Edexcel BTEC Level 7 Extended Diploma in Strategic Management and Leadership September/December, 2011 ASSESSMENT ACTIVITY

Unit Name: Unit Number: Date of Issue: Assignment Submission Date: Assessor: Mode of submission:

MANAGING FINANCIAL PRINCIPLES AND TECHNIQUES 13 03/01/2012 As per Schedule M V Narasimha Chary LIVECAMPUS/EXAMINATION

Aim This unit provides the learner with the skills to apply financial principles relevant to strategic management in an organisational context, including forecasting, capital appraisal, budgeting, financial appraisal and analysis. Assessment of this module This module is assessed by an assignment given out in two parts. In order to pass this module learners should meet all of the learning outcomes in the two parts of the assignment. Assignment: LOs-1.1, 1.2, 1.3, 2.1, 2.2, 3.1, 4.1, 4.2, Examination: LOs-3.2, 3.3, 3.4, 5.1, 5.2, 5.3, 6.1, 6.2, 6.3 Summary of Learning Outcomes To achieve a pass learners must demonstrate the ability to deal with each of the following outcomes: 1 Be able to apply cost concepts to the decision-making process 2 Be able to apply forecasting techniques to obtain information for decision making 3 Be able to participate in the budgetary process of an organisation 4 Be able to recommend cost reduction and management processes for an organisation 5 Be able to use financial appraisal techniques to make strategic investment decisions for an organisation 6 Be able to interpret financial statements for planning and decision making 1

Assignment Brief

Ford Motor Company Ford Motor Company is an American automaker and the world's fifth largest automaker based on worldwide vehicle sales. Based in Dearborn, Michigan, a suburb of Detroit, the automaker was founded by Henry Ford, and incorporated on June 16, 1903. Henry Ford was 40 years old when he founded the Ford Motor Company, which would go on to become one of the largest and most profitable companies in the world, as well as being one of the few to survive the Great Depression. During its early years, the company produced just a few cars a day at its factory on Mack Avenue in Detroit, Michigan. Groups of two or three men worked on each car from components made to order by other companies. Later Ford realized it would be better if he manufactured all of his company's automotive parts himself instead of using parts from aftermarket sources which lead to the introduction of the assembly line. The largest family-controlled company in the world, the Ford Motor Company has been in continuous family control for over 100 years. Ford now encompasses several brands, including Lincoln and Mercury. Official Website: http://www.ford.com

Outcome-1 Task 1(a) Explain the importance of costs in the pricing strategy of Ford Motor Company. (A.C: 1.1) Task 1(b) Design a costing system for use within Ford Motor Company. (A.C: 1.2) Task 1(c) Propose improvements to the costing and pricing systems used by Ford Motor Company presently, keeping in view the future contingencies. (A.C: 1.3)

Outcome-2 Task 2(a) Apply forecasting techniques to make cost and revenue decisions in Ford Motor Company. (A.C: 2.1) Task 2(b) Assess the sources of funds available to Ford Motor Company. (A.C: 2.2)

Outcome-3 Task 3(a) Explain the advantages and disadvantages of Zero based budgets and its relevance/appropriateness to the Ford Motor Company. (A.C: 3.1)

Outcome-4 Task 4(a) Recommend processes that could manage cost reduction in Ford Motor Company. (A.C: 4.1) Task 4(b) Evaluate the potential for the use of Activity Based Costing (ABC) in Ford Motor Company. (A.C: 4.2)

Marking and Grading  Pass Assessment Criteria To achieve PASS grade the student must meet all the learning outcomes mentioned below: Learning outcomes Assessment criteria

1 Be able to apply cost concepts to the decision- 1.1 explain the importance of costs in the pricing making process strategy of an organisation 1.2 design a costing system for use within an organisation 1.3 propose improvements to the costing and pricing systems used by an organisation 2 Be able to apply forecasting techniques to 2.1 apply forecasting techniques to make cost and obtain information for decision making revenue decisions in an organisation 2.2 assess the sources of funds available to an organisation for a specific project 3 Be able to participate in the budgetary process 3.1 select appropriate budgetary targets for an of an organisation organisation 3.2 participate in the creation of a master budget for an organisation 3.3 compare actual expenditure and income to the master budget of an organisation 3.4 evaluate budgetary monitoring processes in an organisation 4 Be able to recommend cost reduction and 4.1 recommend processes that could manage cost management processes for an organisation reduction in an organisation 4.2 evaluate the potential for the use of activitybased costing

5 Be able to use financial appraisal techniques to organisation

5.1 apply financial appraisal methods to analyse private sector 5.2 make a justified strategic investment decision for an organisation using relevant financial information 5.3 report on the appropriateness of a strategic investment decision using information from a postaudit appraisal

make strategic investment decisions for an competing investment projects in the public and

6 Be able to interpret financial statements for planning and decision making

6.1 analyse financial statements to assess the financial viability of an organisation 6.2 apply financial ratios to improve the quality of financial information in an organisation s financial statements 6.3 make recommendations on the strategic portfolio of an organisation based on its financial information

 Merit/Distinction Assessment Criteria M1: Identify and apply strategies to find appropriate solutions. [Applicable: Tasks-1(c) & 2(b)] y y Effective judgements have been made An effective approach to study and research has been applied

M2: Select/design and apply appropriate methods/techniques. [Applicable: Tasks-1(b) & 2(a)] y y A range of sources of information has been used The selection of methods and techniques/sources has been justified

M3: Present and communicate appropriate findings. [Applicable: Task-3(a)] y y The appropriate structure and approach has been used Coherent, logical development of principles/concepts for the intended audience

D1: Use critical reflection to evaluate own work and justify valid conclusions. [Applicable: Task-4(a)] y y Conclusions have been arrived at through synthesis of ideas and have been justified Realistic improvements have been proposed against defined characteristics for success

D2: Take responsibility for managing and organizing activities. [Applicable: Tasks-4(b)] y y The unforeseen has been accommodated The importance of interdependence has been recognised and achieved

D3: Demonstrate convergent/lateral/creative thinking. y y Ideas have been generated and decisions taken Convergent and lateral thinking have been applied

NB: The Merit and Distinction descriptors applicable to the LOs-3.2, 3.3, 3.4, 5.1, 5.2, 5.3, 6.1, 6.2 & 6.3 will be clearly mentioned in the assignment sheet at the time of examination. Note: The assignment shall be graded as Not Achieved if a student does not i. ii. submit within stipulated time. meet all the assessment criteria.

Submission Guidelines: y The student must submit an assignment for the Tasks-1(a), 1(b), 1(c), 2(a), 2(b), 3(a), 4(a) & 4(b) in a report form and take an examination for the Tasks-3(b), 3(c), 3(d), 5(a), 5(b), 5(c), 6(a) & 6(b). However, the whole assignment will be given out to you in two parts and you are expected to submit them separately as per schedule specified and informed. y y Provide a declaration in the report stating that the work submitted by you is of your own and not submitted anywhere else towards partial of full requirement of any other program. Upload the soft copy of the final version of the Assignment (Part-1/2) on Live Campus latest by 18.00 hrs. on ----------------.

*Please use the standard report format available on live campus. Comply with the formatting rules stated therein. *For Late Submission policy, Plagiarism and Collusion please refer to your student course handbook available on Live Campus.