Corporate Finance Project

 

Module Code and Title: FIN7A1 Corporate Finance

 

 

Assignment Number & Title:

Assessment 1, 50% of TMM, Group Assignment Project

 

 

Assessment Type: Group Case Study Based Project

 

 

Weighting of assessment (%TMM) :50% Assessment Learning Outcomes

Upon successful completion of this assessment the students will be able to:

 

A2: Demonstrate a command of relevant investment analysis, corporate finance and risk management techniques and methodologies applicable to problem solving, evaluation and strategy formulation in the global financial, trading and investment context.

 

A3: Provide a comprehensive understanding of the interaction of finance, economics and technology with the trading and investment sectors.

 

A5: Critically evaluate markets and organisations’ financial positions, carry out the risk assessment process and develop an investment decision making strategy that acknowledges ethical and diversity dilemmas of financial markets.

 

 

Module Leader: Nikos Nitsas Internal Reviewer:

External Examiner:

Submission Details

 

Submission Deadline: Week 13 28/12/2020 23.59 via Blackboard

 

Release of Feedback: 15/01/2021

 

Completing Your Assignment

What am I required to do in this assignment?

 

You are an equity investment analyst in a major investment bank in the city of London. As part of your job at the bank, you regularly carry out financial and operational performance analysis of companies listed on the London and Global Stock.

Requirements

Carry out a detailed analysis on two listed companies operating in the same sector/industry. The companies should be publicly traded and have at least a couple of years of trading history and two sets of annual financial statements. The companies can be listed in any market.

The period of analysis should be for the last few years. Try to avoid a)Financial service firms (banks, insurance companies,investment banks) b) Money losing companies c) Companies with large capital arms (GE and the auto companies) d) Real estate investment trusts

 

Your report should include

 

I.  Corporate Governance Analysis

Is there a separation between management and ownership within your chosen companies? If so, how responsive is management to stockholders?

What are the other potential conflicts of interest that you see in those firms?

How do the firms interact with financial markets? How do markets get information on the firm? How do the firms view their social obligations and manage their social image ?

 

II.  Risk and Return ¨

What is the risk profile of your companies? How much overall risk is there in those firms? Where is this risk coming from (market, firm, industry or currency)? How is the risk profile changing?

What return would you have earned investing in either company’s stock? Would you have under or outperformed the market? How much of the performance can be attributed to management? ¨

How risky is each company’s equity? What is its cost of equity? How risky is each company’s debt? What is its cost of debt?

What is each company’s current cost of capital?

 

III.   Measuring Investment Returns

Is there a typical project for either of your firms? If so, what does it look like in terms of life (long term or short term), investment needs and cash flow patterns?

How good are the projects that the companies have on their books currently? Are the projects in the future likely to look like the projects in the past?

Is there a size limit? 3,000 words plus or minus 10%.

What do I need to do to pass?

 

You must demonstrate the ability to meet learning outcomes, Answer most the questions above correctly

You should show evidence that you have clear capacity to analyse the corporate finance decision and strategies of real companies

 

You must show evidence that you can apply theories and models in practice using real data You must demonstrate an ability to critically analyse financial data

Demonstrate ability to understand market conditions

 

Show clear evidence of deep understanding, analytical skills and engagement independent learning.

 

Even though the assignment or report may be the product of a group, each individual member of the group is responsible for a given specific element/task. This shows the accountability of each group member for the work delivered by the group. A mark will be given to each individual student for the element of the task that he/she has completed. The task selection for each student will be noted in advance.

How do I produce high quality work that merits a 70% or above grade?

You should follow closely the below mentioned requirements:

70%+ means: Overall excellent report, all aspects of brief addressed in full, insightful analysis and reflection throughout. Logical and insightful recommendations included which logically follow from the main body of the report.

How does assignment relate to what we are doing in the scheduled sessions?

The group project is based on corporate finance theory and models discussed throughout the semester. It follows in practice the scheduled sessions. This means, you will apply the taught methods and techniques every single week within the context of context of real market conditions. The process is scaffolded and each week you should incorporate the models and techniques that have been covered in the teaching and learning according to module outline. Hence, the projects follow 100% the learning outcomes and the teaching material.

How will I receive formative feedback for this assignment?

In week 9 you will have to produce a draft with summary of the outcomes

Formative feedback is provided to all students on submission of the draft.

Marks and Feedback

How will my assignment be marked?

Criteria                                                                                                         %        1       2           3              4          5                                                                                                                      Mark

Task 1                                                                                                                         25

Task 2                                                                                                                         25

Task 3                                                                                                                         25

Appropriate links with the literature and accurate referencing        5

including a bibliography/reports of relevant issues

Appropriate presentation, structure and sequencing of                       5

context, including clear tables and charts where appropriate, accurate analysis, justification and interpretation of findings

Capacity of critical thinking and effective independent learning     15

and use of required technology

Total                                                                 100

Your assignment will be marked according to the threshold expectations above and the marking criteria below. You can use them to evaluate your own work and estimate your grade before you submit.

 

Marking Criteria Table

 

FIN7C5 Investment and Portfolio Management (Assessment 2)

Note: 1 – Poor, 2 – Satisfactory, 3 – Good, 4 –Very good, 5- Excellent

*Please refer to the following page for the detail description of each rating.

 

 

70%+ Excellent report, all aspects of brief addressed in full, insightful analysis and reflection throughout. Logical  and insightful recommendations included which logically follow from the main body of the report.

 

60-69%: Very good report, most aspects of brief addressed in full, clear analysis and reflection throughout. A good level of insight demonstrated through the development of the recommendations which are clearly informed by the main body of the report.

 

50-59%: Generally, a good report, most aspects of brief addressed with evidence of analysis and reflection. Recommendations included which follow, but not always from the main body of the report.

 

45-49%: A marginally fail report, most aspects of brief addressed but with omissions. Evidence of limited analysis and reflection. 30-39%: Little evidence of reflection. Tasks are not adequately addressed with a largely descriptive.

Regent’s University Generic Descriptors

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what is organisational behaviour journal?

MMP-7-ORG

TITLE: ORGANISATIONAL BEHAVIOUR JOURNAL

TUTOR: MAY TUNGTAKANPOUNG

Table of Contents

Introduction.......................................................................................................3. 3

Description of my virtual team..........................................................................3

Virtual team meetings........................................................................................4

My thoughts during the virtual team..................................................................5

Conclusion..........................................................................................................5

References...........................................................................................................9

Introduction

 This reflective journal is an account of my personal learning experience of working in a virtual team. It also contains a brief analysis of the challenges I encountered working in different teams, and how I was able to overcome those challenges. According to McConnell, a virtual team is a group of people who participate in common projects by making collaborative efforts to achieve shared goals and objectives. These people perform tasks and jobs in a virtual work environment created and maintained through IT and software technologies (McConnell, 2019) In addition, DeRosa and Lepsinger state that organisations are looking for the best available talent, regardless of their geographical location, which has led them to use virtual collaboration (Derosa and Lepsinger, 2010).

Description of my virtual team

 I was assigned to a virtual team of five members. The team is a diverse one, which has people from Germany, Nigeria, Ukraine, and Zambia. I did not want to be grouped with people I am not familiar with but the lecturers in the university randomly allocated the team. The Topic Hofstede’s six dimensions and how they affect intercultural business negotiations was selected as the group work by our team from a list of five available topics. I told the team the superior authority makes the final decision during business negotiations because Nigeria is a high power distance country. Another member of the team stated that in the United Kingdom the subordinate could make decisions on behalf of the superior because the decision-making is centralized. According to Hofstede, power distance examines the way people in a particular culture access the unequal distribution of power (Hofstede et al 2010)

I observed that a member of the team is from a masculine society where performance is highly valued based on her ability to coordinate activities in the group; she was able to create a WhatsApp group chat for the team for easier communication. According to Hofstede's theory of culture, a masculine society is driven by competitiveness, accomplishment, and success. The Hofstede theory examines the effects of a country’s culture on the ethics of its members.

Virtual team meetings

 After the first team meeting, I felt a sense of relief because I have adequate materials for the topic I chose for my task in the team. This stage of the virtual team is the forming stage according to Tuckman’s theory where the group is formed and the members of the group are strangers to one another, at this phase we were uncertain about our roles in the team. The Tuckman theory was developed in 1965 and it examines stages of group development from the uncertainty period in the group to the self-reliant stage. I was able to understand that working in a team is important because we can achieve much more together than individually. I intend to read articles on team development in order to know how to manage a successful team

At the second interactive session of the virtual team, we agreed that a member of the group should volunteer to collate the individual reports and design the PowerPoint for the presentation. We got a volunteer in the team who agreed to coordinate the activities of the team, collate the individual reports and design the PowerPoint. The team member who agreed to collate the individual report is the plant in Belbin's theory because she brought her innovation and creativity to the team; she is also the specialist in the team roles. According to Belbin’s team roles, specialists are people who have the knowledge required to achieve a task. The Belbin theory examines team roles required for successful teams. I observed that a member of the team who is from a low context society has a direct mode of communication; she uses clear words to convey her message.

My thoughts during the virtual team

 I became conscious of the fact that I do not have the required digital skill of using a PowerPoint. I decided to request for help from one of my team members who taught me how to use the PowerPoint on Microsoft teams to overcome this challenge. Regarding the referencing for the team presentation, one of the members of our team said that the referencing for the individual work has not been properly done; this led to a lack of agreement in the team because other members felt the referencing had been properly done. This stage according to Tuckman’s theory is the storming stage because there was dissension about the referencing for the group work.

 

 I felt apprehensive about the lack of accord in the group regarding the referencing for the group work. I think I should have told the members of the team to scrutinize their references. From this particular incident, I learned that to work effectively in a team there has to be a dispute resolution strategy for resolving variance in the team; it also minimizes stress and tension in the team. According to Browaeys, skills in the area of conflict management can be increased to some extent through developing awareness as to how cultures perceive and manage conflict (Browaeys 2015).

 The lecturer informed us that the power point presentation must critically analyse the six dimensions of the Hofstede theory and discuss how it affects intercultural business negotiations. We discovered that the power point presentation is not up to the required academic standard. I felt discouraged because the group work has to be amended. The other members of the team were in low spirits. We deleted   the power point presentation and reassigned the team task amongst ourselves.. A member of the team decided to map out the strategies we can use to complete the teamwork before the deadline. I gave the team the book I used to complete the team assignment to allow team members to complete the teamwork. My book was not returned to me until I requested that it should be returned.

 

I spent a lot of time being angry with the members of the team who were not contributing to the team activity, but as I reflected on it, I realized that they might be having some challenges on their task. The next time I participate in a team activity I will suggest that we should have rules guiding the team members on how to go about their tasks; this will make the team concentrate on the teamwork. I am also going to use the direct mode of communication in the team for the team to understand my intentions

 

The final session of the virtual team required the voice recording on the PowerPoint presentation. We decided to let one of the team members do the audio recording on the power point presentation. We were able to submit the group work on the submission portal of the University. This stage is the performing stage according to Tuckman’s theory on team roles because we were able to finally achieve the set goals of the team and maintain a good relationship within the team. I am delighted that our team was able to complete the task within the timeline given to us for the submission of the PowerPoint presentation. Working in a team has made me aware of the benefits of having different perspectives in a team; new ideas increase productivity in a team. I believe I could have contributed more to the teamwork. I intend to participate more in future team events to develop my social skills. 

 

During another virtual activity, we discussed the effect of Brexit after Article 50 is triggered a used the Ishikawa diagram for the team exercise. According to Pearson, the fishbone or Ishikawa diagram is a cause and effect diagram that helps managers to track down the reasons for imperfections, variations, defects or failures and look for solutions to the problem once the issues have been identified (Pearson, 2019)

Kaoru Isikawa developed the Ishikawa theory. One of the members of the team was able to develop a strategy that we could use to complete the fishbone diagram. Two members of team discussed the effects it will have on the economy once it is implemented.

I learned that working with other people is vital for anyone who wants to climb the career ladder. I intend to enrol for a course on public speaking to develop my presentation skills

 

We decided to take the Belbin team role test to understand the unique trait of members of the team to determine their contribution to the team. My result in the Belbin test is a resource investigator in the team. My weakness as a resource investigator is time management because I deliver team assignments behind schedule. I am also a “complete finisher” because I can discover any error in the PowerPoint slides. Another team member who took the Belbin test was able to discover that she has two team roles, shaper and coordinator. I can confirm that the result she got is accurate because she is responsible for coordinating the team and she lets the team understand the team goals. I think the Belbin team role activity has allowed me to understand the strength and weakness of the individual members of the team.

 

 There was a suggestion by one of my team members that we should narrate our experiences as international students in the United Kingdom. I told my team that I was able to experience the Honeymoon stage according to Oberg's theory because I enjoyed the following things about London: the international cuisine, the tempo of the city, the transportation system. Oberg’s theory analyses the processes involved in adjusting to the culture in a foreign country. Another member of my team told us of a similar experience that interacting with people in London has made her realize that British people are very friendly and warm. Besides, another team member expressed frustration at how expensive accommodation is in London compared to the low accommodation cost in his country of origin.

 

The team activity was good for me because I realized culture shock is a phase that every international student has to experience and we were comfortable narrating our experiences about culture shock to one another. I am so delighted about my ability to communicate effectively in the team. The biggest lesson for me is that I must have mutual respect for the team members because it improves communication and increases the sharing of knowledge in the team. Using the Myers Briggs Type indicator in the made me realize that there are different persona in the virtual team. One member of the team is an ENTP in the MBTI personality indicator because she an extrovert and she is the problem solver in the team .I am an ISFJ in the theory because I am an introvert and a very shy person. The Myers Briggs Type Indicator theory can be used to understand psychological variability in a team.

Katherine Cook Briggs developed the MBTI evaluation

(Myersbriggs.org, 2019).

 

We decided to take the Belbin team role test to understand the unique trait of members of the team to determine their contribution to the team. My result in the Belbin test is a resource investigator in the team. My weakness as a resource investigator is time management because I deliver team assignments behind schedule. I am also a “complete finisher” because I am able to discover any error in the PowerPoint slides. One member of the team believes that I am a team worker because of how diplomatic I am in the team. Another team member who took the Belbin test was able to discover that she has two team roles, shaper and coordinator. I am able to confirm that the result she got is accurate because she is responsible for coordinating the team and she lets the team understand the team goals. I think the Belbin team role activity has allowed me to understand the strength and weakness of the individual members of the team.

 Conclusion

In conclusion, working in a team has enhanced my interpersonal skills. It has made me understand that projects are completed faster in a team because of the team members’ collaboration ,the virtual team allowed members of our team to interact using different electronic communication tools. In addition, working in a team has developed my team management skills. My participation in the weekly team activities has enabled me to communicate effectively with people from different cultures thereby enhancing my intercultural competence skills. I intend to be more culturally diverse in my interactions with people from different societies.

Reference

1)     Eric McConnell. (2019). Virtual Teams – Definition, Management, Benefits, and Improvement. Available: https://mymanagementguide.com/managing-virtual-teams-understanding-definition-management-and-benefits/. Last accessed 2nd Dec 2019.

2)     Teambuilding.co.uk. (2019). Tuckman; Forming - Storming - Norming - Performing. [online] Available at: https://www.teambuilding.co.uk/theory/Forming-Storming-Norming-Performing.html [Accessed 28 Nov. 2019]. 

3)     Browaeys, M & Price, R., 2015. Understanding cross- cultural management. 3rd ed. United Kingdom: Pearson Education Limited.p.412

4)     Geert Hofstede, Gert Jan Hofstede &Michael Minkov (2010). Cultures and Organizations. 3rd ed. United States: McGraw-Hill Professional Publishing

5)     Pearson, s. (2019). tallyfy.com. Retrieved from https://tallyfy.com/definition-fishbone-diagram. Last accessed 4th Dec 2019.

Belbin.com. (2019). The Nine Belbin Team Roles. [online] Available at: https://www.belbin.com/about/belbin-team-roles/ [Accessed 28 Nov. 2019N

Myersbriggs.org. (2019). [online] Available at: https://www.myersbriggs.org/my-mbti-personality-type/mbti-basics/ [Accessed 5 Dec. 2019].

 Darleen Derosa& Richard Lepsinger (2010). Virtual Team success. united states: Jossy Bass.page xxi. 

 

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