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6 pages/≈1650 words
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APA
Subject:
Management
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Essay
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English (U.S.)
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Topic:

Assessing Financial Performance: FINANCIAL ANALYSIS MEMO

Essay Instructions:

Competency: In this project, you will demonstrate your mastery of the following competency: Assess current performance of an organization through analysis of financial statements.
A.Scenario
A1.In Project One: Applying Strategic and Operational Thinking, you prepared Key Performance Indicators (KPIs) for the marketing and sales departments of your product line.
Now, the CEO has provided you with a revised set of KPIs. You need to apply these KPIs toward the analysis of a proposed marketing and sales initiative to increase loyalty card memberships in neighborhoods with predominantly low-income populations, whether the populations are in rural, suburban, or city locations.
The CEO wants this analysis so that she can chart the sustainability and growth of the initiative while assuring it meets standards for Corporate Social Responsibility.
The CEO has provided you with several documents, available in the Supporting Materials section of this project. She wants you to use the provided Triple Bottom Line Balanced Scorecard to assess the strategic plan’s compliance with the KPIs and summarize your findings in a memo.
***.Directions***
Complete the following to provide the analysis required by the CEO:
1.Identify the financial records that indicate commitment to TBL.
1A.Outline which financial and other records marketing and sales maintains where TBL can provide data.
1B.Using the TBL scorecard, evaluate the alignment of the strategic plan with KPIs. Remember, there may be multiple outcomes of this exercise. Your focus should be to apply your understanding of the scenario and evaluate the plan accordingly.
1C.Which ideas in the plan support the KPI criteria? Cite specific ideas that meet the criteria.
1D.Explain how they meet the criteria.
2.In your memo:
2A.Describe how the TBL data relates to the KPIs.
2B.Identify which additional TBL financial line items are needed to measure the cost for each criterion.
2C. For example, should there be a line entry for hiring temporary workers?
2D.Referring back the SWOT analyses from Project One, explain how functional considerations of individual departments contribute to financial performance.
*******What to Submit********
To complete this project, you must submit the following:
KPI and Triple Bottom Line Balanced Scorecard
Complete and submit the KPI and Triple Bottom Line Balanced Scorecard. In the scorecard spreadsheet, identify one additional KPI, a related SMART objective, and its measurement criterion. You need to do this for all three elements of TBL: people, planet, and profit. You have been provided with one example for each TBL element.
Analysis Memo
In a Word document, write a memo outlining your analysis. Ensure that the memo is organized by TBL element with a header for each segment of your analysis. The Word document should use double-spacing, 12-point Times New Roman font, and one-inch margins. This memo should be no more than 6 pages in length, and include references cited in APA format. Consult the Shapiro Library APA Style Guide for more information on citations.
***Supporting Materials: 6 docs
The following resource(s) may help support your work on the project.
The following resources support your work on the project:
Document: Consolidated Balance Sheet
This is a consolidated balance sheet for the company. The CEO has highlighted the areas of the financial statements she wants you to focus your attention and analysis on.
Document: Consolidated Cash Flow Statement
This is a consolidated cash flow statement for the company. The CEO has highlighted the areas of the financial statements she wants you to focus your attention and analysis on.
Document: Consolidated Income Statement and Consolidated Statement of Comprehensive Income
This document is a consolidated income statement and a consolidated statement of comprehensive income of the company. The CEO has highlighted the areas of the financial statements she wants you to focus your attention and analysis on.
Document: KPI and Triple Bottom Line Balanced Scorecard
This is the final and authoritative draft of the KPI Scorecard the CEO wants you to use. This scorecard provides three KPIs: one for a social measure (people); one for an environmental measure (planet) and one for an economic measure (profits). You need to identify three more KPIs and associated information.
Document: Marketing and Sales Executive Summary
This is a proposal from the sales and marketing departments to increase rewards memberships in low-income markets. This summary includes a high-level estimate of projected sales, costs, and profits.
Document: SWOT Analyses from Sales and Marketing
This document contains a combined SWOT analysis from the two departments.

Essay Sample Content Preview:

FINANCIAL ANALYSIS MEMO
Assessing Financial Performance
Student Name
Course ID
Instructor/Professor
Institutional affiliation
Introduction
The assignment uses the revised Key Performance Indicators (KPIs) in the analysis of the strategic sales and marketing plan aimed at growing the loyalty membership program in low-income populations. The plan and the KPIs are evaluated against the Triple Bottom Line (TBL) comprising of the three P's: P-People, P-Profit, and P-Planet. The TBL scorecard is used to assess the alignment of the sales and marketing plan to the Key Performance Indicator (KPI) and the Triple Bottom Line. The company’s pursuit of the TBL is informed by its strategic objective of targeting low-income consumers while rewarding individuals and the community through a points-based loyalty program. Still, TBL would help increase profits by supporting green initiatives, improving the community welfare and the environment. The analysis is supported by the income statement, KPI and the TBL scorecard, the sales, and marketing executive summary, and the SWOT analysis.
1 Financial records that depict a commitment to the Triple Bottom Line (3BL)
The financial record that depicts a commitment toward Corporate Social Responsibility (CSR) is charitable giving under non-current assets. The company made charitable contributions in FY2018, 2017 and 2016 valued at $18,067, $17,341 and $16,881 Million respectively (Consolidated Bal. sheet). The year-on-year increment of charitable giving is absolute proof of commitment. Still under non-current assets, there were intangible assets valued at $12,962, $12, 152 and $11,520 in FY2018, 2017 and 2016 respectively. Under financial reporting, carbon credits are recognized as intangible assets or maybe reported under other non-current assets. Income generated from sustainable initiatives (carbon credits) can also be reported under trade and other receivables in both the income statement (consolidated) and the consolidated balance sheet
1A.The financial records that can provide data for the 3BL
Marketing and sales departments maintain several records that can utilize the triple bottom line as a source of input data. The records can either be financial or non-financial. These records include the Net promoter score record that rates products based on customer feedback score. Customers are asked whether they would refer the service and why. The data obtained (reason for referral) should be measured against the Triple Bottom Line score-Profit, People, and Planet. The repurchase ratio record can utilize data from the TBL. A high repurchase ratio that the company is performing well on the TBL benchmarks since it divides repeat customers with one-time purchases. The upsell ratio record can utilize data from the TBL since it is a record of cross-selling or customers who have bought more products viz-a-viz those who have just bought one. An increase in upsells depicts a high level of customer trust which can only happen if the company is successfully pursuing the Triple Bottom Line. Customer lifetime value (CLV) records can also use TBL data. It considers the customer's average purchase value multiplied by his average purchasing frequency. TBL data can inform the improvement o...
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