Managing Financial Resources and Decisions 2 Essay

Managing Financial Resources and Decisions 2 - Essay Example Not only this, cash budget also assists the financial manager about the cash balances at the beginning and closing of any period. In case if the business wish to make any non-routine expenditure, cash budget can help in meeting this cause. In case of any cash shortages, overdraft facility from the bank can be arranged in or order to meet the necessary expenditures of the business. b) In order to calculate the price per batch of the ice creams the individual cost per batch in terms of material, labour and overheads are estimated. Direct material and labour calculations are relatively simpler than factory overhead. For factory overheads, the cost of service department is absorbed into the cost of factory departments and apportioned on the basis of floor area in sq. m. Factory overhead rate is then computed in order to calculate the factory overhead per batch. The total cost of producing a batch of ice creams is found to be $371. Therefore, the selling price of the batch should be in between $500 and $600 range giving a profit of at least 25%. d) The following is the investment appraisal calculation in which the appraisal of the new project is made. NPV, IRR, Payback, and ARR are calculated in order to check out the viability of the project. From the above calculations, it can be observed that all the investment appraisal techniques reflect that the project is not viable at all. The initial investment of the project, which is $4,000, cannot be recovered in the project’s life. Negative Net Present Value also shows that the project will not enhance the overall cash flows of the company. Internal rate of Return is also quite negative, which suggests that the project is unable to provide healthy returns to the shareholders. Accounting rate of return is also negative which means that project will not increase the overall income of the

Internal & external analyses of Lion Nathan Essay

Internal & external analyses of Lion Nathan - Essay Example This paper attempts to analyze the sustainable competitive advantage of Lion Nathan using SWOT (Strengths, weakness, opportunities, and threats) analysis, in which potential improvements may be seen in the identified weaknesses and threats, without overlooking its good points posed as strengths. Lion Nathan can be acknowledged for its strengths in terms of identifying its core purpose in the business, alongside its vision of making itself Australia’s and New Zealand’s leading alcoholic beverage company. This is undertaken with a stronghold on the company’s identity in the wine industry while making known its values of integrity, passion, acing together, and being sociable. These values, particularly the last one, are usually not found in other beverage companies, making Lion Nathan surge up to its sustainability purposes. It may also be emphasized that beverage companies are not that easy to build positive values and carry them out to the wider public due to the very nature of the business, but Lion Nathan is able to identify values that may be appropriately attached to the product. This is suggestive of leading and living clear values alongside demonstrating constructive behaviors with an intent to better engage its stakeholders in the business, a stra tegic task that is proved both effective and workable. This is how the company provides sustainable competitive advantage. The company’s aim of acting with integrity and doing the right thing for the long-term health of its business and the communities in which it operates is indicative of a long-term perspective. These are the strengths of Lion Nathan in terms of sustainable competitive advantage. The company’s involvement is sustained investment in community partnerships, responsible marketing initiatives, education and research initiatives, and reducing its