Reference no: EM132269683 , Length: word count:2500

Accounting for Managers Assignment -

Shareholders and lenders, whilst not being the only stakeholders, provide capital to companies because they seek a return commensurate with the level of risk that they are willing to take.

It is within this context that the price of PSA Groupe ordinary shares has experienced a mixed performance over a number of years. The last ten year's share price performance can be seen on the graph (attached).

In the world recession of 2008/2009 the share price fell to a low of €8.20 and then made a recovery. However, in 2012 the share price fell to an all-time low of €3.64 before climbing to a price of €19.75 on 27/09/17.

PSA Groupe is the manufacturer of European car brands such as Peugeot and Citroen and in 2017 also acquired the Opel and Vauxhall brands from General Motors. It is the second largest car manufacturer in the European car market, after Volkswagen, and currently has about 17% of the market

You are required to do as follows:

Task One - Using the Annual Report and Accounts of PSA Groupe for the following years (Only 5 years 14 to 2018)

You should:

(a) Evaluate the performance of PSA Groupe in the following areas, using ratio analysis: for 5 years

- Profitability

a) Gross Margin

b) Net operating margin

c) Return on Capital employed

d) Return on Shareholders' Funds

- Liquidity/Solvency

a) Current Ratio

b) Acid Test

- Working capital efficiency

- Long term financial structure

a) Gearing

b) Interest Cover

- Investors' perspective

When completing Part (a) take the following into account:

1. 5 years of analysis would be worthwhile.

2. Benchmarking to at least one competitor

3. Make sure that you explain why the ratios are changing and what the implications or conclusions of this are.

4. Don't forget to comment on the views of specific stakeholders.

5. Contemplate your presentation. This work lends itself to the use of graphs, charts, tables and so on.

Task Two - Considering your response to Task One, and any further reading, you are required to provide advice, accompanied by rationale, as to whether you would recommend a buy, sell or hold (if they are already owned) policy for investors/potential investors in PSA shares.

Task Three - You are required to follow the link below and to read the material concerning the production process and philosophy followed by PSA Goupe. There are also some very informative and interesting videos within the link.

Required: You must critically discuss the philosophies and approaches of the PSA manufacturing process and compare and contrast it with the theories and practices advocated and championed by the renowned Toyota Production System (TPS).

In addition, you should also consider, and comment on, the potential downsides of such philosophies in today's turbulent global vehicle manufacturing environment?

Appropriate credible academic and practitioner literature sources must be used to support your critical analysis and the Harvard style of referencing must be adopted.

Learning Outcomes specifically assessed:

Subject Specific Knowledge and Skills -

1. Identify and critically appraise the different components of a financial report, and assess the adequacy of current international financial reporting requirements for a greater understanding of company performance.

2. Analyse and interpret financial data and information, evaluate their relevance and validity, and synthesise a range of information in the context of business situations.

3. Demonstrate the ability to use conventional management accounting and financial management techniques to produce appropriate information for management to aid planning, control and decision making.

4. Evaluate the usefulness of contemporary management accounting techniques in measuring business performance.

5. Critically appraise management accounting techniques with respect to their effectiveness and identify any weaknesses inherent in their use.

Non Subject Specific and Cognitive Skills -

1. Manage own learning, using the available range of resources, and ability to conduct research into business and management issues.

2. Ability to collect relevant information relating to a given situation, analyse that information and synthesise it into an appropriate form in order to evaluate decision alternatives.

3. Demonstrate a practical and integrative approach to a problem area or issue.

4. Demonstrate rigour of academic arguments as well as the application of theory.

Attachment:- Assignment File.rar