Managing a Financial Case

In: Business and Management

Submitted By Dazowen72
Words 1311
Pages 6
Making a Financial Case

Name: Darren Owen
Organisation: ERIKS UK
Email Address:

Introduction to Organisation ERIKS Industrial Distribution Uk is the UK division of SHV Holdings, which is the largest privately owned trading company in the Netherlands.In 1962 two black country businessmen set up a company called WYKO, supplying local businesses with bearings and power transmission products. Over the next 40 years the company grew to have over 100 branches including several repair divisions.In 2006 Dutch engineering company ERIKS purchased WYKO and instantly became Europe’s market leader for industrial products and services .By 2012 ERIKS had 65 group companies covering 27 countries.In 2009 the ERIKS group was purchased by SHV Holdings a privately owned company. SHV started in the mid 1890,s selling coal; they moved into oil and petrol and even established the Makro cash and carry stores.SHV is currently in the top 100 of the world’s largest privately owned groups with a workforce of approximately 65000 people in 48 countries, generating a turnover of 20 Billion Euros.I work for the Integrated Solutions Division of ERIKS. | |
Since its creation in 1997, ERIKS Integrated Solutions Division has successfully managed client´s MRO Procurement functions as well as their MRO stores operations.

These activities have generated significant total cost down benefits for many clients over the past 10 years, with the division currently operational on site at 100 manufacturing locations across the UK and Ireland.

Own Role
My own role is currently as “Assistant Contract Manager”, where I assist the Contract Manager on the large Dairy Crest Contract, 7 dairies in England that we operate on site at – Chadwell, Hanworth, Davidstow, Severnside, Foston, Nuneaton and Kirkby. I also have my own two contracts – National Grid in Avonmouth and New…...

Similar Documents

Managing Financial Performance

...Q – 1 To: The Directors, Marstons Group From: Financial Analyst Date: 16 December 2011 Subject: Performance Analysis 2008-2009 Introduction The following contains a detailed report of Marstons Group’s performance for the year ended 2009, compared with its performance for the year ended 2008. The report also contains calculative analysis of the company’s performance in the past financial year and its variances from previous year’s performance. Trend Analysis A vertical and horizontal trend analysis has been performed so as to detect any major variance in the organization in the past two years. Comprehensive Statement of Position Vertical Analysis There has not been any significant change on the non-current asset side of the organization apart from the decrease in Property, Plant and equipment & increase in deferred tax assets. A part of the Property, Plant and equipment has been either depreciated or sold leading to a negative variance of 2.2%. The reserve for deferred tax has been increased by 0.5%. Goodwill, other intangible assets and other non-current have been stable. Total non-current assets have decreased by 1.6%. The current assets have shown a positive variance of 1.6%, this is mainly due to increase in cash balance from £60.1m in 2008 to £91.3m in 2009. One of the main source of cash was the issue of shares. However, long-term financing does come at a price in the form of future dividend payments. Even though there has been......

Words: 4265 - Pages: 18

Managing Financial Principles

...figures in £000) | | | | Jan | Feb | Mar | Apr | May | Start Balance | 40 | -20 | -60 | -70 | 50 | Cash In | 80 | 100 | 200 | 300 | 400 | Total Available | 120 | 80 | 140 | 330 | 450 | Cash Out | 140 | 140 | 210 | 280 | 350 | End Balance | -20 | -60 | -70 | 50 | 100 | The table above clearly shows how within 5 months Catherine’s business could begin to turn over a considerable profit. Assignment 3 – Financial Statements 1. Explain what documents and statements you have consulted. The report will outline the financial viability of the Hydro Hotel PLC and will analysis reports and financial statements for the year ended 31 October 2012. The following documents have been analysed to prepare this report: - Profit and Loss Account. - Historical Cost Profits and Loss. - The Balance Sheet 2. Use relevant ratios to measure the performance of the target company. Explain why you have used these measures and what the results mean in terms of strengths and weaknesses. Analysis of the above documents will allow me to assess the financial viability of the organisation. I will use five performance ratios to outline and justify my findings. a. The Liquidity Ratio – This will allow me to understand how easily the company can pay off its debts by liquidating its current assets into cash. A liquidity ratio of 2:1 would be considered normal for most companies. The liquidity ratio is calculated by: Current AssetsCurrent Lilabilites =Liquidity......

Words: 4105 - Pages: 17

Managing Financial Resources and Decision

...THE LONDON COLLEGE UCK HND IN BUSINESS HNBS 102 MANAGING FINANCIAL RESOURCES AND DECISION TASK 1) General information about the company: - the full name of the company: the restaurant "Millennium"; - the legal form of the company: general partnership;( being in a partnership the company has more chance to be successful not only cause more capital is injecting to the business but also expertise or specialised skills and knowledge can be used to run the business smoothly. Important is that any kind of liabilities are divided between the partners.) - activities: industry: restaurants, retail and utilities; - company location: London Representation of entrepreneurs: Main characteristics: - the primary goal of the company is to operate and on the nature of the service, and to strive to satisfy any culinary needs and expectations on the part of clients (mainly residents of the city of London); - getting a significant position in the local catering market; - the entry of the company on the domestic market, and also in the future to strengthen their position nationally. Capital expenditures is creating future benefits for a business . Existing when a business invest money in to fixed assets or to add the value of an existing with a useful life extending. The long-term financing provides businesses with a more stable debt management than a short-term loan. Unlike particular short-term loans such as credit......

Words: 8440 - Pages: 34

Managing Financial Principles and Techniques

...Managing Financial Principles and Techniques - Financial and Investment analysis Contents 1. Be able to apply cost concepts to the decision-making process 2 2. Be able to apply forecasting techniques to obtain information for decision making 4 3. Be able to participate in the budgetary process of an organization 5 4. Be able to recommend cost reduction and management processes for an organization 7 5. Be able to use financial appraisal techniques to make strategic investment decisions for an organization 8 6. Be able to interpret financial statements for planning and decision making 10 References 12 1. Be able to apply cost concepts to the decision-making process 1.1 explain the importance of costs in the pricing strategy of an organisation The pricing strategy becomes the major element in marketing mix of Dell Computers as it is related to product positioning. When there is a planning for new product launch pricing strategy is important and it requires general sequence of stages involved during pricing the new product. The different steps are as follows: (Daft, 2011) * Developing marketing strategy – helps the company to develop marketing strategy based on market analysis, market segmentation and positioning * Marketing Mix decisions – Defining a product, distribution and its promotional tactics * Estimation of demand curve – Estimating the demand and understand how it varies from quantity wit price * Cost Calculation – Calculation of......

Words: 3451 - Pages: 14

Managing Financial Resource and Decision

...advantages and disadvantages are discussed for different financing methods, cost of finance, financial planning and information and many other issues that help to gain a proper knowledge about the financing in organization. Different books and journals have been used to prepare the assignment. Contents Introduction 3 Requirement 1 3 Task 1.1 : Business needs finance and available sources of finance to a business 3 Equity financing 4 Debt Financing 4 Lease Financing 4 Task 1.2 : Accessing and comparing the implication of the different sources of finance 4 Implication of equity financing 4 Implication of debt financing 4 Implication of lease financing 5 Task 1.3: evaluation of the appropriate sources of finance for the above mention businesses. 5 M1: Critically evaluate each available sources of finance to that particular firm. Evaluation should include the pros and cons, and legal aspects of each source. (Merit M1). 5 Case study 1: An engineering firm 5 Equity financing for this firm 5 Debt financing 5 Lease financing 5 Case study 2: Individual financing 5 Equity financing for this firm 5 Debt financing 6 Lease financing 6 Case study 3: Large plc. 6 Equity financing for this firm 6 Debt financing 6 Lease financing 6 Case study 4: Local Do It yourself firm 6 Equity financing for this firm 6 Debt financing for this firm 6 Lease financing 6 Case study 5: Rugby club 6 Equity financing for this firm 7 Debt......

Words: 3850 - Pages: 16

Managing Financial Resources

...| MANAGING BUSINESS BUSINESS ACTIVITIES TO ACHIEVE RESULTS | [Type the document subtitle] | | MBATAR | | ANN MBURU | 4/15/2014 | | Enhancing Competitive Advantage: A Case Study of Emirate Airline Insert Surname MBURU ANN Insert Course Title MBATAR Insert Course Code Insert Date 15-4-14 Insert Lecturer’s Name Table of Content Introduction………………………………………………………………………………. 3 Objectives of the study…………………………………………………………………… 4 The proposed corporate strategy of Emirate Airline…………………………………... 4 Recommendations………………………………………………………………………… 10 Conclusion………………………………………………………………………………… 11 References………………………………………………………………………………… 12 Introduction The Emirates Airline which is a part of the Emirates Group is presently one of the main airlines in the Middle East. In one week, the airline has close to two thousand two hundred flights traversing across the United Arab Emirates and Dubai. The airline’s head offices and coordination centre is strategically located in Dubai. Other than its supremacy in flight operations in the Middle East, the Emirates Airline is known to serve the longest flights in the entire world. The airline was established after the collapse of Gulf Air in 1985 and is wholly owned and run by the government of Dubai, a constituent country of the United Arab Emirates (UAE) group. Its main activity is offering commercial transportation services which is sub divided into four categories namely: - international which entails......

Words: 2724 - Pages: 11

Managing Financial

...techniques to evaluate a project’s viability and compare the difference of NPV and IRR. The team have to select and use appropriate forecasting methods to enable cost and revenue of cash flows forecasts to be constructed for Maxwell Ltd, adjusting for expected movements, on the basis of both Strategic Option 1 and Strategic Option 2. Then, the team has to select appropriate sources of funds for Maxwell Ltd and make recommendation on the best ways of raising sources of funds for the selected strategic option. Punggol Limited mini-bus investments within three years and director of the company has considered the two financing options. Company must use the authentication method to make investment decisions. must choose the appropriate financial information and make strategic investments. Then the company must be audited in accordance with the Investment project decisions. 1. Introduction for Maxwell Ltd Investment Project Evaluation Method. Maxwell Ltd produces a mobile phone model known as the IMobile. Maxwell Ltd's board of directors meet in order to discuss business strategy for the coming year. The sale director advocates an aggressive strategy (strategy option 1), involving new investment, high inventories and an expansion of sales. The finance director advocates a conservative strategy (strategy option 2) involving no new investment, minimizing inventories and the adoption of a 'TIGHT' credit policy on sales. The team have to select and use appropriate......

Words: 1149 - Pages: 5

Resources of Managing Financial

...parties and the external parties. The information needs of them also differ according to their needs. Owners/ Shareholders: They can be categorized as internal parties and their information needed for decision making are listed below. • Profitability of the company • Profit attributable to shareholders • Organizations asset base/ payables or net worth • Availability of cash for future expansions Employees Employees are also internal parties but their purpose of getting the information about the organization is different compared to the owners’ interest. Employees are mainly concerned about their salaries and other benefits from the employment and the continuity of the business for the security of their work. They are interested in following financial information. • • Profitability of the company Future expansion Plans External Parties includes  Lenders/ banks  Government/ regulatory institutions  Public/ customers Lenders: Lenders/ Banks seek more information about the company when lending money for them to expand or for operations. Usually banks look for following information; • Gearing ratio of the company(Ratio between the equity capital and loan capital) • Profitability • Liquidity of the company • Interest cover (Ability to pay interest if the loans are taken) • Fixed assets base to get the information about the securities available for the loan etc Government/ Regulatory institutions • Profit earned to asses the income tax payable. • Other taxes payable......

Words: 546 - Pages: 3

Managing Financial Resource Decision

...Cover Page Programme: BTEC Higher National Diploma (HND) in Business Unit Title and Number: Managing Financial Resources and Decisions (Unit 2) QFC Level: 4 Credit Value: 15 Credits Module Tutor: Yannick Fansi Student’s Name: Adeyinka Adedoyin Email: Student’s ID: 21834 Task 1: 1.1 Identify the Alternative Sources of finance that could be available to the business. (1.1, 1.2) Introduction In writing this assignment report, I will attempt to look into the different sources of finance that business can access or that available for starting a new business and I will also find out the implications of sources of finance and how it impacts on the business. It is often difficult to start a business without enough capital or cash, as all businesses require some form of finance throughout the life span of the business and for the operational cost of the day to day running of the business. Therefore without finance or raising enough capital the business can never materialised. It can therefore be argued that Finance is the life wire of a business as it plays a major role in starting a business. Finance can be used for various business projects including purchase of machinery, starting up a restaurant or for expanding existing business. When considering starting a business before raising the finance certain factors such as the size of the business, location of the business, the type of business and the......

Words: 4346 - Pages: 18

Managing Financial Resource and Development

...The purpose and nature of the budgeting process A budget is a financial document used to project future income and expenses. For manufacturing, budget show the predict finance about the number and the estimate cost of all items which related in production such as: overhead cost, material, labor, revenue, expenses, assets, liabilities, etc. From these predictions, it can help company picturing out the future cost and profit. The budgeting process may be carried out by individuals or by companies to estimate whether the company can continue to operate with its projected income and expenses. Purpose and advantages Budgets play an important role in the manufacturing and production process because companies will allocate each production cost to products. Spending too much money on specific activities will raise individual product costs, requiring companies to charge consumers for inefficient operations[1]. There are seven main purpose of budget. Firstly, budget can ensure the achievement of organizational objectives and push organizational planning. The reason is that a performance budget is a strategic tool that enables a company to win the competitive game. Moreover, a budget is basically a money plan, outlining company financial goals. Having a budget, company can well establish and regulate funds, set and achieve company financial objectives, and make advance decisions as to how company want company finances to function well for company. The main...

Words: 2713 - Pages: 11

Managing Financial Resources as an indicator of continuing financial health should not be surprising in view of its crucial role within the business. This requires that business must be run both efficiently and profitably. In the process, an asset-liability mismatch may occur which may increase company’s profitability in the short run but at a risk of its insolvency. On the other hand, too much focus on liquidity will be at the expense of profitability. Thus, the manager of a business entity is in a dilemma of achieving desired balance between liquidity and profitability in order to maximize the value of the company. The Conclusion The different analyses must identify critical management practices and are expected to assist managers in identifying areas where they might improve the financial performance of their operation. The results may provide owner-managers with information regarding the basic financial management practices used by their peers and their peers attitudes toward these practices. The working capital needs of an organization change over time as does its internal cash generation rate. As such, the small companies should ensure a good synchronization of its assets and liabilities. As businesses face shrinking margins, global competition, and the need to deliver on loyalty-creating customer experiences, they will also face the need to change the way they do business. As companies evaluate improvement projects they should consider the financial contribution that......

Words: 2358 - Pages: 10

Managing Financial Resources and Decisions

...Health&Beauty Spa Services Business Plan 2014 Baby and Me Health-Beauty Spa services  London Phone: 02033248641 Mobile:07849282187 1 Table of Contents 1.Executive Summary 2.Sources of Finance 2.1 Sources of finance 2.2 Importance of Sources of finance 2.3 Capital required for business 2.4 Advantages and disadvantages of finance 2.5 Start-up 2.6 Cash flow 2.7 Sales Forecast 6 7 8 9 9 12 13 3. Return Investment 3.1 Investment Appraisal 3.2 Importance of Investment Appraisal 3.3 Advantages and Disadvantages 3.4 Calculation of Return on Investment 14 14 15 16 4.Financial Planning 4.1 Successful business 4.2 Importance of financial planning 4.3 Price 4.4 Fixed cost and Variable cost 4.5 Break even analysis 17 18 19 20 20 5.Financial Documents 5.1 Importance of financial documents 5.2 Profit and Loss account 5.3 Balance sheet 5.4 Profit and loss 5.4 Ratios 5.5 Conclusion Reference List 2 21 22 24 24 25 25 1. Executive Summary Baby and Me is a start-up business, planned to begin commerce In June 2014 as a sole trader enterprise owned by Oktavianti. The business leads up to be the first mother-to-be spa or salon in Bedford Square, London City. With services and products offered in an exclusive combination, I believe that the market share will grow quickly. Baby and Me supplies clients with a relaxing and recovering environment where all of their soul and......

Words: 5940 - Pages: 24

Managing Financial Resources “Reliance Capital Case”

...deviation assuming equal investment. What composition of the two stocks has the least risk? ------------------------------------------------- Q3. Repeat analysis for a portfolio consisting of Reliance Communication, JSW and Maruti. ------------------------------------------------- Q4. Compare the volatility of the index with that of these portfolios. What relationships do you notice? ------------------------------------------------- Q5. Estimate beta of each stock and the portfolio beta. ------------------------------------------------- Q6. Construct international portfolios of stocks from US and UK. Assume equal investment and a correlation of 0.67. ------------------------------------------------- Q7. Using the reported NAV in case Exhibit, calculate the fund returns, excess returns to the fund (vis-à-vis expected return), Sharpe ratio and the Treynor’s Ratio. Has the fund performed better than the benchmark returns? ------------------------------------------------- Mean returns and standard deviation for each stock in the Reliance Growth Fund. ------------------------------------------------- TABLE ------------------------------------------------- The average daily returns range from 0.03% for HCL technologies to 0.64% for Adani Enterprises ------------------------------------------------- The arithmetic mean for all stocks: 0.25%. ------------------------------------------------- The standard deviation of daily returns ranges from 2.13% for......

Words: 1704 - Pages: 7

Managing Financial Resources and Decisions

...ones in the event that you pass away (you tube, 2012). 6. Personal savings The primary spot business visionaries ought to search for start-up cash is in their own pockets. It is the slightest costly wellspring of stores accessible (13 sources of finance, 2015). 7. Bank loans A development made by a bank to be repaid with eagerness at the exceptionally most recent a modified date (the free, 2015) TASK 2:1.2 Assess the implications of the the different sources identified on the business The individuals who get government stipends discover it less demanding to raise cash from other government and private sources. Government awards have rules on a repayment framework, so in the case that you become a cash-strapped organisation, there is a possibility that you may face hardships (, 2012). If you are leasing a property to start your business, you will not have to spend a lot of money but it will become more expensive due to interest rate (Editor, 2015). You can likewise request that loved ones help finance your expansion. Make sure to keep them educated of how you are utilizing their trusts, and set up a reimbursement plan (Small Business BC, 2010). You may be qualified for elected and common government projects to assist you with financing your development (Small Business BC, 2010). Factoring is a Snappier set up and Subsidizing but Costly than a bank loan (,......

Words: 1195 - Pages: 5

Managing Financial Principles

...Conclusions and best recommendations……………………………………………………11 Sources……………………………………………………………………………………….13 Introduction Finance is considered one of the most important aspects (units) of any institution, as it pertains to the arts and science of managing money (Khan & Jain 2007). There are major areas of finance including; * Financial services; which deal with the delivery of advice and financial products to businesses, individuals etc within the areas of banking. * Financial management; which deals with the duties of financial managers, and the said managers are responsible for budgeting, financial forecasting, cash management etc (Khan &Jain 2007). Applicably therefore, without financial help, or without a budget, it will be impossible for BBC capacity building institute to implement any plans and strategies, no matter how good they are. This is so because budgeting entails planning and control, and without these BBC is bound to crash. 1.1 How budgeting can assist BBC training Institute in planning First and foremost it is important to note that a budget per is an estimate of costs, revenues and resources over a specified period, reflecting a reading of future financial conditions and goals. Budgeting is a process of expressing quantified resource requirements (amount of capital, amount of material, number of workers) into time phased goals and milestones. BBC Companies budget is a planning tool which will enable......

Words: 2650 - Pages: 11