BTEC Unit 23: Financial Management Assignment 2 Question 2025

Unit 23: Financial Management Learning Outcomes

LO3. Evaluate approaches to working capital management within an organization. 
LO4. Recommend alternative investment appraisal techniques to inform decision making.

Transferable skills and competencies developed

Developing appropriate research skills and skills of critical enquiry to enable the evaluation of different approaches to problem solving in a specific business context.

• Competently using digital literacy to access a broad range of research sources, data and information.
• Communicating confidently and effectively, orally and in writing, both internally and externally with businesses and other stakeholders.
• Developing specific competences and skills required in a specialist business sector through the completion of specialist pathways and progression routes.
• Developing a range of skills to ensure effective independent initiatives, organisational competence and problem-solving strategies.
• Reflecting adaptability and flexibility in approach to business; showing resilience under pressure and meeting challenging targets within given deadlines.

BTEC Unit 23: Vocational scenario 

You recently graduated from university, and after a few months working as a trainee management accountant in a firm, you are now a full-time member of staff. To give you knowledge on how various factors can affect stock prices and understand the importance of considering risk when making investment decisions, you are required to form a group and participate in the stock trading competition organised by the ISBA. As part of a staff, you will present your report on financial issues.

The report should have recommendations which include the following:

1. An evaluation of managing working capital in an organization 2. The appraisal techniques on investment decision and opportunity cost3.  Factors  influencing organizations’  investment   decisions, return  on  investment(ROI), risk, time, cost of capital, and wider economic considerations. This shouldinclude the reflection and presentation of the stock trading experience.4. Identify, calculate and evaluate investment/project returns to inform decision-making using a range of techniques.

Assignment activity and guidance of BTEC Unit 23:

Your presentation slides and speaker notes must include the following sections:1. Appraise a range of approaches to managing working capital in an organization.  You should  provide definition and   impacts  of  flexible andrestrictive working capital management policy to the company. NÊU ĐỊNH NGHĨA VÀ TÁC ĐỘNG CỦA VIỆC DUY TRÌ CHÍNH SÁCH VS CTY(IMPACT   TỚI   LEVEL   OF   NETWORKING   CAPITAL,   LIQUIDITY,   VÀPROFITABILTIY)2. Evaluate   different   techniques   for   measuring   the   working   capital position   of   an   organization.  You   should   provide   clear   and   sufÏcient explanations as well as accurate academic knowledge of techniques such asEOQ, JIT…TRÌNH BÀY HIỂU BIẾT VỀ CÁC TECHNI ĐỂ QUẢN LÍ VỐN LƯU ĐÔNGĐẶT VẤN ĐỀ ĐẺ GIẢI THÍCH VỐN LƯU ĐỘNG CỦA INVENTORIES

3. Review   factors   that   influence   investment   decision-making   to recommend alternative investment appraisal techniques.  You should identify   and   explain   the   effect   of   factors   (choose   2   among   internal   and external factors, e.g. risk, time, cost of capital, economics growth, inflation…)on an investment decision. This should include the reflection and presentation of your team’s stock trading experience in the big hallCof BAV.

4. Calculate investment  viability using  different  investment appraisal techniques   to   inform   long-term   investment   decision-making.  Youshould introduce 2 financial indicators (e.g. NPV, IRR or payback period,  …)and build an example of the cash flows (3-5 years) and calculate 2 financial indicators.5. Compare   the   advantages   and   disadvantages   of   alternative approaches   and   techniques   to   successfully   manage   the   workingcapital position of an organization.  You should show consideration forstrengths and weaknesses or advantages and disadvantages of alternative approaches   defined   in   P4   and   show   consideration   for   strengths   andweaknesses   or   advantages   and   disadvantages   of   alternative   techniquesdefined in P5. Choose a company and analyse which approach and techniqueis appropriate.

NÊU ƯU ĐIỂM VÀ NHƯỢC ĐIỂM CUA CHỌN 1 CÔNG TY VỚI HOẠT ĐỘNG HIỆN TRẠNG CỦA CÔNG TY ĐÓ THÌ NÓ PHÙHỢP VỚI QUẢN LÍ VỐN LƯU ĐỘNG NÀO 

6. Recommend a range of DCF and non-DCF techniques to support the long-term   decision   on   capital   expenditure.  You   should   provide explanation   of   DCF   and   non-DCF   techniques,   and   show   consideration   for strengths and weaknesses or advantages and disadvantages of alternative techniques defined in P7.

7. Critically   evaluate   working   capital   management   approaches   and techniques   to   ensure   that   organizations   operate   solvently   and successfully in diverse and complex environments.  You should evaluate how a technique and an approach can ensure solvency and success in diverse
and complex environments  by   choosing  a  company  and use  the   financial statement   of   3   years   to   calculate   set   of   ratios   (including   liquidity   ratio,efÏciency ratio and profitability ratio) and make recommendations based onratios.

CHỌN 1 CÔNG TY GẶP VẤN ĐỀ VỀ OVERTRADE HOẶC OVERCAP VÀ DÙNG BỘINDICATOR TÍNH TRONG 3 NĂM VÀ RCM

8. Make evidence-based judgments on recommendations based on long-term investment opportunities.  You should Build second example of the cash flows, calculate 2 financial indicators (same in P7) and base on the 2 calculations, make recommendations.