Assignment brief:
Part 1: (weighting 50%, word count 2,000 words)
You have been asked to write a report to the board of directors of one of the selected companies listed on the Singapore Stock Exchange (SGX). The board of directors have asked you to write a report about your vision and strategic financial goals for the company.
Assume that your selected company has great ambitions and plan to become the largest in its sector or to double its current market share in the next 5 years. You need to introduce the company. discuss the product or services, location, turnover, number of employees, etc. The report should be maximum 2.000 words (+/- 10%). Remember you need to make an impression on the board of directors for you to be considered for the critical post of Finance Director.
The aim of this assignment is to test your knowledge and understanding of key accounting and corporate governance concepts, theories and tools that can be used to critically analyse organisations. It will also test your ability to analyse non-financial information.
Required:
(a) Write a report to the board of directors of the companies you have selected as a Finance Director. The board of directors have asked you to write a report about your vision and strategic financial goals for the company.
(b) Analyse the performance of your chosen company using relevant financial and non-financial ratios (5 years). Your analysis should include profit ratios. efficiency. liquidity. and other ratios that you consider relevant.
(c) Critically evaluate the company’s corporate governance compliance and its impact on the brand and reputation.
Report to the Board of Directors
Subject: Introduction and Strategic Financial Goals for [Company Name]
Dear Members of the Board of Directors,
I am writing this report to introduce myself and share my vision and strategic financial goals for [Company Name]. As a highly experienced finance professional with extensive expertise in accounting, financial analysis, and strategic planning, I am confident that I can bring significant value to your company as the next Finance Director.
Introduction to [Company Name]
[Company Name] is a leading [company sector] company, established in [year of establishment]. The company has a strong presence in [location] and serves customers in [geographical areas served]. [Company Name] has a talented and dedicated workforce of [number of employees] employees who are dedicated to delivering high-quality products and services to our customers. The company’s annual turnover is [annual turnover amount].
Vision and Strategic Financial Goals
As the next Finance Director of [Company Name], I believe that my role is to support the company’s vision and help to achieve its strategic financial goals. My vision for the company is to be the largest player in the [company sector] sector, or to double its current market share in the next 5 years.
To achieve this vision, I have identified several strategic financial goals that I believe are critical to our success:
Improving profitability: I believe that we can improve our profitability by focusing on cost control, optimizing our pricing strategy, and improving our product mix.
Increasing efficiency: By streamlining our processes, reducing waste, and improving our technology infrastructure, I believe that we can increase our efficiency and lower our costs.
Enhancing liquidity: I believe that we need to focus on improving our cash flow, reducing our debt levels, and increasing our reserves to ensure that we are well positioned for future growth.
Strengthening our brand and reputation: I believe that we need to focus on building our brand and reputation, both internally and externally, to ensure that we are well positioned for future growth.
Financial Performance Analysis
To understand the current financial performance of [Company Name], I have conducted a comprehensive analysis of the company’s financial statements and other key financial ratios.
Profitability Ratios: Over the past 5 years, [Company Name] has consistently generated positive net income, with a return on equity (ROE) of [ROE value] and a return on assets (ROA) of [ROA value]. These ratios demonstrate the company’s ability to generate returns for its shareholders.
Efficiency Ratios: [Company Name] has consistently demonstrated strong operational efficiency, with an average asset turnover ratio of [asset turnover ratio value] and a low days sales outstanding (DSO) of [DSO value]. These ratios suggest that the company is effectively managing its assets and collecting its accounts receivable in a timely manner.
Liquidity Ratios: [Company Name] has a strong liquidity position, with an average current ratio of [current ratio value] and a quick ratio of [quick ratio value]. These ratios suggest that the company has sufficient short-term assets to cover its short-term liabilities.
Other Relevant Ratios: [Company Name] has consistently maintained a high level of solvency, with a debt-to-equity ratio of [debt-to-equity ratio value]. Additionally, the company has consistently generated positive free cash flow, which demonstrates its ability to generate cash for reinvestment and growth.
Corporate Governance Compliance
[Company Name] has a strong commitment to corporate governance, and the company complies with all relevant laws and regulations. The company has a well-
structured board of directors and an effective internal control system, which ensures that all business activities are conducted in a transparent and ethical manner. The company also has a code of conduct and ethics in place, which sets standards for the behavior of employees and directors.
The impact of corporate governance compliance on the brand and reputation of [Company Name] cannot be overstated. A strong commitment to corporate governance enhances the company’s reputation and strengthens its brand, which can lead to increased customer trust and loyalty. This, in turn, can result in increased sales and revenue, as well as a more favorable investment climate.
In conclusion, my vision and strategic financial goals for [Company Name] are focused on improving profitability, increasing efficiency, enhancing liquidity, and strengthening our brand and reputation. I believe that by executing these goals effectively, [Company Name] can become the largest player in the [company sector] sector or double its current market share in the next 5 years. I am confident that I have the skills and experience needed to drive these results and help the company achieve its full potential.
Thank you for considering my report, and I look forward to the opportunity to discuss my vision and strategic financial goals for [Company Name] further.
Sincerely,
[Your Name]
