Managerial Finance M004LON CW1: Group Report, Coventry University

This document presents a comprehensive solution for the Managerial Finance CW1 assignment, focusing on financial analysis and strategic performance evaluation. The assignment requires students to analyze the financial reports of a chosen company from a provided list, highlighting performance trends using relevant ratios and analysis techniques. The solution includes the development of a balanced scorecard, covering four perspectives, and a strategy map to assess financial and non-financial performance indicators. The report is structured as a detailed analysis addressed to the directors of the chosen organization, incorporating research materials and financial analysis calculations in the appendices. The assignment assesses the application of accounting techniques, informed financial judgments, critical appraisal of techniques, understanding of internal and external environments, objectives of management information, and evaluation of strategic performance.

Module Handbook
Module Title
Managerial Finance
Module Code – M004LON
Academic Level – Level 7
Module Credits – 15
Semester – 2021JanApr

Contents
1. Introduction to the Module.................................................................................................3
2. Contact Details for the Module Leader (and Teaching Team)...........................................3
3. Module Aims......................................................................................................................3
4. Learning Outcomes.............................................................................................................3
5. Teaching and Learning Approach Adopted on the Module...............................................4
6. How Aula will be used to Support this Module..................................................................4
7. Teaching Weekly Scheduled Contact Time........................................................................5
8. Module Reading List..........................................................................................................5
9. Assessments for this Module..............................................................................................6
Coursework 1 Assignment Brief............................................................................................6
Coursework 2 Assignment Brief............................................................................................8
10. Marking Rubric (Marking Criteria)..................................................................................12
Assignments Marking Rubric...............................................................................................12
11. APA Referencing..............................................................................................................12
12. Feedback of your Assessments.........................................................................................12
13. Deferral/Referral Assessments.........................................................................................12
14. Useful Resources for Support with your Module.............................................................12
15. Extensions to Coursework Submissions...........................................................................13
16. Important Dates.................................................................................................................13

1. Introduction to the Module
Welcome to M004LON Managerial Finance module.
In this Module we take you inside the corporate world from the viewpoint of the finance function.
The Finance Director is concerned with providing information and analysis to managers to help them
plan, evaluate and control activities, in order to achieve the organisation's objectives.
We will explore the well-used and the emerging theoretical perspectives in management accounting,
use and evaluate the models available to companies and examine real company case studies to see
the links between finance and corporate strategy.
The module will help you to prepare for a career in international business through the opportunity
to evaluate and demonstrate some key evaluative skills. Above all, this is not a traditional accounting
and finance module, but one which is there to give you the tools and techniques in business to test
and evaluate the decisions made in implementing strategy. This module will help you articulate and
communicate a clear point of view on this complex topic; a view that is informed by your knowledge
and critical evaluation of the practical implications of theory and research, and drawing on a range of
sources of data from theory, industry research and best practice as well as real time insights into
case study evaluation of global organisations.
Enjoy your study with us. Good luck and success with your studies.
2. Contact Details for the Module Leader (and
Teaching Team)
Name of Module Leader
(and Teaching Team)
E-mail Address Advice & Feedback Hour
(Office Hour)
Arman Farakish [e-mail] TBC
Paa Kusi [e-mail]
Albert Owusu
3. Module Aims
Managerial finance is one of the four core modules in the Coventry University London MBA and MSc
International Hospitality and Tourism Management. The aim of this module is to explore key
accounting and finance practice and the associated decision making tools within organizations. It will
cover the nature of accounting and finance tools within a variety of business environments and
consider appropriate management techniques to help identify strategic options.
Drawing on the disciplines of financial and management accounting, this module will enable
students to gain an appreciation of the type of financial information that is routinely produced by
organizations for internal and external use. The module will use a wide range of business scenarios
and apply relevant accounting techniques to critically evaluate and interpret financial information.
4. Learning Outcomes
The intended learning outcomes are that upon completion of this module the student should be able
to:

1. Select and apply appropriate accounting techniques to critically analyse financial data in a
variety of business decision making scenarios
2. Make informed financial judgements based on the outcome of such accounting analyses
3. Critically appraise the techniques used and the information to which they have been applied
4. Demonstrate a critical understanding to the internal, external and legal environments in
which the judgements are being made
5. Understand the objectives of preparing management information and the need to adapt
techniques in a changing commercial environment that can help in decision making in
relation to costing, pricing, product range and marketing strategy
6. Evaluate the strategic performance of a business, understand the significance of the
relationship between financial and non-financial indicators of business performance and
recommend appropriate performance measures
5. Teaching and Learning Approach Adopted on the
Module
The teaching of the module will comprise lectures, seminars, workshops and self-guide study. All
teaching, learning and assessment materials will be available to both staff and students via the
learning platform (AULA) in a consistent and user-friendly manner.
Students will engage primarily via a number of learning blocks in each module:
 Knowledge & Understanding; this block is concerned with the sharing of academic theory
and concepts to ensure students have mastered a critical appreciation of current and
relevant research in the subject area.
 Application; this block brings the knowledge and understanding ‘to life’ by relating it to
current practice. It takes a critical view of the theory and concepts as they are employed in
the workplace in order to encourage students to evaluate their significance and merit.
 Analysis & Problem solving; this block requires students to develop and demonstrate their
essential analytical skills in order to respond to employer related problems by making a set
of clearly evaluated recommendations.
6. How Aula will be used to Support this Module
The following will be published on Aula:
 Module guide,
 Reading list,
 Detail of assignments,
 Deadlines and dates for submissions,
 Lecture and learning notes,
 Additional papers and reading material.
Submission of assignments will also take place via Aula.

7. Teaching Weekly Scheduled Contact Time
The table below provides a schematic of the module, outlining the indicative content for each
session. Sessions are interactive and students are expected to participate and contribute to the class
discussions and debates.
Teaching
Week
Learning Journey Assessment and Feedback
Week 1 Strategy, Performance and Managerial
Accounting
Week 2 Financial Reports: Trend analysis
Week 3 Understanding financial reports: Using
accounting ratios
Week 4 Balance Score card
Week 5 Review of the topics covered
Week 6 Sources of Finance
Week 7 Breakeven - Analysis
Week 8 Review and feedback on CW1
Week 9 Capital Investment Decisions
Week 10 Cash Budgets
Week 11 Review of the module
8. Module Reading List
To access the full resource list for this module, enter module code (M004LON) in the search box that
opens on clicking the link below:
http://resourcelists.coventry.ac.uk/index.html
or:
https://rl.talis.com/3/coventry/lists/D752A0A6-54B0-D7A9-1B52-F5A0F2D3F09A.html?lang=en-GB

9. Assessments for this Module
Coursework 1 Assignment Brief
Assignment Title: CW1 – group work
Submission Date and Time: Week 6 – 1 March 2021
Expected Return of Feedback and Marked Work: 14 days from submission
Assignment Weighting: 40%
Word Count: 2,500
Learning Outcomes Assessed by this Assignment:
 MLO1 to ML06: Select and apply appropriate accounting techniques to critically analyse financial
data in a variety of business decision making scenarios
 MLO2: Make informed financial judgements based on the outcome of such accounting analyses
 MLO3: Critically appraise the techniques used and the information to which they have been
applied
 MLO4: Demonstrate a critical understanding to the internal, external and legal environments in
which the judgements are being made
 MLO5: Understand the objectives of preparing management information and the need to adapt
techniques in a changing commercial environment that can help in decision making in relation
to costing, pricing, product range and marketing strategy
 MLO6: Evaluate the strategic performance of a business, understand the significance of the
relationship between financial and non-financial indicators of business performance and
recommend appropriate performance measures
Assignment Detail:
This is Group work prepared and submitted by groups of three persons from within the same
assessment and feedback class. The number in any group is 3 persons.
No student will be allowed to submit work of a company that has not been selected from the list
of companies provided for this coursework. Please ensure that you submit work based on the
given Company. The list of acceptable companies is provided to you in the first week of the
course.
Your assessment and feedback Tutor will maintain a list of students’ names together with choice
of organisation. This Tutor held list is the definitive record; submitted work will not be assessed if
it does not agree with the list.
 Using financial reports and accounts of the organisation analyse the results of the
organisation highlighting trends in performance using appropriate and relevant ratios and
analysis techniques.
 You will be required to extend your research on financial analysis of the performance of your
company to include financial and non-financial performance indicators by designing a
balanced scorecard covering four (4) perspectives - analyse the four balance score cards and
evaluate the technique used, and come up with a strategy map.
 Your approach to this task must reflect your ability to carry out research, understanding key
principles in financial and performance management and applying these to a case study.
 The outcome of this task should be in the form of a detailed and structured report addressed
to the directors of your chosen organisation. You must also include evidence of your
research materials including full workings of your financial analysis in the appendix sections
of your assignment.
List of the companies you can choose from:
J Sainsbury plc; ASOS plc; Dixons Carphone plc; Cineworld Group; Imperials Brand; Kingfisher; SIG

plc; Vertu Motors; SSE plc.
Assignment Guidelines:
1.) The maximum word count for the main text excluding tables is 2,500 words. Only the main text
excluding any tables and diagrams counts, this also excludes the contents page, executive
summary, list of references and appendix. (You may use tables to show working and the
Balance score card)
2.) The assignment must have a front cover stating:
 Module number and name and seminar group number
 Title of the assignment
 Student names and IDs for each group member
 Submission date
 Word count as defined above
3.) An executive summary is required (not included in the word count), but this should not exceed
1 page. A short introduction is required (and included in the word count), even if it is not
explicit in the assessment criteria.
4.) A reasonable number of appendices may be used for relevant supporting information and to
demonstrate your calculations and analysis.
5.) Produce your report as a Word document and submit it.
The rubric by which your report will be assessed is posted under SECTION 10 below. It is
important that prior to you submitting your work, you read this and objectively assess your
response against the rubric. This will ensure that you have done enough to attain the marks you
wish to achieve.
Layout
Your work should be word processed in accordance with the following:
 Font style, Arial, font size 12
 1.5 line spacing.
 The page orientation should be ‘portrait’
 Margins on both sides of the page should be no less than 2.5 cm
 Pages should be numbered

Coursework 2 Assignment Brief
Assignment Title: Case Study - Individual report
Submission Date and Time: Week 12 – 12 April 2021
Expected Return of Feedback and Marked Work: 14 days from submission
Assignment Weighting: 60%
Word Count: 2,500
Learning Outcomes Assessed by this Assignment:
 MLO1: Select and apply appropriate accounting techniques to critically analyse financial data
in a variety of business decision making scenarios
 MLO2: Make informed financial judgements based on the outcome of such accounting
analyses
 MLO3: Critically appraise the techniques used and the information to which they have been
applied
 MLO4: Demonstrate a critical understanding to the internal, external and legal environments
in which the judgements are being made
 MLO5: Understand the objectives of preparing management information and the need to
adapt techniques in a changing commercial environment that can help in decision making in
relation to costing, pricing, product range and marketing strategy
 MLO6: Evaluate the strategic performance of a business, understand the significance of the
relationship between financial and non-financial indicators of business performance and
recommend appropriate performance measures
Assignment Detail:
CASE STUDY – SPENCER LIMITED
Spencer Limited is a limited company and been trading in the UK for the past 15 years. The patent
company Spencer Holding is based in Malaysia.
Spencer Limited provides Consultancy services to different sectors of the market which include
the Marketing, HR, Global financial services and General business consultancy.
Spencer Limited has been a profit-making firm and has retained its previous clients while making
some advances in its share of the market. However, in the past 2 years’ profits and cash flows for
the company have not advanced sufficiently forcing the company to seek support from the
Holding company in Malaysia in terms of financial support.
The board of management recently met and have decided that they have to improve and take on
some new projects in order to improve their profitability and cash flow, to this effect the Finance
Director of Spencer has recently engaged your firm to help them source Finance for their
expansion plans and to also advise them on the planned projects.
New Software
The current software product that Spencer has been selling to companies is now deemed to be
outdated and the company is looking to invest in a new product. The details of the proposal are
outlined below.

Techno software
The expected life of this product is 5 years and its working capital requirements and the cost of
new software, expected revenue, components’ cost and overheads are as below:
Techno Software Draft figures £'000
Year 0 1 2 3 4 5
New Software cost 8,500
Cumulative
working capital 900 600 800 300 700
Sales Revenue 3,800 6,000 7,500 8,500 9,000
Less:
Component T -500 -700 -900 -950 -1,100
Components W -1,000 -1,200 -1,500 -2,000 -1,400
Overheads -220 -250 -320 -300 -300
All of the above estimates have been prepared in terms of present-day cost and prices. Assume
that cash flows arise at the end of each period. In addition
 Revenues are expected to rise by 3% in price terms per year from start of year 2; the
budget estimated selling price at start was £100.
 Overheads and working capital are expected to rise by 3% per year from start of year 1
 The cost of component T and component W are expected to rise in line with inflation of
3%
per year from the beginning of year 1.
 The working capital is cumulative and will be recouped at the end of year 5.
 The cost of senior technology officers, who have come from the Malaysia have not been
taken into consideration in the forecast and are as follows:
Senior Technology Officer 1 (STO1): Will be paid £140 per hour and expected number of hours for
STO 1 are 1,300. The rate paid is expected to rise in line with inflation at 3% per year from year 2
and the number of hours is expected to reduce by 2% per year, every year from year 2 onwards.
Senior Technology Officer 2 (STO2): Will be paid £110 per hour and expected number of hours for
STO2 are 1, 500. The rate paid is expected to go up in line with inflation at 3% per year from year 2
and the number of hours is expected to reduce by 3% per year, every year from year 2 onwards.
If Spencer Limited invests in Techno, then the discount rate that would be required to assess the
NPV would be 9%. The table above shows the estimated outgoings and inflows for the project.
New Office
Janet Johnson (the manager in charge of sales) has just informed your company that they plan to
open an office in South East England, and it is hoped that this office will be opened for business on
1st Feb 2021. You have also been informed that to start with, the company will only offer two
popular consultancy services of General Plan (GP) and Specialised Plan (BP). This will be done to
test the market and see if the business will break-even in the same period. These two are the
most popular asked for services and will be offered at £300 for GP and £400 for BP.
The company has provided you with the following information regarding the costs and estimated
sales for the period mentioned above.

Spencer Limited plan to put in £8,000 as start-up capital and plan to offer up to 1,500 services
(combined) of GP and BP during the same period. They are not sure which of the two services will
produce the best profit for the company.
Total budgeted services for each month are as follows: February 500 services, March 500 services
and April 500 services of which 40% of each month will be for BP. You will be required to assess
the best combination of sales for the period.
To help with the setup of the store they company has just concluded a deal with one of the high
street banks to get a loan of £30,000 on the 1st of Feb 2021. The interest on this loan will be paid
every month. The company will be required to make 12 equal payments to repay the loan starting
end of March 2021.
Financial information
As mentioned above the company plans to offer a total of 1500 services per month from 1
February to end of April. The fixed costs for the period are as below:
Rent £ 18,000
Telephone £ 1,800
Loan Interest £ 2,340
Insurance £ 6,000
Electricity and Gas £ 3,200
Business Rates £ 4,200
Fixed cost specific to
products
GP BP
Marketing £ 12,000 £ 15,000
Administration £ 6,000 £ 8,000
Staff Salary £ 29,000 £ 36,000
From their costs estimates the variable cost of the services are £160 for the GP and £190 for the
BP. The fixed costs are for the whole period so they are not affected by the level of service, on the
other hand variable costs will increase with services output, and thus it is sales output multiplied
with variable cost per product.
Revenue from the sale of services of GP and BP will be on the basis of 40% cash and 60% credit to
be paid the following month.
Requirement:
You are required to write a management report to the management of BROWN limited directors
in which the following points should be discussed:
 Provide an explanation on the different sources of funding the company can have and
their advantages and disadvantages. You should make recommendations as to how the
company can manage the same to help in the planned expansion program.
 Analyse the Investment proposals by using NPV and provide recommendations. You
should also briefly comment on other investment proposal techniques that BROWN
Limited may use, and the limitations of using those techniques
 The use of management tools such as Breakeven analysis and Budgets.
 A computation of your breakeven analysis and the cash budget for the first 3 months.
 An evaluation of the estimated company performance or position during the same period

 A detailed Literature Review of the tools you have used such as breakeven analysis and
budgets and their importance to business.
 Other issues for management to consider that you think are vital for them to survive and
make a profit.
Assignment Guidelines:
The rubric by which your report will be assessed is posted under SECTION 10 below. It is
important that prior to you submitting your work, you read this and objectively assess your
response against the rubric. This will ensure that you have done enough to attain the marks you
wish to achieve.
Layout
Your work should be word processed in accordance with the following:
 Font style, Arial, font size 12
 1.5 line spacing.
 The page orientation should be ‘portrait’
 Margins on both sides of the page should be no less than 2.5 cm
 Pages should be numbered
10. Marking Rubric (Marking Criteria)
Assignments Marking Rubric
CW1: The rubric can be accessed here
CW2: The rubric can be accessed here.
11. APA Referencing
As part of your study you will be involved in carrying out research and using this when writing up
your coursework. Turnitin includes a plagiarism detection system and lecturers are experienced
enough to recognise plagiarism when it occurs.
To avoid academic misconduct and plagiarism remember it is not acceptable to reproduce another
source without acknowledging it in your assessment. This includes using paraphrasing as well as
direct quotations. You are expected to correctly cite and reference the work you have used. If you
need help putting your references into the correct style, you might like to start with the APA
Referencing: A Guide for Students, which can be found here. The Academic Support Unit also offer
workshops on APA referencing and can be booked here.
12. Feedback of your Assessments
You can normally expect to have marked coursework returned to you via Aula within two weeks.
Provisional marks and feedback can be provided online/in class/face to face. Your marks will be
formally approved once an external examiner has completed their review and a Subject Assessment
Board has ratified the results.

13. Deferral/Referral Assessments
Referral/Deferral exam period will be from the Week Commencing 12th April 2021 to 23rd April
2021.
14. Useful Resources for Support with your Module
The Academic Support Unit provides Spotlight workshops focused on all areas of your learning to
provide you with the skills and confidence needed to succeed in your academic and professional
career. Workshops are one hour, interactive classroom sessions, which are run repeatedly
throughout the term. Workshops are delivered by our professional and academic staff according to
area of expertise. The Spotlight team can also run sessions on request for small groups, at a time
that suits you and colleagues.
The majority of information relevant to you while you study at the University has been brought
together into your course handbook. Please refer to your course handbook for any further
information you might require including:
 How to submit assignments,
 Deadlines and extenuating circumstances
 Plagiarism and referencing
 Who to go to for advice or if you are concerned
 How to provide us with feedback
 Key administrative procedures
 Student support and welfare
 Library
15. Extensions to Coursework Submissions
If you fail to submit by the specified deadline, you will get a mark of zero (0) unless you have an
authorised extension or deferral. The University wants you to do your best. We know however that
sometimes events happen, and you may not be able to submit your coursework by the deadline. We
will try to help you in these situations. It is important that you follow the extenuating circumstances
procedure outlined in the Registry web pages. You should contact Registry as early as possible and
before the deadline, so that we can assist you.
You will find information about the process and what is or is not considered to be an event beyond
your control here.
See Course Handbook for more information.
16. Important Dates
CW1 - Due date: 1 March 2021
CW2- Due date: 12 April 2021