Report page limit –13 pages plus appendix for workings / supplementary data.
Course: Financial Analysis For Managers’ Assignment.
The output is a “Formal Report” and not an essay.
Scenario:
Tesco and Carrefour signed a long term strategic alliance on the 2nd July 2018 (press release will be attached).
Two years on from this agreement, you have been tasked with analyzing the financial performance of both parties to the alliance and to comment on the financial benefits and drawbacks of the alliance.
Required:
Tesco and Carrefour are undoubtedly two of the most successful food retailers operating in the European and international markets. You have been tasked with conducting a financial analysis of these two food retailers two years on from their announced strategic alliance. You have been hired as a consultant to the industry to analyze the financial status of these retailers and to communicate your findings in a formal written report to the Head of the Food Retailing Executive Committee.
A professionally produced report which should include a detailed analysis of the following areas:-
(a) Profitability
(b) Efficiency
(c) Liquidity
(d) Gearing
(e) Horizontal common-size analysis (using 2016 as a base)
(f) Vertical common-size analysis (using total assets as a base)
(g) Comparative analysis of both food retailers
(h) The evaluation of the performance of business units in Carrefour using financial and non-financial measures.
(i) An analysis of the financial benefits and drawbacks of the alliance between the two food retailers
(j) Conclusions and Recommendations
– You should state any assumptions made and you are not required to comment on the investment performance of either organization.
Your findings should be submitted in a formal report with well-founded conclusions and recommendations.
You should state any assumptions made.
Assessment Criteria /marking scheme will be attached for your reference. Copies of the annual financial reports for both retailers for the 3 years 2016-2018 also will be attached.
