Research Paper > BUSINESS 2016Finance-Strategic-Management-Revised-V4-2

BUSINESS 2016 Finance-Strategic-Management-Revised-V4-2 Task 1 – Financial Data and Strategic Decision Making You must produce a presentation for Pietro Yon to use at the next meeting of the Chamber of Commerce. The ...

BUSINESS 2016 Finance-Strategic-Management-Revised-V4-2 Task 1 – Financial Data and Strategic Decision Making You must produce a presentation for Pietro Yon to use at the next meeting of the Chamber of Commerce. The presentation should be based on your research of Samsung PLC and other relevant information. It must be accompanied by supporting notes An Evaluation of the Sources of Financial Data which can be used to inform Business Strategy Samsung was founded in South Korea and is the sixth in terms of brand value globally owing to their inspiration of the world with their innovative designs, technologies and products that aim at enriching the lives of people as well as contributing to the social prosperity by the creation of a new future as stated in their mission statement An Assessment of the need for Financial Data and information in relation to the formulation of Business Strategy ü Growth of Revenue In determining Samsung PLC’s level of potential of long-term success which is a basic concern in strategic planning, the managers will have to consider the timing, quantity and the quality of revenue (Grant, 2016). The following formula below will be used in the calculation of the growth of revenue: - LO1 AC1.3 An analysis of the risks related to financial business decisions. These refer to the factors which can affect the ability of a company in the management of their debts and their leverage financially. LO3 AC 3.1 A review of methods that can be used for appraising strategic capital expenditure projects and strategic direction Capital investimenet appraisal is also known as capital budgeting. This is a planning process which aims to facilitate the evaluation of the concerned company’s long term and short-term investment. LO2 AC 2.1 An interpretation of the financial statements of Samsung PLC to assess the current viability of the organization LO2 AC 2.2 A comparative analysis of financial data using ratio analysis for Samsung PLC. You are advised to download consecutive year’s accounts from the Samsung PLC website Ratio Analysis is a type of Financial Statement Analysis used to get a clear indication on the performance of a Company. LO2 2M1 Makes recommendations to Samsung PLC based on your analysis and interpretation of the financial position. This report has identified that Samsung is a strong company which is making improvements annualy to ensure it attains profitability ------ LO1 1M1 The Impact of ‘Creative Accounting’ Techniques when making Strategic Decisions. Creative accounting refers to the manipulation of the financial data of a company whereby some parties use the knowledge of the standards of accounting for the manipulation of financial reports and a clear deviation from the regulations spirits LO2 2M2 The Limitations of Ratio Analysis as a Tool for Strategic Decision Making. The use of ratio analysis is able to compare the information that is taken from financial statements with the aim of gaining an understanding of the financial position LO3 3M1 The Importance of Cash Flow Management when Evaluating Proposals for Capital Expenditure. The evaluation and the selection of the long-term investments aim at maximizing the wealth of the investors of a company. Task 4 – Capital Expenditure Appraisal Pietro Yon has been supplied with information from a component manufacturer who has asked for advice on the best project to accept for the purchase / replacement of a piece of machinery. LO3 AC 3.2 Evaluate business proposals for capital expenditure in an organization using appropriate financial techniques. Current machine References Grobart, S. (2013). How Samsung became the world’s no. 1 smartphone maker. Bloomberg Businessweek. McConnell, J. J., & Muscarella, C. J. (1985). Corporate capital expenditure decisions and the market value of the firm. Journal of financial economics, 14(3), 399-422. Rothaermel, F. T. (2015). Strategic management. McGraw-Hill Education. Tassadaq, F., & Malik, Q. A. (2015). Creative Accounting & Financial Reporting: Model Development & Empirical Testing. International Journal of Economics and Financial Issues, 5(2), 544-551.