You are required to produce an individual report based on your own independent work. Your work must be fully referenced in the Harvard referencing style. There are four equal parts to this assessment, each carrying 25% of the total module marks. It is appropriate to weight your word count in an approximately similar split. Part 1 (25%) Using financial ratios, you are required to produce a critical analysis of the profitability of the UK based global pharmaceutical company GSK PLC. You should use the financial statements for both the years 2016 and 2017. This analysis should assess the profitability of the company. Comparisons for both of these years to one peer group company of your choice should be made. Your analysis should take account of the competitive and macroeconomic influences on these ratios. This should be based on the following 3 ratios • Return on Capital Employed • Operating profit margin • Earnings per Share Please note that no marks will be awarded for the actual calculations as these are taken as assumed knowledge.
Note: Parts 2-4 to the assessment do not refer to GSK PLC and are to be answered in a general context.
Part 2 (25%) Using supporting evidence from a range of academic sources, including text books and journal articles, critically compare and contrast the benefits and drawbacks of the zero base budget setting technique. Conclude as to which circumstances would make this the most appropriate method of budgeting to use. Part 3 (25%) Using supporting evidence from a range of academic sources, including text books and journal articles, critically evaluate the strengths and weaknesses of the Balanced Score Card form of performance measurement. In particular discuss the extent to which it has been successfully adopted in professional practice by large global companies, and what the draw backs have been. Part 4 (25%) As a senior manager, recommend the key financial issues you would consider before making a decision about a significant financial commitment to a new investment project in your business.
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