Accounting, Organisation Studies, and Foundations in Digital Enterprise

MANAGEMENT (MN) FIRST YEAR PORTFOLIO ASSIGNMENT

Answer ALL THREE sections (A, B & C)

(The assignment is marked on a pass / fail basis)

Word limit 1,200 words (excluding bibliography references)

This is an extended, open book assessment.

You are expected to access a variety of academically appropriate information sources and reference them.

 

CONTENT OF PORTFOLIO ASSIGNMENT:

Section A – Accounting (200 word limit)
Section B – Organisation Studies (500 word limit)
Section C – Foundations in Digital Enterprise (500 word limit)

ANSWER ALL THREE SECTIONS

Please upload a single word or pdf document into the relevant Moodle submission area marked for the Summer Portfolio assignment in MN1705 Organisation Studies.

Please submit your anonymous answers in the following order; (1) Accounting, (2) Organisation Studies, and (3) Foundations in Digital Enterprise.

Start each section/answer with a new page and clearly label it Section [A, B or C] and the module name in full. Do not use a cover sheet.

Use double line spacing.

 
SECTION A – ACCOUNTING

McCrea plc is a UK manufacturer of garden furniture. The company has provided the following financial statements:

Statement of Financial Position as at 31 December 2019:
£’000
Assets
Non-current assets
Property 1,050
Plant and equipment 850
Current assets
Inventory 640
Trade receivables 1,230
Cash 80

Current liabilities
Trade payables 850
Taxation 40
Bank overdraft 125
Interest payable 30

Non-current liabilities and equity
Long term loans 700
£1 ordinary shares 750
Reserves 1,355

Income Statement for the year ended 31 December 2019:
£’000
Sales revenue 12,100
Cost of goods sold (9,590)
Gross profit 2,510
Operating expenses (1,935)
Operating profit 575
Interest expense (50)
Net profit before tax 525
Taxation (115)
Net profit for the year 410

 
Required:
(a) Calculate the following ratios for McCrea plc in 2019.
(i) Return on Capital Employed (ROCE)
(ii) Operating profit margin
(iii) Inventories’ turnover period
(iv) Settlement period for trade receivables
(v) Current ratio
(vi) Acid test ratio
(vii) Gearing ratio
(viii) Interest cover ratio
(ix) Earnings Per Share (EPS)

All calculations (including the ratio formulas) must be clearly shown.
(9 marks)

(b) The ratios set out in the table below are those calculated for McCrea plc based on its published financial statements for the previous year (2018)

Return on Capital Employed (ROCE) 15.01%
Operating profit margin 4.9%
Inventories turnover period 19 days
Settlement period for trade receivables 41 days
Current ratio 1.63
Acid test ratio 1.35
Gearing ratio 37.44%
Interest cover ratio 8.7 times
Earnings Per Share (EPS) 22.8p

Using the ratios you calculated (in part a) for McCrea plc in 2019 and the above ratios for 2018, comment on the company’s performance and financial position for the two years.
(24 marks)
(Total: 33 marks)

(maximum 200 words in total. Tables, calculations, annotations for worked answers do not count in the word limit)

 
SECTION B – ORGANISATTION STUDIES

Explain what is meant by a charismatic leadership style and outline some of the possible risks and rewards of this leadership style to organisations and/or societies in which charismatic leaders are found. Illustrate your answer with reference to one or more leaders with whom you are familiar.

(maximum 500 words excluding bibliographic references)

SECTION C – FOUNDATIONS IN DIGITAL ENTERPRISE

“As information technology’s power and ubiquity have grown, its strategic importance has diminished” (Carr, 2003). Discuss this statement, using relevant theoretical ideas and business examples to support your argument.

(maximum 500 words excluding bibliographic references)

END