Financial Analysis and Operations, Technology & Management Report: NAB

This report provides a detailed analysis of NAB Company's operations, technology, and management strategies. It begins with an operations plan outlining quality control, inventory management (using FIFO), and distribution methods, including the use of warehouses and online selling. The technology plan highlights the use of technology in various aspects, such as tracking orders, beverage production, inventory control, and customer communication. The management and organization section discusses the company's structure, including the CEO and board of management, and operational management decisions. An ethics and social responsibility plan focusing on health and community well-being is presented. Finally, the report includes a financial analysis with key ratios, a forecasted income statement, and comparisons to industry benchmarks, offering a comprehensive overview of NAB Company's business model and financial health.

Running head: OPERATIONS, TECHNOLOGY & MANAGEMENT
1
Finance
Name:
Institution:
Date:

OPERATIONS, TECHNOLOGY & MANAGEMENT
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Table of Contents
Operations, Technology and Management Plan (with financials).......................................2
Operations Plan........................................................................................................................2
Quality control and capacity...............................................................................................3
Inventory control..................................................................................................................3
Distribution method.............................................................................................................3
Innovation, Research & Development (R&D)...................................................................3
Technology Plan.......................................................................................................................4
Management & Organizations................................................................................................6
Ethics and Social Responsibility Plan....................................................................................9
Elders Financial Analysis Ratios (NAB & Industry Comparison)......................................9
References...............................................................................................................................12

OPERATIONS, TECHNOLOGY & MANAGEMENT
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Operations, Technology and Management Plan (with financials)
Operations Plan
This is a NAB company which is non-alcoholic in nature. In this report we will discuss the
operations regarding the data in operation management of the company and its management
and technological plan. In this compilation, there will be the use of research in the use of
technological techniques and the operational management of the company. The complied
information including the financials will contain the NAB portfolio, the strategies in the
company management and the business operations competitive strategies. The company here
deals with production of non-alcoholic drinks and its subsequent supply to customers around.
In addition, the NAB Company uses technology in delivery and production of the goods in
the company. The marketing and operation plan should fit the company well in order to
ensure profitability during the financial years (Al Shobaki, et al 2017).
In the operations, the company as a start- up will first rent or lease the equipment used in
operation but will buy the vehicles used in delivery of the NAB.
Some of the equipment used in the production processes include; vats, refrigerators, ovens,
burners, conveyor belts and bottling equipment. The equipment will be serviced after every
two weeks by outsourcing a serving company. However, the company will have an indoor
employee who will be ready to service the equipment in case of a breakage (Blank, 2017).
Quality control and capacity
The quality control and capacity will be done depending on the market levels. For quality
control, the company will have a quality control department headed by a quality specialist to
ensure that every product of NAB produced will be of the best quality and grade. The
capacity control, the annual production is expected to be 175 million litters. For daily
production it is expected to be 2000 liters.

OPERATIONS, TECHNOLOGY & MANAGEMENT
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Inventory control
For inventory control, the company is using the FIFO method. The first batch of production
will be the first to be dispatched to the distributors. However, when an order is placed by a
customer, the turnaround time for production is just 24- hours.
Distribution method
The product will be distributed to retailors and wholesalers. Online selling will also be used
in selling the beverage too. However, supermarkets will play a big role in distribution.
Although production will be done according to the need in the market, there will be daily
production and a future market analysis. Delivery will be done through trucks bought by the
company form the warehouse of the production factory. Warehouses will be placed in
different locations across the country and will ensure fast delivery of the products (Easton, &
Sommers,2018).
Innovation, Research & Development (R&D)
Due to much competition in the NAB industry, the company will need to innovate and
research for better products and a competitive edge in the market. Since people are getting
more and more conscious of their health, the need to produce a healthy non-alcoholic
beverage is important. Price consideration is also a key factor in innovation, research and
development of the beverage.
Technology Plan
Technology in the NAB industry has immense contribution to the success of any company.
Technology helps in the management, production and customer service therefore improving
the profit and bottom line in the company (Hofer,2016).

OPERATIONS, TECHNOLOGY & MANAGEMENT
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Company
management
Tracking orders Beverage
production
Inventory
control &
management
Customer
communication
The company
uses high level
of technology in
Human resource
management
The NAB
company uses
information
system to keep
track of the
suppliers
orders.
For high
quantity and
quality
beverage, the
company
uses high
quality
machines.
It incorporates
the use of high
inventory
management
and control
systems to spur
efficiency.
The company uses
emails to
communicate to its
customers for fast
and efficient
communication.
Training the
employees on
use of computer
applications like
excel,
spreadsheet.
The use of
order
computerized
systems helps
in requesting
for orders and
other services.
The continuous
servicing of
computer
devises ensures
that there is
quality delivery
of the non-
alcoholic
devise.
For efficiency of
inventory control,
the use of WMS
guide is helpful.
Eliminate
technology.\
Customers
order will be
improved much
using the email
Ensuring that
the
employees
have
The use of
telephone services
and emails will
ensure there is ease

OPERATIONS, TECHNOLOGY & MANAGEMENT
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services for
tracking
computer
skills will
ensure that
speed is
enhanced
during
operations.
of communications
with the
customers.
For provision of
quality services,
the company
will ensure that
the management
uses advanced
inventory
control
application for
their work.
The operational plan and technological utilization will assist the company to compete within
the industry. The management of the company utilize the resources available to ensure that
there are good performance in the industry. In the competitive world of the beverage industry,
requiring steady research and development also leads to need for compliance with the
necessary government legislations. NAB focuses on customer satisfaction and high inventory
production through the use of inventory management systems and advanced technological
systems. Orders from various suppliers require proper documentation, proper recording and

OPERATIONS, TECHNOLOGY & MANAGEMENT
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on-time payment disbursement (Klochkov, et al, 2016),. With such strategies, NAB ensure
that it remains within the competitive edge of the company in operational and technological
plans in the market. In addition, the NAB Company uses technology in delivery and
production of the goods in the company. The marketing and operation plan should fit the
company well in order to ensure profitability during the financial years.
The equipment will be serviced after every two weeks by outsourcing a serving company.
However, the company will have an indoor employee who will be ready to service the
equipment in case of a breakage (Mariani, Morelli, & Bartoloni, 2019).. The complied
information including the financials will contain the NAB portfolio, the strategies in the
company management and the business operations competitive strategies. The company here
deals with production of non-alcoholic drinks and its subsequent supply to customers around.
Management & Organizations
The company is headed by the CEO who is charge of the daily operations of the company.
However, the normal business decisions which are crucial are headed by the company’s
board of management. This is the overall head of the organization led by the chairman of the
board and 5 directors who chair different departments of the organization in the board.
To solve the problem of reducing the risk of non-fulfillment of a customer order and
increasing the efficiency of production and marketing activities of the enterprise, a
differentiated approach to the operational management of the production program based on
the structuring of finished products was developed. Application of this approach to solving
this problem allows to increase the accuracy of forecasting sales for various groups of
finished products, taking into account the proposed assessment of market risk.

OPERATIONS, TECHNOLOGY & MANAGEMENT
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Consider the application of the proposed differentiated approach for "Company NAB",
engaged in the production of soft drinks.
An analysis of the effectiveness of the finished product management system at the enterprise
made it possible to identify shortcomings in the operational management subsystem, which
include: an increase in the enterprise’s turnover in days , the presence of a sufficiently large
amount of illiquid products in the enterprise’s warehouse, a decrease in sales profitability,
and an increase in the enterprise’s circulation costs. In order to eliminate them, the developed
approach to the operational management of the production program of an industrial enterprise
was used.
The performed structuring of finished products of NAB Company JSC by ABC, XYZ, QRS-
classification methods allowed to identify 27 groups of commodity items that were entered in
the matrix “profitability / risk of default” .
Analysis of the classification of commodity items performed (table 1) allows us to conclude
that the largest number of them fell into quadrant 3 of the matrix “profitability / risk of failure
to fulfill an order”. According to the results of the systematization, a high risk of non-
fulfillment of the customer’s order is characterized by 23% of all product positions of NAB
Company.
Given the results of the calculations, the following operational management decisions
were presented for the product items of the enterprise. Management decisions for the
operational management of various finished product groups. The marketing department of the
enterprise decided to use the moving average method to forecast the demand for these
commodity items.The marketing department of the enterprise decided to use the developed

OPERATIONS, TECHNOLOGY & MANAGEMENT
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forecasting methodology for these commodity items demand for seasonal goods. The
marketing department of the company decided to change the supplier for this heading
The marketing department of the enterprise decided to use the developed approach
when forecasting the demand for these commodity items multivariate regression demand
model. The management of the enterprise decided to exclude these headings from the
assortment. The management of the company for these commodity positions decided not to
create stock, but to work under the client’s order.
For commodity items that fall into the matrix “profitability / risk of default” in
quadrants 3 and 6, the developed multivariate regression model of demand was used. To this
end, we analyzed the sales schedule for these commodity items over the past 3 years. For
goods with revealed seasonal fluctuations in demand, the developed methodology using
seasonality indices was used to calculate sales(McKeever, 2016). These products must be
excluded from the assortment, as they "freeze" the working capital of the enterprise.
When working with stocks of position, it is necessary to change the supplier, since the
demand for this commodity position is regular, but there are frequent supply disruptions.
According to the results of calculating the forecast values of sales volumes for various
commodity items, for each of them the value of the created current volume of finished goods
in the warehouse was calculated taking into account the time value of money (Passaro,
Quinto, & Thomas, 2020)..
So, as a result of calculations, the optimal sizes of the current volume of finished
products were determined:The production of the next batch of goods must be carried out
provided that it reaches the level of the insurance stock of products. After determining the

OPERATIONS, TECHNOLOGY & MANAGEMENT
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start of production, the optimal production volumes for the enterprise were calculated taking
into account the time value of money on the basis of the developed mathematical model. The
sequence of production of commodity items is based on their profitability for the enterprise.
Ethics and Social Responsibility Plan
For the beverage company, the best social responsibility plan will be geared towards health
and local communities well-being. The NAB company will create a 100 bed capacity
inpatient and outpatient facility to take care of the medical conditions of the local people
(Wright, Siegel, & Mustar, 2017)..
Elders Financial Analysis Ratios (NAB & Industry Comparison)
Ratio Formula NAB Industry Conclusion
Sales Growth (Current month’s total sales – Previous 1.58% 5.78%

OPERATIONS, TECHNOLOGY & MANAGEMENT
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Rate month’s total sales)/ Previous month’s
total sales) x 100
NOPAT/
EBIT
NOPAT= Operating profit( 1-Tax Rate) 1.58% 5.78%
WC to Sales WC to Sales= sales/ working capital 0.6 0.6
LT assets to
sales
Sales Revenue/ Total Assets
Debt Ratio Total liabilities / total Assets 0.19 0.40
After Tax
Cost of Debt
Cost of Debt( 1- Tax rate)
Dividend Rate P=D1/( r-g) 6% 12%
Price to
Earnings
Ratio
Price share/ Earnings per share 1.2 2.6
Price to Book
Value Ratio
Market Value/Net assets of the
company
1.2 2.8
ROE Net Income/ Shareholders Equity 3.63% 23.96%
Forecasted income statement
Details 2020 2021 2016 2022 2023 %

OPERATIONS, TECHNOLOGY & MANAGEMENT
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In
millions$
Ni millions
$
$ $ $
Income
Interest income 6970 7120 7521 8686 9021 7%
Interest expense 1721 1731 2214 2921 2527 11%
Net interest income 3554 5458 5625 9987 9857 13%
Non-interest income 2540 2240 2880 3258 4414 6%
Total income 8927 8032 8541 11924 1321
1
5%
Total expenses 3007 3117 3227 3669 3741 8%
Profit before allowances 4213 4915 5314 6279 7111 9%
Profit before taxes 4418 4480 4335 6569 7231 7%
Net Profit attributable to
employers
3672 3844 3720 4238 4371 11%
Balance sheet NAB Company Group Holdings
Selected balance sheet
items
2020 2021 2022 2023 2024
Total assets 517 481 457 440 402
Customer loans 323,099 301 283 275 248
Total liabilities 467 434 415 400 364
Equity 345m 320m 314m 297m 289m