PearsonBTEC Level 4 HND Diploma in Business Unit 2: Managing Financial esources an! Decision Student name Assessor name Mano" #umar Date issued Completion date Submitted on 2$ t% &anuar' 2()* 2+ t% ,pril- 2()4 Assignment title MFD: Managing Finance- esources an! Per.ormanceat a /tart0up Franc%ise Enterprise in 1angon 2) o. )3 Learning Outcome Learning outcome Assessment Criteria In this assessment you will have the opportunity to present evidence that shows you are able to !as" no# $vidence %&age no' L4) Understand the sources of finance available to a business and be able to use it )5) Plan .or long an! s%ort term sources o. .inance .or t%e 6usiness- 7or8ing capital an! cas% management ) )52 Un!erstan! implications o. c%oices o. t%e various source o. .inance 2e5g5 6an8ruptc'3 ) )5* c%oose 6est source o. .inance .or t%e 6usiness ) L42 Be able to Understand the implications of finance as a resource within a business 25) un!erstan! various .inance costs e5g5 interests- !ivi!en!s an! ta9es etc5 2 252 Plan an! manage .inance 2 25* :n.ormation nee!e! .or !ecision ma8ing 254 Un!erstan! .inancial accounting an! reporting 2 L4* Be a6le to ma8e .inancial !ecisions 6ase! on .inancial in.ormation *5) ,nal'sis an! monitoring o. cas% an! ot%er 6u!gets * *52 Un!erstan! an! !emonstrate t%e calculations .or costing an! pricing !ecisions * *5* Demonstrate investment appraisal calculations * *54 Demonstrate an un!erstan!ing o. long0term !ecisions * L44 Be a6le to evaluate t%e .inancial per.ormance o. a 6usiness 45) Demonstrate an un!erstan!ing o. various terminologies un!er t%e :nternational ,ccounting /tan!ar!s 2:,/3 4 452 Prepare at least t%ree important .inancial statements 2i5e5 6alance s%eet- pro.it an! loss account- cas% .lo7 statement3 .or at least one t'pe o. 6usinesses 2i5e5 limite! compan'- partners%ip- sole tra!er3 un!er t%e :nternational ,ccounting /tan!ar!s 2:,/3 4 45* Demonstrate t%e s8ills o. interpreting 8e' accounting ratios .or pro.ita6ilit'- li;ui!it'- e..icienc' an! investment an! 6e a6le to 4 compare t%ese results 7it% ot%er companies an! in!ustr' stan!ar!s as 7ell as 7it% its 2t%e compan'<s3 o7n previous perio!s an! 6u!gets Learner declaration : certi.' t%at t%e 7or8 su6mitte! .or t%is assignment is m' o7n an! researc% sources are .ull' ac8no7le!ge!5 /tu!ent signature: Date: In addition to the &ASS criteria mentioned above( this assignment gives you the opportunity to submit evidence in order to achieve the following )$*I! and DIS!I+C!IO+ grades ,rade Descriptor Indicative characteristic-s Conte.tualisation )/Identify and apply strategies to find appropriate solutions-information E..ective "u!gements %ave 6een ma!e5 ,n e..ective approac% to stu!' an! researc% %as 6een applie!5 To ac%ieve gra!e M)- 'ou nee! tomust !emonstrate t%e critical evaluation in i!enti.'ing t%e sources- selecting t%e 6est option 2at least primaril' selection3 an! assess t%e implications o. sources o. .inance2Tas8 )3 )0 Select - design and apply appropriate research methods - techni1ues T%e !esign o. met%o!s=tec%ni;ues %as 6een applie! an! "usti.ie!5 , range o. sources o. in.ormation %as 6een use!5 ,ppropriate an! e..ective !esign o. ;uestionnaire .or !ata collection as per t%e organi>ation?s re;uirements To ac%ieve M2'ou 7ill %ave use! suita6le tec%ni;ues to evaluate various impacts on .inancial pro"ection5 2Tas8) an!23 )2 &resent and communicate appropriate findings Communication is appropriate .or .amiliar an! un.amiliar au!iences an! appropriate me!ia %ave 6een use!5 , range o. met%o!s o. calculations an! presentation %ave 6een use! an! tec%nical language %as 6een accuratel' use!5 T%e appropriate structure an! approac% %as 6een use! To ac%ieve M*-'ou 7ill %ave use! suita6le tec%ni;ues to evaluate various impacts on .inancial pro"ection5 ,lso- 'ou 7ill %ave to represent t%e 7or8 in suita6le 6usiness .ormats an! 7ill provi!eproper in.ormation to %elp %er !ra7 meaning.ul conclusions o. t%e results 2Tas8 2 an! *3 D/ Use critical reflection to evaluate own wor" and 3ustify valid conclusions Conclusions %ave 6een arrive! at t%roug% s'nt%esis o. i!eas an! %ave 6een "usti.ie!5 ealistic improvements %ave 6een propose! against !e.ine! c%aracteristics .or success5 T%e vali!it' o. results %as 6een evaluate! using !e.ine! criteria To ac%ieve D)-'ou 7ill %ave to represent t%e 7or8 in suita6le 6usiness .ormats an! 7ill provi!eproper in.ormation to %elp %er !ra7 meaning.ul conclusions o. t%e results52Tas82an! *3 D0 !a"e responsibility for managing and organising activities /u6stantial activities- pro"ects or investigations %ave 6een planne!- manage! an! organise! ,ctivities %ave 6een manage!5 To ac%ieve D2 'ou 7ill %ave !emonstrate! an e..ective approac% to 'our 7or8 in suita6le 6usiness .ormats an! stu!'5,lso 7ill %ave met t%e !ea!line to su6mit t%e tas8s an! ac%ieve t%e unit assessment criteria52Tas8 * an!43 D2 Demonstrate convergent -lateral - creative thin"ing T%is 7ill 6e a7ar!e! 6ase! upon Tas8 4 an! overall report- .ormats- creativit' an! st'le o. 7riting5 Assignment brief Unit number and title Unit 2: Managing Financial esources an! Decisions Qualification Pearson BTEC Level 4 HND Diploma in Business Start date )) t% Fe6ruar'- 2()4 Deadline-hand4in @ t% Ma'- 2()4 Assessor M,N4& #UM, Assignment title MFD: Managing Finance- esources an! Per.ormanceat a /tart0up Franc%ise Enterprise in 1angon 2) o. )3 &urpose of this assignment Financial Management means t%e e..icient an! e..ective management o. mone' 2.un!s3 in suc% a manner as to accomplis% t%e o6"ectives o. t%e organi>ation5 :t is t%e speciali>e! .unctions !irectl' associate! 7it% t%e top management5 T%e signi.icance o. t%is .unction is not onl' seen in t%e <Line< 6ut also in t%e capacit' o. </ta..< in overall a!ministration o. a compan'5 :t %as 6een !e.ine! !i..erentl' 6' !i..erent e9perts in t%e .iel!5 :t inclu!es %o7 to raise t%e capital- %o7 to allocate it i5e5 capital 6u!geting5 Not onl' a6out long term 6u!geting 6ut also %o7 to allocate t%e s%ort term resources li8e current assets5 :t also !eals 7it% t%e !ivi!en! policies o. t%e s%are%ol!ers5 T%e purpose o. t%is assignment is to ma8e a learner to: :!enti.' 7%at .inancial resources are availa6le no7 an! re;uire! in t%e .uture Prioritise t%ese resources against o6"ectives an! goals :mplement evaluation proce!ures to ensure resources are ma9imise! Plan .or potential c%anges t%at ma' la' a%ea!A e5g5 access to .un!ing- organisational gro7t% etc Scenario /ince t%e opening up o. t%e mar8et in 2())- t%ere %as 6een a num6er o. 6usiness opportunities in M'anmar5 /ome are investing as Foreign Direct :nvestment roots- ot%er are partnering 7it% M'anmar National to start up5 T%e opportunities in .ast .oo! 6usinesses are also gro7ing rapi!l' 7it% t%e increase in t%e num6er o. tourists in M'anmar5 T%ere %ave 6een a6out ) million tourists in 2()* alone5 Because o. tourists an! also locals? li8ing .or t%e .ast .oo! 2in t%e non0vegetarian segment3 t%ere are !eman!s .or international .lavour an! .oo!5 Loo8ing at t%e opportunities- Da7 /7e N7e Latt 7ants to start a #entuc8' Frie! C%ic8en 2#FC3 .ast .oo! centre in 1angon5 For more to learn a6out #FC- please visit 77758.c5com5 T%is 7ill 6e t%e .irst suc% retail .rom #FC in M'anmar5 /%e is in !iscussions 7it% t%e #FC%ea! Buarter in U/, to see8 some a!vice relating to .ranc%ising- .inancial re;uirements- H planning an! Training- mar8eting etc5/%e %as collecte! all t%e in.ormation an! is ver' com.orta6le 7it% all t%e ot%er aspects5 /%e nee!s some a!vice relating to t%e .inancial resources an! planning5 T%e Franc%ise 6usiness 7it% esta6lis%ment cost- see! capital an! 7or8ing capital is 7or8ing to aroun! +((-((( !ollars5 /%e %as )((-((( Dollars 7it% %er .or imme!iate investment5 T%e 6alance 4((-((( s%e nee!s to 6e 6orro7e!5 1ouare t%e .inancial a!visor .or Da7 /7eN7e Latt5 1our "o6 is to prepare a .inancial report ans7ering t%e .ollo7ing ;ueries in t%e assignment5 T%is report s%oul! not e9cee! C((( 7or!s5 !as" / %LO/ /#/( /#0( /#2and ,rades )/( )0' 1our .irst "o6 is to DIdentify the sources of finance available for the businessE5 Provi!e a summar' o. all sort o. possi6ilities in M'anmar to source .inance .or t%e Da7 /7e?s 6usiness nee!s5 T%en 'ou %ave to DAssess the implications of the different sourcesE5 /7e 7oul! nee! to un!erstan! t%e various implications o. t%ese sources availa6le to .inance %er 6usiness5 T%is is a long term commitments %er 6usiness %as to .ul.il5 F%ic% source or sources o. .inance 7oul! 'ou DSelect appropriate as the source or sources of finance for her business( the 56C pro3ectE5 &usti.' 'our suggestions5 To ac%ieve M) an! M2- t%e learner must !emonstrate t%e critical evaluation in i!enti.'ing t%e sources- selecting t%e 6est option 2at least primaril' selection3 an! assess t%e implications o. sources o. .inance5 !as" 0%LO0 0#/( 0#0( 0#2( 0#7 and )0( )2( D/' :n t%is tas8- 'ou 7ill prepare an anal'tical 6rie.ing t%at comprises o. t%e .ollo7ing: T%e cost o. .inance is critical to t%e 6usinesses5 T%is is t%e lia6ilit' an! an' 6usiness- 7%ic% 6orro7e! .inance- must 6e a6le to meet it 7%ile generating pro.its an! en%ancing 7ort% o. t%e organisation5 1ou %ave to GAssess and compare the costs of different sources of financeG- 7%et%er or not c%osen as one or more sources o. .inance .or Da7 /7e?s 6usiness5 Prepare a section in t%e .ull report 7%ic% s%o7s t%e importance o. .inancial planning an! !esign a .inancial plan .or t%e Da7 /7e<s #FC 6usiness5 1ou s%oul! also provi!e t%e in.ormation nee!s o. !i..erent !ecision ma8ers5 For e9ample investors5 Ho7 7ill t%e .inancing 2t%e 6orro7ing3 impact on t%e pro"ecte! .inancial statements 2compare t%e one 7it%out .inancing 7it% anot%er 7it% 6orro7ings35 To ac%ieve M2 an! M*- 'ou 7ill %ave use! suita6le tec%ni;ues to evaluate various impacts on .inancial pro"ection5 ,lso critical anal'sis in calculating various cost o. .inance 7ill 7in 'ou D)- 6ut o. course 7%en it is presente! in suita6le 6usiness .ormats 7%ile using 6usiness an! accounting terminolog' accuratel'5 !as" 2%LO2 2#/( 2#0(2#2( 2#7 and )2( D/( D0' 1our ma"or tas8 in t%is section is to G&repare a sample budget and ma"e appropriate decisionsG5 T%e 6u!get can 6e .or a !a'<s operational 6u!get or a mont% or a 'ear5 Calculate Unit cost .or an' t7o pro!ucts 2e5g5 Frie! C%ic8en Drum /tic8 0 ) piece or a com6o o. * pieces or a mega0com6o o. H pieces 7it% Potato Frenc% Fries3 o. 'our c%oice an! ma8e pricing !ecisions using relevant in.ormation5 T%is 7ill %elp %er to prepare t%e unit costs .or ot%er pro!ucts in t%e menu5 ,lt%oug% #FC %as some stan!ar!s- t%e prices ma' var' countr' to countr'5 1ou can use proper assumptions 7%ile calculating t%e cost per unit c%osen5 1ou 7ill also %ave to GAssess the viability of the pro3ect to her by using investment appraisal techni1uesG5 To ac%ieve M* an! D)- 'ou 7ill %ave to represent t%e 7or8 in suita6le 6usiness .ormats an! 7ill provi!eproper in.ormation to %elp %er !ra7 meaning.ul conclusions o. t%e results5 ,lso- 'ou 7ill use accounting an! .inancial terminolog' accuratel'5 To ac%ieve D2- 'ou 7ill s%o7 e..ective approac% to calculations- assessments an! preparation o. report5 !as" 7%LO7 7#/( 7#0( 7#2 and D0(D2' To evaluate an! !ra7 appropriate meanings out o. t%e report- 'ou 7ill nee! to e9plain t%e purpose o. t%e main .inancial statements an! %o7 t%e results can 6e interprete!5 E9plain t%e 6asic purposes o. t%e .ormats o. main .inancial reports 2e5g5 6alance s%eet- pro.it an! loss account- an! cas% .lo7 statement3 6' !escri6ing t%e !i..erences 6et7een t%e .ormats o. .inancial statements .or !i..erent t'pes o. 6usiness i5e5 a limite! compan'- a partners%ip compan'- or a sole tra!er or a .ranc%ise 6usiness5 Dra7 a sample 6alance s%eet- a pro.it an! loss account- an! a cas% .lo7 statement .or Da7 /7e<s #FC Business in M'anmar5 ,lso anal'se t%e pro"ecte! .inancial statements using appropriate an! important various ratios5Prepare a presentation o. t%e ratio anal'sis5 To ac%ieve D2 an!D*-'ou 7ill pro!uce 'our 7or8 in suita6le 6usiness .ormats51our vali! an! tec%nical representation o. a6ove tas8 7oul! also 7in 'ou D*5 $vidence chec"list Summary of evidence re1uired by student $vidence presented Tas8 ) , tec%nical report 7%ic% s%o7s t%e E9plore t%e sources o. .inance availa6le to t%e 6usiness- evaluations o. cost o. .inance an! selecting t%e 6est options5 Tas8 2 ,nanal'tical report t%at 6rie.s a6out anal'sing t%e implications o. .inance as a resource 7it%in t%e 6usiness5 Tas8 * , report t%at represents t%at %elps in .inancial !ecision ma8ing 6ase! on .inancial in.ormation availa6le to o7ners or management5 Tas8 4 , 6rie.ing 7%ic% %elps in evaluating t%e .inancial per.ormance o. a 6usiness .or 6etter corporate .inancial !ecisions ma8ing tacticall' an! strategicall'5 Achievement Summary Qualification Pearson BTEC Level 4 HND Diploma in Business Assessor name )A+O8 5U)A* Unit +umber and title Unit 2:Managing Financial esources an! Decisions Student name Criteria *ef# !o achieve the criteria the evidence must show that the student is able to Achieved9 %tic"' LO / $.plore the sources of finance available to the a business )5) :!enti.' t%e sources o. .inance availa6le .or t%e 6usiness )52 ,ssess t%e implications o. t%e !i..erent sources )5* /elect appropriate sources o. .inance .or t%e 6usiness pro"ect LO 0 Analyse the implications of finance as a resource within the business 25) ,ssess an! compare t%e costs o. !i..erent sources o. .inance 252 E9plain t%e importance o. .inancial planning an! !esign a .inancial plan .or t%e 6usiness 25* Descri6e t%e in.ormation nee!s o. !i..erent !ecision ma8ers 254 Descri6e t%e impact o. .inance on t%e pro"ecte! .inancial statements LO 2 )a"e financial decisions based on financial information *5) Prepare a 6u!get an! ma8e appropriate !ecisions *52 Calculate Unit cost .or an' pro!uct an! ma8e pricing !ecisions using relevant in.ormation *5* ,ssess t%e via6ilit' o. t%e pro"ect to %er 6' using investment appraisal tec%ni;ues *54 Nature o. investment importance LO 7 Analyse : advice how to evaluate the financial performance of a business 45) E9plain t%e purpose o. t%e main .inancial statements 452 E9plain t%e purpose .or c%oosing t%e .ormat o. .inancial statements .or !i..erent t'pes o. 6usiness 45* ,nal'>e t%e pro"ecte! .inancial statement using appropriate ratios an! comparisons- 6ot% internal an! e9ternal ;igher ,rade achievements %where applicable' ,rade descriptor Achieved9 %tic"' ,rade descriptor Achieved9 %tic"' )/ Identify and apply strategies to find appropriate solutions D/ Use critical reflection to evaluate own wor" and 3ustify valid conclusions )0 Select-design and apply appropriate methods-techni1ues D0 !a"e responsibility for managing and organising activities )2 &resent and communicate appropriate findings D2 Demonstrate convergent-lateral -creative thin"ing Assignment 6eedbac" 6ormative 6eedbac" Assessor to Student Action &lan Summative feedbac" 6eedbac" Student to Assessor Assessor Signature Date Student Signature Date