Assignment front sheetQualification Unit number and title

PearsonBTEC Level 4 HND Diploma in Business Unit 2: Managing Financial Resources and DecisionStudent name Assessor name

Manoj KumarDate issued Completion date Submitted on

27thJanuary 2013 25thApril, 2014

Assignment title MFRD: Managing Finance, Resources and Performanceat a Start-up Franchise Enterprise in Yangon (1 of 1)

Learning Outcome

Learning outcome

Assessment Criteria

In this assessment you will have the opportunity to present evidence that

shows you are able to:Task no.

Evidence(Page no)

LO1

Understand the sources of finance available to a business and be able to use it

1.1Plan for long and short term sources of finance for the business, working capital and cash management

1

1.2 Understand implications of choices of the various source of finance (e.g. bankruptcy) 1

1.3 choose best source of finance for the business 1

LO2

Be able to Understand the implications of finance as a resource within a business

2.1 understand various finance costs e.g. interests, dividends and taxes etc. 2

2.2 Plan and manage finance 2

2.3 Information needed for decision making

2.4 Understand financial accounting and reporting 2

LO3

Be able to make financial decisions based on financial information

3.1 Analysis and monitoring of cash and other budgets 3

3.2Understand and demonstrate the calculations for costing and pricing decisions

3

3.3 Demonstrate investment appraisal calculations 3

3.4 Demonstrate an understanding of long-term decisions 3

LO4 Be able to evaluate the financial performance of a business

4.1Demonstrate an understanding of various terminologies under the International Accounting Standards (IAS)

4

4.2

Prepare at least three important financial statements (i.e. balance sheet, profit and loss account, cash flow statement) for at least one type of businesses (i.e. limited company, partnership, sole trader) under the International Accounting Standards (IAS)

4

4.3 Demonstrate the skills of interpreting key accounting ratios for profitability, liquidity, efficiency and investment and be able to

4

compare these results with other companies and industry standards as well as with its (the company's) own previous periods and budgets

Learner declaration

I certify that the work submitted for this assignment is my own and research sources are fully acknowledged.

Student signature: Date:

In addition to the PASS criteria mentioned above, this assignment gives you the opportunity to submit evidence in order to achieve the following MERIT and DISTINCTION grades

Grade Descriptor Indicative characteristic/s Contextualisation

M1Identify and apply strategies to find appropriate solutions/information

Effective judgements have been made. An effective approach to study and

research has been applied.

To achieve grade M1, you need tomust demonstrate the critical evaluation in identifying the sources, selecting the best option (at least primarily selection) and assess the implications of sources of finance(Task 1)

M2 Select / design and apply appropriate research methods / techniques

The design of methods/techniques has been applied and justified.

A range of sources of information has been used.

Appropriate and effective design of questionnaire for data collection as per the organization’s requirements

To achieve M2you will have used suitable techniques to evaluate various impacts on financial projection. (Task1 and2)

M3 Present and communicate appropriate findings

Communication is appropriate for familiar and unfamiliar audiences and appropriate media have been used.

A range of methods of calculations and presentation have been used and technical language has been accurately used.

The appropriate structure and approach has been used

To achieve M3,you will have used suitable techniques to evaluate various impacts on financial projection.Also, you will have to represent the work in suitable business formats and will provideproper information to help her draw meaningful conclusions of the results(Task 2 and 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.

Realistic improvements have been proposed against defined characteristics for success.

The validity of results has been evaluated using defined criteria

To achieve D1,you will have to represent the work in suitable business formats and will provideproper information to help her draw meaningful conclusions of the results.(Task2and 3)

D2 Take responsibility for managing and organising activities

Substantial activities, projects or investigations have been planned, managed and organised

Activities have been managed.

To achieve D2 you will have demonstrated an effective approach to your work in suitable business formats and study.Also will have met the deadline to submit the tasks and achieve the unit assessment criteria.(Task 3 and4)

D3 Demonstrate convergent /lateral / creative thinking This will be awarded based upon Task 4 and overall report, formats, creativity and style of writing.

Assignment briefUnit number and title Unit 2: Managing Financial Resources and Decisions

Qualification Pearson BTEC Level 4 HND Diploma in BusinessStart date 11th February, 2014Deadline/hand-in 9thMay, 2014

Assessor MANOJ KUMAR

Assignment title MFRD: Managing Finance, Resources and Performanceat a Start-up Franchise Enterprise in Yangon (1 of 1)

Purpose of this assignmentFinancial Management means the efficient and effective management of money (funds) in such a manner as to accomplish the objectives of the organization. It is the specialized functions directly associated with the top management. The significance of this function is not only seen in the 'Line' but also in the capacity of 'Staff' in overall administration of a company. It has been defined differently by different experts in the field.

It includes how to raise the capital, how to allocate it i.e. capital budgeting. Not only about long term budgeting but also how to allocate the short term resources like current assets. It also deals with the dividend policies of the shareholders.

The purpose of this assignment is to make a learner to:

Identify what financial resources are available now and required in the future Prioritise these resources against objectives and goals Implement evaluation procedures to ensure resources are maximised Plan for potential changes that may lay ahead; e.g. access to funding, organisational growth etc

Scenario

Since the opening up of the market in 2011, there has been a number of business opportunities in Myanmar. Some are investing as Foreign Direct Investment roots, other are partnering with Myanmar National to start up. The opportunities in fast food businesses are also growing rapidly with the increase in the number of tourists in Myanmar. There have been about 1 million tourists in 2013 alone.

Because of tourists and also locals’ liking for the fast food (in the non-vegetarian segment) there are demands for international flavour and food. Looking at the opportunities, Daw Swe Nwe Latt wants to start a Kentucky Fried Chicken (KFC) fast food centre in Yangon. For more to learn about KFC, please visit www.kfc.com. This will be the first such retail from KFC in Myanmar.

She is in discussions with the KFChead Quarter in USA to seek some advice relating to franchising, financial requirements, HR planning and Training, marketing etc.She has collected all the information and is very comfortable with all the other aspects. She needs some advice relating to the financial resources and planning.

The Franchise business with establishment cost, seed capital and working capital is working to around 500,000 dollars. She has 100,000 Dollars with her for immediate investment. The balance 400,000 she needs to be borrowed.

Youare the financial advisor for Daw SweNwe Latt. Your job is to prepare a financial report answering the following queries in the assignment. This report should not exceed 8000 words.

Task 1 (LO1: 1.1, 1.2, 1.3and Grades: M1, M2)

Your first job is to “Identify the sources of finance available for the business”. Provide a summary of all sort of possibilities in Myanmar to source finance for the Daw Swe’s business needs.

Then you have to “Assess the implications of the different sources”. Swe would need to understand the various implications of these sources available to finance her business. This is a long term commitments her business has to fulfil.

Which source or sources of finance would you “Select appropriate as the source or sources of finance for her business, the KFC project”. Justify your suggestions.

To achieve M1 and M2, the learner must demonstrate the critical evaluation in identifying the sources, selecting the best option (at least primarily selection) and assess the implications of sources of finance.

Task 2(LO2: 2.1, 2.2, 2.3, 2.4 and M2, M3, D1)

In this task, you will prepare an analytical briefing that comprises of the following:

The cost of finance is critical to the businesses. This is the liability and any business, which borrowed finance, must be able to meet it while generating profits and enhancing worth of the organisation. You have to "Assess and compare the costs of different sources of finance", whether or not chosen as one or more sources of finance for Daw Swe’s business.

Prepare a section in the full report which shows the importance of financial planning and design a financial plan for the Daw Swe's KFC business.

You should also provide the information needs of different decision makers. For example investors.

How will the financing (the borrowing) impact on the projected financial statements (compare the one without financing with another with borrowings).

To achieve M2 and M3, you will have used suitable techniques to evaluate various impacts on financial projection. Also critical analysis in calculating various cost of finance will win you D1, but of course when it is presented in suitable business formats while using business and accounting terminology accurately.

Task 3(LO3: 3.1, 3.2,3.3, 3.4 and M3, D1, D2)

Your major task in this section is to "Prepare a sample budget and make appropriate decisions". The budget can be for a day's operational budget or a month or a year.

Calculate Unit cost for any two products (e.g. Fried Chicken Drum Stick - 1 piece or a combo of 3 pieces or a mega-combo of 6 pieces with Potato French Fries) of your choice and make pricing decisions using relevant information. This will help her to prepare the unit costs for other products in the menu. Although KFC has some standards, the prices may vary country to country. You can use proper assumptions while calculating the cost per unit chosen.

You will also have to "Assess the viability of the project to her by using investment appraisal techniques".

To achieve M3 and D1, you will have to represent the work in suitable business formats and will provideproper information to help her draw meaningful conclusions of the results. Also, you will use accounting and financial terminology accurately.

To achieve D2, you will show effective approach to calculations, assessments and preparation of report.

Task 4(LO4: 4.1, 4.2, 4.3 and D2,D3)

To evaluate and draw appropriate meanings out of the report, you will need to explain the purpose of the main financial statements and how the results can be interpreted.

Explain the basic purposes of the formats of main financial reports (e.g. balance sheet, profit and loss account, and cash flow statement) by describing the differences between the formats of financial statements for different types of business i.e. a limited company, a partnership company, or a sole trader or a franchise business.

Draw a sample balance sheet, a profit and loss account, and a cash flow statement for Daw Swe's KFC Business in Myanmar. Also analyse the projected financial statements using appropriate and important various ratios.Prepare a presentation of the ratio analysis.

To achieve D2 andD3,you will produce your work in suitable business formats.Your valid and technical representation of above task would also win you D3.

Evidence checklist Summary of evidence required by student Evidence

presented

Task 1A technical report which shows the Explore the sources of finance available to the business, evaluations of cost of finance and selecting the best options.

Task 2 Ananalytical report that briefs about analysing the implications of finance as a resource within the business.

Task 3 A report that represents that helps in financial decision making based on financial information available to owners or management.

Task 4 A briefing which helps in evaluating the financial performance of a business for better corporate financial decisions making tactically and strategically.

Achievement Summary

QualificationPearson BTEC Level 4 HND Diploma in Business Assessor name MANOJ KUMAR

Unit Number and title

Unit 2:Managing Financial Resources and Decisions Student name

Criteria Ref.

To achieve the criteria the evidence must show that the student is able to:

Achieved?

(tick)LO 1 Explore the sources of finance available to the a business:1.1 Identify the sources of finance available for the business1.2 Assess the implications of the different sources1.3 Select appropriate sources of finance for the business project

LO 2 Analyse the implications of finance as a resource within the business2.1 Assess and compare the costs of different sources of finance2.2 Explain the importance of financial planning and design a financial plan for the

business2.3 Describe the information needs of different decision makers2.4 Describe the impact of finance on the projected financial statements

LO 3 Make financial decisions based on financial information3.1 Prepare a budget and make appropriate decisions3.2 Calculate Unit cost for any product and make pricing decisions using relevant

information3.3 Assess the viability of the project to her by using investment appraisal

techniques3.4 Nature of investment importance

LO 4 Analyse & advice how to evaluate the financial performance of a business

4.1 Explain the purpose of the main financial statements4.2 Explain the purpose for choosing the format of financial statements for different

types of business4.3 Analyze the projected financial statement using appropriate ratios and

comparisons, both internal and external

Higher Grade achievements (where applicable)

Grade descriptor Achieved?

(tick)

Grade descriptor Achieved?

(tick)

M1: Identify and apply strategies to find appropriate solutions

D1: Use critical reflection to evaluate own work and justify valid conclusions

M2: Select/design and apply appropriate methods/techniques

D2: Take responsibility for managing and organising activities

M3: Present and communicate appropriate findings

D3: Demonstrate convergent/lateral /creative thinking

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Action Plan

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Date

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