Coursework
"What is the most appropriate strategy for Throwback Ltd?"
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Introduction
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Throwback Ltd specialises in producing small gifts such as table
lamps and radios based on 20th Century designs. The company has
been trading for two years and their products are growing in popularity
after being featured in several national newspapers and on several
TV shows.
The Managing Director, Carol Cooper, oversees the following team:
Finance Director: Kelly Graham
Production Director: Francesca Ryan
Personnel Director: Stephanie Smythe
Marketing Director: Dennis Stone
Distribution Director: Ralph Staple
Carol has a personal assistant, Edna Dunwoody
Eleanor Yeo acts as secretary to the other directors
The company currently employs 15 production operatives who manufacture
the gifts using a batch production approach.
Throwback have three vans for delivery and employ a driver for
each.
Five people work in marketing: Two researchers, two designers and
a public relations expert.
Nobody is working in the finance or personnel departments except for
the two directors.
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Your Role
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A meeting of the directors will be held next week where the previous
year will be reviewed and the company will agree on a direction
for the year to come. You are an independent financial consultant
who has been hired by Kelly Graham to help her review the company's
finances and to make suggestions about the most appropriate direction
for the company. You have decided to produce a report of between
2,500 and 3,000 words, in the correct format.
Kelly has sent you the trading & profit and loss account for
the past year, along with the company's balance sheet. She has also
produced a first draft of a cash-flow forecast for next year.
Excel 95 spreadsheet
CSV format
To download, right-click on the link and choose 'Save Target
As...'
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Task One
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The Introduction - AO1
Write an introduction to your report that gives a brief overview
of the company, taking key information from the accounts. What are
the likely aims of the business? Do you think that Throwback are meeting
some of these aims? Again, base your judgements on any relevant evidence
that you have.
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Task Two
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The Company - AO1
Produce an organisation chart of the company. Comment on the shape
of the chart. Do you think that the structure is sensible? Make reference
to the span of control, the chain of command and anything else you
feel is relevant.
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Task Three
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The Role of Finance - AO1
The directors who will be reading your report, besides Kelly, have
a very limited understanding of the role of finance. Present an overview
of the benefits of accounting, explaining what we can learn about
a business from accounts and other financial study.
Do not base this discussion around Throwback's accounts yet, use other
examples.
It should go without saying, but if you simply copy and paste from
other pages on this site, you are unlikely to earn any marks.
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Task Four
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Studying the Accounts - AO2
Using the financial information from the past two years, present an
analysis of the company's performance. You should make sure you use
appropriate tools for analysing the accounts and explain any comments
you make about the strengths or weaknesses of the company's performance
to date. You should consider the use of graphs to help you present
financial information clearly to those directors who are perhaps a
little more phobic around numbers than you are.
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Task Five
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Sources of Finance - AO3
Kelly has mentioned to you that the directors are considering an
expansion of the business that will require the purchase of a new
building (approx £250,000), more machinery (approx £350,000)
and the employment of twenty new production operatives (approx £340,000).
This would probably happen in the second half of next year. These
plans have not yet been included in the cash flow forecast.
Kelly has asked you to research different sources of finance that
would be worth considering. She wants you to find out:
- The various sources available
- The businesses/banks etc who are currently providing finance
- The deals that are currently available (e.g. interest rates,
terms & conditions, time periods). Make sure you find more
than one provider for each source
- Advantages and disadvantages of different sources
As well as contacting finance providers, you ought to contact people
in business who have experience of similar situations (expansion,
raising finance, etc) and interview them to find out what they have
to say.
Make sure you analyse your information effectively and use an appropriate
range of presentation methods (tables, graphs, data collection sheets,
quotations)
List all of your sources of information clearly in a bibliography.
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Task Six
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The Evaluation - AO4
Using the evidence you have collected and the analysis of the accounts,
put together your final suggestions for the most suitable strategy
that Throwback should follow. Discuss any alternative strategies that
could be followed but mention why you decided that they weren't the
most appropriate. Make sure that each strategy is discussed in terms
of their advantages and disadvantages.
What do you think will be the results of the strategy that you have
proposed? What would you hope to see when you look at the accounts
in a year's time?
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