ACF734ACCOUNTING AND FINANCE2020-2021: Full-Time MBAGROUP COMPONENENT OF ASSIGNMENT (WORTH 75% OF MARK)The ScenarioThe COVID 19 pandemic has impacted almost all industries and sectorsworldwide. Simon Roberts the CEO of Sainsbury's said "this is a time unlikeany other in retail. COVID-19 has put our colleagues on the front line and theyare working around the clock to get food and other essential items onto theshelves for customers"1With respect to the retail industry, Covid has had a significant impact on thesupply chain. In response, Sainsbury's, like several other retailers, improvedits payment terms to suppliers in the wake of the virus to help with cashflowproblems2. To that end, Sainsbury's introduced immediate payment terms tonearly 1,500 of their small suppliers to support them as they adapted theirbusinesses in response to the coronavirus pandemic.Subsequent Review However, in a later communication to suppliers, Sainsbury's said it hadreviewed the situation and for more than 1,500 small businesses, with anannual turnover of less than £100,000, they would now be moved to 14-daypayment terms from the middle of July3.1Sainsburys (2020) Annual Report 2020 Available from: ports-and-presentations/annual-reports/sainsburys-ar2020.pdf[pg2]2-support3-Supermarket-scraps-immediate-payments-for-small-suppliers1
Your BriefPart (a) On successful completion of your MBA at Ulster University Business School,you have recently joined the management team of a new companyFreshFields Foods, a small UK company producing organic vegetables, with aturnover of less than £100,000, which grows and sells Bramley apples.Knowing that you have some knowledge of accounting and finance, your bosshas asked you to conduct a CORE analysis1of whether or not FreshFieldsFoods should enter into a business arrangement with Sainsbury’s plc as asupplier of the SO Organic range. Your boss has suggested that youranalysis, which should be presented in REPORT FORMAT, should focus onthe financial performance and positionof Sainsbury’s plc over the last fouryearsusing data from the ‘Annual Reportand Financial Statements 2020’(containing data for the year ended February 2020 and 2019) and the ‘AnnualReportand Financial Statements 2018’ (containing data for the year endedFebruary 2018 and 2017).Part (b) Your boss has also asked you to consider how the various managementaccounting/financial management techniques which you have studied as partof your MBA programme are currently being used within Sainsbury’s to helpthem manage their business. Your boss has asked you to report on two suchtechniques. You should draw on any evidencefrom the Annual Reportsand Financial Statementsplus any other documents produced by Sainsbury’sto substantiate your discussion.