Analysis of Investment Proposal for Hatfield Manufacturing Systems plc

Turkey also has a large and growing young population which is well educated. The unemployment rate in Turkey is currently 9.7%. However, the non-agriculture rate is 11.4% and amongst young people the rate is 16.9%. The HMS Board view is that this should give scope to recruit, train and retain staff without wage costs getting out of control. The Turkish economy is experiencing good growth with GDP growing by 7.3% in 2017 led by government investment in infrastructure and is on track for 5.5% growth in 2018.

There are, though, some challenges. The country is still dealing with fallout from the recent coup and negotiations with the EU have stalled. More recently a trade spat wit the USA has created some instability particularly for the currency which is now trading at TL8.8257/£. Exchange rate and inflation data relating to Turkey and the UK is shown in Table 1 below.

The purpose of this assignment is simply to give you the opportunity to demonstrate that you have acquired the knowledge and skills identified in the Module Learning Outcomes and that you can apply them in a typical business situation. You should approach the task as a business manager dealing with a ‘real’ business and should:

a) Adopt a coherent approach to dealing with the set task with a clearly stated business purpose.

b) Identify an appropriate theoretical dimension and consider the implications for practice.

c) Adopt appropriate analytical methods and a critical perspective.

d) Refer to empirical work where appropriate. Do refer to the assessment criteria which show how marks will be awarded. Further specific advice about how marks will be awarded for the Coursework is given below.

1. strategies available to an organisation to enable the creation and maintenance of value;

2. the financing choices available to organisations and the relevance of capital structure;

3. the financial and operating risks faced by organisations and the strategies for mitigating these risks;

4. the specific issues relating investing and raising finance on an international basis.

5. analyse financial statements and interpret the results in the context of value creation;

6. critically evaluate capital investment proposals both domestic and international including estimation of component and overall capital costs;

7. devise strategies for identifying and managing foreign exchange risk and the risks of international investment;

8. devise financial strategies for enhancing enterprise value.

Description of the assignment: The Coursework involves the analysis of an investment proposal using the mini case study: -  ‘Hatfield Manufacturing Systems plc’ which can be found on the module Studynet site in ‘Units’ along with detailed assessment criteria.

Knowledge & Understanding – 20 Marks:

You should establish a clear business focussed conceptual basis for your report – ie you need to show what you are seeking to achieve and why it is important for managing the HMS plc business (supported using appropriate citations).

Synthesis – 20 Marks:

From the case data given you should identify the nature of the decision(s) facing HMS plc and identify appropriate theory to support the approach you adopt and give your reasoning. Ie which analytical tools are consistent with ‘business focussed conceptual basis’ referred to above? (supported using appropriate citations).

Analysis – 20 Marks:

Using the case data given, you should apply the analytical methods identified in the previous section and evaluate the impact on the business in relation to the ‘business focussed conceptual basis’ referred to above.

Evaluation – 20 Marks:

Conclusions should be arrived at on the basis of your analysis of HMS plc issues; ie what do the results of your analysis tell you? In your conclusions section you should summarise the results of your analysis. Your recommendations will assessed on the extent to which they are linked to the analysis of HMS plc issues and on the extent to which they are theoretically coherent - ie the extent to which they are consistent with the theoretical/conceptual base you establish.