business management Q&A Sample

Comprehensive Guide to Business Management: Q&A Insights and Strategies

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Introduction Of Business Management

Part 1

1. How have you used the feedback you received from your tutor on TMA 02 and/or other previous TMAs to help you prepare TMA 03? Give one clear example of how feedback from TMA 02 (or – if you wish - from TMA 01) has informed what you have written in TMA 03. (5 marks)

The feedback that I have received from the tutor helps in preparing the TMA03. I try to reflect my though in the TMA03 so that can be able to explain the matter in a proper way. I will add some example, which is useful to prepare a significant TMA03. I will try to add some relevant information in TMA03 that make it more understandable. I will try to link the example with the module concept that helps in creating the TMA03 more significantly (Sahoo, 2022). The references that are used in TMA03 are relevant in nature that helps in providing the relevant information. In addition to that, the Harvard referencing style is used in TMA03. The use of proper language helps in conveying the ideas in the module. The TGF helps in developing problem-solving skills and increases the ability to critically thinking.

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Part 2:

2. Briefly explain the general purpose of each of the two financial statements (the performance statement and the position statement) and the usefulness of each of them for the business in the case study. (20 marks)

The purpose of two financial statements is for understanding the fact of performance and position of the company in the range of years. The company is determined with the financial statements of performance statements and position statements. The performance statement of the company is there to describe the performance of the company in the periodic year. The positive and negative performances of the company are described with the help of the performance statements. The overall performance of the company is explained in the study for achieving the performance statements. On the other hand, the position statement of the company is described to show the importance of the company's position in the range of years.

The position statement of the company is described with the importance of providing the valuable clauses and the particulars for describing the position of the company in the market. The position statement is defined as an expression of the process by which a given product, service and brand fills up the consumer's demand in the process by which its competitors cannot. Whereas, the performance statement of the company points to the source, type and status of funds, the beginning balance, profit and losses, receipts and disbursements and the ending balance that signifies the performance of the company.

The sales revenue of the company Wodzinski Antiquarians Ltd until the year 2021 was £120.6 k whereas the company gear up in the year 2022 to produce £134.9 k sales revenue. The opening inventory of the company also increases from £127.5 k to £140.9 k. The gross profit of the company is noted as 79.8 k in 2021 and 79.04 k in the year 2022 (Pal, 2021). The total operating expenses of the company in the year 2021 were 69.5 k whereas it increases to 116.8 k in the year 2022. Therefore, the operating profit of the company increases from 10.3 k to 37.4 k in one year. The position statement of the company declares that the current asset of the company in the year 2021 was 140.9 k while the current asset increases to 170.6 k in the year 2022.

3. Using trend analysis and appropriate ratios, analyze the financial statements that have been prepared by the business in the case study. In particular, comment on the following aspects of the company:


Areas of concern in financial performance, focusing mainly on the performance statement

The sales revenue of the company has increased from 120.6 k to 134.9 k, while the total cost of books sold is increased from 40.8 k to 55.5 k and the gross profit of the company is noted to decrease very little from the value of 79.8 k to 79.4 k. In this particular scenario, it is noticed that the gross profit of the company decreases after the year 2021 and this is for the increased operating cost that needs to be decreased (Reyes, 2020). The financial condition of the company is hampered as the operating cost of the company is too much compared to the profit margin. The expense for the office staff and the maintenance of the company has increased a lot in the year 2022 while the particular expanse was nil in the year 2021. That means it is clearly understood that the increase in the operating cost and the increase in the expenses has led to a decrease in the gross profit and this made the decrease in company's financial conditions.

Financial performance:

Revenue (Sales) Growth/Decrease (%) = 11.8%
Gross Margin (%) = 58.8%
Operating Profit Margin (%) = 27.7%
Return on Equity (%) = 6.7%


Areas of concern in financial health, focusing mainly on both the performance and position statements (30 marks)

The financial health can be justified by focusing on the performance and position statement of the company that can be related to form the net result of the company's outcome. In the position statement, it is seen that the total assets have decreased from £125.4 k to £61 k and this is the main issue for which net assets are affected and the total equity of the company also decreases from 65.4 k to 11 k (Pallathadka, 2021). In the performance statement, the company is mainly facing problems in matters that deal with the operating cost and the gross profit of the company. The profit margin of the company has decreased and this is for the maintenance cost and for the increased operating cost. The financial health of the company is decreased and this is the main issue of the company. The company does have not many assets left and this is the reason why the company is getting down in the matter of financial ground.

Financial Health

Quick Ratio = 2.42
Receivables Collection Period (days) = 381.2 days
Inventory Turnover Period (days) = 5
Gearing (%) = 4.54%

4. Using the analysis in your answer to Question 3, comment on the validity of the concerns expressed about the business by International Antiquarians GmbH's finance director. What practical steps should now be undertaken to improve the financial performance and financial health of the business? (30 marks)

The steps that are essential for the company to maintain the financial health of the company are to a huge extent. The company needs to decrease the overall cost of operation and also the company need to maintain the maintenance cost. The company is having huge investment in the operation cost and it is ranged from the value 69.5 k to 116.8 k. The huge rise in the operating cost can be the most important factor that is needed to control. The company is also spending much on salaries and maintenance costs that can make the company lean. The company is having a huge change from the year 2021 to 2022. The net profit of the company is decreased due to the operating expenses and the company has immense financial ground in which the company is expanding (Roetzel, 2019). The financial health of the company is being hampered for some of the reasons like the increase in the operating cost and the cost of maintenance. The company needs to have control over the basic process of expenses and the staff expense of the company needs to be decreased. The company is having huge expenses on the legal cost and the depreciation of the company has noted an increase from 25.9 k to 32.2 k. The website and the promotion cost of the company are also increased to 17.4 k from 14.1 k.

A decrease in the promotional cost is also needed for having control of the finance of the company. The company need to see about the staff requirements which means the company need to control the objective of the company with less number of staff and also the maintenance of the company needs to be managed at less cost (Sahoo, 2022). The company is a profitable company as the company produces 79.4 k profit after having so many expenses in the market. In the previous year, the company's profit was 79.8 k with a limited number of operational costs and expenses that can be justified by the part, which suggests that the overall condition of the company is good as after having so many expenses also the company is producing the average profit margin. The company is producing a huge impact on the market with the legendary concept of books that can have interesting factors of the study. The company is having only one issue. The company is suffering the depreciation in the financial health for the operational cost.

Part 3:

5. Explain how you have participated in ONE of the TWO TGF Block 3 activities to which you contributed and what you have learned from participating in that activity. (10 marks)

TGF or the tutor group forum is the part in which I have participated for my interest in the teaching section. The TGF made me acknowledge various forms of problem-solving skills and it helps to develop critical thinking skills. The company produces much impact on me as I have learned something new from the part that says if the operation cost is increased then also the profit percentage remains almost the same in the case of a well-reputed company. The company produces all the financial statements and the basic part of the finding is that the company needs to work on the operational cost of the company. The operational cost of the company needs to be managed so that the company can have a profitable structure.

References

  • Pal, A., Tiwari, C.K. and Haldar, N., 2021. Blockchain for business management: Applications, challenges and potentials.The Journal of High Technology Management Research,32(2), p.100414.
  • Pallathadka, H., Ramirez-Asis, E.H., Loli-Poma, T.P., Kaliyaperumal, K., Ventayen, R.J.M. and Naved, M., 2021. Applications of artificial intelligence in business management, e-commerce and finance.Materials Today: Proceedings.
  • Reyes-Menendez, A., Correia, M.B., Matos, N. and Adap, C., 2020. Understanding online consumer behavior and eWOM strategies for sustainable business management in the tourism industry.Sustainability,12(21), p.8972.
  • Roetzel, P.G., 2019. Information overload in the information age: a review of the literature from business administration, business psychology, and related disciplines with a bibliometric approach and framework development.Business research,12(2), pp.479-522.
  • Sahoo, S., 2022. Big data analytics in manufacturing: a bibliometric analysis of research in the field of business management.International Journal of Production Research,60(22), pp.6793-6821.
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