Reference no: EM132385793 , Length: word count:4000

Assignment -

Introduction - The assessment of Managing Financial Resources (MFR) is by both assignment and examination. Managing Financial Resources covers accounting, finance and economics - these areas have at their heart the key issue of the efficient allocation and management of resources, and this assignment is focused on techniques that can be used to measure this efficiency. It provides you with the opportunity to research and reflect on the application of the concepts and techniques you have studied in the module by relating them to the practice you find in your organisation. In some situations, it may not be possible for you to focus on your own organisation, in which case you are able to select another organisation upon which to review and reflect on the application of the theory you have studied.

Details of the module-specific requirements follow. Please ensure that you carefully read the assignment brief and the assignment preparation guidelines so that you understand what is required.

Purpose of the assignment - The assignment is designed to allow you to demonstrate your ability to:

• show your understanding of the underpinning 'theory' and its application in your organisation and its managerial environment
• utilise theoretical approaches and apply frameworks, models, techniques and concepts to real-world managerial environments
• select appropriate data/information and apply techniques that illustrate the use of theory in order to provide a view, opinion or expression of advice on how to proceed
• apply the theoretical approaches in analysing managerial environments
• comment on, provide insights about and critically evaluate the use of theoretical approaches and techniques in managerial environments
• reflect on where improvements could be made and create value

You are required to assess the current financial performance of an organisation within the context of its markets and its economic performance, providing indications of future market trends. Additionally, you are asked to reflect on how the work you have undertaken in the assignment has informed your appreciation of the financial position and performance of your organisation.

Assignment brief - The following are the elements of the assignment.

Introduction -

Organisation discussed is Nedbank.

To provide a context for your assignment, you should provide a short introduction to your organisation (its key features), its current financial position (key metrics), and your role (part of finance team), (duties, responsibility and accountability). Then identify the key resources in your organisation, before providing a brief comment on its management issues and the challenges it faces in meeting its objectives in its markets.

Part A -

You should select one of the following economic issues and discuss how it impacts on your organisation in relation to managing financial resources and decision-making in respect to Nedbank (South African bank)

• Pricing - what approaches organisations can use to determine pricing and how changes in pricing impact on the microeconomic market model.
• Market structure - include a description of the nature and composition of the market in relation to how this may impact on competitive conditions, profitability of the market and economic behaviour.

Part B -

You are required to discuss how the following are used (or could be used, if not already done so) and the value they add to the financial management of your organisation:

1. Ratio analysis

2. Decision-making techniques, either short or long term, and how they assist managerial behaviour and how the process impacts on the creation of value in Nedbank.(See also point 3 of 'Assignment preparation guidance'.)

Part C -

Planning & Budgeting in Banks

You are required to discuss the benefits of budgeting and planning in organisations, relating this to your experience of the budgeting process and budgetary control in your organisation and its management. You should consider current thinking and any limitations in budgeting practice, before making recommendations for improvements in the process.

Conclusion -

You should finish your assignment with a reflective conclusion in which you record how the work you have undertaken in your assignment has helped in your appreciation of the financial position and performance of your organisation, and in your current role.

Assignment word limit - The assignment word limit is 4,000 words (excluding appendices and bibliography/references); Reference style: Harvard.

Assignment preparation guidance - In preparing your assignment you should keep the following points in mind. It is expected that you demonstrate:

• Your understanding of the underpinning theory and can show the application of the course material to your organisation's financial management. Don't be concerned if your organisation does not use or make full use of the theory you have studied, or if the approaches are different. For example, if you work in a small organisation you may find that some of the techniques are not yet used - but you can discuss and evaluate the value of their use to the financial management of the organisation as it develops. Profit may not be the objective of your organisation, but in the not-for-profit sector financial resources have to be managed: planning, controlling and decision-making are still key aspects of management. Decision-making techniques and performance measurement may be viewed differently but are still used. You are likely to find, for example when considering the ratio analysis section, that the issues of efficiency and productivity are more meaningful than profitability and your discussion and evaluation should demonstrate that you appreciate the scope and value of the performance metrics used while indicating briefly why some of those studied are not used. In such situations you should consider why your organisation does not use the theory, what it does use, what value these add to the financial management of the organisation, and whether the use of the techniques and concepts you have studied could be used and what value they would add to the financial management of the organisation. Financial calculations to demonstrate the techniques will be expected.
• Your ability to select appropriate data to illustrate the use of the techniques. The previous point indicated that financial calculations/illustrations are an important part of your assignment. It will be helpful to you if you are able to access actual data from your organisation to illustrate the points you make. If you are not able to do so, this should not prevent you from providing some 'illustrative financial data' with an explanation of any difficulties you may have found in providing organisational information.
• Your ability to discuss and evaluate critically the techniques and their use. To pass this assignment well your work must be significantly more than a description of your organisation's processes. You should review the techniques and their use such that you provide a critical evaluation of the relevance of the concepts and techniques as well as their value to the management of your organisation.
• Your understanding of the key areas where improvements could be made, providing a summary prioritising these. This applies to Parts B and C.

(1) In your discussion of your chosen economic issue you should particularly explain the effects it has on revenues and profits, costs and efficiency, and the way your organisation makes decisions about its ability to compete. The emphasis of these elements will depend upon which economic issue you select.

(2) You may select either the types of financial management decisions that need to be made for the short term, e.g. the use of contribution and marginal costing, or the types of financial management decisions that need to be made for the long term, e.g. long-term investment decisions. You should state clearly which you have chosen.

(3) Although the assignment brief identifies that your analysis and discussion should be related to your organisation, you may, if you wish, select another organisation, but if for some reason you are not using your own organisation you should state why you have made a different choice.

(4) In Part B and C you may choose the level at which you conduct your analysis, and this can be different for each section if you wish, but you should state the choices you have made. This means that you could choose your own department for one area but the total organisation for another or a suitable nominated alternative organisation with which you have a relationship or hold a stakeholder interest.

Production of this assignment provides a substantial opportunity to develop cognitive, intellectual and behavioural skills from individual activity in relation to:

• critical analysis of financial techniques and economic issues
• evaluation and discussion of alternative concepts
• challenging the use and relevance of accepted tools
• communication of the analysis and recommendations
• managing the research process in gathering the required information and data
• reflection on their analysis and research.

Please could you make the below amendments:

1) Please include in text referencing

2) Part A- please focus on NEDBANK as it requires to look into a certain organization.

3) Part B - please can you include competitors - Standard Bank, FNB and ABSA in the ratio section.

4) PART B- Ratio formulas- please calculate the ratios and elaborate on what they could be used for. Analyse the outcomes and what it measures.

5) Part B) Please calculate the WACC, NPV, IRR, profitable index, payback period and explain each of the.

6) Part C) Please discuss the method of budgets preparation. Please use an integration of rolling budgets and incremental budgets."