BE167-7-AU: Accounting and Finance for Managers
BE167-7-AU: Accounting and Finance for Managers
Overview of the company
As per the reports (Premier Foods. co, 2023), Premium Food plc is the company selected here for doing this study. This study reflects the financial and business market overview of Premier Food Plc. It manufactures some best and favorite foods of the United Kingdom like OXO, Bisto, Mr. Kipling, etc. In the last financial year, the total revenue of this company was around 1006.4 m. In the financial year 2023, the net income of this company is around 91.6m. The amount of assets it has in the current situation is 2405.9m, and the amount of liability it has is around 999.9m (Berry, 2022).
Task a)
Evaluated the Company’s business dynamics and its strategies for the market 100
Premier Food Plc is one of the renowned food companies in the United Kingdom. It manufactures some of the very popular food items in the United Kingdom like OXO, Bisto, Mr. Kipling, etc. There are some business dynamics and market strategies followed by them.
Business Dynamics of Premier Food Plc
| Strength
● Successful merger and acquisition. ● Able to maintain their brand value properly in the market. ● Increase the diversity in their product. ● Implement new technologies in the company and try to make better products (Beneatha et al 2021). |
Weakness
● The employee rates are naturally high in this company.
● Provide a larger space to the competitors. ● The diversity of the customer needs in terms of food and the taste of foods. ● Some less stability in the time of doing operational work.
|
| Opportunities
● Do digital marketing and sales and with the help of this try to identify the customer needs and increase the marketing quality. ● Do the brand promotion properly to reach out to the customers as much as possible. ● Providing better customer service. |
Threats
● The market competitors in the same segments are the biggest threat right now. ● Liability and the debt of the company are also huge topics to discuss. ● Corporate laws and business laws present in the UK are also a big barrier in terms of the expansion of their business. |
Table 1: Swot Analysis of Premier Food Plc (Source: Self-Created)
In this table with the help of SWOT analysis the business dynamics of Premier Food Plc is reflected. In that case, the strengths, weaknesses, opportunities, and threats are discussed (Segomo, 2021).
Business and Markert Strategies
The main market strategy for the premier Food Plc is to maintain a sustainable business in the UK market. In that case, this company has to adopt some strategies in their business. First, they need to focus on their marketing process to understand the diversified customer needs because, in the case of food, the choices of the customers are always dynamic and changed. So, for that, they need to implement solid marketing strategies in their business and also need to apply the online marketing process in their business. Secondly, after doing the proper marketing they need to make their product as per the market needs. Third, they need to maintain the brand value in the market. Fourth, they need to implement new technology and technological tools in their company (Varadarajan, 2020).
Market Prospects along with the associated risks
There are lots of market risks present in the UK market for Premier Food Plc. The United Kingdom market is the biggest market for the business so in that case this company has lots of competitors in the market. There are also some other risk factors related to equity and the shareholders, rate of interest, high employee rate in the market, currency-related risk, some critical business and market laws of the UK market, and diversified market needs. There are also some uncertain risks present for them for the last couple of years they have faced some losses in terms of market share and market price (Ramos et al. 2021).
Task b)
Computations of the three profitability ratios and the analysis of those ratios
On the brave fig, it has been noted that the Premier Food Plc ratio analyzed and evaluated the operating ratio, Gross profit ratio, net profit ratio, and operating ratio are competed for three years. In the above the company’s operating ratio in the year 2023 is 15.01%. Apart from that in the years of 2022 and 2021, the operating profit ratio is 14.32% and 13.73%. The valuations of operating profiter high in the year of23. It indicates that the company’s valuation of the profit before is relatively high in the Current year. Despite all of these things, the Companie profit for the door for the three consecutive years was 33.10%, 33.30%, 3, and 3.63. This major ratio and value illustrate the company’s balance in the market. On the other side, the Net profit for the consecutive years is 9.15%, 8.66%, and 11.19%. In this case, the slight portions of the net profit rate are declining in the current years. This means companies diluted after standard expenses are increasing in the current years
Critically evaluated the profitability positions of the company
Graphical Presentations of Premier Food Plc. in Operating Profit
The graphical presentations about the Three years presentations about the operating profit, Net profit, and gross privet ratio are illustrated above. In the above figure, it has been noticed that the companies operating for these years are [scented in the same. In the above figure, the company’s gross profit rate is high in the year 2023 with a net percentage of 33.10. On the other side, the valuation of the company’s gross profit ratio in the year 2022 is 33.10% which means that the company’s Av; you is in the same portions as in the year’s valuation. the valuations of the company’s gross profit ratio in the year 2021 are presented at an all-time high. This presentation of the company’s net profit ratio is also in the same fields 9.15% in the year 2023 and the year 2022 is 8.66% with declining portions of 2.44%. it means the company cannot follow the Business optimization policies of the markets. In the current year net profit ratio is increased on comparisons of 2022.
Task c)
Completion of the three efficiency ratios to analyze the market
In the above Figure, it has been showcased that the inventory turnover ratio, trade receivables, and assets turnover ratio are illustrated. In this consideration, the valuations of the Inventories turnover ratio for the three years are 5.88, 5.36, and 3.93. On the other side the valuations of the trade receivables of the companies Val; valuations are 100.03 days, 113.35 days, and the valuations of the companies are 138.85 days. It indicates that in the current industry turnover ratios are presented in the relative portions. The valuations of the company average total assets turnover ratio are 152.614, 129.780, and 151.936 and the valuations of the company asset turnover ratio are 152.61, 129.78, and the valuations of the company assets turnover ratio are 152.614, 129.780 and in the last year the valuations of the company asset turnover ratio are 151.93.
In this graphical presentation of the company is presented the inventory turnover ratio is high in the period 2023 and in the year 2022 the company’s trade receivables ratio is lower than the comp [arioso of the other two years. This demonstrates that companies’ evaluations and the policies of taking trade receivable’s value are also in the low portions. The disclosing value of the turnover assets of the companies in the year 2023 is stable in the same portions as in the year 2021.
Critically evaluate the resources of the business management
In this section, the resource management in the business is followed by the market strategies of the fiancées. The valuations of the labeling in the optimal marketing structure and the valuations of the staff, physical space, and equipment technologies are also the best sources of resource management. To evaluate setting the goals and objectivity for the resource structure of the business are the pivotal sectors of the managers. In the considerations resources in business management there are lots of resources management like Human resources, project resource management of the business, and the valuations of the natural resource’s projects management, infrastructure management financial management resources management are the main pivotal sections of the resources of the business. Apart from that inventory management, public assets management, and digital assets management are also private sectors of the resource business.
Task D)
Computations of the three investment ratios and evaluation of those ratio segments
In that case, the investor’s ratio is evaluated in this part of this study. According to this bar graph in the year 2023, the debt/equity ratio is 23.90%, in 2022 the ratio is 22.36%, in 2021 the ratio is 28.04%. That indicates that the debt-to-equity ratio decreased in the current financial year. That means the debt percentage of the company also decreased which rings more stakeholders to invest in the company. The price-earnings ratio is increased in the current financial year as compared to the previous year. That increases the interest for the investment of the investors. The dividend yields also decreased which also enhanced the investor’s ratio in the company.
Critically evaluate the current investment positions of the company and
potential opportunities for the companies
In that case, the investor’s ratio is evaluated in this part of this study. According to this bar graph in the year 2023, the debt/equity ratio is 23.90%, in 2022 the ratio is 22.36%, in 2021 the ratio is 28.04%. That indicates that the debt-to-equity ratio has decreased in the current financial year. That means the debt percentage of the company also decreased which rings more stakeholders to invest in the company. The price-earning ratio is increased in the current financial year as compared to the previous year. That increases the interest for the investment of the investors. The dividend yields also decreased which also enhanced the investor’s ratio in the company.
Task E)
Creative accounting refers to imaginative ways to present accounts and refers to the recent real-life examples of company
In this section, the imitative cases like using the advanced techniques models and using the advanced olives of the FAAP and IFRS Rules s are the main measures of the business. in this consideration analysis, the market capitalizations of the business and the evaluation systems of the businesses only can be affected by the implementing accounting policies like entity policies, money measurement policies, and historical cost analysis are only can be done by the advanced models of accounting policies. At this time using informative ways of presenting accounts like using the ERP model software, E tally evaluations of each transaction is only possible to use by the Davance accountant. This helps to create and make the transactions in an authentic ‘way. Basically, creative accounting measures identify the loopholes of the account transitions and measure the errors of transactions, and also help to set the measures of applying the advanced accounting policies in the field of accounting transactions (Blakeman, 2023).
Using a creative source of techniques to manipulate the financial performance of the company
In that case, creative accounting is about making the false story of the financial structure of any company. It mainly refers to the practices of accounting of the company which mainly depend on the loopholes present in the accounting of any company. For doing this the policies of GAAP and IFRS are the main aspects for successfully doing this. The policies of GAAP are discussed below.
- Recognition
The financial reports are the main recognition of any company. The report declares the financial stability, assets, liabilities, profits & losses of the business.
- Measurement
In that case, the financial report of the company needs to be made by following and reaching the expectation of the GAAP.
- Presentation
The financial report is the main presentation of the business so it needs to be properly presented.
- Disclosure
The GAAP provides the proper disclosure to the business of the company.
As well as in the case of IFRS the policies are created the income statements, cash flow, and work workflow statements.
Covering up the loopholes present in the financial statement of the companies and the valuations of the company’s statements analysis are, measured by the consolidated statements
To evaluate cash flow statements, the horizontal, and vertical analyses of the company help to measure the authentic financial; statements of the company. the financial performances and the consolidated financial statement presented the balances of diluted portions of the business and the PAT /, EBIT, and the valuations of the increasing portions of assets and liabilities of the companies. In this case, manipulations using the advanced technique of accounting policies are the main measures of the business (Lee et al. 2020) Inventors’ decisions, are also changed by the manipulations using those advanced techniques of accounting policies.
Reference
premierfoods.co.uk, 2022, Premier Food Plc, Available athttps://www.premierfoods.co.uk/ accessed on 4 the December 2023.
Berry, C.T.P., 2022. Equity research-Whitbread PLC (Doctoral dissertation, Instituto Superior de Economia e Gestapo).
Benzaghta, M.A., Elwalda, A., Mousa, M.M., Erkan, I. and Rahman, M., 2021. SWOT analysis applications: An integrative literature review. Journal of Global Business Insights, 6(1), pp.55-73.
Soegoto, F.A., 2021. Product development using SWOT analysis. International Journal of Entrepreneurship & Technopreneur (INJETECH), 1, pp.1-10.
Varadarajan, R., 2020. Customer information resources advantage, marketing strategy, and business performance: A market resources based view. Industrial Marketing Management, 89, pp.89-97.
Ramos, E., Pettit, T.J., Habib, M. and Chavez, M., 2021. A model ISM-MICMAC for managing risk in agri-food supply chain: An investigation from the Andean region of Peru. International Journal of Value Chain Management, 12(1), pp.62-85.
Blakeman, R., 2023. Integrated marketing communication: creative strategy from idea to implementation. Rowman & Littlefield.
Lee, A., Legood, A., Hughes, D., Tian, A.W., Newman, A. and Knight, C., 2020. Leadership, creativity, and innovation: a meta-analytic review. European Journal of Work and Organizational Psychology, 29(1), pp.1-35.
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