End Outcome: An analysis report of a company’s financial position and pro forma financial statements. Industry Chosen: Adidas Put yourself in the role of founder and/or CEO. The main purpose of this assessment is to test your ability to critically evaluate a financial position and identify possible challenges that the business may face. You are required to analyse the company’s financial strategy its business model and its pricing strategy and then develop appropriate proforma financial statements. In particular your report should include the following: Paragraph One: Introduction Paragraph Two: A brief description of the business model and pricing strategy Paragraph Three: The current and projected costs Paragraph Four: Break even analysis Paragraph Five: Proforma financial statements (i.e. Profit and Loss (Income statement), Balance sheet, Cash Flow Statement) Paragraph Six: Sales Forecasts for the short to medium term Paragraph Seven: Identification of potential challenges the company may face, based on the financial statements and projections Paragraph Eight: Conclusion References Criteria & Notes: Naturally, you might not have a lot of data to back you, and a large part of your projections will be assumed, based on estimates and approximation. That is perfectly fine. But do ensure you highlight all the major components of each of these elements, and provide a thorough analysis. A report like this is useful for potential investment pitches, or for strategy. It is required that you make it clear in the beginning who your audience is, and what the purpose of this report is. Hints: • Preferably select a company with a business model that isn’t too complex. Remember, the objective of this exercise is to apply your learning from this unit, and be able to put it into practice. You are not assessed based on the financial information, but rather how you apply the frameworks and knowledge that you have learnt in the unit.
• When presenting a financial statement, be sure to provide both the actual statement document (attached as an appendix) as well as a description or analysis of that particular statement. • You may use data from related companies / industries, or competitors to guide your own projections, just as one might do in a reallife situation. • Choose a business and financial position that is contemporary and relevant. For instance, assume you were to choose, say McDonald’s as your company. Of course, the market in 2016 might be vastly different from what it was back in 1955. Keep it simple and assume you were starting a similar company in this day and age. • You might want to use tools such as MS Excel or various online tools. Use tables and diagrams where required. Criteria: Designs original financial reports and financial information packages to support decision makers (30%) Welldeveloped reports and financial information is evident. Discussion is evident Identifies financial challenges through the analysis of financial reports and information (30%) Financial challenges clearly identified through the use of effective analysis and critique Critically evaluates the financial position of a company (15%) Very good evaluation of the company’s position is clearly evident. Originality evident