You have been appointed as Regional Finance Director for a large organisation. The organisation has a well established reputation in its field, with a strong customer base. The organisation is reviewing its strategy for one of its leading products. As Regional Finance Director, you have been requested to compile a report that advises the Board on the following issues. Your work should include a brief introduction to a large organisation of your choice that meets the above requirements. You should also describe briefly the leading product on which this assignment is based. It is essential that you develop your evidence in the context of your chosen organisation and product.

Task 1

The Board is considering replacing or redeveloping the leading product you have chosen. This

will require considerable new investment.

a) Use TWO investment appraisal techniques to describe TWO alternative sources of

finance that would support the board's strategy.

b) Contrast the usefulness of the two investment appraisal techniques you have selected

c) Analyse two international aspects of financial risk management that could impact

on the board's strategy.

d) Analyse and explain the cost involved in managing these two

aspects.

Task 2

The Board is prepared to revise the costing strategy for the redevelopment or replacement of

your selected product.

a) Explain to the Board the importance of costs in pricing strategies

b) Evaluate the costing system currently used by the organisation for your chosen product

c) Recommend an appropriate costing system that could be used to support the

relaunch of your chosen product

Task 3

The Board is concerned about the risks to the organisation of replacing or redeveloping the

leading product you have chosen.

a) Identified two sources of risk that may impact on the replacement or

redevelopment and evaluate suitable techniques for recording and monitoring

these risks

b) Recommend a suitable approach that the Board could use to measure and monitor

the likely impact of TWO specific risks associated with the replacement or

redevelopment of the leading product you have chosen

c) Evaluate two techniques that could be applied to mitigate the specific risks

you have identified.

Task 4

The Board is aware of the demand on the organisation's resources associated with redeveloping

or replacing the leading product you have chosen.

a) Use appropriate strategies and tools to evaluate the value of tangible and

intangible resources for the organisation you have selected

b) Use two appropriate techniques to evaluate the efficiency of resource utilisation

required to support the redevelopment of replacement of the leading product you

have chosen

Task 5

The Board is concerned about the organization's financial capacity to support the redevelopment

or replacement.

a) Analyse the organisation's financial statements and apply financial ratios to

determine the current financial viability of the organisation

b) Make financial recommendations to the Board, based on sourced information,

about whether the redevelopment or replacement should go ahead