Being employed in the finance department at Aztec Catering, this report analyses the tasks that Ms. Field, the Chief Financial Officer at Aztec Catering, has given and this report is aimed to review the three current objectives of the company, prepare and analyse the three year financial plan of Aztec Catering as well as evaluate the capital investment decision that the company can take and how this decision can add the value to the company. The report has been divided into three sections and each section aims to accomplish the three tasks that have been provided. The first section of the report critically evaluates the suitability of the current objectives of Aztec Catering. Moreover, this section analyses and compares the objective of the competing firm, Compass with the Aztec’s objectives. The second part of the report analyses and predicts whether the company would face any financing problem in the next three years. Moreover, this section also justifies the solution that the company can implement in order to help itself from such problems. The third section of the report analyses and evaluates the capital investment decision that the company can take. This section analyses how this investment decision can be helpful in increasing the wealth of the shareholders of the firm and different investment appraisal techniques have been used in order to analyse whether investment should be made or not. Some of the techniques that have been used in order to analyse the investment decisions are: Net Present Value (NPV), Internal Rate of Return (IRR), Accounting Rate of Return (ARR), and Economic Value Analysis (SVA). Section 1: Critical Analysis of the objectives of Aztec Catering and Compass Group The first section of the report cortically analyses the objectives of Aztec Catering and its competitor Compass Group. It is important to know that Compass Group is an international brand and it is not only operating and serving the clients of United Kingdom but it has presence in different parts of the world. Therefore the objectives of Compass Group should be considered as the benchmark and the company should and can use the objectives of Compass Group to achieve more success in United Kingdom and even then expand its offerings to other parts of the world. The current objectives of Aztec Catering that have been decided at the end of 2012 board meeting are as follows: a. To maintain a profit margin of around 24% b. To ensure the current strong financial position is maintained c. To satisfy the shareholders by maintaining a dividend payout ratio of 50% It can be found that all the three objectives of Aztec Catering have been focusing and emphasizing on profitability and financial position of the company. The first objective of the company focuses on maintaining a minimum profit margin (Tucker, and Lean, 2003). Profit margin of the company is the ratio of net profit after to sales. Or it is the ratio that the company earns after deducting all the expenses and paying of interest expense as well as taxes to the revenue (Cravens, and Piercy, 2008).. Therefore, the first objective encourages the management to focus on achieving higher profitability regardless of how it has to be done. In order to meet the first objectiv
Although, Aztec has been serving the needs of its clients for the last 40 years however it faces competition in increasing its sales and profitability. The main competitor of Aztec Catering is Compass Group which is not only operating in United Kingdom but it has expanded its operations internationally. …
Aztec Catering in order to compete successfully with its main competitor Compass has been developing sound strategic and financial objectives. It also implements considerate strategy taking measures for the successful implementation of these strategies and objectives.
The manager’s cognitive psychology arbitrates the investigation of the variables of the issue in which it occurs. Decision-making is described as the procedure of selecting an alternative from a set of alternative decisions. The managers are required to keep themselves aware of the multidimensional fields in order to achieve the desired results in the aggressive and dynamic business environment.
1a Advantages of Limited Company By forming a limited company, shareholders are at low level of risk of losing their money as compared to sole proprietorship and partnership. Under limited liability setup shareholders become liable for the invested amount that they have placed in the business and their personal holdings / assets are not subjected to liquidation in case of bankruptcy.
He manages to act crazy and he is believed to be actually crazy. Antic disposition is a way of acting mad and making it believable. This works for Hamlet so well that even his relationship is destroyed. His antic disposition goes on through the whole play, combined with his temper and the strong urge for revenge.
At the end of the year 2 the amount recovered is ($295,875 + $456,750) $752,625 meaning we need further ($1,200,000 - $752,625) = $447,375 from the third year. Then we divide 447,375/456,750 and the result is multiplied with the 12 (the number of months in a year) to give the answer.
tinker with outsourcing .Before any business considers outsourcing, they need to evaluate the business requirements and it will be necessary to clarify the objectives of outsourcing and complete financial analysis to fully evaluate outsourcing as a viable opportunity(1)
ld Bank bonds are issued by the International Bank for Reconstruction and Development (IBRD) in the international capital markets” ("Bonds and investment," 2011). Within this context of understanding it’s clear that money is making it to emerging markets.
Investment simply means an asset or item purchased with the hope of income generation or value appreciation within some time. Investment has two sides that can give angles of definition. In economics, investment is defined as the purchase of