FIN 301 Assignment Sp24

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Assignment

In this assignment, we delve into the strategic planning and financial intricacies of two dynamic
industries: the IT sector and the online food business in Bangladesh. By exploring market analysis,
funding methods, and financial management strategies, you will gain a comprehensive understanding of
the complexities involved in launching and sustaining successful ventures in these rapidly evolving fields.
Through this exploration, you will not only deepen your knowledge of corporate finance principles but
also develop critical insights into the strategic decision-making process necessary for navigating today's
competitive business landscape. Each group need to select any (IT or Online food) industry startup
business in context of Bangladesh and develop business plan by following structure give below.

Section IT Sector Online Food


Overview of the business concept, mission Summary of business concept, mission,
1. Executive Summary statement, key financial objectives key financial objectives
Detailed description of IT products/services, Description of food offerings, target
2. Business target market (Select an interesting NAME market (Select an interesting NAME
Description for your Startup) for your Startup)
Analysis of IT industry, market trends, Market analysis of online food industry,
3. Market Analysis competitor analysis, financial implications trends, competitors, financial impact
Description of IT products/services, pricing Menu offerings, pricing strategy, cost
4. Products/Services strategy, cost structure analysis
Marketing tactics, sales strategy,
5. Marketing and Marketing channels, sales approach, customer acquisition cost, supply chain
Sales Strategy customer acquisition, marketing budget management, operational costs
Revenue model, sales forecast, funding Revenue projection, funding needs
7. Financial Plan requirements, financial projections assessment, financial projections
Assessment of funding sources (e.g., equity,
debt, grants), capital structure
Grants and Subsidies, Strategic Partnerships Funding sources (e.g., loans, investors),
8. Funding Methods and Joint Ventures: capital structure analysis
9. Financial Financial viability analysis, break-even Financial feasibility assessment, break-
Assessment analysis, return on investment (ROI) even analysis, ROI calculation
Ratios analysis (e.g., liquidity,
Liquidity ratios, profitability ratios, leverage profitability, leverage), financial health
10. Ratio Analysis ratios, financial health assessment
Identification of financial risks, business risk Financial risk assessment business risk
11. Risk Management and mitigation strategies and contingency plans
12. Implementation Timeline for funding acquisition, key Funding acquisition timeline, financial
Timeline financial milestones milestones

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Section IT Sector Online Food
Ex: Month 1- 3: Initial Planning and Research

Month 3-4: Legal and Regulatory


Compliance

Month 5-8: Marketing and Branding

Launch and Initial Operations

Summary of financial plan, financial goals, Conclusion summarizing financial plan,


13. Conclusion future financial outlook future financial objectives

Instructions:
Note: DO NOT use Wikipedia and Assignment-point for referencing and existing assignments on this
topic. If any group is found doing so, the report will be considered as plagiarized and will be given an F.

Submission deadline: 30th MARCH, 2024

Requirements that Must Follow:

1. Must have a nice recommended printed cover page which has given at the end.

2. Must include Table of Content with proper heading & page number.

3. Instructions for report:

- Reference is must and APA format referencing will be followed.

- Page limit: Not more than 20 pages (excluding reference, table of content,

executive summary)

- Font; Times New Roman, Font size; 12, In between line space; 1,

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4. If any group member not contributing please mention his/her name include ‘’no

contribution’ and inform me while submitting or before in a written format with detail.

Sample of REFERENCING

Citation

Working capital is considered to be the life-giving factor to an economic entity. Moreover, an


efficient working capital is one of the pre-conditions for the achievement of an organization.
(Mukhopadhyay, 2004). As Eljelly (2004) claimed that working capital is a significant force for keeping a
business alive and functioning. To avoid the risk of incapacity to meet the short term obligation and
prevent excessive investment in short term assets, a firm requires to manage their working capital
efficiently. In fact,working capital management (WCM) is substantial for creating value for shareholders
(Shin &Soenen, 1998). Panda (2012) further analyzed that long-term survival of a firm depends on
efficient management of working capital. Therefore, it is essential to maintain a firm liquidity status more
carefully and cautiously. According toSingh and Kumar (2017)a firm has to maintain a proper level of
investment in working capital to avoid the uncertain cash inflow and outflow situation. Suitable liquidity
and profitability scenarios are the main two objectives of WCM but not at the cost of one another. Thus,
each enterprise should sustain a trade-off between these two objectives to enhance the efficiency of
WCM.
However, there is a massive debate in the existing literature as to whether high or low levels of
working capital are best for firms. In light of that note Afrifa andpadachi (2016) established that the
nature of the relationship between working capital level and firm profitability depends on the particular
WCM approach preferred by a firm.

Practices of working capital management vary from industry to industry. According to Filbeck
and Krueger (2005) significant differences exist among industries in working capital practices overtime.
However, limited access in the long term capital market force small medium size enterprise (SMEs) to
depends highly on WCM (Chittenden, 1998; Saccurato, 1994).More recently, Harsh Partap Singh* and
Satish Kumar (2017)confirm that profitability of firm and sales growth are positively related to Working
Capital Requirements (WCR). Yet, they also pointed out that financial leverage, operating cash flow and
asset tangibility are found to be negatively related to WCR. Interestingly, a study performed by Banos-
Caballero et al. (2010) explored a significant negative effect of asset tangibility, financial leverage,

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profitability and sales growth on the length of the cash conversion cycle. They also established that there
is a significant negative connection of the cash conversion cycle (CCC) with cash flow and the age of a
firm.

REFERENCES
1) Abuzar, M. A. Elijelly,(2004). Liquidity–profitability tradeoff: An empirical investigation in an emerging
market. International journal of commerce and management, 14(2), 48-61.
2) Deloof, M. (2003). Does working capital management affect profitability of Belgian firms? Journal of
business finance & Accounting, 30(3‐4), 573-588.
3) Filbeck, G. &Krueger.T.M. (2005). “An Analysis of Working Capital Management results across
industries” .Mid-American [20].Journal of Business, 20 (2), 10-17.
4) MobeenAlam, H., Ali, L., Abdul Rehman, Ch., &Akram, M. (2011). Impact of Working Capital
Management on Profitability and Market Valuation of Pakistani Firms.European Journal of Economics,
Finance and Administrative Sciences,32, pp. 48-54.
5) Narita, M., Shimizu, S., Ito, T., Chittenden, T., Lutz, R. J., Matsuda, H., &Tsujimoto, Y. (1998). Bax
interacts with the permeability transition pore to induce permeability transition and cytochrome c release in
isolated mitochondria. Proceedings of the National Academy of Sciences, 95(25), 14681-14686.
6) Raheman, A., & Nasr, M. (2007). Working capital management and profitability–case of Pakistani
firms. International review of business research papers, 3(1), 279-300.
7) Saccurato, F. (1994). The study of working capital. Business Credit, 96(1), 36-37.
8) Shin, H. H., &Soenen, L. (1998). Efficiency of working capital management and corporate
profitability. Financial practice and education, 8, 37-45.
9) Smith, K. (1980), Profitability versus Liquidity Tradeoffs in Working Capital Management. Readings on
the Management of Working Capital, West Publishing Company, New York, St. Pau.
10) Teruel, P.J.G. & Solano, P.M. (2007), “Effects of Working Capital Management on SME Profitability”,
International Journal of Managerial Finance, Vol. 3 No.2, pp. 164-177
11) Lazaridis, I., &Tryfonidis, D. (2006). Relationship between working capital management and profitability
of listed companies in the Athens stock exchange. Journal of financial management and analysis, 19(1).
12) Eljelly, A.M.A. (2004), “Liquidity-Profitability Tradeoff: An Empirical Investigation In An
Emerging Market,” International Journal of Commerce and Management, Vol. 18 No. 2, pp. 48–
61.
13) Panda, A. (2012), “The status of working capital and its relationship with sales: Anempirical
investigation of Andhra Pradesh Paper Mills Ltd (India)”, InternationalJournal of Commerce and
Management, Vol. 22 Issue 1, pp 36-52.
14) Mukhopadhyay, D. (2004), “Working capital management in heavy engineering firms - A
casestudy,”Management Accountant, Vol. 39 No. 4, pp. 317–323.
15) Banos-Caballero, S., Garcia-Teruel, P. J. & Martinez-Solano, P. (2010), “Working capital
management in SMEs”, Accounting & Finance, Vol.50 Issue.3, pp. 511-527.
Maria AméliaPais Paulo M Gama , (2015),"Working capital management and SMEs profitability:
Portuguese evidence",International Journal of Managerial Finance, Vol. 11 Iss 3 pp. -Permanent
link to this document: http://dx.doi.org/10.1108/IJMF-11-2014-0170

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Cover page format

Course Code: FIN 301 Semester- Autumn’2020

Group Name:

Coordinator name and cell number:

Date of submission:

-
Submitted By

Name ID Contribution
1)
2)
3)
4)
5)

6)

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