Consultancy Report for Anthony’s Orchard
As your Final Project for Financial and Performance Management, you will prepare and submit a consultancy report to the management of Anthony’s Orchard, the company studied throughout this module. The company is considering expanding its product line to include apple juice. This expansion would require a significant investment in a piece of equipment known as an apple press. Your Final Project submission analyses this decision, and provides to company management a recommendation based on your analysis.
The consultancy report should contain five distinct sections, plus an executive summary, that in total equate to 5,000 words (+/- 10%) in length. Necessary Appendices and a References section should also be included. Throughout this module, you will develop various sections of this report through your work on Individual Assignments (IAs). During Unit 6, you will compile these sections and make any refinements based on feedback received from your Faculty Member. You will also develop the additional sections required to complete and submit the Final Project.
Your consultancy report should include the following sections:
Section 1: Financial Analysis
Section 2: Analysis of the Investment
Section 3: Developing a Balanced Scorecard
Section 4: Assessing Benchmarking Efforts
Section 5: Summary, Recommendations and Conclusion
Executive Summary (New)
In this section, you introduce the nature and purpose of your study. Summarise your study and its objectives, and briefly state your recommendations.
Section 1: Financial Analysis (Overview of the given case study organisation and its current financial situation) (Unit 2)
In this section, refine the assignment you completed in Unit 2, an analysis of the current financial health of the company. Using data provided, assess materials and labor costs, the income statement, the cash flow statement and each of the business units in Anthony’s Orchard. Additionally, conduct a cost-volume-profit (C-V-P) analysis of the current year’s financials.
Section 2: Analysis of the Investment (Future capital investment opportunities and strategic financial plan) (Unit 3)
In this section, refine the assignment you completed in Unit 3, an analysis of the proposed investment in an apple press. Consider the impact this investment has on the company’s stated revenue objectives, and draft projected financial statements that provide a realistic assessment of expected revenues and costs.
Section 3: Developing a Balanced Scorecard (Balanced Scorecard and performance indicators) (Unit 4)
In this section, refine the assignment you completed in Unit 4, an analysis and projection of various performance measures for Anthony’s Orchard. Develop a Balanced Scorecard (BSC) for the company to measure financial, customer, internal process and learning/growth performance. Add to this your opinion of any effects on organisational performance that may emerge as a result of expanding the product line.
Section 4: Assessing Benchmarking Efforts (Gap analysis and benchmarking, including quality assurance techniques (Unit 5)
In this section, refine the assignment you completed in Unit 5, an analysis of various quality measures for Anthony’s Orchard. Conduct a gap analysis and provide recommendations for the development of benchmarking efforts.
Section 5: Summary, Recommendations and Conclusion (New)
In this section, present your recommendations in more detail than you did in Section 1. Include your final recommendation to the management of Anthony’s Orchard regarding the expansion of the product line to include apple juice and the requisite purchase of the apple press. Present your reasoning for your position, and include any subsidiary recommendations you may wish to make (such as additional performance or quality efforts suggested) in support of your primary recommendation. Reiterate any assumptions you made.
Include any supporting documentation you feel is required in this section. This may include organisational data, historical information, additional information on tools or any other information that would be pertinent in support of your proposed solution.
References (Units 2-5)
In the Individual Assignments submitted in Units 2-5, you submit references to any sources of information or readings that you refer to in your analyses. In this section of your report, include these references. Be sure to make appropriate use of the Harvard Referencing Style.
A recurring theme of this module is the value of data to decision-making. Be mindful that your audience for this consultancy report is the management of Anthony’s Orchard. The work you submit here should a useful tool to the organisation while it considers the idea proposed by company CEO Bob Frost in the media piece presented in Unit 2—the production and distribution of Anthony’s Orchard apple juice within the next 3 to 5 years. Your consultancy report should be well thought-out, and developed in a manner that provides insight and guidance.
Laureate Education, Inc., (2012a) Anthony’s Orchard Case Study, [Media], Baltimore: Laureate Education, Inc.
Anthony’s Orchard is the case study organisation that you will use throughout this module. Note the financial data and other information presented here.
Laureate Education, Inc., (2012d) Interview with Anthony’s Orchard DOO Allison Sinclair, [Media], Baltimore: Laureate Education, Inc. Anthony’s Orchard Director of Operations Allison Sinclair discusses company pitfalls due to not having effective benchmarking systems. With this as a backdrop, you will develop a plan that addresses these pitfalls by suggesting some benchmarking system that can be implemented. Tan, K., V. Kannan, & R. Narasimhan, (2007) ‘The Impact of Operations Capability on Firm Performance’, International Journal of Production Research, 45(21) pp.5135-5156. This article proposes that a firm’s operations capability is manifested through its new product design and development, just-in-time, and quality-management efforts. Survey data is used to independently calibrate and validate a model linking operations capability to firm performance.less
Recently published (within the past 5 years) academic journal articles on new and emerging issues in performance management (see the Shared Activity for this unit).
Bento, A., & L. Ferreira White, (2006) ‘Budgeting, Performance Evaluation, and Compensation: A Performance Management Model’, Advances in Management Accounting, 15, pp.51-79
Chong J., D. Fountaine, M. Her, & M. Phillips, (2009) ‘EVA: The Bubble Years, Meltdown and Beyond’, Journal of Asset Management, 10 (3) pp.181-191
Cote, J., & C. K. Latham, (2006) ‘Trust and Commitment: Intangible Drivers of Interorganizational Performance’, Advances in Management Accounting, 15, pp.293-325
Indjejikian, R., & M. Matĕjka, (2012) ‘Accounting Decentralization and Performance Evaluation of Business Unit Managers’, Accounting Review, 87 (1) pp.261-290
Keasey, K., P. Moon, & D. Duxbury, (2000) ‘Performance Measurement and the Use of League Tables: Some Experimental Evidence of Dysfunctional Consequences’, Accounting & Business Research, 30 (4) pp.275-286