MMM147 Measuring Marketing Performance

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MMM147 Measuring Marketing Performance

1. What is the Purpose of This Assessment?

The following table shows which of the module learning outcomes are being assessed in this assignment. Use this table to help you see the connection between this assessment and your learning on the module.

Module Learning Outcomes Being Assessed

Assessed learning outcomes relate to the point 9 in the Module Description. The particular assessable learning outcomes are:

1. Distinguish between assets, liabilities, equity, income and expenses.

2. Understand the layout of the three financial statements and differentiate between these: income statement (profit and loss),  statement of financial position (balance sheet) and cashflow statement and the importance of Current Year / Prior Year (CY/PY) analysis.

3. Calculate a simple income statement.

4. Understand the drivers and consumers of cash.

5. Develop ability to undertake preliminary research prior to analysing company accounts.

6. Distinguish between, and calculate, a vertical and horizontal analysis of financial information and interpret the data.

7. Prepare simple financial ratios and use to interpret company financial information.

8. Interpret financial statements and how to use them to make marketing investment decisions.

9. Understand how income statements can be used across products, brands, business segments and consolidated companies.

Additional learning outcomes:

To gain confidence as non-financial specialists in using financial statements for making strategic and

tactical business decisions.  To gain further skills in fact based decision making; presentation, summary and visualisation of data; uncertainty of future outlooks and associated risk management.

2. What is the Task for This Assessment?

To produce a report on the financial performance and position of a real company by analysing its financial statements.

3. What is Required of Me in this Assessment?

Task (see detailed ‘What to include in the report’ below)

The task is to demonstrate your skills in interpreting the 3 financial statements of an existing public company* operating anywhere in the world** and using the data to draw conclusions on past actions, future strategy, and tactics, including possible scenarios and associated risks.

*To choose an organisation, it is advisable to think of a sector/industry you are most passionate about first and only then select a company

**All company data relevant to the assignment must be in English

What to include in the report?

Element

Details

%*

1. Give background to the organisation and their strategy (LO5)

· Describe the organisation and the industry/sector it operates within.

· Give an overview of products/services made/delivered and its key competitors.

· Explain key challenges (e.g., operating constraints) and strategic objectives of the organisation by reviewing executive comment and commentary from other external sources (e.g., Financial Times).

15%

2. Evaluate the company performance (LO1, LO2, LO3, LO7, LO9)

Evaluate how well the company is performing by analysing its annual report. You should:

· Analyse the profit and loss and balance sheet using current year/prior year trend analysis.

· Calculate and comment on financial ratios, using the ratios where appropriate to evaluate different segments of the business e.g., across brands, sub-businesses, countries (where appropriate). [Calculations along with formulas to be in an appendix]

· Consider performance against a “benchmark” organisation (ideally in the same sector) or an industry average.

40%

3. Calculate vertical and horizontal analysis of the financial statements and interpret the data (LO1, LO2, LO3, LO6)

With particular focus on the Income Statement, calculate the horizontal and vertical analysis and present a summary of the key findings.  Comment on comparison across Current and Prior Year(s).  [Calculations to be in an appendix]

15%

4. Comment on the drivers and consumers of cash (LO4)

Starting with cash from operations, identify the cash generating and consuming areas from the cash flow statement and discuss trends when comparing to previous year.

10%

5. Construct a forecast income statement for the chosen organisation (LO2, LO3, LO4)

Build a forecast income statement and explain your assumptions in revenue and expense build ups and gross profit expectations.  Compare and contrast the key financial ratios for your forecast compared to current performance.

15%

6. Discuss key challenges for the company and strategic marketing options (LO8)

Use your forecast income statement and findings of your strategic analysis to assess the key financial challenges in delivery of profit going forward.  Outline how you would propose to allocate the marketing expense across the different business segments.

5%

* Word count in % – this is only approximate word count



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