Strategic Variance Analysis of a Firm Growth,Price, Profitability, Productivity Elements affecting its Profits and consequent Cash Flow. Max. Word Count – 3000 words This is a study on a Strategic Variance Analysis for the profitability as well as the Operating Cash flow. In this context you need to take some critical assumptions if you are unable to procure the relevant quantitative details. The quantitative details you will need are as follows: 1. Industry aggregates of the Units Produced and Sold 2. Chosen Firm level details of the Units Produced and Sold. 3. Input Output Ratio. This will need assumptions and perhaps be restricted only to the materials. You need to perform a reasonable amount of research to obtain these numbers. Quantitative details may be provided in Annual Reports of the firms constituting the industry you have considered. Check sources such as the Capitaline. Ministry of Commerce and Industry, RBI, Planning commission, some publications such as the statistical outline of India etc etc. You need to examine the following: a) Select an Industry, use an appropriate justification of having defined the industry by using the ITC code, HSN or SIC classification or any other that will have some universal acceptability. b) Choose a Firm you would want to analyze that constitutes the Industry you have chosen. c) If industry aggregates are not available define the industry by identifying the major industry players and then aggregate their quantitative details to make this a proxy for the Industry or the market you would want to consider. d) Perform a Strategic Variance Analysis to demarcate the impact of Growth, Price and Productivity elements in explaining the impact on the changes in the profits of the firm you have chosen for the year with its subsequent year. Therefore if you are analyzing the Year 2011 compare this with 2012 for the firm and the industry. e) Perform a strategic variance analysis on the operating cash flow for the firm chosen. f) Conclude on strategy you believe the firm is adopting given the financial analysis you have done.
Marking Parameters: 1. Choice of the Industry and the firm and its justification. -[10 Marks] 2. Demonstrated evidence of the research done in obtaining information for points (a), (b) and (c). [30 Marks] 3. Critical Analysis of Points (d) and (e).[50 Marks] 4. Conclusion[10 Marks]