Assignment Brief

BA (Hons.) International Business & Finance

Academic Year 2018-19
Module Information:
Qualification: BA (Hons.) International Business & Finance

Module Code & Title: BAIBF 10019 Strategic Financial Management

Assignment Title: Individual Report

Component Weighting: 30%

Date of Issue:18 Sept 2018 Due date:26Oct 2018, 5 PM

To be filled by the student:

Student ID: 3201BA16

Date of Submission:26/10/2018

*All work must be submitted on or before the due date. If an extension of time to submit work is required, a Mitigating
Circumstance Form must be submitted.

Has an extension been approved? Yes No

If yes, please provide the new submission date ….…/.…./……., and affix appropriate evidence.

First Marker: Second Marker:

Agreed Mark: Refer: Yes / No

General Guidelines
1. A Cover page or title page – You should always attach a title page to your assignment. Use
previous page as your cover sheet and be sure to fill the details correctly.
2. This entire brief should be attached in first before you start answering.
3. All the assignments should be prepared using word processing software.
4. All the assignments should print in A4 sized paper, and make sure to only use one side
printing.
5. Allow 1” margin on each side of the paper. But on the left side you will need to leave room for
binding.
6. Ensure that your assignment is stapled or secured together in a binder of some sort and send
the Softcopy of your final document to assignment.bahons2016@gmail.com
7. The submission of your work assessment should be organized and clearly structured.
Word Processing Rules
1. Use a font type that will make easy for your examiner to read. The font size should be 12
point, and should be in the style of Times New Roman.
2. Use 1.5-line word-processing. Left justify all paragraphs.
3. Ensure that all headings are consistent in terms of size and font style.
4. Use footer function on the word processor to insert Your Student ID, Name, Subject, Module
code, and Page Number on each page. This is useful if individual sheets become detached
for any reason.
5. Use word processing application spell check and grammar check function to help edit your
assignment.
6. Ensure that your printer’s output is of a good quality and that you have enough ink to print
your entire assignment.
Important Points:
1. Check carefully the hand in date and the instructions given with the assignment. Late
submissions will not be accepted.
2. Ensure that you give yourself enough time to complete the assignment by the due date.
3. Don’t leave things such as printing to the last minute – excuses of this nature will not be
accepted for failure to hand in the work on time.
4. A printed version of the assignment needs to be submitted physically along with
ansoftcopymailed to the email mentioned above on or before the stated deadline.
5. You must take responsibility for managing your own time effectively.
6. If you are unable to hand in your assignment on time and have valid reasons such as illness,
you may apply (in writing) for an extension.
7. Non-submission of work without valid reasons will lead to an automatic REFERRAL. You will
then be asked to complete an alternative assignment.

STUDENT NAME- ASHLIN ANN THOMAS

STUDENT ID- 3201BA16
SUBJECT- SFM
SUBJECT CODE- BAIBF 10019 Page 2
 8. Take great care that if you use other people’s work or ideas in your assignment, you properly
reference them in your text and any bibliography, otherwise you may be guilty of plagiarism.

Statement of Originality and Student Declaration

I hereby, declare that I know what plagiarism entails, namely to use another’s work and to present it
as my own without attributing the sources in the correct way. I further understand what it means to
copy another’s work.
1. I know that plagiarism is a punishable offence because it constitutes theft.
2. I understand the plagiarism and copying policy of the University of the West of Scotland.
3. I know what the consequences will be if I plagiaries or copy another’s work in any of the
assignments for this program.
4. I declare therefore that all work presented by me for every aspect of my program, will be my
own, and where I have made use of another’s work, I will attribute the source in the correct
way.
5. I acknowledge that the attachment of this document signed or not, constitutes my agreement
on it.
6. I understand that my assignment will not be considered as submitted if this document is not
attached to the attached.

Student’s Signature: Date:

STUDENT NAME- ASHLIN ANN THOMAS

STUDENT ID- 3201BA16
SUBJECT- SFM
SUBJECT CODE- BAIBF 10019 Page 3
TASK

Choose an industry of your type - either manufacturing sector or service sector

Within the industry choose a company of your type.

The company wants to critically evaluate its financial strategies through Behavioural Finance
keeping in mind the following:

 Customers will be the primary focus. Company will be determined to provide them with an
unbeatable service, whilst rapidly identifying and serving their everchanging needs &
deliver superior returns to shareholders and provide unique and satisfying opportunities
for their people.
 Ensure that all retained assets produce acceptable returns.
 Divest businesses which do not contribute to value creation, and/or are no longer core to
the company's strategy.
 Conclude as rapidly as practicable the review of the strategic alternatives available to
company.
 Continue to improve efficiency and reduce costs through business improvement projects
which include employee development and training programmes.

Total word Limit: 1500

STUDENT NAME- ASHLIN ANN THOMAS

STUDENT ID- 3201BA16
SUBJECT- SFM
SUBJECT CODE- BAIBF 10019 Page 4
 SUZUKI

STUDENT NAME- ASHLIN ANN THOMAS

STUDENT ID- 3201BA16
SUBJECT- SFM
SUBJECT CODE- BAIBF 10019 Page 5
INTRODUCTION

Suzuki Motor Corporation is a Japanese multinational corporation headquartered in the city

of Minami-ku, Hamamatsu. Suzuki manufactures automobiles, four-wheel drive
vehicles, motorcycles, all-terrain vehicles (ATVs), outboard the marine
engines, wheelchairs and a variety of other small internal combustion engines. In the year
2014, Suzuki was the ninth biggest automaker by production worldwide. Suzuki has over
45,000 employees and has 35 production facilities in 23 countries and 133 distributors in 192
countries. The worldwide sales volume of the automobiles is the world's tenth largest, while
domestic sales volume is the third largest in the country.

BEHAVIOURAL FINANCE
Behavioral finance, is a sub-field of behavioral economics, proposes psychology-based
theories to explain stock market anomalies, such as severe rises or falls in stock price. The
purpose is to identify and to understand why people make certain financial choices. Within
the behavioral finance, it is assumed the information structure and the characteristics of
market participants systematically influence the individuals' investment decisions as well as
market outcomes.

FINANCIAL OBJECTIVES

A company's financial needs or goals for the future Corporate financial

planning involves identifying these financialobjectives and determining how to achieve them.
Simply put, the main financial objective is to make money, butfinancial objectives often also
determine the amount that is needed or desired, the timeframe in which it must bemade, and
how the money will be spent. This can be a complicated process.

FINANCIAL OBJECTIVES OF SUZUKI

 Revenue Growth

Increasing revenue is the most basic and fundamental financial objective of any business.
Revenue growth comes from an emphasis on sales and marketing activities, and is solely
concerned with increasing top-line earnings – earnings before expenses. Companies often set
revenue goals in terms of percentage increases rather than aiming for specific dollar amounts.

STUDENT NAME- ASHLIN ANN THOMAS

STUDENT ID- 3201BA16
SUBJECT- SFM
SUBJECT CODE- BAIBF 10019 Page 6
An entrepreneur may set an objective of increasing revenue by 20 percent each year for the
first five years of a new company's operations, for example.
 Profit Margins

Profit objectives are a bit more sophisticated than revenue growth goals. Any money left over
from sales revenue after all expenses have been paid is considered profit. Profit, or bottom-
line earnings, can be used in a number of ways, including investing it back into the business
for expansion and distributing it among employees in a profit-sharing arrangement. Profit
goals are concerned first with revenue, then with costs. Keeping costs low by finding and
building relationships with reliable suppliers, designing operations with an eye toward lean
efficiency and taking advantage of economies of scale, to name a few methods, can leave you
with more money after paying all of your bills.
 Sustainability

At certain times, companies or brands may be primarily concerned with basic economic
survival. Retrenching is a marketing technique – based on a financial objective – that
attempts to keep a brand alive and keep current revenue and profit levels from falling any
further during the “decline” stage of the product/brand life cycle.

Companies may be concerned with financial sustainability during periods of economic

turmoil, as well. Common financial objectives for survival include collecting on all
outstanding debts on time and in full, de-leveraging by paying off debt and keeping income
levels consistent.
 Return on Investment

Return on Investment is a financial ratio applied to capital expenditures. ROI can be applied
to two basic scenarios. First, ROI is concerned with the return generated by investments in
real property and productive equipment. Business owners want to make sure that the
buildings, machinery and other equipment they buy generates sufficient revenue and profit to
justify the purchase cost.

Secondly, ROI applies to investments in stocks, bonds and other investment instruments. The
same principle applies to these investments, but there is generally no physical, productive
asset used to generate a return. Instead, ROI for investment products is calculated by
comparing the dividends, interest and capital gains realized from investments by the cost of
the investment and the opportunity cost of forgoing alternative investments.

STUDENT NAME- ASHLIN ANN THOMAS

STUDENT ID- 3201BA16
SUBJECT- SFM
SUBJECT CODE- BAIBF 10019 Page 7
CORPORATE STRATERGIES
The overarching strategy of a company developed by its leadership that reflects its mission
and core values in its goals and underlying business strategies for achieving them. The
corporate strategy provides clear direction for all the business units working
in concerto meet shareholder expectations while providing value to
their customers and employees.

CORPORATE STRATERGIES USED BY THE COMPANY

The manufacturing industry has many challenges that some other industries do not have. As a
result of these challenges, business leaders in the manufacturing industry need to have a
strategic business plan in place to navigate any problems that may arise. Strategic
management is essential to operating an efficient, successful manufacturing enterprise.

 Agenda

Setting the agenda is the first step in developing a strategic management plan for a
manufacturing business. Meetings should help determine the agenda of the forthcoming
strategic management plan. The leaders of the business should be the key participants in such
meetings. This phase should be all about determining in which direction the new strategic
management plan should guide the firm. Group unity is essential to have a functioning plan in
place.

 Strategic Planning

Strategic planning is the phase of manufacturing strategic management where the leaders of
the company begin to determine how the agenda laid out in the previous stage will be
executed and why desired results can and should be attained as a result. Company leaders
may seek the professional assistance of strategic planning consultants during this phase to
help ascertain the best way of moving forward with the agenda. The strategic planning phase
is an important period to set early benchmarks with which to measure the success of the
strategic management plan.

 Plan Implementation

STUDENT NAME- ASHLIN ANN THOMAS

STUDENT ID- 3201BA16
SUBJECT- SFM
SUBJECT CODE- BAIBF 10019 Page 8
Implementing the plan occurs only after proper agenda setting and strategic planning is in
place. It is essential for manufacturing personnel and operations management to frequently
test the real-world results versus the expected results of the strategic management plan.
Proper strategic management in the manufacturing business should also inquire why the
results attained vary, whether positively or negatively, from the strategic management plan's
expected results. This information is vital in adjusting the strategic management plan.

 Plan Evaluation and Adjustment

The information gleaned from monitoring and deciphering the success or failure of the
strategic management plan is a vital piece of manufacturing strategic management. This
information directly affects how the leaders of the business evaluate the plan and adjust the
plan to fine-tune the results achieved. This adjustment is a key component of a successful
long-term manufacturing strategic management plan.

COST REDUCTION STRATERGIES OF THE COMPANY

 Reduce Labor Costs

If physical labor is the biggest expense in manufacturing your product, controlling labor costs
will give you the quickest path to increased profits. Labor cost reductions can be generated by
lowering the dollars paid to factory workers or by making workers more efficient. Although
low-cost labor can be obtained by employing unskilled labor, another way to decrease labor
costs is to improve the efficiency of experienced labor. Study all production practices to
eliminate wasted steps in the process. Reduce the time required to produce an average unit by
providing specialized training that allows employees to work at a faster pace. Offer incentives
to employees who can introduce labor-saving techniques into your production facility.
 Reduce Material Costs

When material costs dominate product expense, focus on ways to procure materials for less
money or find ways to use less material in the building process. Purchase materials in large
lots to drive down unit costs. Research and determine the right type of material required; if
features are not vital to the function or quality of your goods, don’t pay for them. Provide
documentation, training and proper tooling to reduce the amount of material scrapped during

STUDENT NAME- ASHLIN ANN THOMAS

STUDENT ID- 3201BA16
SUBJECT- SFM
SUBJECT CODE- BAIBF 10019 Page 9
production. Deploy lean manufacturing initiatives such aslike Six Sigma to evaluate
opportunities for savings.
 Reduce Overhead Costs

Monitor and control the expenses associated with running the factory – often referred to as
overhead costs. Building, utility, supply, storage, handling, travel, supervisory and
administrative costs all add to manufacturing costs. Set budgets for these support costs and
review them on a weekly, monthly and yearly basis. Research purchase versus rental options
for cost savings. Limit employee costs to those that benefit production or increase sales. Keep
debt and interest expense as low as possible. Review and shop for the lowest employee
benefit costs each year. Monitor tooling and supply costs, and keep them in a secure area to
deter loss.
 Invest in Capital

Sometimes the way to save money is to spend money. Investing in equipment that makes the
manufacturing process faster can actually lower the production costs in the long run.
Likewise, machinery that uses less material can also lower costs. However, it is imperative to
thoroughly research potential capital investment benefits versus costs required before
purchasing new equipment. Determine the return on investment by computing the gain from
the investment less the cost of the investment divided by the cost of the investment.

IMPROVING QUALITY STRATERGIES OF THE COMPANY

 Create a culture of quality. Abnormalities in parts or inefficiencies in

manufacturing processes exist on any plant floor, but operators may hesitate to
point them out for fear it will reflect poorly on the quality of their work. Instead,
quality departments and executive management should create a culture where
suggestions for improvements—large or small—are welcomed and praised. This
will not only encourage employees to offer suggestions, but also ultimately lead to
improved manufacturing and quality, based on the recommendations.
 Work with suppliers.
Relationships between OEM manufacturers and their suppliers have continued to
change drastically, shifting from one manufacturer juggling multiple suppliers to a single
supplier supporting multiple manufacturers. Even though this is a more efficient

STUDENT NAME- ASHLIN ANN THOMAS

STUDENT ID- 3201BA16
SUBJECT- SFM
SUBJECT CODE- BAIBF 10019 Page 10
business model for manufacturers, it creates a scenario where issues with a single
supplier affect multiple manufacturers and multiple part lines. Working closely with
suppliers enables manufacturers to understand the supplier’s internal processes and
offer ways to improve the quality of the component parts so they meet the
manufacturer’s quality standard
 Use technology to connect the supply chain.
With a global supply chain, it becomes increasingly difficult to know what is happening
at each facility or supplier. Utilizing leading technologies, such as the cloud or mobile
devices, helps to connect the supply chain,making it possible for operators and
inspectors within a manufacturer’s facility or the relevant supplier to input data from
anywhere, using any mobile device. The data populate a centralized database for
personnel to review and analyze, while sending real-time notifications to management,
even when they are off-site.
 Demand more than an inspection report. Traditionally, manufacturers had
to rely on a paper report and the word of their suppliers that the parts received
met the OEM’s high quality standards. Today, it’s not enough to trust this
process. Manufacturers must have visibility into supplier operations to
understand what’s occurring within the manufacturing processes, ensuring
appropriate testing is being conducted and confirming the results meet the
OEM’s high quality standards. Real-time visibility created through cloud-based
quality systems offers a complete view of supplier operations, removing the need
to re-inspect incoming parts.
 Leverage manufacturing intelligence. Data gathered in-process offer a
second tier of information, or manufacturing intelligence, that can be used to
increase efficiency and quality across the enterprise and supply chain. Utilizing
advanced data analysis software, it’s possible to compare site to site or supplier to
supplier, identifying areas for improvement. If one facility is running an identical
process significantly more efficiently than another, the information could be
shared with the second site to enable process improvement. Extending this
learning opportunity across a manufacturing environment helps to increase
overall effectiveness and improve variation across operations.

 Drill down through data to reduce warranty claims and recalls.

STUDENT NAME- ASHLIN ANN THOMAS

STUDENT ID- 3201BA16
SUBJECT- SFM
SUBJECT CODE- BAIBF 10019 Page 11
Manufacturing intelligence enables the enterprise to drill down through manufacturing
data from within the OEM business and the supply chain to identify when, where, and
how defective parts were made. If a product was returned within the warranty period
because of a defective part, quality software can be used to identify whether the return
was due to a supplier or material inconsistency. With the source of the issue identified,
enterprises can put measures in place to prevent the same issue in the future.

CONCLUSION

This is a automobile industry and this is one of the largest vehicle manufacturers of India.
The company’s financial objective contains of profit margin, sustainability, ROI and in
corporate stratergies they discusses about the stratergic planning and plan implementation.
The company mainly focuses on some specific areas like quality improving, how to attract
customers, cost reduction etc.

REFERENCE

23/10/2018

CORPORATE STRATERGIES DEFENITION- INVESTOPEDIA -10.AM

FINANCIAL BUSINESS OBJECTIVE- CHRONE.COM- 12.30PM

ANNUAL REPORT OF MAHINDRA & MAHINDRA- 3.45PM

STUDENT NAME- ASHLIN ANN THOMAS

STUDENT ID- 3201BA16
SUBJECT- SFM
SUBJECT CODE- BAIBF 10019 Page 12
STUDENT NAME- ASHLIN ANN THOMAS
STUDENT ID- 3201BA16
SUBJECT- SFM
SUBJECT CODE- BAIBF 10019 Page 13