Full-Time MBA Assessment 2020-2021 - ACF734 ACCOUNTING AND FINANCE 2020-2021 Full-Time MBA GROUP COMPONENENT OF ASSIGNMENT(WORTH 75 OF MARK The

Full-Time MBA Assessment 2020-2021 - ACF734 ACCOUNTING...

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ACF734 ACCOUNTING AND FINANCE 2020-2021: Full-Time MBA GROUP COMPONENENT OF ASSIGNMENT (WORTH 75% OF MARK) The Scenario The COVID 19 pandemic has impacted almost all industries and sectors worldwide. Simon Roberts the CEO of Sainsbury's said "this is a time unlike any other in retail. COVID-19 has put our colleagues on the front line and they are working around the clock to get food and other essential items onto the shelves for customers" 1 With respect to the retail industry, Covid has had a significant impact on the supply chain. In response, Sainsbury's, like several other retailers, improved its payment terms to suppliers in the wake of the virus to help with cashflow problems 2 . To that end, Sainsbury's introduced immediate payment terms to nearly 1,500 of their small suppliers to support them as they adapted their businesses in response to the coronavirus pandemic. Subsequent Review However, in a later communication to suppliers, Sainsbury's said it had reviewed the situation and for more than 1,500 small businesses, with an annual turnover of less than £100,000, they would now be moved to 14-day payment terms from the middle of July 3 . 1 Sainsburys (2020) Annual Report 2020 Available from: ports-and-presentations/annual-reports/sainsburys-ar2020.pdf [pg2] 2 - support 3 - Supermarket-scraps-immediate-payments-for-small-suppliers 1
Your Brief Part (a) On successful completion of your MBA at Ulster University Business School, you have recently joined the management team of a new company FreshFields Foods, a small UK company producing organic vegetables, with a turnover of less than £100,000, which grows and sells Bramley apples. Knowing that you have some knowledge of accounting and finance, your boss has asked you to conduct a CORE analysis 1 of whether or not FreshFields Foods should enter into a business arrangement with Sainsbury’s plc as a supplier of the SO Organic range. Your boss has suggested that your analysis, which should be presented in REPORT FORMAT , should focus on the financial performance and position of Sainsbury’s plc over the last four years using data from the ‘ Annual Report and Financial Statements 2020’ (containing data for the year ended February 2020 and 2019) and the Annual Report and Financial Statements 2018’ (containing data for the year ended February 2018 and 2017). Part (b) Your boss has also asked you to consider how the various management accounting/financial management techniques which you have studied as part of your MBA programme are currently being used within Sainsbury’s to help them manage their business. Your boss has asked you to report on two such techniques. You should draw on any evidence from the Annual Reports and Financial Statements plus any other documents produced by Sainsbury’s to substantiate your discussion.

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