ASSIGNMENT INSTRUCTIONSAssessment Report
Assessment code: 011
Academic Year: 2017/18
Module Title: Business Finance
Module Code: MOD003319
Word Limit: 2,500
This assignment must be received by no later than 14:00
on Friday, 11 May 2018Page 1 of 4WRITING YOUR ASSIGNMENT:
This assignment must be completed individually.
You must use Harvard referencing system.
Your work must indicate the number of words you have used. Written assignments must not
exceed the specified maximum number of words. When a written assignment is marked, the
excessive use of words beyond the word limit is reflected in the academic judgement of the
piece of work which results in a lower mark being awarded for the piece of work (regulation
Assignment submissions are to be made anonymously. Do not write your name anywhere on
work. Write your student ID number at the top of every page.
Where the assignment comprises more than one task, all tasks must be submitted in a
You must number all pages.
SUBMITTING YOUR ASSIGNMENT:
In order to achieve full marks, you must submit your work before the deadline. Work that is
submitted late – up to five working days after the published submission deadline - will be accepted
and marked. However, the element of the module’s assessment to which the work contributes will
be capped with a maximum mark of 40%.
Work cannot be submitted if the period of 5 working days after the deadline has passed (unless
there is an approved extension). Failure to submit within the relevant period will mean that you
have failed the assessment.
TownScape Plc is an international manufacturer of street furniture. This includes benches,
litter bins, cycle racks, street bollards and bus shelters. The company produces about
80 different products.
TownScape has been operating for 15 years and had revenues last year of £150 million. It
was listed on AIM 5 years ago and has a market capitalisation of £120 million with debt of
£25 million. Dilip is the CEO and owns 25% of the shares in TownScape.
The company headquarters is located on an estate near Watford which accommodates 35
staff including management, sales, finance, HR and administration. It has a design
and manufacturing operation in Northampton where it employs 85 staff in a mainly
automated manufacturing facility with onsite storage/warehousing.
The company has recently concluded new and revised contracts worth up to £35 million with
15 local authorities. This followed a highly regarded pilot scheme carried out with a local
police force known as “Target Hardening and Place Making for Teenagers in the
Urban Environment”. This will lead to rollout in 2019 of 15 new products designed to
discourage anti-social behaviour in urban areas. Additional plant and manufacturing
capacity will be needed during 2018.
Currently around 65% of TownScape’s sales are in the UK, 30% to other EU countries, and
the remainder outside the EU. In anticipation of the UK leaving the EU, Dilip wants to step
up efforts to market into the Gulf, North America and the Far East, especially China.Page 1 of 4TownScape has always used a traditional budgeting system. The Finance Director,
Rebecca, joined 3 years ago but is concerned that this approach might not be the
most appropriate when such significant changes may affect the company in the
coming years. However, if a change of budget approach is going to be made, she thinks it
should happen in time for the 2019 budget process. That way any “bugs” can be
ironed out before the company goes through more significant changes in the following
She is also conscious that Dilip is currently focused on a lot of issues and a change
of budget method is not one of them. If she is to get approval she needs to make
a clear effective argument.
Prepare a report of no more than 2,500 words communicating the following issues:Part 1
i. An understanding of the purposes of preparing a budget; what processes
the company needs to follow; and how the budget process itself can
help development of the business model.
(25 marks)Page 1 of 4ii. Considering what are the important cost drivers for this business, identify
the specific areas where cost budgeting will be important. Demonstrate
the application of traditional budgeting approaches (including incremental
budgeting) to plan future cost management for this specific business.
iii. Analysing whether a traditional budgetary system is appropriate to all or any parts
of the business in its planned future form (15 marks)
Part 2iv. An understanding of the following alternative budget methods: rolling
budgets, zero based budgets and activity based budgets. Explain how
each method attempts to improve on the traditional approach and what their
drawbacks might be(25 marks)
v. The potential application of these methods to the company giving specific
examples of how some elements of budgeting could be performed
more effectively using an alternative method (10
vi. Analysing whether one of these methods (or a combination) would be
more appropriate to the company (15
(Total marks: 100)ASSESSMENT CRITERIA
This assignment requires you to demonstrate your knowledge and understanding of
the nature and purpose of traditional and alternative budgetary systems.
Your answer for Part 1 of the assignment should focus on the role of budgets in the context
of planning and control. Your answer must identify and explain traditional budgetary
systems such as incremental budgets and, subsequently, discuss the advantages and
disadvantages of traditional budgetary systems in the context of this particular business and
its market environment.
Your answer for Part 2 should focus on alternative budgetary methods which have evolved in
the modern era. You should focus on alternative systems such as ZBB, ABB and rolling
budgets, and discuss how they work. Your answer should provide a breakdown of
the advantages and disadvantages relating to each system identified.
You should ensure that your answers make specific reference to the business under
discussion, especially in topics ii) and v), which test your ability to apply your
knowledge. Note that, although you are not expected to show any specialist knowledge of thePage 1 of 4sector in which the company operates, credit will be given for evidence that you have
considered what issues might be specific to this company in particular. High quality answers
will consider the implications of the change of strategy within the business.Page 1 of 4READING LIST
Your answers should be supported by the reading material provided on the VLE. It should
referenced using the Harvard guidelines. You should only use these texts for your work; it is
not acceptable to ignore this reading list as it has been specifically chosen to provide the
right texts for the discussion. Do not conduct alternative research on the internet.
Your answer must not be solely descriptive in nature; it should provide clear
evidence of understanding, application and analysis of the issues under consideration.
You should assume that your reader has some experience in finance and
management but is uninformed on the particular topic; for instance, in i) you do not
need to explain what a budget is, but you do need to show what its purpose is for this
Your reports should begin with a concise and relevant Executive Summary of no more than
100 words for each part. An additional Introduction is not needed. The Executive Summary
and References do not count towards the word limit. The contents of tables and footnotes
are also excluded but it is recommended that their use should be kept to a reasonable level
and be properly explained in the body of the text.
Your work should be expressed clearly and fluently using a style of writing appropriate to the
subject area. Sentences and paragraphs need to be relevant, well-structured
and incorporate the correct terminology. Ideally, there should be no errors of
spelling, punctuation or grammar.
To achieve a pass mark you must ensure that you correctly identify and explain the
underlying concepts and theories relevant to the assignment. To achieve higher marks, in
addition to the requirements to achieve a pass mark, you will need to display application of
knowledge and analytical skills.
Answers should follow the order of the tasks set out above and the word count allocation to
each section should broadly reflect the spread of marks. Avoid exceeding the word count.I need both excel and word documentRead More