PGBM01 – FINANCIAL MANAGEMENT AND CONTROL

PGBM01 – FINANCIAL MANAGEMENT AND CONTROL
Module leader: Alex Addo
Workshop tutor: Royston Meriton
Assessment weight: 100% of the module
Outcomes Assessed: All
This assessment is in three parts, please answer all elements.
Please note that this is an individual assignment and the universities “Policy on Cheating,
Collusion and
Plagiarism” applies. All calculations and tables are subject to plagiarism policy of the University.
All tables
and calculations should be your own work.
Please write your Tutor’s name clearly on the front of the assignment.
This assessment covers the following learning outcomes from the module.
Knowledge
K1. A critical understanding of the key strategic financial statements of an organisation.
K2. Understanding and evaluation of the uses of both quantitative and qualitative
accounting information within an organisation.
K3. Knowledge and understanding of theoretical concepts and frameworks to a range of
practical situations in order to propose solutions to strategic business problems.
Skills
S1. The cognitive skills of critical thinking and analysis in showing how the finance function
can make a significant contribution to the successful strategic management of an
organisation.
S2. The skills necessary to communicate effectively at a senior level and be able to put these
skills into practice.
S3. Development of the skills required to independently access and process financial data.
Canvas Turnitin Submission Deadline: Tuesday 9th July 2024 by 2 PM
Part A
Question 1: Unilever PLC
Unilever PLC is a United Kingdom-based fast-moving consumer goods (FMCG) company. The
Company operates through three segments: Beauty & Personal Care, Foods & Refreshment and Home
Care. The Beauty & Personal Care segment is engaged primarily in the sales of skin cleansing (soap,
shower), hair care (shampoo, conditioner, styling), skin care (face, hand, and body moisturizers) and
deodorant categories. The Foods & Refreshment segment is engaged primarily in the sales of ice
cream, savory (soups, bouillons, seasoning), dressings (mayonnaise, ketchup) and tea (including
Ekaterra) categories. The Home Care segment is engaged primarily in the sales of fabric care (washing
powders and liquids, rinse conditioners) and a range of cleaning products. Its customer partners range
from traditional stores to online-only retailers, and from small family-owned shops to value retailers.
Its subsidiaries include Unilever de Argentina S.A., Unilever Australia Limited, Unilever Canada Inc
and Ekaterra B.V. (Unilever, 2022).
Required:
Task1A: From the company website prepare a structured report for Board of Unilever PLC
to evaluate the performance and position of the company in relation to relevant three ratios
of each type including Profitability, Liquidity, Gearing, Asset utilisation, Investment
between the two recent accounting periods (provided on Canvas).
(i). Your report must be supported by the calculations of relevant ratios, identify trends,
highlight impacts, give effective solutions, and advise Unilever or relevant stakeholders
based on your analysis. Marks (15%)
(ii) Use a relevant business performance model to evaluate your ratio analysis.
Marks (5%)

Task1B: Hypothetically, a sales revenue and direct costs for a tonne of one of the Unilever
product ‘OMO’ is €15M and €7M respectively. Total fixed cost for the year ending March
2022 was €160M.
Calculate Breakeven of sales in both unit and cash, Contribution margin ratio, and
Operating leverage (assuming actual sales quantity of 80M units was increased by 10%).
Also discuss each metric and how Breakeven point impacts on profitability ratio.
Marks (10%)
Total Marks for Part A: (30)
Note: All calculations should be clearly shown including all appropriate workings and
should be made to the nearest €000 or two decimal places where required
Part B
Assuming directors of Unilever PLC have decided to purchase a new machine to enhance the
capacity to benefit from the expected increase in demand of their two products, ‘Personal Care’
and ‘Home Care’. Two versions of machines are available from different manufacturers at the
same cost of €630M. Both machines have six years useful life and will be sold at estimated
price of €90M at the end of sixth year. The company will use straight line method for
depreciation of these machines. Cost of capital for both machines is 6%.
The directors are to purchase one machine from the available two, same cost and net cash inflow
from both machines is confusing them to take decision. You are Finance Manager of Unilever
PLC and directors have asked you to produce a report which should highlight the economic
feasibility for decision making for next AGM. Further information regarding net cash inflow
from both machines is provided below:
Personal Care Home Care
Years Cashflow(€M) Cashflow(€M)
0 (630) (630)
1 300 95
2 250 100
3 200 150
4 150 200
5 100 250
6 95 300
Task 2A: You are required to calculate (2-decimal places) using the following investment
appraisal techniques, and provide recommendations as to the economic feasibility of acquiring
the suitable machine:
a. The Payback Period.
b. The Discounted Payback Period.
c. The Accounting Rate of Return.
d. The Net Present Value.
e. The Internal Rate of Return (to two decimal places)

Marks (15%)
Task 2B: Critically evaluate the key benefits and limitations of each of the differing investment
appraisal techniques, supporting this response with relevant academic research as to whether
each of the differing techniques is applied in practice within a real-life business context.
Marks (10%)

Unilever PLC planning to meet the environmental protection strategy including an introduction of the
UN approved 120-litre plastic open-top drums, known as the ‘Blue-drum’. It was highlighted in 2022
AGM that ‘Comfort’ one of their products delivered high growth in Latin America, South Asia, and
Turkey, but declined in Europe where consumers reduced their spending in the category. Hence, the
company is trying to reduce cost in producing plastic containers used for this washing detergent
product, ‘Comfort’.
Assume that cost of manufacturing a ten-pack of Blue-drum includes direct material at €19, direct
labour is €11 and variable overheads at €3. The depreciation of a special equipment is €7 with no
resale value, supervisors’ wages is €6. Including the general factory overheads which is allocated
based on direct labour hours, the total cost manufacturing is €55 per a drum, based on 20,000 packs of
drum produced each year. However, an external supplier, unlisted PLC has offered to provide the
same quantity at €45 per drum.
Task 2C: Critically discuss factors that Blue-drum PLC should consider choosing between the
making or buying of the ‘Blue-drums’.
Marks (15%)
Task 2D: You are also required to critically evaluate three relevant factors to be considered
for suitable sources of finance to fund the Blue-drum investment compared to the unlisted
PLC supplier of plastic Blue-drum.
Marks
(10%)

Total marks for Part B – (50)
Note, All calculations should demonstrate the appropriate workings that are used to
derive the solution and should not be performed in Microsoft Excel.
Part C: Budgeting and Financial plan
Required:
Research Unilever PLC and complete the following task:
Task 3A: Critically evaluate the impact of budgeting process on any potential project
and demonstrate how budgets, objectives, and strategic plans are related.
Marks (10%)
Task 3B: Briefly discuss the significance of Business plan and analyse key elements
of its financial plan section of a proposed business plan.
Marks (7%)
Task 3C: There is a growing nascent for using of Artificial Intelligence (AI) and
Machine Learning (ML) in financial community. Critically discuss (in 5-line of
words), how either AI or ML could be effective in preparing a long-term budget.
Marks (3%)

Total marks for Part C: (20)
End of Questions

Note:
1. To obtain a high mark, you should:
a. Make your report concise, precise and well-presented and structured.
b. Draw logical conclusions from accounting information.
c. Synthesise information in a coherent and useful way.
d. Show evidence of key text and background reading.
e. Incorporate your knowledge into an integrated piece of work.
f. Demonstrate critical understanding of financial management.
2. A Harvard standard referencing is required for the report
Limit overall words 3,500 (+- 10%) excluding calculations in appendix
Generic Assessment Criteria – Postgraduate
These should be interpreted according to the level at which you are working as specified in this assignment.
Assessment Criteria
Categories
Grade Relevance Knowledge Analysis Argument and
Structure
Critical Evaluation Presentation Reference to Literature
Pass
86 –
100%
The work examined is exemplary and provides clear evidence of a complete grasp of the knowledge in all calculations, understanding
and skills appropriate to the Level of the qualification. Student must have demonstrated an excellent knowledge and understanding of
theoretical concepts and frameworks to all practical situations in order to propose solutions to strategic business problems. There is also
ample excellent evidence showing that all the learning outcomes and responsibilities appropriate to that Level are fully satisfied. At this
level it is expected that the work will be exemplary in all the categories cited above. It will demonstrate a particularly compelling
evaluation, originality, and elegance of argument, interpretation or Discourse. There must be a perfect match of ALL above criteria to at
least 90% calculations and interpretations of each task attempted.
76-85% The work examined is outstanding and demonstrates comprehensive knowledge in calculations, understanding and skills appropriate to
the Level of the qualification. Student must have demonstrated a very good knowledge and understanding of theoretical concepts and
frameworks to all practical situations in order to propose solutions to strategic business problems There is also excellent evidence
showing that all the learning outcomes and responsibilities appropriate to that level are fully satisfied. At this level it is expected that
the work will be outstanding in majority of the categories as cited above or by demonstrating particularly compelling evaluation and
elegance of argument, interpretation or discourse. ALL the above criteria must have a perfect association to at least 80% of the
expected calculations and interpretations in each task attempted,
70 –
75%
The work examined is excellent and is evidence of comprehensive knowledge in calculations, understanding and skills appropriate to the
Level of the qualification. Student must have demonstrated a very good knowledge and understanding of theoretical concepts and
frameworks to most practical situations in order to propose solutions to strategic business problems There is also excellent evidence
showing that all the learning outcomes and responsibilities appropriate to that level are satisfied. At this level it is expected that the work
will be excellent in majority of the categories cited above or by demonstrating particularly compelling evaluation and elegance of
argument must be clearly linked with at least 70% of calculations, and interpretation or discourse of each task attempted.
60 –
69%
Directly
relevant to the
requirements
of the
assessment
A substantial
knowledge of at
least 60% of
overall
calculations
with a clear and
relevant
interpretations,
showing a clear
grasp of
themes,
questions and
issues therein
Good
analysis,
clear and
orderly
approaches
associated
with
relevant
theories and
model(s).
Generally coherent
and logically
structured, using an
appropriate mode of
argument and/or
theoretical mode(s)
and frameworks to a
range of practical
situations in order to
propose solutions to
strategic business
problems
May contain
some distinctive
or independent
thinking; may
begin to
formulate an
independent
position in
relation to theory
and/or practice.
Good evaluation
of the uses of
both quantitative
and
qualitative
accounting
information
within an
organisation
Well written,
with standard
spelling and
grammar, in a
readable style
with acceptable
format
Critical appraisal of
up-to- date and/or
appropriate literature.
Recognition of
different
perspectives. Very
good use of source
material. Uses a
range of sources
50 –
59%
Some attempt
to address the
requirements
of the
assessment:
may drift away
from this in
less focused
passages
Adequate
knowledge of a
fair range of at
least 50% of
overall
calculations
with a clear and
relevant
interpretations,
with some
intermittent
evidence of an
appreciation of
its significance
Some
analytical
treatment, but
may be prone
to
description,
or to
narrative,
which lacks
clear
analytical
purpose
Some attempt to
construct a coherent
argument, with
appropriate
frameworks but may
suffer loss of focus
and consistency, with
issues at stake stated
only vaguely, or
theoretical mode(s)
couched in simplistic
terms
Sound work
which expresses
a coherent
position only in
broad terms and
in uncritical
conformity to one
or more standard
views of the topic
Competently
written, with
only minor
lapses from
standard
grammar, with
acceptable
format
Uses a variety of
literature which
includes some recent
texts and/or
appropriate
literature, though not
necessarily including
a substantive amount
beyond
library texts.
Competent use of
source material.
40 –
49%
Some
correlation
with the
requirements
of the
assessment but
there is a
significant
degree of
irrelevance
Basic
understanding
of the subject
but addressing
a limited range
of calculations
with relevant
and basic
interpretations
Largely
descriptive or
narrative,
with little
evidence of
analysis of
theories and
model(s)
A basic argument is
evident, but mainly
supported by
assertion and there
may be a lack of
clarity and coherence
Some
evidence of a
view starting
to be formed
but mainly
derivative.
A simple basic
style but with
significant
deficiencies in
expression or
format that
may pose
obstacles for
the reader
Some up-to-date
and/or appropriate
literature used. Goes
beyond the material
tutor has provided.
Limited use of
sources to support a
point. Weak use of
source material.
Fail
35 –
39%
Relevance to
the
requirements
of the
assessment
may be very
intermittent,
and may be
reduced to its
vaguest and
least
challenging
terms
A limited
understanding
of a narrow
range of at
least 30% of
overall
calculations
associated
with relevant
interpretation
s
Heavy
dependence
on
description,
and/or
reliance on
paraphrase
been
commonly
identified.
Little evidence of
coherent argument
with lacks
development and
may be repetitive or
thin
Almost wholly
derivative where
writer’s
contribution
rarely goes
beyond
simplifying
paraphrase
Numerous
deficiencies in
expression and
presentation;
the writer may
achieve clarity
(if at all) only
by using a
simplistic or
repetitious
style
Barely adequate use
of literature. Over
reliance on material
provided by the
tutor.
The evidence provided shows that the majority of the learning outcomes and responsibilities appropriate to that Level are satisfied.
30 –
34%
The work examined provides insufficient evidence of the knowledge in calculations with appropriate interpretations, understanding and
skills appropriate to the Level of the qualification. The evidence provided shows that some of the learning outcomes and responsibilities
appropriate to that Level are satisfied. The work will be weak in some of the indicators. 15-
29%
The work examined is unacceptable and provides little evidence of the knowledge in calculations with basic interpretations, understanding
and skills appropriate to the Level of the qualification. The evidence shows that few of the learning outcomes and responsibilities
appropriate to that Level are satisfied. The work will be weak in several of the indicators.
0-14% The work examined is unacceptable and provides almost no evidence of the knowledge in calculations with few interpretations,
understanding and skills appropriate to the Level of the qualification. The evidence fails to show that any of the learning outcomes and
responsibilities appropriate to that Level are satisfied. The work will be weak in the majority or all of the indicators.
AQH-F6-15 Guidelines on Generic Assessment Criteria, v3

PGBM01 AB April 24 Intake (PDF)_1676833102