Your client Global Holdings Ltd was pleased with the quality of the advocated improvements you provided (Assessment
Question:
Your client Global Holdings Ltd was pleased with the quality of the advocated improvements you provided (Assessment 1). As a result, your client has engaged you further as a consultant to advise them on a proposed acquisition. A division of your client, located in Thailand, whose business is involved in manufacturing flavours for the food industry is considering merging with a competitor whose business is involved in manufacturing perfumes for the personal care industry. You must evaluate the benefits of the merger and quantify the financial impacts.
Task
Use the case study attached in Assessment 2 Case Study Global Fragrances (DOCX 80KB) to prepare financial report evaluation.?
- Evaluate the revenue and profit profiles of the product range of the combined group and place the products into the relevant sectors of a BCG matrix.?
- Investigate the market position of each of the products of the combined group and formulate their current status on a product life cycle diagram.?
- Profit budget for the combined business incorporating the identified cost savings and synergies.
Budget data for preparing the budget for the year 2020.
After consultation with the staff of the business on a bottom up approach you have agreed with the senior management team the following performance parameters for 2020:
Your client Global Holdings Ltd was pleased with the quality of the advocated improvements you provided (Assessment 1). As a result, your client has engaged you further as a consultant to advise them on a proposed acquisition. A division of your client, located in Thailand, whose business is involved in manufacturing flavours for the food industry is considering merging with a competitor whose business is involved in manufacturing perfumes for the personal care industry. You must evaluate the benefits of the merger and quantify the financial impacts.
Task
Use the case study attached to prepare financial report evaluation.?
- Quantify the impact of the profit budget if the risk scenario described in the case data does occur.?
- Rationalise how KPIs can assist with measuring the performance for this new operation after the merger.?
- Explain some of the alternatives to the traditional annual budget preparation process. In your response, consider the type of organization, management style, and organization structure more suited to the traditional budgeting process, and the type of organization that is more suited to the alternative more flexible budget preparation styles.
Cornerstones of Managerial Accounting
ISBN: 978-0324660135
3rd Edition
Authors: Mowen, Hansen, Heitger