CSR Performance and Financial Position. Finance, SPSS Coursework (Coursework Sample)

UNIVERSITY OF SOUTH WALES
Business School
MBA
Module Title: Strategic Financial Management
Module Code: AF4S31
Module Tutor: Nikki Petrou
Assessment 1 of 2
Title: A Critical Analysis of Tesco’s CSR Performance and Benedict Co.’s Financial Position.
Student No: R1604D1464657
Submission Date: 9 December 2018
Word Count: 3243 Words
MANAGEMENT REPORT
To: Senior Purchasing Manager
From: Cleophus Atukwase
Purchasing Manager
Date: 9 December 2018
Subject: A Critical Analysis of Tesco’s CSR Performance and Benedict Co.’s Financial Position.
Table of Contents TOC \o "1-3" \h \z \u List of Figures PAGEREF _Toc532125673 \h iiiList of Acronyms PAGEREF _Toc532125674 \h ivAcknowledgements PAGEREF _Toc532125675 \h v1.0 Introduction PAGEREF _Toc532125676 \h 12.0 Tesco’s CSR Performance and Benedict Co.’s Financial Position PAGEREF _Toc532125677 \h 22.1 Tesco’s Stakeholders and CSR Performance PAGEREF _Toc532125678 \h 22.1.1 Tesco’s Stakeholders PAGEREF _Toc532125679 \h 22.1.2 Tesco’s CSR Performance PAGEREF _Toc532125680 \h 32.1.3 Conclusion on Tesco’s CSR Performance. PAGEREF _Toc532125681 \h 62.2 An Analysis of Financial Position of Benedict Co. PAGEREF _Toc532125682 \h 62.2.1 Analysis Of Benedict Co.’s Financial Ratios PAGEREF _Toc532125683 \h 62.2.2 Conclusion on Benedict Co.’s Financial Position PAGEREF _Toc532125684 \h 92.2.3 A Critical Evaluation of the Application of Financial Ratios PAGEREF _Toc532125685 \h 9References PAGEREF _Toc532125686 \h 11Appendices PAGEREF _Toc532125687 \h 12Appendix 1: Calculations for Profitability and Liquidity Ratios PAGEREF _Toc532125688 \h 12Appendix 2: Calculations for Working Capital and Gearing Ratios PAGEREF _Toc532125689 \h 13Appendix 3: Calculations for Investor Ratios PAGEREF _Toc532125690 \h 14Appendix 4: Calculations Showing Why Ratios Changed PAGEREF _Toc532125691 \h 15
List of Figures
Fig.1. Stakeholder Power-Interest Grid ……………………………………………………… 3
List of Acronyms
CGR Corporate Governance Report
CSR Corporate Social Responsibility
DPS Dividends per Share
EPS Earnings per Share
ESG Environmental, Social and Governance
ESR Environmental and Social Review
PBIT Profit before Interest and Taxes
ROCE Return on Capital Employed
ROE Return on Equity
Acknowledgements
I thank my module tutor, Nikki Petrou, for the guidance provided.
I thank: Annet Fokushaba (my wife); Blessed Maria Atukwasize (my daughter); and Hill Dunstan Atukwasibwe (my son) for all the love and comfort as I multitasked.
I thank Jesus Christ for all the protection and provisions throughout the study time.
1.0 Introduction
This report is based on the workshop I attended recently which aimed at improving my understanding of company Annual Reports in which Tesco’s report was used as an example with the following sections: The Strategic Report including the Environmental and Social Review (ESR) and The Corporate Governance Report (CGR); and The Group Statements of: ‘Income’, ‘Balance Sheet’, and ‘Cash-Flows’. I also learned about: how different ‘stakeholders’ may use the information contained in these reports and financial statements; and financial ratios and how they can be used to interpret and assess business performance.
Attending the workshop was a good opportunity since we are in the process of letting the contract for the supply of XYZ -the important component in our production process. Benedict Co. is among those that have tendered for the contract. Fortunately, I got access to its financial statements and some information about its sector.
The purpose of is this report is to critically analyse Tesco’s Corporate Social Responsibility (CSR) performance and Benedict Co.’s financial position.
This will be done through:
* identifying Tesco’s stakeholders and analysing how the ESR and the CGR help Tesco demonstrate its CSR performance to employees and customers; and
* analysing and evaluating the financial position of Benedict Co. using financial ratios.
This analysis is important because it will enable us: use Tesco’s CSR performance as our benchmark for improving our CSR performance; and determine whether we should offer our contract to Benedict Co.
Therefore, the report is arranged in TWO parts under section 2.0 as follows: subsection 2.1 explains the term stakeholder, identifies Tesco’s stakeholders, analyses Tesco’s CSR performance, and gives conclusion from the analysis; and subsection 2.2 analyses Benedict Co.’s financial position, gives conclusion from the analysis, and gives a critical evaluation of application of financial ratios.
2.0 Tesco’s CSR Performance and Benedict Co.’s Financial Position
2.1 Tesco’s Stakeholders and CSR Performance
2.1.1 Tesco’s Stakeholders
This subsection explains the term ‘stakeholder’ and identifies three types of stakeholders of Tesco.
A company’s stakeholder is an individual or group that has an interest in the affairs of the company, and is affected by and affects the actions, inactions, and decisions made by the company (Zink, 2005; Pike and Neale, 2009; Freeman et al., 2010; Ackermann and Eden, 2011; Barić, 2017). This implies that the company must have different objectives to meet the different stakeholder interests which sometimes conflict (Pike and Neale, 2009; Berk and DeMarzo, 2014; Barić, 2017). For example, different stakeholders and relevant objectives may include: shareholders (maximising profits and shareholder value); employees (improving employee working conditions); communities (not causing harm to the community); etc. (Pike and Neale, 2009; Belua and Manescu, 2013; Buchholtz, 2016). Whereas these objectives tend to conflict, they can reinforce each other, and the company’s management must strike a balance between meeting them (Pike and Neale, 2009; Ackermann and Eden, 2011). For example, improving employee working conditions may increase employee morale, increase customer satisfaction, and result in profit growth thus meeting the interests of employees, customers, and shareholders concurrently. This example shows that employees, customers, and shareholders are the firm’s stakeholders since they all have interest and demands/claims in the affairs of the company, and are affected by and affect the actions, inactions, and decisions made by the company (Zink, 2005; Pike and Neale, 2009; Freeman et al., 2010; Ackermann and Eden, 2011; Barić, 2017).