Cost Management and Analysis #22753
ASSESSMENT ITEM 2: GROUP ASSIGNMENT (Group Component)
Weighting: 20%.
Autumn 2014
1. OVERVIEW
Your group is to perform the financial analysis (feasibility study) outlined in Attachment One of this
document. The analysis is for UTS management (i.e., your CMA Lecturer).
Unlike earlier semesters, this assignment allows you to do analysis on a project which if successful,
may actually be implemented by UTS. Details of the assignment and some background information
are available in the attachments.
Your group must submit and present your financial analysis in three formats:
A. Excel – financial modelling
B. Word – written report
C. PowerPoint – for presentation in-class (5 minutes per group).
Extracts from the financial modelling are to be included in your Word report and PowerPoint
presentation.
A key factor to keep in mind is that a feasibility study is not as detailed as a full business plan. Hence,
you have discretion as to what information to keep in the body of the report and what information
to exclude. A key part of this project is that it requires you to identify and obtain the relevant
information via research, analysis and estimation. You need to only include information relevant to
decision-making in the report.
2. EXCEL
UTS management (i.e., your CMA Lecturer) will review your financial modelling. He will need to be
very comfortable with your technical execution. Like many senior managers, he is extremely time
poor and needs to be communicated to very concisely. He needs to quickly understand the design of
your models, as well as assumptions and limitations.
You will email your Excel file to your lecturer for review.
Here is what he will expect to see:
? The model is clearly structured, with supporting tables in separate tabs that build-up from a
detailed breakdown.
? Input and output tables are clear and separate.
? Tables logically present key components (e.g., costs, benefits, assumptions and parameters).
? The model is materially complete and comprehensive.
? The model is technically correct, e.g., cash flows are on an after-tax basis and treatments are
conventional.
? Excel extracts used in the written report or PowerPoint presentation should be appropriately
formatted, e.g., present figures in $M (e.g., $0.18M for $180,000).
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3. WORD
Remember, the UTS management is your audience and they face budget constraints, so focus on the
numbers. It should be very clear what the document is about, what the analysis implies, and what
recommendations you are making (if any) for future progression of the initiative. Include evaluation
of how the initiatives are aligned with the ‘corporate’ strategy.
You will lose marks if you include superfluous information in the report. He is highly knowledgeable
about the business generally (e.g., its strategy and structure) and will be irritated by time wasted
reading an unfocussed report (although he is often unfamiliar with operational issues). He wants the
report to present only pertinent information and key aspects of the financial modelling.
This is a business style report for a non-academic ‘insider’. It must provide concise and easily
readable information to aid decision-making. It must include explanation of major conceptual points
with simple definitions and explanation of relevant terminology (especially operational matters) and
complexities).
You MUST INCLUDE an Executive Summary. It will be sent to the UTS decision makers so it must be
comprehensive and describe the ‘big picture’ and the main ‘numbers’ (e.g., net savings, Capex, NPV,
IRR). The structure should also include Introduction, Discussion of Key Findings, and Conclusion.
Your report must:
? analyse and discuss the information, and evaluate it critically.
? identify problems and suggest solutions.
? speculate about future trends and impacts.
Attachments:
CMA-Assignmen….pdf