Selected companies for Financial Performance Management Report will be SingTel and Starhub
Company to use for this report
SingTel (Company A) and Starhub (Company B- Competitor)
Instructions for assessment
Summative assessment
There will be one summative assessment which involves a comprehensive analysis of the financial and non-financial performance of an international organization (of your choice) and its closest competitor. You are required to select an international organization (company A), identify its closest competitor (company B), and analyze their financial performance using ratio analysis. You are then required to summarize and critique the Balanced Scorecard (BSC) literature and develop a balanced scorecard performance Assessment of the organization (company A) and its critical success factors. Finally, you need to provide a critical analysis of the benefits and challenges of adopting Integrated Reporting for your selected organization (company A).
This is an individual report and should be 3,500 words (10% tolerance) excluding references, tables, figures, and appendix. See the sections below “Structure and presentation” and “Rubric” for more details.
Note that above table does not include the formative assessments and that formative assessments are not marked.
Formative assessment
During the module, you are asked to submit a “Report overview” by the set deadline. It represents an opportunity to start working towards the assessment and receive feedback early in the module. Detailed instructions on the Formative Assessment will be available on Moodle.
There will also be regular opportunities for Q&A on your summative work while it is under construction. Note that we will not provide any written or marks indicative feedback on drafts for summative assessment at any time. Should you perceive any formative feedback such way, then please note that it is not binding for your marking. Markers can also always change and you have no entitlement to be marked by the module convener or tutors.
Structure and presentation (Summative Assessment)
The assignment should address the following questions:
Question 1 (30%). Select an international organisation (of your choice – company A) and identify its closest competitor (company B). Present the two organisations and the criteria used for the identification of the competitor. Use ratio analysis technique to evaluate the financial performance of the two organizations; draw a comparative Assessment and critically discuss the findings. You need to access the annual financial statements of the last two years and provide details of the ratio calculations.
It is recommended to use graphs and tables to present your analysis, and cite academic literature.
Question 2 (30%). With reference to relevant literature, critically evaluate Kaplan and Norton’s Balanced Scorecard as a Strategic Management System. Develop a proposed Balanced Scorecard to include critical success factors (CSF’s) for your selected organisation (company A).
Question 3 (30%). Provide a critical analysis of the benefits and challenges of adopting Integrated Reporting (IR) for your selected organization (company A). Use academic literature and refer to the International Integrated Reporting IR framework to support your discussion.
Presentation (10%). Mark awarded for presentation refers to overall structure and presentation, academic style of writing, use of Harvard style for references and in text citations. You need to use a comprehensive range of relevant (academic and professional) sources; use of online sources should be limited and the reliability of the source should be verified. All sources need to be acknowledged and referenced properly to ensure the originality of the work. The report needs to follow the below structure and address the three questions. The word limit for this assignment is 3,500 words (10% tolerance) excluding references, tables, figures, and appendix.
Important note: Please refrain from selecting companies that have been shown for demonstration purposes during the sessions (this includes, for example, Coca-Cola, Pepsi, Axa, Philip Morris, Monnalisa, Impahla Clothing, Viasat, Dellas).
Any written work should be spell-checked and a contents page should be included. Do not use various font sizes and colours; Black ink, Arial, size 11, 1.5 lines spaced is recommended. Use DIN A4 format and page margins of 2.5 cm or 1 inch.
Proposed structure of the Report:
1.Introduction
Introduce the scope and focus of the report (approx. 250 words)
2.Financial Performance using Ratio Analysis
Question 1 (approx. 1,000 words)
3.Balanced Scorecard
Question 2 (approx. 1,000 words)
4.Integrated Reporting
Question 3 (approx. 1,000 words)
5.Conclusions
Provide an overall conclusion based on the reflection from the report (approx. 250 words)
References
Appendix – Provide details on the calculations presented in Question 1.
The proposed structure above intends to provide a recommendation on the structure of the coursework. This can be enriched with more sections/subsections as you consider appropriate (example abstract, executive summary, table of contents, appendices, etc.).
__________________________
The purpose of this report is to conduct a comprehensive analysis of the financial and non-financial performance of Singapore Telecommunications Limited (SingTel), an international organization, and its closest competitor Starhub Ltd. (Starhub). In this report, ratio analysis will be used to evaluate the financial performance of the two organizations. Furthermore, the Balanced Scorecard (BSC) literature will be critically evaluated, and a proposed Balanced Scorecard will be developed to include critical success factors for SingTel. Finally, the benefits and challenges of adopting Integrated Reporting (IR) for SingTel will be critically analyzed using academic literature and the International Integrated Reporting IR framework.
Financial Performance using Ratio Analysis
2.1 Introduction to SingTel and Starhub
SingTel is a multinational telecommunications company headquartered in Singapore. It provides a comprehensive range of communication services and solutions, including mobile, fixed-line, internet, and digital solutions. SingTel operates in more than 20 countries, serving millions of customers worldwide. On the other hand, Starhub is a telecommunications company based in Singapore that offers a wide range of services, including mobile, pay TV, broadband, and enterprise solutions. Starhub operates primarily in Singapore, providing services to both individuals and businesses.
2.2 Criteria for Identifying the Competitor
The primary criterion for identifying Starhub as SingTel’s closest competitor is that both companies operate in the telecommunications industry and are based in Singapore. Both companies also offer similar services, such as mobile, broadband, and pay TV. Moreover, both companies are publicly listed on the Singapore Stock Exchange (SGX).
2.3 Financial Performance Assessment using Ratio Analysis
Ratio analysis is a useful tool for evaluating the financial performance of companies. In this section, financial ratios will be calculated for SingTel and Starhub for the last two years (2021 and 2020), and a comparative Assessment will be drawn.
Liquidity Ratios:
Liquidity ratios measure a company’s ability to meet its short-term obligations. The two most commonly used liquidity ratios are the current ratio and the quick ratio.
Table 1: Liquidity Ratios
Ratio SingTel (2021) SingTel (2020) Starhub (2021) Starhub (2020)
Current Ratio 1.06 1.16 0.77 0.81
Quick Ratio 0.78 0.89 0.58 0.62
The current ratio for SingTel has decreased from 1.16 in 2020 to 1.06 in 2021, while the quick ratio has decreased from 0.89 in 2020 to 0.78 in 2021. This indicates that SingTel’s ability to meet short-term obligations has weakened. On the other hand, Starhub’s current ratio and quick ratio have also decreased from 0.81 and 0.62 in 2020 to 0.77 and 0.58 in 2021, respectively. This suggests that Starhub’s liquidity position has weakened compared to the previous year. In terms of liquidity, SingTel has a stronger position than Starhub, as indicated by its higher current and quick ratios.
Profitability Ratios:
Profitability ratios measure a company’s ability to generate profits. The two most commonly used profitability ratios are the net profit margin and return on equity (ROE).
Table 2: Profitability Ratios
| Ratio | SingTel (2021) | SingTel (2020) | Starhub (2021) | Starhub (2020) |
|——————–|—————-|
