Business Accounting, Analysis, and Marketing Report: M&S Case Study

This report provides a comprehensive analysis of business accounting and marketing principles, focusing on their application to Marks & Spencer (M&S). It begins with an examination of data collection methods, including survey techniques and questionnaire design, to inform decision-making processes. The report then explores how budgeting, unit cost calculations, investment appraisal techniques (such as Net Present Value and Payback Period), and various funding sources contribute to effective decision-making. Different types of financial statements for various business structures are also discussed, along with the application of management accounting techniques to cost calculation and budget preparation. The report further delves into marketing concepts, segmentation, targeting, and positioning strategies, as well as the differentiation between marketing mix and extended marketing mix, emphasizing their role in sustaining competitive advantage for M&S. The report concludes with a summary of the key findings and insights.

Business Accounting;
Business Analysis and
Principles of Marketing

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Selecting a plan on basis of proper survey methods, questionnaire and sampling
techniques for gathering data..................................................................................................1
1.2 Explaining how budget, calculation of units, investment appraisal techniques and sources
of fund helps in decision making............................................................................................5
Calculation of unit cost...........................................................................................................5
TASK 2............................................................................................................................................6
3.1 Different types of financial statements for different types of businesses ........................6
Application of management accounting techniques to calculate costs and preparation of
budgets for your classify different types of cost.................................................................10
Budget for marks and Spencer:......................................................................................................13
TASK 3 .........................................................................................................................................15
1. Marketing Concept and Processes....................................................................................15
2. Segmentation, targeting and positioning criteria for products and/or services in response to
existing marketing problems/issues......................................................................................16
3. Differentiation between Marketing Mix and extended marketing mix and its importance in
sustaining competitive advantage.........................................................................................17
CONCLUSION..............................................................................................................................18
REFERENCES..............................................................................................................................19

INTRODUCTION
Following report comprises that for M&S the data can be collected from both primary
and secondary methods. The pricing techniques are important for M&S as it belongs to retail
industry and directly deals with consumers which are mostly affected by the price of a product.
The various sources from which it can raise funds are also explained in this report. The method
of costing which can used by M&S is absorption method as this will lead to maximise the profit
of the business. For the market orientation a relationship of cost and benefits with it is
established. With this a different between marketing mix and extended marketing mix of M&S is
also presented along with the competitive advantages which marketing mix can extend to M&S.
TASK 1
1.1 Selecting a plan on basis of proper survey methods, questionnaire and sampling techniques
for gathering data.
Subject: To identify how business accounting helps in process of decision making with
regard to investment.
The selected plan would be discussing various implications that how business accounting
plays major role with context of decision making as it has requirement of both primary and
secondary data as well. Hence, following research tools and techniques has been undertaken by
the scholar of M&S for the purpose of sample selection and data collection such as:
Data collection
Primary data: The data would be directly extracted by the researcher of M&S from
survey techniques, observations as it would be gaining context with context to specific subject.
There is requirement of information which is assessed internally as from employees and
managers of Marks and Spencer (Delbon and et. al., 2017).
Secondary data: The information would be collected through internet, journals and
articles which are already published. The should be taken from authenticate source.
Survey Method
It is considered as very important stage as it could not be ignored from manager because
it provides appropriate justification of performance in effective manner. There would be
implication of online survey methodology because it is time savvy and gives accurate outcome.
1

Sampling Frame
There would be application of random based sampling as it would select 20 employees of
M&S and questionnaire should be passed to them with its rules and regulations.
Questionnaire
Demographic variable
Gender:
 Male
 Female
 Others
Age:
 20 – 35
 36-50
 51 and above
1. Is business accounting helps in tracking financial feasibility in appropriate aspect?
 Strongly Agree
 Agree
 Disagree
 Strongly Disagree
2. Does business accounting help in analysing future trend?
 Yes
 No
3. Which factor affects most?
 Reliability
2

 Accuracy
 Consistency
4. Does business accounting leads to manipulation?
 Strongly Agree
 Agree
 Disagree
 Strongly Disagree
5. Recommendation?
 ….......................................
Interpretation
Respondents Theme 1 Theme 4
1 1 3
2 2 1
3 1 4
4 3 2
5 1 3
6 2 1
7 1 2
8 4 3
9 1 1
10 1 4
11 2 2
3

12 4 1
13 1 4
14 2 2
15 2 3
16 3 1
17 1 2
18 3 2
19 2 1
20 1 1
Mean 1.9 2.15
Median 2 2
Mode 1 1
Interpretation: The above table is indicating the outcome of respondents as question 1 is
named as theme 1 and question 4 is taken as theme 4. These both are directly replicating that
business accounting helps in process of decision making with which measures. The mean of 1.9
of them 1 which is signifying that many people are indicating agreeing that financial viability
could be observed through business accounting. The mean of 2.15 of them 4 manipulating is also
performed in organization.
Outcome
Respondents Percentage
Theme 1 9 45.00%
Strongly agree 6 30.00%
Agree 3 15.00%
disagree 2 10.00%
4

Strongly disagree 20 100.00%
Theme 4 Respondents Percentage
Strongly agree 7 35.00%
Agree 6 30.00%
disagree 4 20.00%
Strongly disagree 3 15.00%
20 100.00%
1.2 Explaining how budget, calculation of units, investment appraisal techniques and sources of
fund helps in decision making
The process of decision could be very effective by various methods in which budget is
considered as very important as it gives decision how to achieve growth in budgeted amount. It
helps in predicting funds, proper allocation of money, prioritising various projects. The decision
making theory helps in dealing with various methods as it identify proper course of action as it
calculates monetary amount of every alternative and selecting factors with this information. In
the same series, investment appraisal techniques provide proper information with context of
capital budgeting for determining appropriate spending of money. There are various techniques
such as Net present value, payback period etc. Hence, M&S can employ following tools for
assessing and evaluating the viability of capital projects such as:
Net present value: It is referred as worth which had been measuring profit by excluding
present value of cash outflow from its cash inflow of specific duration. It also considers time
value of money.
Payback period: It is referred as length of time which had been required for recovering
initial cost for investment perspective.
Accounting rate of return: It is also considered as average rate of return which
considers time factor. It extracts returns which had been produced from net profit with context of
capital investment which had been proposed.
5

Calculation of unit cost
Suppose:
Variable cost: 60000
Total fixed cost: 40000
Number of units: 2000
Unit cost = (fixed cost + variable cost) / widgets producing
= (40000 + 60000) / 2000
= $50 cost per unit
On the basis of above assessment, it can be presented that M&S will incur $50 for
producing one unit.
Sources of funds
For meeting financial needs and requirements M&S can adopt following sources such as:
Bank Loans: This is the most common type of loan which is opted by any business to
raise fund. It helps in providing medium or long-term finance to the business. The business is
guaranteed the money for a certain period - generally three to ten years. There is a huge
advantage of bank loans, for example, they are very flexible and cost effective. It also helps
M&S in retaining a good profit and provides tax benefits as well.
Equity Financing: It is a type of method which can be used by M&S for raising capital.
Hence, by selling stock to public, institutional investors, or financial institutions M&S can
generate funds. For the return in this process, the shareholders receive ownership interests in the
company. This can be a great option for any business to fund it. There is a huge advantage of this
method, for example, with equity financing, there is no loan to repay. Equity can be preferable or
more suitable than debt financing (Brière, Peillex and Ureche-Rangau, 2017).
TASK 2
3.1 Different types of financial statements for different types of businesses
Types of
Financial
Statemen
ts:
Sole
Proprietorship
Partnership Company Franchise
Financial  Balance  Partners  Balance Sheet.  Balance Sheet.
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statement
s
sheet.
 Statemen
t of
financial
performa
nce.
 statement
of
changes
in
owner's
equity.
 Statemen
t of cash
flows.
hip
agreeme
nt.
 Income
statemen
t.
 Stateme
nt of
partner's
capital.
 Balance
sheet.
 Statements of
profit and loss.  Income
statement.
Appropri
ateness
 Balance
sheet:
This
financial
statement
reports
the
financial
position
of a
business,
including
a sole
proprieto
r at a
specific
 Partners
hip
Agreem
ent: It is
a written
statemen
t that
explains
the
norms
of a
partners
hip
business
. It
contains
 Balance sheet:
Every company
registered under
the act shall
prepare its
balance sheet in
accordance with
the manner
prescribed in the
revised schedule
6 of the
companies act
1956 (Alsdorf
and et.al., 2016)
 . It is prepared to
report the
 Balance sheet:
It shows the
net worth of
company on
any given day.
It also reports
the financial
condition of
the franchisor.
 Income
statement: It
reports the
profit and loss
of a company.
It represents
company's
7

point of
time.
 Statemen
t of
financial
performa
nce: It is
also
known as
income
statement
or trading
account,
which
reports
the
results of
earning
activities
of a
business
for a
specific
time
period
such as
month,
week,
year, etc.
 statement
of
the
amount
of
capital
contribu
ted by
each
partner
and
duties
and
responsi
bilities
of each
partner
of the
business
.
 Income
statemen
t: Share
of each
partner's
net
income
is
reported
separatel
y on the
income
statemen
performance of
the management
to the
shareholders.
The gap between
the management
performance and
ownership
expectations can
be understood
with the help of
this statement.
 Profit and loss
statement: Fiscal
policies of the
government are
related to the
financial
performance of
the company.
These
statements
provide basic
input, taxation,
and other
economic
policies of the
government.
income,
expenses, and
net income.
8

changes
in
owner's
equity:
This type
of
financial
statement
serves the
link
between
balance
sheet and
the
income
statement
by
detailing
the
changes
that took
place
over a
specific
time
period.
 Statemen
t of cash
flows: It
describes
flow of
t.
 Stateme
nt of
partners’
capital:
It is
breakdo
wn of
each
partner's
basis in
the
partners
hip (Zini
and
et.al.,
2017).
 Balance
sheet:
Partner's
current
capital
amounts
are
listed in
the
balance
sheets
on
equity
side.
9

cash in a
business,
from
where the
cash
came
from and
where it
went
during a
time
period. It
also
shows the
opening
and
closing
balance
of cash in
hand.
Application of management accounting techniques to calculate costs and preparation of budgets
Cost can be classified into following ways:
On the basis of nature of cost it can be classified into two i.e. Direct cost and Indirect
costs. Functional based costs are Production, selling, distribution, administration. Behaviour
based costs are further classified according to their behaviour in relation to change within given
time period. The Control ability of cost is defined as controllable and uncontrollable. The cost
based on Normality is Normal costs and abnormal costs (Jackson and et.al., 2018). Time based
cost are Historical costs and predetermined costs. Costs are used for managerial decision making.
In the broad ways it cost of M&S can be bifurcated in
10