Assignment Sample For BUS7B30 Financial Insights and Business Intelligence
BUS7B30 Financial Insights and Business Intelligence Assignment Sample
Introduction
This assignment is conducted to suggest solutions for identifying different financial issues and challenges in Tesco plc. Any organisation needs to identify financial issues and risks for better financial management as well as financial plan for solution. The first steps for effective financial management are considered effective financial resources that have lost cost and effectively meet financial needs of the organisation. An organisation should consider income statements as well as profitability to develop solutions to financial issues. Besides, on the other hand, consider debt-equity and “return on investment” ratio for making “investment decisions”. While efficiency ratio and organisation’s performance assist an organisation to develop operating strategy as well as decision.(
FinTech solutions for financing
Financial performance of an organisation is normally measured through an “income statement and balance sheet”. Tesco Plc wants to expand business in different countries through expanding numbers of stores in different business locations. As stated by Leong and Sung (2018), the organisation is required to acquire a large amount of capital for investment. The organisation is required to invest nearly £100 million to develop new stores as well as provide products for sales. The organisation is investing nearly 30 million to develop a “digital supply chain” that assists in properly interconnecting with each store of the organisation and maintaining supply of the final product. Tesco Plc should consider the following fintech solution for the business plan of expanding in different business locations.
Peer-to-Peer: peer to peer is a fintech solution strategy that assists any growing as well as start-up organisation to develop an effective financial budget for their business plan. As argued by Echchabi et al. (2021), any business requires heavy investment for this they consider different financial resources such as “equity share and loans”. The process of collecting capital from equity shareholders is so complicated and critical nevertheless the capital source is better as compared with other capital sources due to low risk. This concept of financial management is suitable for business expansion through digital resources in different countries. Tesco Plc should consider these concepts for acquiring capital from large numbers of investors. On the other hand, this process is applicable for any business organisation that is using digital methods to collect capital.
Alternative credit scoring: traditional process for credit score is not suitable for acquiring large amounts of capital as an organisation is required to perform several financial activities at the global level and nation to develop a better financial score. A credit score refers to a score that is considered by any banking or financial institute while they give loans to any individuals as well as any business organisation. Sometimes organisations fail to develop an effective credit score. As a result, the organisation fails to approve large amounts of loans from banks and financial institutes that are important for an expanding business organisation. As stated by Ali and Muthaly (2018), thus any organisation needs to invoice in “digital payment and banking processes” that may support business organisations to develop an effective credit score at global that may assist business organisations to take approval for large loans. The current practice of different businesses is to select a digital payment process to make payment or receive payment from anyone. As a result, they are able to develop an effective credit score. That credit score is used by them to take loans and financial support from any banking institute.
Small ticket loans: this type of loan is normally not entertained by traditional banking institutes as these types of loans have low margins and high risks. This type of loan is provided by those banking institutes of financial organisations that use digital technology to perform the loan process. Digital practice refers to document verification and other practices of loans are performed through digital assistance or gadgets. As argued by Lee and Shin (2018), the banking organisation measures financial needs of any organisation through the BNPL offerings method. For example, different financial organisations provide loans and credit facilities online within a small period. Thus, Tesco Plc should consider this practice to meet the financial support and develop a 100 million budget for expanding organisation. There are several benefits for this practise such as improving the credit score of an organisation and saving extra time that is required for the documentation process in traditional methods of business performance.
Digital wallets: digital wallets refer to a UPI ID of an online account that is used by any individual and business to perform short and small financial activities. Thai wallets support any business organisation developing a credit advantage in the market as well as in front of different types of stakeholders. As opined by Mention, (2019), thus Tesco Plc should be considered digital wallets to be financial and develop the required capital for their business organisation.
Figure 1: FinTech solutions
(Source: Zarrouk and Ghak, 2021)
Digital insurance: digital insurance refers to an organisation that may be considered different types of organisations that gives insurance facilities through digital methods with heaps of digital assistance and gadgets. This process saves time for both insurance parties and organisations. This concept indicates an organisation to develop a digital infrastructure that supports organisations to develop a digital culture. The digital infrastructure is to support business organisations to take digital insurance and they have a “digital credit score”.
FinTech solutions for investing decisions
The Fintech method is also suitable for developing an effective investment decision and making investments in any sector. As opined by Zarrouk and Ghak, (2021), investment is the most important factor for any business organisation for improving business and the sole financial issue in an organisation. As Tesco Plc is going to invest nearly 100 million to establish 10% extra stores at different business locations, Tesco Plc needs to consider the below strategy.
Big data: big data refers to large numbers of data of financial performance of an organisation of several years. Tesco Plc should also consider the impact of previous investment divisions and their impact on organisations such as investment to improve the production process and consumer engagement. As stated by Ionescu and Radulescu (2019), the business plan of Tesco Plc for business expansion at different locations in the UK requires 100 million of investment in different business practices such as establishing stores. This practice of fintech is to support organisations develop an effective investment strategy and decision. That may be a support organisation to improve business profitability in their future business practice.(BUS7B30 Financial Insights and Business Intelligence Assignment Sample)
Machine learning: machine learning method is a digital business practice that is used to solve massive business problems and risks. As opined by Moccia and García (2021), this process consists of analysis and organisation of raw data of past performance and impact of past investment policy. Tesco is a high growth retail industry that is countries expand business through investment policy. Tesco Plc is required to consider the machine learning process with the support of artificial intelligence. As a result, Tesco Plc is able to invest in the right business location as well as at the right time.
Investment opportunities: investment opportunities refer to different opportunities that may support an organisation to improve business in any term such as expanding business as well as acquiring another business. Expanding stores at different locations in the UK are main opportunities for Tesco plc. For these opportunities, the organisation is going to invest nearly 100 million to acquire different stores for their retail business. As argued by Lee and Shin (2019), the organisation is also acquiring the latest technology and gadgets for developing a DSC in organisations that support organisations to develop interconnection with each store and organisation. These steps of the organisation are supported to make a successful business plan.
Best resource: there are different types of financial resources that are considered by an organisation to satisfy financial needs. Manually any business organisation gives bank loans priority as the banking loans are easy as compared with other financial resources. Nevertheless, bank loans consist of high operating costs and risks due to the addition of different charges by the banking institute. As opined by Sajtos and Tőrös (2018), nevertheless, a fintech solution is to suggest a banking organisation consider shareholder funds to meet their financial needs. That has low cost and risks. Thus, Tesco Plc needs to give priority to equity share funds to meet their 100 million capitals.
FinTech solutions for operating decisions
Operating division refers to making decisions for maintaining the organisation of different types of operating activities such as production process as well as “supply chain process”. Tesco Plc operates a business at a global level and has more than 4000 stores at different locations in the UK and other countries. As opined by DANG and VU (2020), further the organisation is also able to improve their operating profit as well as net profit by considering these fintech solutions.
Latest machinery and technology: There are different types of latest technology that may improve the manufacturing process of organisations such as robots and artificial intelligence. Tesco Plc is a retail business industry having large numbers of stores and manufacturing plants. This is too complex a process for an organisation to maintain all processes in a traditional method. Tesco must implement robots and artificial intelligence for performing operating processes in a systematic process. That process has low operating expenses and profitability automatically improves. In this context, the latest machinery refers to the automatic production line and packing process is performed with the help of robots and artificial intelligence. Normally artificial intelligence performs business activities commonly made through digital gadgets.
Digital supply chain: any business industry should be considered DSC in their business organisation for enhanced performance of management as well as increased “consumer engagement”. This concept is also too suitable for those business organisations which are involved in the retail industry. The DSC is also assisting businesses to identify real-time delivery of products as well as maintaining sufficient stock of raw matter in the organisation so that the production process of the organisation is maintained properly. The DSC must consider drones and the latest vehicles for the maintained supply process of Tesco Plc to different stores.
Figure 2: FinTech solutions
(Source: Duong, 2019)
Assets management: assets management must be considered by industry to enhance the life of machinery as well as profitability of organisation. As opined by Duong, (2019), the context of asset management refers to an organisation that is required to take care of all assets which are used in the manufacturing process and other business processes. As a result, the life years of plant and machinery is automatically improved. Tesco Plc must upgrade technology that is used to manufacture products and perform different operations as an automatic concept.
Provide training: employees of any organisation play a vital role to perform operating activities of the organisation. Thus, an organisation must provide training and skills for use of the latest technology as well as gadgets that are used in an organisation as part of the digital business culture of the organisation. As opined by Lee and Shin (2019), there are several benefits of adopting digital culture in an organisation. The first benefit is efficiency of employees is automatically improved, which assists Tesco Plc to maintain more than 4000 stores and upcoming 10% extra retail stores. The second benefit is that the organisation is able to enhance the operating performance of the organisation.
Conclusion
This study paper supports Tesco Plc to formulate financial divisions that include use of different financial resources to perform business plans and expand business at different business locations. On the other hand, Tesco Plc is also considering this assignment to develop operating decisions such as use of artificial intelligence and gadgets for performing operating activities at different departures and countries. As the organisation performs retail service at a global level thus DSC is important for Tesco plc. Further, in investment decisions, Tesco Plc needs to consider different opportunities and cultures of that business location where the organisation is going to invest their financial resources. Finally, it is concluded that all significant solutions for making delicious must be considered in this assignment.
Reference
Journals
Ali, W., Muthaly, S. and Dada, M., 2018. Adoption of Shariah Compliant Peer-To-Business Financing Platforms by Smes: A Conceptual Strategic Framework for Fintechs in Bahrain. International Journal of Innovative Technology and Exploring Engineering (IJITEE), 8(2), pp.407-412. Available at: https://www.researchgate.net/profile/Morakinyo-Dada/publication/348676835_Adoption_of_Shariah_Compliant_Peer-To-Business_Financing_Platforms_by_Smes_A_Conceptual_Strategic_Framework_for_Fintechs_in_Bahrain/links/600a711692851c13fe2aa5e7/Adoption-of-Shariah-Compliant-Peer-To-Business-Financing-Platforms-by-Smes-A-Conceptual-Strategic-Framework-for-Fintechs-in-Bahrain.pdf
DANG, T.T. and VU, H.Q., 2020. Fintech in Microfinance: a new direction for Microfinance institutions in Vietnam. The Journal of Business Economics and Environmental Studies, 10(3), pp.13-22. Available at: https://www.koreascience.or.kr/article/JAKO202021961381654.pdf
Echchabi, A., Omar, M.M.S., Ayedh, A.M. and Sibanda, W., 2021. Islamic Banks Financing of FinTech Start-Ups in Oman: An Exploratory Study. The Journal of Muamalat and Islamic Finance Research, pp.55-65. Available at: https://jmifr.usim.edu.my/index.php/jmifr/article/download/329/222
Fenwick, M., McCahery, J.A. and Vermeulen, E.P., 2018. Fintech and the financing of SMEs and entrepreneurs: From crowdfunding to marketplace lending. In The economics of crowdfunding (pp. 103-129). Palgrave Macmillan, Cham. Available at: https://edisciplinas.usp.br/pluginfile.php/5552445/mod_resource/content/1/Aula%2021.%20CUMMING%2C%20Douglas%3B%20HORNUF%2C%20Lars%20%28Eds.%29.%20The%20Economics%20of%20Crowdfunding%20-%20Startups%2C%20Portals%20and%20Investor%20Behavior.%202018.pdf#page=116
Ionescu, R. and Radulescu, I., 2019. Behavioral finance and the fast evolving world of fintech. economic insights–trends and challenges, VIII (LXXI), (4). Available at: https://upg-bulletin-se.ro/wp-content/uploads/2020/05/5.Ionescu_Radulescu-4-2019.pdf
Lee, I. and Shin, Y.J., 2018. Fintech: Ecosystem, business models, investment decisions, and challenges. Business horizons, 61(1), pp.35-46. Available at: https://www.academia.edu/download/60183957/BH865-PDF-ENG__Fintech__Ecosystem__business_models_20190801-95998-19ksrtq.pdf
Lee, I. and Shin, Y.J., 2018. Fintech: Ecosystem, business models, investment decisions, and challenges. Business horizons, 61(1), pp.35-46. Available at: https://www.academia.edu/download/60183957/BH865-PDF-ENG__Fintech__Ecosystem__business_models_20190801-95998-19ksrtq.pdf
Leong, K. and Sung, A., 2018. FinTech (Financial Technology): what is it and how to use technologies to create business value in fintech way?. International Journal of Innovation, Management and Technology, 9(2), pp.74-78. Available at: https://glyndwr.repository.guildhe.ac.uk/id/eprint/17310/1/791-M775%20-%20FinTech_inc%20c%20sheet.pdf
Mention, A.L., 2019. The future of fintech. Research-Technology Management, 62(4), pp.59-63. Available at: https://www.tandfonline.com/doi/pdf/10.1080/08956308.2019.1613123
Moccia, S., García, M.R. and Tomic, I., 2021. Fintech strategy: e-reputation. International Journal of Intellectual Property Management, 11(1), pp.38-53. Available at: https://roderic.uv.es/bitstream/handle/10550/79424/145681.pdf?sequence=1
Sajtos, P.F.D.P.P. and Tőrös, Á., 2018. Regulatory tools to encourage FinTech innovations: The innovation hub and regulatory sandbox in international practice. Financial and Economic Review, p.43. Available at: http://www.epa.hu/02700/02758/00016/pdf/EPA02758_financial_economic_review_2018_2.pdf#page=45
Van Duong, H., 2019. FINTECH CREDIT: BUSINESS MODELS AND OPERATIONS MANAGEMENT. SOCIO-ECONOMIC AND ENVIRONMENTAL ISSUES IN DEVELOPMENT, p.67. Available at: https://www.researchgate.net/profile/Doan-Tri-2/publication/332970322_Socio-economic_and_Environmental_Issues_in_Development/links/5cd422cba6fdccc9dd98979f/Socio-economic-and-Environmental-Issues-in-Development.pdf#page=86
Zarrouk, H., Ghak, T.E. and Bakhouche, A., 2021. Exploring economic and technological determinants of fintech startups’ success and growth in the United Arab Emirates. Journal of Open Innovation: Technology, Market, and Complexity, 7(1), p.50. Available at: http://journal.umy.ac.id/index.php/ijief/article/viewFile/7823/4932
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