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Assignment front sheet

Qualification

Unit number and title

Pearson BTEC Level 4 HND Diploma in Business

Unit 2: Managing Financial Resources and Decision

Student name

Assessor name
Manoj Kumar

Date issued

Completion date

27th January 2013

25th April, 2014

Assignment title

MFRD: Managing Finance, Resources and Performance at a Start-up


Franchise Enterprise in Yangon (1 of 1)

Learning
Outcome

LO1

LO2

LO3

LO4

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

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

Be able to
make financial
decisions
based on
financial
information

Be able to
evaluate the
financial
performance of
a business

Submitted on

Assessment
Criteria

In this assessment you will have the


opportunity to present evidence that
shows you are able to:

1.1

Plan for long and short term sources of


finance for the business, working capital
and cash management

1.2

Understand implications of choices of the


various
source
of
finance
(e.g.
bankruptcy)

1.3

choose best source of finance for the


business

2.1

understand various finance costs


interests, dividends and taxes etc.

2.2

Plan and manage finance

2.3

Information needed for decision making

2.4

Understand
reporting

3.1

Analysis and monitoring of cash and other


budgets

3.2

Understand
calculations
decisions

3.3

Demonstrate
calculations

3.4

Demonstrate an understanding of longterm decisions

4.1

Demonstrate an understanding of various


terminologies under the International
Accounting Standards (IAS)

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)

4.3

financial

e.g.

Task Evidence
no. (Page no)

accounting

and

and
demonstrate
the
for costing and pricing
investment

appraisal

Demonstrate the skills of interpreting key


accounting ratios for profitability, liquidity,
efficiency and investment and be able to

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 su
following MERIT and DISTINCTION grades
Grade Descriptor

Indicative characteristic/s

M1 Identify and apply strategies to find


appropriate solutions/information

Effective judgements have been made.


An effective approach to study and
research has been applied.

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
organizations requirements

Communication is appropriate for familiar


and unfamiliar audiences and appropriate
media have been used.

A range of methods of calculations and


M3 Present and communicate appropriate
presentation have been used and technical
findings
language has been accurately used.
The appropriate structure and approach
has been used
Conclusions have been arrived at through
synthesis of ideas and have been justified.
Realistic improvements have been
D1 Use critical reflection to evaluate own
proposed against defined characteristics for
work and justify valid conclusions
success.
The validity of results has been evaluated
using defined criteria

To achieve gra
critical evaluati
best option (a
implications of

To achieve M2
evaluate variou
(Task 1 and 2)

To achieve M3,
evaluate variou

Also, you will


business forma
help her draw m
(Task 2 and 3)

To achieve D1
suitable busin
information to
results. (Task 2

To achieve D2
approach to yo
study. Also will
and achieve the

D2 Take responsibility for managing and


organising activities

Substantial activities, projects or


investigations have been planned,
managed and organised
Activities have been managed.

D3 Demonstrate convergent /lateral /


creative thinking

This will be awarded based upon Task 4 and overall report, forma

Assignment brief
Unit number and title

Unit 2: Managing Financial Resources and Decisions

Qualification

Pearson BTEC Level 4 HND Diploma in Business

Start date

11th February, 2014

Deadline/hand-in

9th May, 2014

Assessor

MANOJ KUMAR

Assignment title

MFRD: Managing Finance, Resources and Performance at a Start-up


Franchise Enterprise in Yangon (1 of 1)

Purpose of this assignment


Financial 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 KFC head 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.
You are the financial advisor for Daw Swe Nwe 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, 1.3 and 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 Swes 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 Swes 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 provide
proper 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 and D3, 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

Task 1

A 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

An analytical 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.

Evidence
presented

Achievement Summary
Qualification
Unit Number and
title

Pearson BTEC Level 4 HND


Diploma in Business
Unit 2: Managing Financial
Resources and Decisions

Assessor name

MANOJ KUMAR

Student name

Criteria
Ref.

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

LO 1
1.1
1.2
1.3
LO 2
2.1

Explore the sources of finance available to the a business:


Identify the sources of finance available for the business
Assess the implications of the different sources
Select appropriate sources of finance for the business project
Analyse the implications of finance as a resource within the business
Assess and compare the costs of different sources of finance
Explain the importance of financial planning and design a financial plan for the
business
Describe the information needs of different decision makers
Describe the impact of finance on the projected financial statements
Make financial decisions based on financial information
Prepare a budget and make appropriate decisions
Calculate Unit cost for any product and make pricing decisions using relevant
information
Assess the viability of the project to her by using investment appraisal
techniques
Nature of investment importance
Analyse & advice how to evaluate the financial performance of a
business
Explain the purpose of the main financial statements
Explain the purpose for choosing the format of financial statements for different
types of business
Analyze the projected financial statement using appropriate ratios and
comparisons, both internal and external

2.2
2.3
2.4
LO 3
3.1
3.2
3.3
3.4
LO 4
4.1
4.2
4.3

Achieved
?
(tick)

Higher Grade achievements (where applicable)


Grade descriptor

M1: Identify and apply strategies to


find appropriate solutions

Achieved
?
(tick)

Grade descriptor

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

Achieved
?
(tick)

Assignment Feedback
Formative Feedback: Assessor to Student

Action Plan

Summative feedback

Feedback: Student to Assessor

Assessor Signature

Date

Student Signature

Date