Business Skills and Management Report - Financial and Leadership

This report delves into various aspects of business skills and management, starting with an analysis of car investment using COE prices and linear regression to predict costs. It then evaluates different car models (Proace, NV200, and Berlingo) by calculating yearly payments, including COE and down payments, and assesses the net present value of each model. The report further explores strategies for cost reduction in logistics, warehousing, maintenance, and marketing within a food catering business. It emphasizes the importance of efficient supply chains, technology implementation (CCTV), and effective use of social media. The report concludes by discussing the role of leadership in business, emphasizing decision-making, forecasting, and the application of best practices such as investment appraisals and human resource management, referencing the Enterprise Singapore’s Business Excellence Framework. The report uses financial calculations, sensitivity analysis, and strategic recommendations to provide a comprehensive view of business operations and management.

Running head: BUSINESS SKILLS AND MANAGEMENT
Business Skills and Management
Name of the Student:
Name of the University:
Authors Note:

1
Contents
Answer 1:.........................................................................................................................................2
Part (a):........................................................................................................................................2
Part (b):........................................................................................................................................4
Answer 2:.........................................................................................................................................7
Part a:...........................................................................................................................................7
Part b:.........................................................................................................................................10
Answer 3:.......................................................................................................................................11
Part a:.........................................................................................................................................11
Part b:.........................................................................................................................................12
References:....................................................................................................................................13

2
Answer 1:
Part (a):
PMI 50.4 50.8 50.3 49.9 201.4
COE Price ($) 27010 32001 28559 25502 113072
PMI to be used 50.5
Predicted COE ($) 28,352.
21
Thus, predicted COE price is 28,352.21.
Linear regression:
SUMMARY OUTPUT
Regression Statistics
Multiple R 0.92208
R Square
0.85023
1
Adjusted R
Square
0.77534
7
Standard
Error
1319.58
5
Observations 4

3
ANOVA
Df SS MS F
Significan
ce F
Regressi
on 1
197706
79
197706
79
11.353
94 0.07792
Residual 2
348261
1
174130
5
Total 3
232532
90
Coefficie
nts
Standa
rd
Error t Stat P-value
Lower
95%
Upper
95%
Lower
95.0%
Upper
95.0%
Interce
pt -321370
103765
.7
-
3.0970
7
0.0903
49
-
76783
8 125098
-
76783
8 125098
X
Variabl
e 1 6944.146
2060.8
46
3.3695
61
0.0779
2
-
1922.9
6
15811.
25
-
1922.9
6
15811.
25

4
Scatter plot:
Part (b):
For car model Proace:
Van yearly payment calculator
Model Proace
Van price excluding COE ($) 45000
COE price ($) 28,352.00
Van price including COE price ($) 73352
Down payment (% van price) 20%
Down payment ($) 14670.4
Total loan 58681.6

5
Bank annual interest 2053.856
Number of pay back years 8
Yearly payment 9,169.00
Various monthly payment (interest only) 764.08
Note:
It is important to note that the various monthly payment is calculated for year 1 only and since,
the annual fixed payment is to be ta the end of each year hence, the various monthly payment is
only in respect of payment of interest.
For car model NV200:
Van yearly payment calculator
Model NV200
Van price excluding COE ($) 35000
COE price ($) 28,352.00
Van price including COE price ($) 63352
Down payment (% van price) 20%
Down payment ($) 12670.4

6
Total loan 50681.6
Bank annual interest 1773.856
Number of pay back years 8
Yearly payment 7,919.00
Various monthly payment 659.92
Note:
It is important to note that the various monthly payment is calculated for year 1 only and since,
the annual fixed payment is to be ta the end of each year hence, the various monthly payment is
only in respect of payment of interest.
For car model Berlingo:
Van yearly payment calculator
Model Berlingo
Van price excluding COE
($)
40000
COE price ($) 28,352.00
Van price including COE
price ($)
68352

7
Down payment (% van
price)
20%
Down payment ($) 13670.4
Total loan 54681.6
Bank annual interest 1913.856
Number of pay back years 8
Yearly payment 8,544.00
Various monthly payment 712.00
Note:
It is important to note that the various monthly payment is calculated for year 1 only and since,
the annual fixed payment is to be ta the end of each year hence, the various monthly payment is
only in respect of payment of interest.
Answer 2:
Part a:
Model Proace NV 200 Berlingo
Van price excluding COE 45,000.00 35,000.0 40,000.

8
0 00
Engine capacity (In cc) 2000 1500 1500
Van price with COE ($) 73,352.00 63,352.0
0
68,352.
00
Down payment ($) 14670.4001 12670.400
1
13670.4
Yearly payment of loan principal part
only ($)
9,169.00 7,919.
00
8,544.
00
Expenses and revenue data
LTA rebate for engine capacity <1600cc 12% of van price excluding COE 12%
LTA rebate for engine capacity >=1600cc 18% of van price excluding COE 18%
Year 1 expenses (excluding payment of loan) wil be 6% of van price incluidng COE 6%
Annual increase of expenses will be 3% 3%
Revenue in year 1 will be 9% of Van price including COE 9%
Annual increase in revenue 6% 6%
Annual rate of return for investment 10% 10%
Net present value:
Model Proace
Present value of total
revenue
23,915.5
8

9
Less: Car price excluding
COE
45,000.0
0
NPV (21,084.4
2)
Model NV200
Present value of total
revenue
19,577.3
2
Less: Car price excluding
COE
35,000.0
0
NPV (15,422.6
8)
Model Berlingo
Present value of total
revenue
21,225.9
7
Less: Car price excluding
COE
40,000.0
0
NPV (18,774.0

10
3)
Workings:
Proace
Year 1 2 3 4 5 6 7 8 9 10
Annual revenue6,601.68 6,997.78 7,417.65 7,862.71 8,334.47 8,834.54 9,364.61 9,926.49 10,522.08 11,153.40
Rebate 8,100.00
Total revenue 6,601.68 6,997.78 7,417.65 7,862.71 8,334.47 8,834.54 9,364.61 9,926.49 10,522.08 19,253.40
Expenses
Annual expenses4,401.12 4,533.15 4,669.15 4,809.22 4,953.50 5,102.10 5,255.17 5,412.82 5,575.21 5,742.46
Total expenses 4,401.12 4,533.15 4,669.15 4,809.22 4,953.50 5,102.10 5,255.17 5,412.82 5,575.21 5,742.46
Net revenue 2,200.56 2,464.63 2,748.50 3,053.48 3,380.97 3,732.43 4,109.44 4,513.66 4,946.87 13,510.94
PV factor @10%0.90909091 0.8264463 0.7513148 0.68301346 0.620921323 0.5644739 0.513158118 0.46650738 0.424097618 0.385543289
Present value of net revenue2,000.51 2,036.88 2,064.99 2,085.57 2,099.32 2,106.86 2,108.79 2,105.66 2,097.95 5,209.05 23,915.58
Part b:
Sensitivity analysis:
Model Berlingo
Present value of total revenue 22,394.82
Less: Car price excluding COE 40,000.00
NPV (17,605.18)
Change 1,168.85
Sensitivity (%) (6.23)

11
Answer 3:
Part a:
Logistics and warehousing:
The cost of logistics and warehousing for food catering business can be reduced by using
efficient food supply chain. An efficient food supply chain will ensure delivery of orders on
proper time thus, the business will not have to store unnecessary items in the stock. This will
help the business to reduce the overall cost of logistics and warehousing (Nowicki, 2018).
Maintenance:
Reduction of maintenance cost is possible by using technology such as installation of CCTV
cameras in various parts of the restaurant. Installation of CCTV cameras in various corners will
enable the management to keep a close eye on all the staffs and employees. This will reduce the
overall need of employees earlier required for overseeing of various activities in the food and
catering business. As a result the overall maintenance cost will decline (Segal, 2018).
Marketing:
Effective marketing strategy such as using social networking sites effectively will be helpful in
reducing the cost of marketing in food catering business. The effective use of social networking
sites such as Facebook, snap chat, twitter and other such mediums are extremely effective to
market the products of a business at relatively low cost (Assagaf, Mohd Yusoff & Hassan, 2017).
Part b:
Leadership in relation to a business is about managing the resources of the business effectively
and using these to achieve the overall objective and goals of the business. In order to that leaders