Understand the importance of financial data in formulating and delivering business strategy.

LO1 Understand the importance of financial data in formulating and delivering business strategy.

LO2 Be able to analyse financial data for an organisation in order to inform strategic decision making purposes.

LO3 Be able to evaluate proposals for strategic decisions on capital expenditure in an organisation

Scenario

You are to select an organization that has a listing on any recognized stock exchange of your choice. The organization can be either the one you are working with, or worked before, or any other organisation of your choice. You been asked to write a report. In the report you will answer the questions given below. For the purpose of this assignment you are required to use financial information pertaining to FY2016 & FY2017.

Answer the following questions given below:

Note: As a learner you have to precisely answer the questions given below. No question can be missed out to get the Pass grade, the learner has to answer all questions.

Question 1.Financial information is one of the most important factors in right decision making for supporting a healthy business strategy. The financial information obtained is utilized by many parties including decision makers, investors, creditors, and so on. In the light of your chosen organisation:

a. Provide a brief introduction of your chosen organisation. Evaluate various sources of financial information that can be used in strategic decision making of the organisation.

b. Summarize by analysing & interpreting Balance sheet & Income statement for FY2017 pertaining to your chosen organisation, asses the need for the financial data and information yielded and how this could be used for & applied to strategic planning and decision making? The learners are also advised to explain and assess the impact of Creative Accounting techniques in strategic decision making process.

c. Identify and analyse the characteristics of risks the organisation is exposed to that have an impact on financial decisions, specifying how the identified risks can be managed and mitigated.

Question 2. Published accounts are official documents containing financial activities of an organisation for a specific period of time. Three main types of published accounts include Balance sheet, Income statement, and cash flow statement.

a. Advice a potential investor on investing in the business compared to placing his money in a deposit account. Assess the viability by interpreting at-least two published accounts to obtain the financial information required by you to be able to advise the investor.