Accounting and Financial Control & Chief Operating Officer of Tesco UK - Accounting Assignment Help

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Assignment


The Task & Requirement: 
You have undertaken research work and presented in your project team to the management board, as requested by the Chief Operating Officer of Tesco UK. As a result of this work, you have now been personally asked to develop a new product or service that will serve to provide a competitive advantage for for Tesco UK over its key competitor Sainsbury. You must use your imagination to come up with (and build a financial case for) a suitable fictional product or service. The management board have allocated £10 million to fund such a new project. The Chief Operating Officer has tasked you with providing him with an individually prepared report that contains a description and explanation of your proposed fictional product or service and an evaluation of how the new product or service will offer a competitive advantage for your company. Further, the report should contain a critical investment appraisal of the chosen new product or service based on £10 million of investment. You should assume a cost of capital of 10% in your calculations along with an economic useful life of five years for the project. You will need to produce financial forecasts for your product/service that include income, expenditure and cash flows (for each of the five years) as part of this exercise. Finally, the Chief Operating Officer has asked you to evaluate the importance of budgeting (including a critical analysis of the various budgeting techniques available) to managing your project. The numbers used in your case will be fictional but the assumptions that you make should be as realistic as possible. 
Requirement:
Prepare a report which provides the Chief Operating Officer with the information requested. 
Content 
A description and explanation of your fictional product or service 10%
An evaluation of how the product or service will offer competitive advantage for your chosen company 10%
An investment appraisal of your product or service using appropriate methods (ARR, Payback and NPV), including the following: 
a) The rationale for and evaluation of the investment appraisal methods used (10%)
b) A clear schedule(s) showing forecast data (including income, expenditure and cash flows)  and investment appraisal calculations for each of the five years (40%)  
 

 

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