Interim/Final: Assessment code: Academic Year: Semester:
Module Title: Module Code:
Module Leader: Weighting:
Word Limit: Submission Date:
Managing Finance and Operations MOD005487
This assignment must be received by no later than 14:00 on Friday, 18 May 2018
WRITING YOUR ASSIGNMENT:
This assignment must be completed individually.
You must use Harvard referencing system.
Your work must indicate the number of words you have used. Written assignments must not
exceed the specified maximum number of words. When a written assignment is marked, the excessive use of words beyond the word limit is reflected in the academic judgement of the piece of work which results in a lower mark being awarded for the piece of work (regulation 6.70).
Assignment submissions are to be made anonymously. Do not write your name anywhere on your work. Write your student ID number at the top of every page.
Where the assignment comprises more than one task, all tasks must be submitted in a single document.
You must number all pages. SUBMITTING YOUR ASSIGNMENT:
In order to achieve full marks, you must submit your work before the deadline. Work that is submitted late – up to five working days after the published submission deadline – will be accepted and marked. However, the element of the module’s assessment to which the work contributes will be capped with a maximum mark of 40%.
Page 1 of 5
Work cannot be submitted if the period of 5 working days after the deadline has passed (unless there is an approved extension). Failure to submit within the relevant period will mean that you have failed the assessment.
Requests for short-term extensions will only be considered in the case of illness or other cause considered valid by the iCentre Adviser. Please contact iCentre@lca.anglia.ac.uk. A request must normally be received and agreed by the iCentre Adviser in writing at least 24 hours prior to the deadline. See rules 6.54-6.62: http://web.anglia.ac.uk/anet/academic/public/academic_regs.pdf
Mitigation: The deadline for submission of mitigation in relation to this assignment is no later than five working days after the submission date of this work. Please contact iCentre@lca.anglia.ac.uk
See rule 6.103: http://web.anglia.ac.uk/anet/academic/public/academic_regs.pdf
Scenario: New LifeTraining Plc
New Life Training is a growing company with an authorised and issued share capital of £50m paid up £1 ordinary shares and retained earnings of £10m. There are 20 shareholders each have identical share holdings.
Sobia Schburt, the managing director, has a vision of the company floating on the London Stock Exchange within 5 years and is embarking on a strategy of growth to achieve this five year target.
Currently the company offers after school tuition throughout the UK in all core academic subjects and across all age groups from 5 year to 18 years of age.. This market is buoyant and is expected to grow significantly year on year.
The existing business model places New Life as the Quality Control and curriculum designer of courses with delivery in the hands of franchise holders who pay a fee to New Life. However the operational aspects of this arrangement have been given insufficient attention by the Board of Directors and as a consequence the Grimsby franchise appointed inappropriate tutors leading to complaints, closure of the franchise and subsequent litigation. Litigation was settled out of court through their professional indemnity insurers.
The Board are reviewing its policies and procedures and the final phase will be to build a small, bespoke training centre in East London where the following activities may take place:
Compulsory Franchisee Training
Evening sessions for East London school children
Private letting of facilities to community groups
It is possible for each type of activity to run concurrently (i.e. all client groups may be in the building).
Page 2 of 5
This small building is on land owned by the company and has planning permission. It has an estimated build and set up cost of £1,100,000 plus a reserve for over runs and snagging of £100,000. The building will be debt financed but the source and cost has yet to be determined.
The building with be staffed by 4 Full Time Equivalent (FTE) tutors costing £30,000 each pa and 2 FTE administrators costing £18,000 each pa. Overheads, including cleaning and power are estimated to be £30 per day irrespective of whether the building is open or not.
Tutor costs may be allocated to client groups based upon planned sessions.
For planning purposes the working year is split into a maximum of 600 staffed sessions.
The company has a Ke of 10% and Kd 6% with 50% gearing prior to raising additional capital for the building
Activity estimates agreed by the Board as :
2017/18 2018/19 2019/20 2020/21
Expected Activity (Sessions)
316 364 584
Private Hire 100 100 100 16
Total (max 600) 338 416 464 600
Student session Per session
£60 £60 £60 £60 £8 £9 £10 £15
£180 £180 £180 £400
Customers per session
Private Hire sessions do not require tutors and the 2020/21 figures are assumed to remain stable for another 6 years
As the recently appointed Development Manager you have been asked to prepare detailed report for the board covering:
Page 3 of 5
a) An evaluation of operational and regulatory factors to be considered by the board 25%
This requires research into the relevant environment and application of operations management theory.
b) Estimate the Income and Expenditure projections for the first 4 years incorporating any operational and regulatory costs you feel the proposal may be missing.
This requires identification and evaluation of alternative sources of finance.
c) A critical evaluation of the financial worth of the current proposal AND an alternative evaluation including all costs and revenues you deem to be appropriate. 40%
Contribution analysis, breakeven, payback, ARR and NPV should be applied to the case materials alongside your critical challenge to the proposal with associated re-modeling of financial plans. Critical evaluation is as important as the technical analysis.
d) A detailed and fully evaluated conclusion with clear recommendations for the board to consider 10%
For assessment purposes marks will be awarded for style, layout and structure 10%
In developing your revised proposal you are encouraged to review all aspects such as pricing, operational costs, financing, cost of capital.
Using the information in the scenario
Create a Management report of 4,000 words (excluding appendices).
The report must demonstrate critical analysis and application of appropriate, concepts, models & techniques from the module materials.
Create a business case for the Board clearing stating and justifying your recommendations
The analysis must be supported by academic theories and concepts and the paper must comply with the format stated above and Harvard referencing guidelines. The reflection must not be descriptive in nature; it should provide clear evidence of understanding of the issues under consideration with an applied review of the business provided in the task scenario. IT IS ESSENTIAL YOU APPLY THEORIES AND CONCEPTS AND NOT JUST EXPLAIN THEM.
There is no correct number of academic references to be utilised as the student must draw as many references as required to provide a high quality answer. However, a minimum of 12 academic sources are expected, and a majority of these should be
Page 4 of 5
current, internationally peer reviewed articles/journals or accredited textbook references. Sources such as Wikipedia and the like are not accepted. Sources available only online should be avoided.
You must be mindful of how marks are allocated based on your ability to define, analyse and apply the key concepts. The chart below demonstrates how the marks (in percentages) will be allocated according to the criteria shown.
50 40 30 20 10
Mark Distribution for
You will notice that without any analysis or evaluation you may struggle to pass the module and note that the majority of the weighting in the marks is on analysis. Similarly, if you only demonstrated understanding and application the highest mark that you could achieve is 35%. These marks are distributed across the following criteria.
Page 5 of 5