5 Have you sold products/services to customers already?
yes
no
If you answered “yes”, give details:
3.6 Additional information:
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Section four
Market research
4.1 What market information have you obtained so far?
4.2 Do you intend to conduct further market research? If so, discuss briefly:
4.2 Key findings from research:
4.3 Additional information:
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Section five
Marketing and Business Strategy
What are you going to do/ How are you going to
market your products?
Why have you chosen this marketing method? How much will it cost
to develop and
market your product
TOTAL COST
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Section six
Competitor and market analysis
6.1 Table of competitors (top 5 competitors only)
Name, location
and business size
Product/service Price Strengths Weaknesses
6.2 SWOT analysis:
Strengths Weaknesses
Opportunities Threats
Unit 2: Managing Financial Resources and Decisions Level 4 May 2014 12