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strategic financial management H/615/3242
- Module
- Accounting and Finance
- Institution
- Accounting And Finance
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Task 1 of 1 - Business Report (ACs 1.1, 1.2, 2.1, 2.2, 3.1, 3.2, 3.3, 3.4, 3.5, 4.1, 4.2, 4.3, 5.1,5.2)
Prepare a business report, to be presented to the Directors of your chosen company.
You must include the following in your business report:
2. An analysis, using relevant academic theories, of internal and external organisational factors
affecting your chosen business organisation.
3. An evaluation of the business resources in your chosen business organisation that are used to meet
its organisations objectives.
4. An evaluation of key performance measurement systems.
5. An explanation of the financial analysis techniques used by business organisations.
6. An application of financial analysis systems and techniques to assess the financial performance of
the final accounts of your chosen business organisation. For comparison, you should assess the
Annual Reports of at least two of the business organisations that you have studied.
7. An explanation of the role of culture in creating a strategy.
8. An analysis of the role of change management.
9. An analysis of the role and effect of culture on change management.
10. An evaluation of key financial theories.
11. An assessment of strategic implementation techniques using balanced scorecard and portfolio
management tools.
12. An application of stakeholder analysis for your chosen business organisation.
This should include:
• An analysis of the significance of stakeholder analysis.
• An analysis of business expansion methods and their impact on stakeholders.
• An application of stakeholder analysis to your chosen business organisation.
• Return and risk computations.
• An explanation of the concepts of corporate and business valuation techniques.
EXECUTIVE SUMMARY
Nestle has been serving people for over 155 years. Its main concerned
industry is dairy but it also includes products such as juices, coffee,
drinking water, breakfast cereals, and chocolates. Nestle is a leader of
doing cost effective operations with high quality products and sell them
at premium prices and generating good revenue. When Nestle
introduced its products in Pakistan, it receives not a good response from
people so it ran an extensive marketing campaign to give knowledge of
their products to people and increase its demand. They basically focus
on making sure that their products are BEST TO USE. Today, the
company is fully integrated in Pakistani life, and is recognized as
producer of safe nutritious and tasty food, and leader in developing and
Uplifting the communities in which it operates.
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,NESTLE is a Swiss multinational food and drink processing conglomerate
corporation, headquartered in Vevey, Switzerland. It is the largest food
company in world, measured by revenue and other metrics, since 2014.
It ranked no.64 on the FORTUNE GLOBAL 500 in 2017 and No.33 in
2016 Edition of the FORBES GLOBAL 2000 list of largest public
companies. Nestlé's products include baby food, medical food, bottled
water, breakfast cereals, coffee and tea, confectionery, dairy products,
ice cream, frozen food, pet foods, and snacks.
FINANCIAL PERFORMANCE
In order to address the adverse impact of the pandemic, the
Government rolled out a fiscal stimulus package under which the policy
rate was lowered during the year and multiple measures were
implemented by the central bank to support businesses with their
liquidity needs.
Despite unprecedented situation caused by the pandemic, the Company
recorded a revenue growth of 2.4% through undisrupted supply and
availability of products, innovation and renovation initiatives, numeric
distribution expansion and investments behind the brands. The major
new product launches during 2020 included: NESTLÉ MILKPAK Butter
(Salted & Unsalted), NESTLÉ FRUITA VITALS Qandhari Anaar, NESCAFE
RTD Chilled Mocha, NESTLÉ CERELAC Recover, NESTLÉ CERELAC
Nature’s selection, NESTLÉ LACTOGEN Essentials, NESTLÉ NAN 2 & 3
(HMO), DOCELLO Dessert Mixes, NESTLÉ EVERYDAY Karak Chai 3-in-1,
NESTLÉ NESCAFE Ice and NESTLÉ PURE LIFE (5G Active).
PKR Million
2020 2019 Change
Sales 118,781 115,962 +2.4%
Gross Profit margin 29.3% 28.8% +50 bps
Operating Profit margin 13.5% 13.0% +50 bps
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, Net Profit after tax 8,885 7,354 +20.8 %
Net Profit after tax (%) 7.5% 6.3% +114bps
Earnings per share dividents 195.9 162.2 +20.8%
In view of the financial performance of the Company, the Board of
Directors has recommended to paying a final cash dividend of Rs. 61 per
share, in addition to the interim cash dividend already paid of Rs. 133
per share.
this makes in 2020 Rs. 194 per share unlike Rs. 152 per share in 2019.
With a market driven approach and commitment to satisfying the needs
of our consumers, in 2020 Nestlé Pakistan made investments of PKR 3.2
billion including expansion projects. Highlights are here under:
1,708 Rs. in 633 Rs. in Million
Million
Sheikhupura Kabirwala
Factory Factory
63 Rs. in Million 312 Rs. in Million
Water Plants Distribution
and Sales
441 Rs. in Million
OTHERS
Investments, of approximately PKR 3.4 billion, are planned for 2021,
primarily focused on operational reliability and capacity increases in
order to meet consumer demands.
CORPORATE & FINANCIAL REPORTING FRAMEWORK
The Directors confirm that:
The financial statements prepared by the management of the Company
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