Strategic changes and firm performance

SEMESTER 2, 2017

ASSIGNMENT - ACCOUNTING

STRATEGIC CHANGES AND FIRM PERFORMANCE

ASSIGNMENT REQUIREMENTS

1. The following is a list of companies from the latest ASX 100. These companies were carefully chosen to suit this project and the learning outcomes of the unit.

i. Wesfarmers Limited. ASX code: WES 


ii. Woolworths Limited. ASX code: WOW 
------(my Company of choice)

iii. Domino's Pizza Enterprises Limited. ASX code: DMP 


iv. Coca-Cola Amatil. ASX code: CCL 


v. Bluescope Steel Limited. ASX code: BSL 


vi. CSR Limited. ASX code: CSR 


2. You are encouraged to analyse the company of your choice beyond the financial figures. It is advisable to look for further information on ASX 100 (e.g., from www.asx.com.au and www.marketindex.com.au/asx100), and from the company’s own website. 


ASSIGNMENT QUESTIONS

1. Analyse the behaviour of any three significant items in the income statement for the period of five years. Discuss whether your organization’s performance relating to these items appears to be improving, deteriorating, or remaining stable over this period. Explain why you selected those items and what you recognize as the most relevant strategic reasons for the trend/s that you have recognized. 
Justify your answer. 


2. Analyse the behaviour of any three significant items in the balance sheet for the period of five years. Discuss whether your organization’s performance relating to these items appears to be improving, deteriorating, or remaining stable over this period. Explain why you selected those items and what you recognize as the most relevant strategic reasons for the trend/s that you have recognized. 
Justify your answer. 


3. Analyse cash flow statements of the last five years and explain any three major changes which have occurred in relation to investing, financing and/or operating activities of the business.
Justify your answer. 


4. Calculate two relevant ratios under the four chosen ratio categories (profitability, leverage, solvency, operational efficiency or market ratios) for the period of five years. Give conclusions for your ratio analyses based on the figures you have derived. 


5. Identify any two items not included in (or derived from) the financial statements that you think would be important to someone considering whether the organization is performing well. Discuss your reasons for believing that these two items about the company would be important in making an investment decision. 
(HINT: you might want to consider items discussed in other sections in this unit) 


NOTE

· Your assignment should be in the form of business report (please refer to the document provided). Your report should include:

· −  an executive summary (not more than 200 words) 


· −  an introduction (not more than 150 words) 


· −  answers to the given questions written in the body paragraphs, with appropriate headings, subheadings, etc. 


· −  a conclusion (not more than 150 words) 


· −  an appendix with excel data provided for financial statements and relevant 
calculations such as:

· a)  Horizontal and/or vertical analysis (which outcomes should support choice 
of discussed items in questions 1, 2 and 3) 


· b)  Ratio analysis (including formulas and calculations) 
Please use Microsoft Excel to perform the financial statement analysis. 


· Your analysis should be limited to a maximum of seven (7) pages and a minimum of five 
(5) pages. This is equivalent to no more than 1,800 words (excluding the cover page and 
references) 


· Write as if you are a management advisor preparing an advice for a client (who is the 
manager of the company). 


· Give your report an adequate title and plan appropriate headings for easy reading – 
Consider your audience when writing your report. 


· The assignment must be prepared using a word processor on A4 paper. Make sure you 
choose a legible font face and size (e.g. Times New Roman 12 or Arial 11 would be 
sufficient) and double-spaced. 


· All graphs (highly recommended for this analysis) should be drawn with an aid of a 
suitable software tool or package, and appropriately referenced. 


· Handwritten assignments will not be accepted. 
SUBMISSION REQUIREMENTS