Individual Assignment1 F: Developing a Balanced Scorecard In this unit, you are exploring the need for organisations to measure and manage performance against objectives, as well as the potential effectiveness of tools such as Balanced Scorecards and Strategy Maps as aids in this cause. You will now develop a BSC for Anthony’s Orchard. The company has a number of strategic goals; measuring performance towards those goals will be critical to its sustained success. To prepare for this Individual Assignment: Visit the Anthony’s Orchard case study in the unit resources. Review again the current and historical financials. Consider that one of the company’s key goals in its strategic plan is to exceed revenue of $25 million dollars by the year 2015. To complete this Individual Assignment: Explain the potential value of a BSC to Anthony’s Orchard. Describe specific ways that the introduction of a BSC can contribute to this organisation. Develop a BSC that is aligned to the key goal in the strategic plan, i.e. exceeding revenue of $25 million dollars by 2015. Develop, quantify and justify suitable key performance measurement criteria for Anthony’s Orchard in each of these four key areas: Financial Customer Internal Business Processes Learning and Growth Notes: You should fully state and justify any assumptions that you make in relation to the financial measurements you use. You should also make suitable use of appendices to include relevant financial performance measurement information you include. Be sure to include all references as well. This Individual Assignment forms the basis of Section 3 of your Final Project.

You will receive feedback on this work from your Faculty Member, and will be expected to incorporate any suggestions into the Final Project. Your submission (excluding appendices) should be 1,000 words (+/- 10%) in length.

----------------------------------- 1A Complete the following: Jayantha commenced business on 1 January 2010 with equity of £100,000. During the year ending 31 December 2010, he paid £92,400 for purchasing goods for sale (all of which was sold) and £31,450 for various expenses. He received £139,250 by sale of goods. Jayantha has drawn £12,000 in cash and introduced a motor car to the business valued at £10,000. What is Jayantha’s equity at 31 December 2010? £115,400 £127,400 £137,400 £113,400 The following information relates to Simonson Engineering as at 30 September 2010: £ Plant and machinery 25,000 Trade payables 18,000 Short-term borrowings 26,000 Inventories 45,000 Property 72,000 Long-term borrowings 51,000 Trade receivables 48,000 Equity at 1 October 2009 117,500 Cash in hand 1,500 Motor vehicles 15,000 Fixtures and fittings 9,000 Profit for the year to 30 September 2010 18,000 Drawings for the year to 30 September 2010 15,000 Using this information, prepare a statement of financial position for the business using the standard layout illustrated in Example 2.5 on p.48 of Atrill, P., & E. McLaney, (2011) Accounting and Finance for Non-Specialists, 7th edition, Harlow: FT/Prentice Hall. An accountant prepared a statement of financial position for a business. In this statement, the equity of the owner was shown next to the liabilities. This confused the owner, who argued: ‘My equity is my major asset and so should be shown as an asset on the statement of financial position’. How would you explain this misunderstanding to the owner? The statement of financial position shows how much a business is worth. Do you agree with this statement? Explain the reasons for your response. Compute the missing amount in the accounting equation for each business. Name of business Assets Liabilities Equity Hudson Gift and Cards 37,000 35,000 New Street Garage 85,000 39,000 Hair Styles 92,000 53,000 At the year end, the total assets of a business were £189,000 and the total liabilities were £126,000. During the year, the owner withdrew £10,000 and introduced a further £18,000 in equity. The business began the year with total assets £180,000 and total liabilities of £112,000. What is the profit (loss) for the year? £8,000 (profit) £13,000 (loss) £8,000 (loss) £13,000 (profit) A company that produces a single product provides the following information: budgeted sales of 40,000 units, margin of safety 25% of budgeted sales, total fixed costs £240,000. What is the contribution per unit of the company’s product? £8.00 £4.80 £24.00 £6.00 A business makes 2,000 units of a particular product. It spent £24,000 on material and it paid its operatives £40,000. Fixed costs of running the factory were £50,000. The salesforce were also paid £18,000 and the head office costs were £100,000. In order to break even the selling price per unit will have to be: £84 £66 £116 £32 To complete your Individual Assignment, do the following: Please answer the Individual Assignment in a single Word document. ------------------------ Individual Assignment 1B: Analysis of the Investment In the Shared Activity for this unit, you analysed projected financial data and assessed its value to making a physical expansion decision. As you have heard in the media presentation from CFO Mary Scott, Anthony’s Orchard is faced with another type of expansion decision. CEO Bob Frost is eager to expand the product line to include apple juice. Of course, a decision to expand a product line has very many variables. In this assignment, you will focus on one of these: the additional cost resulting from the purchase of an apple press (a piece of equipment required to manufacture apple juice). You also will investigate the value of a number of financial measurements. Ultimately, you will develop a recommendation for the company, and this analysis will help you to support that recommendation. To prepare for this Individual Assignment: Review the Anthony’s Orchard case study in the unit resources. Consider the following: The company, according to Anthony’s Orchard Strategic Plan, is hoping to purchase an apple press in order to start a new line of prepared apple products—apple juice. The company estimates this new product offering will generate an additional $95,000 net income per year and estimated cash flows of $90,000 per year. The cost of the apple press will be $950,000 and this expenditure, as shown in the budgeted cash flow statement, is expected to take place in the fourth quarter of 2012. The apple press is expected to have a seven-year life and no salvage value. The company requires a 10% return on investment for new capital investments and the company uses a cost of capital of 8%. The company’s revenue goal for 2015 is $25 million. Assume a minimum 12% gross margin on revenue. To complete this Individual Assignment, answer the following: Do you think the company’s revenue goal of $25 million by 2015 is realistic? Explain how purchase of the apple press might affect the company’s revenue goals. Based on this information, explain whether Anthony’s Orchard should invest in the apple press. Support your response with relevant information provided in the case study, the previous year’s financials for 2010, the current year’s financials for 2011 and the budgeted year’s financials for 2012. Draft budgeted financial statements from 2012 to 2015 under both options that provide a realistic assessment of expected revenues and costs, and explain how you have arrived at these budgeted figures. Notes: You should fully state and justify any assumptions that you make in relation to the financial data you use. Be sure to include all references as well. This Individual Assignment forms the basis of Section 2 of your Final Project. You will receive feedback on this work from your Faculty Member, and will be expected to incorporate any suggestions into the Final Project. Your submission (excluding appendices) should be 1,000 words (+/- 10%) in length. Submit your Individual Assignment to your Faculty Member for feedback. Be sure to submit by the end of this unit in order to receive timely Faculty Member feedback. Contact your Faculty Member for permission to submit an assignment early, to submit an assignment after the end of the unit or to resubmit an assignment on which you have already received feedback. To complete your Individual Assignment, do the following:

Please answer the Individual Assignment in a single Word document. ---------------------- Individual Assignment 1C : Developing a Balanced Scorecard In this unit, you are exploring the need for organisations to measure and manage performance against objectives, as well as the potential effectiveness of tools such as Balanced Scorecards and Strategy Maps as aids in this cause. You will now develop a BSC for Anthony’s Orchard. The company has a number of strategic goals; measuring performance towards those goals will be critical to its sustained success. To prepare for this Individual Assignment: Visit the Anthony’s Orchard case study in the unit resources. Review again the current and historical financials. Consider that one of the company’s key goals in its strategic plan is to exceed revenue of $25 million dollars by the year 2015. To complete this Individual Assignment: Explain the potential value of a BSC to Anthony’s Orchard. Describe specific ways that the introduction of a BSC can contribute to this organisation. Develop a BSC that is aligned to the key goal in the strategic plan, i.e. exceeding revenue of $25 million dollars by 2015. Develop, quantify and justify suitable key performance measurement criteria for Anthony’s Orchard in each of these four key areas: Financial Customer Internal Business Processes Learning and Growth Notes: You should fully state and justify any assumptions that you make in relation to the financial measurements you use. You should also make suitable use of appendices to include relevant financial performance measurement information you include. Be sure to include all references as well. This Individual Assignment forms the basis of Section 3 of your Final Project. You will receive feedback on this work from your Faculty Member, and will be expected to incorporate any suggestions into the Final Project. Your submission (excluding appendices) should be 1,000 words (+/- 10%) in length. Submit your Individual Assignment to your Faculty Member for feedback. Be sure to submit by the end of this unit in order to receive timely Faculty Member feedback. Contact your Faculty Member for permission to submit an assignment early, to submit an assignment after the end of the unit or to resubmit an assignment on which you have already received feedback. To complete your Individual Assignment, do the following: Please answer the Individual Assignment in a single Word document. ------------------------ Individual Assignment 1D: Gap Analysis and Benchmarking for Anthony’s Orchard In the media piece for this unit, Anthony’s Orchard Director of Operations Allison Sinclair expressed concern over the lack of successful efforts to measure organisational quality. Recall the following quote from her discussion of this issue: As a family-owned business with a history of success, it is easy to fall into the trap of believing that we do things properly almost by default—the ‘we’ve always done it this way’ and ‘if it ain’t broke don’t fix it’ arguments. The danger with that line of thinking is what if it is broken? What if the way we’ve always done things is good but ignores some best practises that could lead to even better performance? We are now at a point where we are ready to commit to a strategy of continuous improvement and quality management. This is a big step forward for us. But taking the next step is not so easy. Developing and implementing a process is new to us and will require careful analysis. In short, we know where we would like to be but are unsure how best to get there. In this Individual Assignment, you will suggest an approach to address these concerns. You will propose strategies the company could implement to move from its current status towards its goals for 2015 using the processes of gap analysis and benchmarking. To prepare for this assignment: Review the media in the unit resources. To complete this assignment: Conduct a gap analysis for Anthony’s Orchard. This should include: A statement of where the organisation wishes to be by 2015 (use financial data for this, such as targeted revenues and/or profit) A comparison of the current financial state of the organisation and the desired state by the end of fiscal year 2015 Your suggestion for ways the company can bridge the gap identified in your comparison above Devise a benchmarking review for Anthony’s Orchard. To do this, discuss recommended strategies and measures that will be useful to measure progress towards the objective in your gap analysis. Notes: You should fully state and justify any assumptions that you make in relation to the financial data you use. Be sure to include all references as well. This Individual Assignment forms the basis of Section 4 of your Final Project. You will receive feedback on this work from your Faculty Member, and will be expected to incorporate any suggestions into the Final Project. Your submission (excluding appendices) should be 1,000 words (+/- 10%) in length. Submit your Individual Assignment to your Faculty Member for feedback. Be sure to submit by the end of this unit in order to receive timely Faculty Member feedback. Contact your Faculty Member for permission to submit an assignment early, to submit an assignment after the end of the unit or to resubmit an assignment on which you have already received feedback.

To complete your Individual Assignment, do the following: Please answer the Individual Assignment in a single Word document ------------------------ Individual Assignment 1E: Final Project A recurring theme of this module has been the value of data to analysis and decision-making. You have utilised various types of data while conducting several analyses in the Individual Assignments Submission submitted in Units 2-5. In this final unit, you will synthesise what you have learned about financial and performance management throughout the module. Recall the words from Anthony’s Orchard CEO Bob Frost in Unit 2: We are excited about our future, and have aggressive plans for it. Among these plans is expansion into a new product line. We hope to be producing and distributing Anthony’s Orchard apple juice within the next 3 to 5 years. As your Final Project for this module, you will create a consultancy report that will provide guidance and insight to company management regarding this decision. Relying on the work done in previous Individual Assignments Submission, you will make a recommendation to the company regarding the plan to expand the product line and make a significant investment in an apple press required for that expansion. To prepare for this Individual Assignment: Reflect on the work you submitted in the Individual Assignments Submission of Units 2-5. Review the feedback you received from your Faculty Member. Review the Final Project guidelines by clicking on Final Project on the Module Menu. To complete this Individual Assignment: Develop the ‘Executive Summary’ and Section 5, ‘Summary, Recommendations and Conclusion’, which includes your formal recommendation to the company. Refine Sections 1-4 (based on the Individual Assignments Submission in Units 2-5). Compile the final consultancy report, and submit to your Faculty Member based on the Final Project Guidelines. Submit in one Word document the Executive Summary, Sections 1-5, and Appendices and Resources to the Final Project Part 1 submission link in the Final Project area of the Module Menu. Submit the PPDP update to the Final Project Part 2 submission link in the Final Project area of the Module Menu.