ASSESSMENT RECAP

Overview:

• The assignment tasks students with budget planning for a specified product from a publicly listed company in either Vietnam, Australia, or the United States. 

• It requires a comprehensive understanding of cost behavior, sales, profit, and cash budgets from Q4 2023 to Q4 2024. 

• The assignment aligns with the application of key concepts such as strategic review, inclusion of external factors, and sensitive analysis for scenario planning. 

• The student's industry sector is determined by the last two digits of their student ID, with instructions to choose a public company and specific product within the assigned industry sector.

Criteria:

• Provide a detailed overview of the business and significant developments within the last year, including any strategic decisions made in 2023, backed by relevant citations.

• Conduct a PESTLE analysis to identify external factors that might influence the business in 2024, explaining the significance of these factors.

• Formulate a sales and cost budget for the chosen product, detailing the methodology and justifying the distinction between fixed and variable costs.

• Create a cash budget considering the company's payment and revenue timelines, calculating key financial indicators such as the contribution margin, operating profit, and net cash flow, with explanations supported by relevant data.

• Prepare a sensitive analysis for two significant events based on PESTLE factors and develop strategic adaptation plans for each scenario.

• Engage in inter-teaching by contributing to discussions and demonstrating an understanding of the course material.

The student is directed to submit both an Excel file for budget calculations and a Word document for the report, with only the Word file being marked. 

WORD EXPLANATION

1. PESTLE Analysis: A strategic framework used to evaluate the external environmental factors that may impact an organization. It stands for Political, Economic, Social, Technological, Legal, and Environmental factors.

2. Budget Planning: The process of creating a plan to allocate resources and forecast income and expenditure over a specific period. It typically involves setting revenue and cost estimates to manage financial performance and ensure strategic objectives can be achieved.

3. Cost Behavior: This refers to how different types of costs change in response to changes in a company's level of production or activity. Costs can be fixed, variable, or mixed.

• • Fixed Costs: Expenses that do not change with the level of production or sales volume, such as rent, salaries of permanent staff, and insurance premiums.
  • Variable Costs: Costs that vary directly with the level of production, such as costs for raw materials or commission-based wages.
  • Mixed Costs (Semi-variable Costs): Costs that have both fixed and variable components, such as utilities or salaries for salespeople who receive a base salary plus commission.
  • Sales Budget: An estimate of the expected sales revenue for a particular period. It considers factors such as past sales trends, market conditions, and marketing efforts.

4. Profit Budget: A financial plan that estimates a company’s revenue and subtracts estimated costs and expenses to arrive at a profit. It includes both the Gross Profit Margin and Net Profit Margin calculations.

5. Cash Budget: A projection of a company's cash inflows and outflows over a specific period. It helps in managing the company's cash flow and ensuring that there is enough cash to meet financial obligations.

6. Sensitive Analysis (Sensitivity Analysis): A technique used to determine how different values of an independent variable will impact a particular dependent variable under a given set of assumptions. It is used to predict the outcome of a decision given a certain range of variables.

7. Strategic Adaptation Plans: Plans developed to adjust strategies in response to changes in the company’s internal and external environment to mitigate risks or seize new opportunities.

8. Contribution Margin: The amount remaining from sales revenue after all variable costs have been deducted, indicating how much revenue contributes to covering fixed costs.

9. Operating Profit: Profit generated from a company's core business operations, excluding deductions for interest and taxes.

10. Net Cash Flow: The amount of cash generated or lost over a specific period, calculated by summing all cash inflows and subtracting all cash outflows.

11. Inter-Teaching: A collaborative learning approach where participants engage in teaching each other through discussion, enhancing understanding through active contribution and interaction.

DETAILED OUTLINE

Task 1: Comprehensive Business Analysis

• Business Overview and Recent Developments

  • Introduction to the selected public company within the assigned industry.

    • Company Background: Start with basic information about the company—name, year of establishment, location of headquarters, and a brief history.

    • Product Portfolio: Describe the main products or services offered by the company.

    • Market Position: Discuss the company’s current market position, including market share and ranking within the industry.

    • Summary of recent significant developments: mergers, acquisitions, new product launches.

  • Recent Developments: Highlight key events from the last year such as mergers, acquisitions, new product launches, or entry into new markets. This should also include any notable achievements or significant challenges faced.

Hints:

• Use the company's annual reports, press releases, and reputable business news sources for this information.

• Provide citations for all facts and developments mentioned