(1) A firm’s leadership team is considering three potential investments. The information for each investment is recorded below. You are expected to explain
i) which can be considered the most attractive based on investment appraisals including NPV, PBP, ARR amongst others.
ii) identify various forms of risk including, exchange rate risk, political risk, culture, different financial systems, demographics, and other potential forms of risks you consider relevant.
iii) explain which investment you would proceed with based on your views on investment appraisals and country specific risk.
Investment A is a (50%) investment in a British manufacturing company and 50% in a German company
Investment B is a (100%) investment in a Chinese manufacturing company.
Investment C is a (100%) investment in a Canadian manufacturing company.
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Investment A
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Investment B
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Investment C
|
|
|
|
|
Sales 20X9
|
200,000
|
0
|
100,000
|
Sales 20X0
|
200,000
|
3,000,000
|
300,000
|
Sales 20X1
|
300,000
|
3,000,000
|
500,000
|
Sales 20X2
|
250,000
|
3,100,000
|
600,000
|
Sales 20X3
|
700,000
|
7,100,000
|
1,000,000
|
Sales 20X4
|
800,000
|
7,100,000
|
1,200,000
|
Sales 20x5
|
300,000
|
7,100,000
|
1,500,000
|
Sales 20X6
|
50,000
|
4,500,000
|
1,600,000
|
|
|
|
|
Initial cost
|
1,000,000
|
8,000,000
|
4,000,000
|
|
|
|
|
Value on 20X6
|
0
|
3,000,000
|
2,500,000
|
|
|
|
|
COGS
|
20%
|
40%
|
45%
|
|
|
|
|
Tax on profit
|
10.00%
|
20.00%
|
5.00%
|
|
|
|
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Discount factor
|
15
|
16
|
5
|
Marks and Spencer Group plc, also known as M&S, is a British retailer headquartered in London, England. M&S sells a wide range of own-brand and third-party products including clothing, homeware and food.
In the company’s Annual Reports 2022, the company states that they have emerged stronger from the COVID-19 pandemic and have successfully delivered the first phase of a transformation plan started four years ago.
Based on information provided in M&S’s latest Annual Report (available at: https://corporate.marksandspencer.com/investors), as well as on your own independent research, answer the following questions.
1) Conduct a PESTEL analysis for M&S. Evaluate which PESTEL factors are driving changes in the company’s strategic choices.
(500 words)
2) Critically evaluate how the Balanced Scorecard concept and system can help M&S implement and measure its strategic objectives.
(500 words)
In 2007, M&S has launched a “fully integrated sustainability plan” (
M&S Annual Reports 2022, p.30). Critically discuss the extent of integration of M&S’s sustainability plans with its business and corporate strategy.
1) The Gibbs (1988) reflective practice model is used by practitioners to reflect on their academic development. Based on the Gibbs (1988) or a similar model, reflect on your learning in terms of description, feelings, evaluation, analysis, conclusion, and action plan.
(500 words)
(Total word count - 4,000 words)
Academic Writing and Referencing
This is an academic assignment which should be properly referenced in accordance to SHU’s regulations (see Blackboard for guidance). Marks are available for presentation, structure and clarity. APA referencing method should be used. Referencing Guide and support are also available at: libguides.shu.ac.uk/referencing/refsomething.
Word Count
The word count for this assignment is 4,000 words. The rule of +/- 10% is applied to the word count (i.e. the main body of your assignment should be in the range of 3600 – 4,400 words). Any words after the 4,400 maximum word count will not be marked.
Words on the cover sheet (with your student ID information), table of contents and in the Reference List are not counted towards the word count. Besides these, any other words, including those in tables, in the main body of the assignments are counted towards the word limit. You should use your words wisely on relevant points which are written concisely. You must cut down generic discussion and definitions.