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FACULTY OF BUSINESS
AND SOCIETY

Module Code: Module Title: Module Lecturer:

AF4S31 STRATEGIC FINANCIAL CAROLINE CARR
MANAGEMENT DONALD AMUAH
Assessment Title and Tasks: Assessment No.:
INTERPRETING FINANCIAL STATEMENTS FOR 1 of 2
STRATEGIC FINANCIAL DECISION MAKING
Date Set: Submission Date: Return Date:
Feb 2023 Monday 20 March @ 12 noon 27 April 2023

Part A: Record of Submission (to be completed by Student)

Extenuating Circumstances
If there are any exceptional circumstances that may have affected your ability to
undertake or submit this assignment, make sure you contact the Advice Zone on your
campus prior to your submission deadline.

Fit to sit policy:

The University operates a fit to sit policy whereby you, in submitting or presenting
yourself for an assessment, are declaring that you are fit to sit the assessment. You
cannot subsequently claim that your performance in this assessment was affected by
extenuating factors.

Plagiarism and Unfair Practice Declaration:

By submitting this assessment, you declare that it is your own work and that the sources
of information and material you have used (including the internet) have been fully
identified and properly acknowledged as required1. Additionally, the work presented has
not been submitted for any other assessment. You also understand that the Faculty
reserves the right to investigate allegations of plagiarism or unfair practice which, if
proven, could result in a fail in this assessment and may affect your progress.

Details of Submission:
Note that all work handed in after the submission date and within 5 working days will be
capped at 40%2. No marks will be awarded if the assessment is submitted after the late
submission date unless extenuating circumstances are applied for and accepted (Advice
Zone to be consulted).
Student Number(s):
You are required to acknowledge that
you have read the above statements
by writing your student number (s) in
the box:
IT IS YOUR RESPONSIBILITY TO KEEP A RECORD OF ALL WORK
SUBMITTED
1
University Academic Integrity Regulations
2
Information on exclusions to this rule is available from Campus Advice Zones
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ASSESSMENT SPECIFICATION
AF4S31 (20 credit module) is made up of two assessments, Coursework 1 and Coursework 2,
each worth 50% of the total module. In order to pass the module you need a score of 40%+
over both assessments combined to pass the module. Please refer to course handbook for
marking information on resit/defer courseworks.
The assessments must be submitted via Turnitin unless otherwise agreed.

SCENARIO
Strategic financial management provides the information, which informs the long-term plan
for the organisation. It involves an analysis of financial information and resources to ensure
that plans are viable in terms of promoting sustainable business and growth where desired.

An overview of the strategic management position and financial review is shared with
shareholders and stakeholders in a company’s annual report and accounts. Increasingly, as
companies embrace corporate governance, they are under pressure to communicate with
diverse stakeholder groups in a more effective manner. As such, reporting makes better use
of colour and graphics, and presents text in easier to read formats … the overall focus of
modern-day reporting is engagement.

TASKS
Using the extract financial statements for Tesco plc provided, you are to prepare an
information document that analyses and critically evaluates its financial position for the 2
years ending Feb 2021 and Feb 2022.
An information document reports in a manner that promotes stakeholder engagement
ensuring that the information is effectively communicated to all interested parties; making
use of graphical organisers such as tables, charts and diagrams is a useful way to present
financial information to non-financial stakeholders. Annual reports produced by public
limited companies are perfect examples of the need to present financial data and
information in a way that a wide range of stakeholders can relate to.

The information document style report must include the following tasks.

1. Introduce the company (Tesco plc) in terms of its core business and market(s) in which it
operates, identifying key competitors and market performance.

2. Analyse financial position

(i) Using the 2022 extract financial statements provided for Tesco plc, calculate the
following ratios. All calculations must be shown in the appendices.
Acid test Dividend cover
Operating profit margin Interest cover
ROE ROCE
Net asset turnover Gross profit margin

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Debt gearing Working capital cycle DDUS

(ii) Analyse the ratio results – you should provide reasons for any changes in the year on
year result considering the wider implications for Tesco plc. You should make use of
industry averages, as a baseline for the interpretation of Tesco plc’s position.

3. Critically evaluate a stakeholder approach to business There is a growing focus on this

approach to business as companies compete in a digital world. Consumers have access to
vast quantities of data, which is increasingly used to inform their purchases placing
pressure on companies to more carefully consider consumer needs. In addition, the high
levels of reported corporate governance code compliance also drives the stakeholder
agenda and not just one that focuses on shareholders and profits at any cost.

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CONTENT GUIDANCE AND WEIGHTING DDUS

The following table provides important guidance on format and content.

INFORMATION DOCUMENT GUIDANCE Weighting
1. Introduction of the company 10%
Overview of the company, industry sector and key competitors (Max. 250
 A range of sources should be used and not just information from Tesco’s words)
annual reports/statements eg share price and market share.
2. Analysis of financial position and comparison with benchmark data
(i) Ratio calculations
Calculate the 10 ratios over each of the 2 years, 2021 and 2022. 20%
 The ratio calculations must be presented in the appendices. (Words in
 You should only discuss the ratio result in the main body of the text, appendices do
however, a summary table of ratio results could be used in the main not count)
body of the report but certainly not the actual ratio calculations.
 Using information graphics promotes reader engagement.

(ii) Analyse and evaluate the ratio results over the 2 consecutive years 30%
to interpret the financial position of the company clearly considering (Max. 1,000
industry averages for benchmarking purposes words.
 The aim is to: Words in
- identify changes in results over the 2 years; graphics do
- ascertain reasons for the change; and not count)
- consider the implications for Tesco plc.
3. Critical evaluate a stakeholder approach to business 25%
Critically evaluate the growing focus on stakeholders as opposed to a (Max. 1,000
profit at any cost approach popular with retailers in the past. words)
 A graphical organiser may be used to provide overview of points raised …
excellent detail for stakeholders.
 Critical evaluation requires a balance of argument to be presented making
use of research information to challenge or support points made. This is a
higher order skill and requires balance of argument to ensure points made
are reliable and valid … important for the integrity of the report.
 Consider key drivers such as corporate governance codes and
technological revolution.
Report format 10%
Must be presented in an information document report format (2,250
words, +/-10%).
Harvard Referencing 5%
A range of reliable, relevant sources must underpin the points raised. This
raises the level of reliability and validity of the analysis and evaluation.
Total 100%

This coursework must be submitted to Turnitin by Monday 20 March 2023 at 12 noon.

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Grade Knowledge, Understanding
and Relevance
90-100% A piece of work which displays exemplary evidence of complete understanding of the concept under discussion across all categories and criteria, / and whi
An excellent grasp of the subject
matter is shown throughout the
80-89% assignment and how it applies to
its themes, questions and issues
A full and comprehensive grasp
of the subject matter is shown
70-79% throughout the assignment and
how it applies to its themes,
questions and issues
There is a substantial knowledge
of relevant material, showing a
60-69% clear grasp of themes, questions
and issues therein. The
assignment is consistently
focused on being relevant to the
requirements of the assessment
Adequate knowledge of a fair
range of relevant material is
50-59% shown, with intermittent
evidence of an appreciation of
its significance. The assignment
seeks to address the
requirements of the assessment
but it also contains parts that are
not directly relevant.
A basic understanding of the
subject is shown, but only a
40-49% limited range of material is used.
There is a significant degree of
irrelevance.
A limited understanding is
shown of a narrow range of
30-39% material.
The content of the assignment
has little relevance to its
requirements
0-29% The assignment has insufficient evidence of the knowledge, understanding and skills appropriate to the level of the qualification. The work is
Argument, Analysis and Application Communication Research/In
Evaluation PUBLIC
An excellent level of critical An excellent level of The assignment demonstrates The assignmentCYHOE utilis
analysis and evaluation of application of appropriate a very sophisticated level of sources, displayin
the issues is contained in knowledge is writing, displaying excellent DDUS
literacy skills in resp
the assignment. The demonstrated clarity of argument, a coherent sources, distinguis
assignment displays and organised structure and appropriate sourc
originality. original, well-evidenced and assignment in
coherent insights
A full and comprehensive A full and comprehensive The assignment displays a The assignment utilis
level of critical analysis and level of application of sophisticated level of writing, sources, displaying e
evaluation of the issues appropriate knowledge to displaying very good clarity of skills in respect o
contained in the assignment the issues contained in the argument, a coherent and sources, distinguis
is displayed assignment is organised structure and appropriate sourc
demonstrated provides well-evidenced and assignment in a
coherent insights
A good, clear and orderly A good, clear and orderly A well written assignment, with The assignment utilis
analysis of the issues and a level of application of good grammar and spelling, in sources, displayin
good level of evaluation of appropriate knowledge to a readable style with a good literacy skills in resp
the issues contained in the the issues contained in the structure sources, distinguis
assignment is displayed assignment is appropriate sourc
demonstrated assignment in a
Some analytical treatment is Satisfactory application of A competently written The assignment util
displayed, but the the appropriate knowledge assignment, with only minor relevant sources, d
assignment tends to be to the issues contained in lapses from standard literacy skills in resp
more descriptive than the assignment is grammar, and a satisfactory sources, distinguis
analytical. There is some demonstrated but it also structure appropriate sourc
evidence of evaluation of the indicates clear limitations assignment in
issues contained in the in this respect
essay but it is of limited
scope.
There is little evidence of Limited application of An assignment with a simple The assignment u
analysis or evaluation in the appropriate knowledge to basic style but with significant relevant sources, di
assignment – it is largely the issues contained in the deficiencies in expression literacy skills in resp
descriptive assignment is and/or structure sources. It fails to
demonstrated appropriate source
and/or uses relevant
an inad
There is very little, or no, A limited assignment that An assignment with numerous The assignment is b
evidence of analysis or demonstrates an deficiencies in expression, of literature, often wi
evaluation in the overwhelmingly presentation and structure textbooks a
assignment. It is heavily unsuccessful attempt to
dependent on description apply appropriate
knowledge to the issues
contained in the
assignment
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