a GROUP NUMBER 01 NAME OF All STUDENTS 1, Pham Hai Linh (I3D – 3357) 2, Nguyen Thi Minh Chau (I4D - 4229) 3, Do Duc Hoa (I4C - 3346) 4, Nguyen Dat Khue (I4C - 4074) 5, Bui Son Bach (I4C) REGISTRATION NO UNIT TITLE Unit 2: Managing Financial Resources and ASSIGNMENT TITLE Group Assignment ASSIGNMENT NO 2 of 3 NAME OF ASSESSOR HAFITAH MANSOR SUBMISSION DEADLINE 14 th December 2009 We, group 01 hereby confirm that this assignment is my own work and not copied or plagiarized from any source. I have referenced the sources from which information is obtained by me for this assignment. ________________________________ ______________________ Signature of all members Date ------------------------------------------------------------ ----------------------------------------------- 1 NATIONAL ECONOMICS UNIVERSITY BTEC HND IN BUSINESS Assignment Cover Sheet
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a
GROUP NUMBER 01
NAME OF All STUDENTS
1, Pham Hai Linh (I3D – 3357)2, Nguyen Thi Minh Chau (I4D - 4229)3, Do Duc Hoa (I4C - 3346)4, Nguyen Dat Khue (I4C - 4074)5, Bui Son Bach (I4C)
REGISTRATION NOUNIT TITLE Unit 2: Managing Financial Resources and Decisions
ASSIGNMENT TITLE Group Assignment
ASSIGNMENT NO 2 of 3
NAME OF ASSESSOR HAFITAH MANSOR
SUBMISSION DEADLINE 14th December 2009
We, group 01 hereby confirm that this assignment is my own work and not copied or plagiarized from any source. I have referenced the sources from which information is obtained by me for this assignment.
________________________________ ______________________ Signature of all members Date
COMMON SKILLS & COMPETENCIES ASSESSED (indicated by X)
1. Managing own roles & responsibilities X 12. Use information sources
2. Manage own time in achieving objectives X 13. Deal with a combination of routine & non-routine tasks
3. Undertakes personal and career development 14. Identify & solve routine & non-routine problems X4. Transfer skills gained to new/changing situations & contexts
B. WORKING WITH & RELATING TO OTHERS E. APPLYING NUMERACY
5. Treat others beliefs and opinions with respect 15. Applying numerical skills and techniques X6. Relate & interact effectively with individuals & groups X
7. Work effectively as a team member X F. APPLYING TECHNOLOGY
C. COMMUNICATING 16. Use a range of technological equipment and systems
8. Receive and respond to a variety of information X G. APPLYING DESIGN AND CREATIVITY
9. Present information in a variety of visual forms 17. Applying a range of skills and techniques to develop a variety of ideas in the creation of new / modified products, services or situations
X10. Communicate in writing X
11. Participate in oral & no-verbal communication X 18. Use a range of thought processes X
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Task 1
Identify different decision makers in the company and describe the
information needs of the different decision makers
In the future, we will develop to a big company with 5 positions which are
considered as 5 decision maker. They are CEO, production manager,
marketing manager, finance manager and the human resources manager.
CEO
A CEO or chief executive officer is one of the highest-ranking administrators in
charge of total management. The CEO’s responsibilities are almost everything
because they have the highest rank in the company and often make final
decision as well. There are three main duties of the CEO which require three
kinds of information in order to help the CEO give decision to run company
fluently. The first duty of the CEO is setting strategy and vision. The company can
only run well when its have clear vision and clever strategy. In the position of the
highest rank in company, CEO will need information about the markets which the
company will enter. The more understanding the company is, the better
advantages it will have again other competitors. The next information is about the
company’s competitors and what are their product lines. It is not enough for the
company to only understand the market. The company has to study evidently
about their competitors in order to know their advantages and disadvantages so
they will have the best strategy again their rival. The final and most important
information is to analyze and to know what the difference between their company
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and the other is. At the end of the day, the CEO will decide, set budgets, form
partnerships and hire a team to steer the company accordingly. The second duty
of the CEO is creating the best working environmental in order to attract and
retain the employees. If the CEO wants to do that, the information needed here is
the expecting of the staffs and their reaction when they work in better
environment. The final duty is allocating capital. Capital is the basic requirement
to run the company so it is important for the CEO to allocate the capital
effectively. The information they need to do that is the information about the
project which CEO will allocate capital, will the project support company’s
strategy or not. At the end of the day, it is CEO decision that determines the
company’s financial fate.
Production manager
A production manager is involved with the planning, coordination and control of
industrial processes. A production manager ensures that goods and services are
produced efficiently; that they are of the right quality, quantity, and cost; and that
they are produced on time, to the satisfaction of the customer, at the right price.
The scope of the job depends on the nature of the production system: jobbing
production, mass production, process production, or batch production. The
information a production manager need to know is about the production process,
the production schedule to ensure that the company can produce the product on
time. He also needs information about the material resources, the cost and the
quality of the products whether they satisfy customers’ needs or not.
Furthermore, the production manager will need information about health and
safety guidelines to ensure the quality of the product, he also needs information
about the subordinates’ skill to provide training class if necessary to help the
employees have their best performance and improve the quality of the products.
Marketing manager
Marketing manager is the one who determine the demand for products and
services offered by a firm and its competitors and identify potential customers.
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Develop pricing strategies with the goal of maximizing the firm's profits or share
of the market while ensuring the firm's customers are satisfied. Oversee product
development or monitor trends that indicate the need for new products and
services. The useful information which helps he to do that is the information
about the customers’ needs and wants. Understand exactly the requirement of
the customers is one of the best advantages of the company to earn long-term
profit. He also has to know the information of the product, the information of the
competitors and the information about the distributing channel so that he can
have the right strategy to help the company compete effectively again the other
rivals. If the company has its right strategy, they can develop gradually and have
revenue in order to exist in the market.
Financial manager
Financial manager is the responsible for providing financial advice and support to
clients and colleagues to enable them to make sound business decisions.
Financial considerations are the basic requirement of all major business
decisions. Definite budgetary planning is necessary for future planning, both
short and long term, and company needs to know the financial implications of
any decision before proceeding. In order to make financial decision, the financial
manager has to know information about the source of finance which company
can use in the future. He will also has to update the information about the
company’s financial in order to manage the budget, monitor cash flow and predict
future trend. The information about the factors which influencing company’s
performance is also affects the manager’s decision.
Human resources manager
The human resources manager is in charge of recruiting all the staffs in the
company. His job is managing and overseeing the personnel department within a
company, organization or agency. This includes posting advertisements or
approving advertisements for new employees, screening resumes and
applications, setting interview appointments and being involved in the hiring
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process. The information which a human resources manager needs to know is all
the information about their staffs. Having a definite understanding about the
staffs, about their skills, their weakness and other information is the basic
requirement of the human resources manager. The manager also has to know
the information about safety, insurance and the government law about working
condition to make sure their company will not have any trouble with that problem
in the future. The human resources manager has to update the information about
the performance of the staffs, the staffs expecting in order to have immediate
change to improve the company’s performance.
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Task 2
Assuming your company has decided on either manufactoring or trading
company, choose your company product and calculate the unit cost and
make the relevant pricing decisions using relevant information.
Description of our product
In average, a person spends more than 120000 hours of his/her life to sleep,
which means 8 hours/day for 50 years of living. We can easily recognize the
important of sleep to our life. No matter if you sleep for too long or too little time,
it will affect your performance for the next day. Any time a person mention about
sleeping, you can immediately think of a bed with many pillow and blanket.
Understand that behaviour, our company decided to choose pillow as our
product.
In present, global market has been available with many type of pillow, from neck
pillow to lumbar pillow; each one has their own characteristic. Some provide a
deep area for the head to rest, some are designed to support for the lower back
when you’re sitting. However, our company chose to produce the original pillow,
as known as the neck pillow. It’s the most common type of pillow in the world.
Our company commit to provide not only a comfortable pillow for customer’s
sleep but also a nice pillow with beautiful decoration:
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Basically, our product is made from draper and cotton. In our opinion, cotton is
the most comfortable, because it offers the advantage of softness and ability to
conform to shapes designed by our designer. More than that, the draper that
cover cotton will be decorated with many types of flowers or cute animal, or it
even can be designed by the customers.
Costs incur in our business
Normally, to make a pillow need three main ingredients, draper, cotton and
thread. The two ingredients that are the main cost are draper and cotton. In the
market, price for draper and cotton (purchase with large amount) is about
4000VND/m2 and 60000/kg. With that price, each product will cost 20000VND of
draper and 18000VND of cotton. To reduce the cost in produce pillow, in order to
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take the advantage of price for our product, we decide to make contract with
some sewing company; with the cost for one product is 10000. Besides these
direct costs, producing pillow also cost the package for delivery. And the indirect
cost which is a small amount in the cost for one product is thread, package with
the cost of 116VND each.
Not only the manufacture contains cost, but also the shop. It is the cost that
suffers for sale pillows. We decided to hire two people as the sellers. Each of
them will be paid 1300000VND/month. The company made the decision to rent a
shop in Pham Ngoc Thach Street, with the rental price is 8million VND/month.
Having a shop which means it will cost the extra fee for electricity, water, security
and the fee for parking place. The total cost that we estimated for that is
1600000/month.
Last but not least is the salary for the one who keeping the business floating.
That’s salary for CEO, CPO, CFO, CMO, HR manager and the designer for the
product. All the cost will be illustrate in this sheet:
Total Stockholders’ Equity 289,000Other Assets 3,000
Total Assets $770,000 Total Liabilities & Stockholders’ Equity $770,000(Source:http://www.accountingcoach.com/online-accounting-course/05Xpg04.html)
Profit and loss account ( or income statement)
A profit and loss account is a record of business’s revenues and expenses over a
given period of time, such as a year, quarter, month, etc.
A profit and loss account includes an estimate of the company’s sales, cost,
increase or loss in intangible value, taxes, outstanding shares, and how the
resulting net profit is divided up to shareholders. The main purpose of a profit and
loss account is to figure out management whether the company made or lost
money during the given period. Besides that, investors may base on these
statement to make decisions.
About differences between the format of income statement for various types of
businesses, it is said that the non-incorporated businesses (partnerships and
sole traders) can present the statement as they want while the limited
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companies have to use particular wordings and layouts according to their
activities. In a P&L of partnerships or sole traders will not appear corporation
tax and dividends. Partnerships and sole traders do not have to pay corporation
tax. They only have to pay their personal income tax on their share of the profits,
which is no need to be written on the business statements. They do not have to
pay dividends also because dividends are paid for shareholders, but there are no
shareholders in partnerships or sole traders. The table below is an example of
income statement:
Company AIncome statementJanuary 1, 20X6 to December 31, 20X6
IncomeGross Sales 346,400Less returns and allowances 1,000Net sales 345,400
Cost of GoodsMerchandise Inventory, January 1 160,000Purchases 90,000Freight Charges 2,000Total Merchandise Handled 252,000
Less Inventory, December 31 100,000Cost of Goods Sold 152,000Gross Profit 193,400Interest Income 500Total Income 193,900ExpensesSalaries 68,250Utilities 5,800Rent 23,000Office Supplies 2,250Insurance 3,900Advertising 8,650Telephone 2,700Travel and Entertainment 2,550Dues & Subsriptions 1,100Interest Paid 2,140Repairs & Maintenance 1,250Taxes & Licenses 11,700Total Expenses 133,290