Sei sulla pagina 1di 18

COMBINED ASSIGNMENT ONE: Business Accounting; Business Analysis and

Principles of Marketing

Name
You have been asked to prepare reports and make presentations to explain the
role of accounting, related business analysis techniques and the implications for
marketing to the managers of other departments. In writing your report, you
should make use of the financial data/ statements available for your organisation
and address the issues in each of the three Tasks outlined below.
Task 1
For a selected organisation, identify primary and secondary sources of data
concerning costing, pricing and investment decision- making techniques. Use
business presentation tools to construct a presentation to communicate your data,
results and conclusions to an appropriate audience
 Choose and plan appropriate survey methods, sampling techniques and
questionnaires and collect and collate data
 Explain how appropriate accounting techniques support effective
decision-making, including pricing and investment decisions. In so doing,
you should explain budgets, calculation of unit costs, selected investment
appraisal techniques and identify the sources of finance available to a
business.
Task 2
For your selected organisation, use financial and management accounting
Task 1, techniques to explain, record and interpret financial data, financial statements and
Task2 & preparation of budgets. Your response should feature:
Task 3 Comparison of different types of financial statements and their appropriateness
for different types of business.
Explanation and application of management accounting techniques to classify and
calculate costs; to prepare budgets for your selected organisation. In your
response, you should:
 classify different types of cost
 use different costing methods for your calculations
 select appropriate budget methods for preparation of a budget
Task 3
For a selected organisation
 Explain the elements of the marketing concept and processes, and their
relation to the costs and benefits of its marketing orientation.
 Propose segmentation, targeting and positioning criteria for its products
and/or services in response to existing marketing problems/issues. (For
example: how would 2 major retail organisations such as Tesco or Marks
and Spencer respond to their current problems?)
 Differentiate between the marketing mix and the extended marketing mix,
and explain the role of the marketing mix in sustaining competitive
advantage.

COMBINED ASSIGNMENT ONE: Business Accounting; Business Analysis and Principles of Marketing 1
Task 1 Presentation, with notes and of 20 slides/equivalent maximum
Word count
Task 2, 3 2500 words across both tasks
Date

CONTENTS

S. No. & Description .............................................................................................................. Page No


1. I - Task 1. ........................................................................................................................................ 3
2. II - Task 2............................................................................................................. /4/5/6/7/8/9/10/11
2.1 Financial and Management Accounting .................................................................................... 4
2.1.1 Debits and Credits ................................................................................................................... 4
2.1.2 Capital ..................................................................................................................................... 4
2.1.3 Income ..................................................................................................................................... 4
2.1.4 Purchases and Expenses .......................................................................................................... 4
2.2 Financial Statements ................................................................................................................. 4/5
2.2.1 Statement of Financial Position............................................................................................... 4
2.2.2 Income Statement .................................................................................................................... 4
2.2.3 Cash Flow Statement .............................................................................................................. 5
2.2.4 Financing Activities ................................................................................................................ 5
2.2.5 Statement of Changes in Equity .............................................................................................. 5
2.3 Management Accounting Techniques ........................................................................................ 6
2.3.1 Financial Planning ................................................................................................................... 6
2.3.2 Revaluation Accounting .......................................................................................................... 6
2.3.3 Decision-making Accounting .................................................................................................. 6
2.3.4 Management Information System ........................................................................................... 6
2.3.5 Statistical Techniques .............................................................................................................. 6
2.3.6 Management Reporting ........................................................................................................... 6
2.4 Types of Cost ............................................................................................................................. 6/7
2.5. Fixed and Variable costs - Estimation ........................................................................... 7/8/9/10
2.5.1 Account Analysis .................................................................................................................... 7
2.5.1.1 High-low Method .........................................................................................................7
2.5.1.2 Scatter Graph Method ...................................................................................................8
2.6 Budget Methods for Preparation of a Budget ......................................................................... 10
2.6.1 Incremental Budgeting .......................................................................................................... 10

COMBINED ASSIGNMENT ONE: Business Accounting; Business Analysis and Principles of Marketing 2
2.6.2 Zero-based Budgeting ........................................................................................................... 10
2.7 Alternative Budgeting Techniques ........................................................................................... 10
2.7.1 Priority-based Budgeting....................................................................................................... 10
2.7.2 Decision Conferencing .......................................................................................................... 10
2.7.3 Planning/Programming Budgeting system ............................................................................ 10
2.7.4 Performance-based Budgeting .............................................................................................. 10
2.8 Budgeting in Uncertain Condition ...................................................................................... 10/11
2.8.1 Rolling Budgets ..................................................................................................................... 10
2.8.2 Contingency Budgeting ......................................................................................................... 10
3. III - Task 3 ................................................................................................................ 11/12/13/14/15
3.1 Marketing Concept and Processes, Costs and Benefits for Home Depot.. ...................... 11/12
3.1.1 Home Depot SWOT Analysis .......................................................................................... 11/12
3.2 Segmentation, Targeting, and Positioning of Products and Services .......................... 12/13/14
3.2.1 PESTLE Analysis - Home Depot ..................................................................................... 12/13
3.2.2 Home Depot (HD) Target Customers .............................................................................. 13/14
3.2.3 Customer-friendly Approach ................................................................................................. 14
3.2.4 Customer Initiatives .............................................................................................................. 14
3.3 Marketing mix and the Extended Marketing mix. ............................................................ 14/15
3.3.1 Home Depot Marketing Mix. ........................................................................................... 14/15
3.3.1.1 Product ........................................................................................................................14
3.3.1.2 Promotion ...................................................................................................................14
3.3.1.3 Attracting New Customers .........................................................................................14
3.3.1.4 Process .................................................................................................................. 14/15
3.3.1.5 Physical Evidence .......................................................................................................15
3.3.1.6 People .........................................................................................................................15
IV References .............................................................................................................................. 15/16
V Bibliography ....................................................................................................................... 16/17/18
VI Tables ........................................................................................................................................... 18

I - Task 1.
See attached Power Point presentation.

COMBINED ASSIGNMENT ONE: Business Accounting; Business Analysis and Principles of Marketing 3
2. II - Task 2.
2.1 Financial and Management Accounting
Boat Spares Co.
Balance Sheet
2.1.1 Debits and Credits
As at end of Year One
Current Assets
‘Transactions are recorded in the ledger by debiting
Cash $5,100 one account and crediting another.’
Debtors $18,000
Stock $3,120 2.1.2 Capital which is money invested in the business
Total Current Assets $ 26,220.00
Non-current Assets by the proprietor(s).
Computer $5,500 2.1.3 Income which is the revenue of the firm, and
Store Fit Out $8,100
Office Equipment $15,000
includes sales, work was done, fees earned, rents
Total Non-current Assets $28,600 receivable, commission.
Total Assets $54,820 2.1.4 Purchases and Expenses which are items of
Current Liabilities
expenditure "used up" by the business.
Credit Card $5,500
Creditors $4,120
Total Current Liabilities $9,620 2.2 Financial Statements (Standard IAS 1 /FRS 3
Non-current Liabilities
UK similar, not identical) represents a formal
Total Non-current Liabilities
record of the financial activities of an entity.
Total Liabilities $9,620
Net Assets $45,200
Shareholders’ Equity 2.2.1 Statement of Financial Position, (the Balance
Owners’ Funds Sheet), shows the status of finances of an entity at a
$40,000
Current Year Profit $5,200
Total Shareholders' Equity $45,200 given date. It consists of the:
Assets are something a business owns or controls.
Table 1. – Boat Spares Co – Balance Sheet Liabilities are something a company owes to
someone (e.g. creditors, bank loans) liabilities.
Equity is the capital that stays in business after its assets are used to pay off outstandings.

Equity = assets - liabilities.


Boat Spares Co
Profit and Loss Statement 2.2.2 Income Statement or
For the Period ended Year One Profit and Loss Statement,
Income
Sales 52000 ( 1,000 Spares @ $ 52 each) is a financial report of
Total Sales 52000 performance related to net
Cost of Goods Sold
Opening Stock $ -
profit or loss over a specified
Stock Purchases 34320 period. Income Statement
Less Closing Stock 3120
Total Cost of Goods Sold(COGS) 31200 ( See note below) consists from:
Gross Profit 20800
Expenses
Advertising 500 Income: business’ earnings
Bank Service Charges 120
Insurance 500
in given period
Payroll 13000 Expense: The cost made by
Professional Fees (Legal, Accounting) 200
Utilities & Telephone 800 the business in certain period.
Other: Computer Software 480
Expenses total 15600
Net Profit before Tax 5200 Net profit or loss = income –
Note; Cost of Goods Sold calculation:
expenses
Towards the end of the year, Boat Spares and Co manages to purchase 100 more spares on credit
2.2.3 Cash Flow Statement
from his supplier for an order in the new year. This leaves Boat Spares Co with $3,120 of stock on (IAS 7: Cash Flow
hand at the end of the year.
Boat Spares nad Co Cost of Goods Calculation
Opening Stock Nil

Add Stock Purchased during the year $34,320 (1100 Spares @ 31.20 each)
COMBINED ASSIGNMENT ONE: Business Accounting; Business Analysis and Principles of Marketing 4
Equals Stock available to sell $34,320

Less Stock on hand at end of year $3,120 (100 Spares @ 31.20 each)
Cost of Goods Sold $31,200
Statements /FRS 1 UK similar, but not identical) presents the movement in cash and
bank balances. This standard objective is to prescribe the criteria for selecting and
changing accounting policies, changes in accounting estimates correction of prior period
errors.
Operating Activities shows the cash flow from activities of the business.
Investing Activities is a cash flow from acquisition and sale of assets excluding inventories.

2.2.4 Financing Activities is a cash flow made or consumed by raising and


Table 2. Boat Spares Co – Profit and Loss Statement repaying capital shares and
debt together with the interest payments and dividends.
Cash Flow Statement
Cashflows from Operations Date and starting cash 2.2.5 Statement of Changes
Cash receipts from customers For the Year Ending 5100 in Equity shows the
(enter positive amounts) Cash Sales $ 52,000.00 Cash at Beginning of Year 0
Cash collected from customers (debtors) $ - situation in owners' equity
Funding from Creditors
Stock purchased, not yet paid $ -
over a period. The flow in
Cash paid for owners' equity is visible
(enter negative amounts) Total Expenses -$ 15,600.00
Inventory (stock)purchases -$ 34,320.00 from:
Funding to Debtors
Sales made not yet collected $ 4,120.00 Net Profit or Loss for the
Net Cash Flow from Operations
Investing Activities
$ 6,200.00
Boat Spares Co period as shown in the
Cash receipts from income statement. Share
(enter positive amounts) Sale of property and equipment
Matured Investments
$
$
-
-
capital issued or repaid
Cash paid for during the period ported in
(enter negative amounts) Purchase of property and equipment -$ 28,600.00
Purchase of investments $ - the income statement.
Net Cash Flow from Investing Activities
Financing Activities
-$ 28,600.00
Capital issued or repaid
Cash receipts from during the period
(enter positive amounts) Increase in short term debt $ 5,500.00
Increase in long term debt $ -
Increase in equity (proceeds from owners) $ 40,000.00
Cash paid for
(enter negative amounts) Repayment of loans -$ 18,000.00
Table 3. Boat Spares Co – Cash Flow
Dividends $ -
Net Cash Flow from Financing Activities $ 27,500.00 Statement
Net Increase in Cash $ 5,100.00
Cash at End of Year $ 5,100.00

Dividend payments are equity available gains or losses.


Are effects of a change in accounting policy or
correction of an accounting error.

2.3 Management Accounting Techniques

2.3.1 Financial Planning - Financial planning is


considered as best tool for achieving business objectives

2.3.2 Revaluation Accounting: The fixed assets are


revalued as per set accounting technique to properly
represent capital with the value of the assets.
2.3.3 Decision-making Accounting states that a
business problem can be solved by choosing the best and

COMBINED ASSIGNMENT ONE: Business Accounting; Business Analysis and Principles of Marketing 5
most profitable alternatives. Information is used to address the problem of business which comes
from Table 4. – Management Accounting Techniques - Link between Financial Statements increasing complexity of firms nature.

2.3.4 Management Information System: The communication free flow within the organization
is essential for efficient operation of the business.
‘The system should be such through which every employee of an organization can assess the
information and use it for discharging their duties and taking quality decisions.'

2.3.5 Statistical Techniques are techniques used in removing management problems. Per
examples: least square methods, regression and quality control.

2.3.6 Management Reporting: The accountant prepares the report by the contents of profit and
loss account and balance sheet and submits it to the management. These reports reveal the
strength and weakness.

2.4 Types of Cost

 Marginal Costing is used to: determine the selling price, select best sales mix, and best
use of rare raw materials or resources. Marginal costing is based on the fixed cost,
variable cost, and contribution.
 Fixed costs are costs that are independent of output; these remain constant.
 Variable costs are output varied costs. Variable costs constantly increase relative to labor
and capital.

Table 5. - A graph of MC, ATC and MR curves

2.5. Fixed and Variable Costs - Estimation

COMBINED ASSIGNMENT ONE: Business Accounting; Business Analysis and Principles of Marketing 6
2.5.1 Account Analysis
Experienced employee reviews the appropriate accounts and determines whether the costs in
each account are fixed or variable. Considering all identified costs as fixed gives the estimate of
total fixed costs.
For figuring out a variable cost per unit all totaled the activity measure divides variable costs.

2.5.1.1 High-low Method


This method uses past info from different reporting periods for cost estimation.
Reporting Period Total Production Level of Activity (Units
(Month) Costs(USD) Produced/Sold in USD)

July 230,000 3,500

August 250,000 3,750

September 260,000 3,800

October 220,000 3,400

November 340,000 5,800

December 330,000 5,500

January 200,000 2,900

February 210,000 3,300

March 240,000 3,600

April 380,000 5,900

May 350,000 5,600

June 290,000 5,000

Table 6. - Monthly Production Costs for Boat Spares Co (Example)

Table 7 - Estimated Total Mixed Production Costs for Boat Spares Co: High-Low Method

Steps:

COMBINED ASSIGNMENT ONE: Business Accounting; Business Analysis and Principles of Marketing 7
a. The high and low activity levels using data.
b. The variable unit cost calculation (v).
The line inclination shown in Table 7 shows the variable cost per unit.
c. Total fixed cost calculation (f).
After step 2, the line started as Y = f + $60X. Step 3 calculates a value for total
fixed cost (f).
d. State results in Y = f + vX.
Variable unit cost = $60, and from step 3 that total fixed cost is $26,000.
Y = $26,000 + $60X

2.5.1.2 Scatter Graph Method


This method considers data from all points, not just the highest and lowest.
Steps:
a. Data points plotting for specific period
X-axis = level of activity,
Y-axis = the total production cost.

Table 8 - Scatter graph of Total Mixed Production Costs for Boat Spares Co

b. Visually line fitting to the data points and assure that the line touches one data
point.

COMBINED ASSIGNMENT ONE: Business Accounting; Business Analysis and Principles of Marketing 8
Table 9. Estimated Total Mixed Production Costs for Boat Spares Co Scattergraph Method

c. Total fixed costs estimation (f).


The total fixed costs or the y-intercept, remain the same in total.
d. The variable unit cost calculation (v).
e. State results in : Y = f + vX.
Y = $45,000 + $52.86X

Use of equations to find the best fit for the line to the data points to
give results with more accuracy than the scatter graph is regression
analysis.Gives the more accurate estimation of fixed and variable,
assuming there are no unusual data points.

2.6 Budget Methods for Preparation of a Budget

Budgets are financial plans for future periods that guide various insiders to help achieve
organizational goals.

2.6.1 Incremental Budgeting


The department budget for previous year’s budget is brought forward for the next annual budget.
This is incremental budgeting because the process has the incremental adjustments to the
currently budgeted allowance. Based on:
 Making a decision on what committed expenditure is and then making adjustments to
reflect inevitable changes.
 Making sure that budget development reflects proposed savings and growth;
resulting in producing of the new budget.

2.6.2 Zero-based Budgeting comes from the rule that no budget figures should be taken from
one period to the next simply because they already happened.
According to CIPFA, it

COMBINED ASSIGNMENT ONE: Business Accounting; Business Analysis and Principles of Marketing 9
“involves the preparation of operating budgets on the assumption that the organization is
starting out afresh in the new planning period – it, as is the life of the organization, exists as a
series of fixed-term contracts.”
This provides a business justification for each activity undertaken by an organization.
2.7 Alternative Budgeting Techniques
2.7.1 Priority-based budgeting is a modified zero-based approach. It concentrates on business
priorities and sets growth and savings in budgets accordingly.
2.7.2 Decision conferencing is computer software supported, allows policy makers to have a
conference to identify key areas and the resources committed.
2.7.3 Planning/Programming Budgeting system
This system is used by corporations and identifies alternatives and the implications of their
adoption and provides control.
2.7.4 Performance-based budgeting
This approach is related to making a link between performance information and allocation and
management of resources.
2.8 Budgeting in Uncertain Condition
2.8.1 Rolling budgets
As per CIPFA rolling budget is:
‘a budget constantly updated by adding a further period, e.g. a month or quarter and removing
the earliest period.’

2.8.2 Contingency budgeting is used when the absence of reliable data is compensated for by a
contingency for as many areas as required.It is useful when detailed budgeting is difficult due to
lack of experience to draw upon.
Budgetary Control is when arrangement and estimation of financial needs are according to an
orderly basis, used for control of financial performances.
Interpretation:
‘Use of key accounting ratios for profitability, liquidity, efficiency, and investment; comparison,
both external and internal.’
Profitability ratios measure the ability of business to make earnings compared to sales, assets,
and equity.

3. III - Task 3.
3.1 Marketing Concept and Processes, Costs and Benefits for Home Depot.
Home Depot
Location: Atlanta, Georgia, USA
Founded: 1978.
Went public 1981 to NASDAQ moved to New York Stock Exchange in 1984
Specialization: Retailer in home improvement.

3.1.1 Home Depot SWOT analysis

COMBINED ASSIGNMENT ONE: Business Accounting; Business Analysis and Principles of Marketing 10
Strengths
Leadership: Although the company is connected to the macroeconomic situation in the USA its
strength lies in its leaderships. Home Depot managed to survive the recession.
Productivity: Home Depot has high productivity. A comparison to Lowe’s makes this clear.
This may be seen in stores — where Home Depot made $3177 in average revenue per square
meter, Lowe’s made $2996, in fiscal 2014.
Diversification: Business diversification is part of Home Depot’s strength.

Weaknesses
Macroeconomic Conditions: the Biggest weakness of Home Depot’s business is the fact it is
dependent on macroeconomic factors. Home Depot's success is connected to the U.S. economy,
90% of stores are located there.
High Debt Levels: The other problem Home Depot has, its debt levels.Long-term debt is ~$16.9
billion (~15% increase y-o-y) in fiscal 2014.

Opportunities
International Expansion:
Home Depot is present in the U.S., Canada, and Mexico.
As of 2015 Home Depot has focused on maximizing productivity.
Macroeconomic Fundamentals and Dotcom Sales:
Home Depot has much room for growth in the U.S.; online shopping is growing. Company’s
online sales are growing; it still accounts for only 5% of total sales in Q2 of 2015.
Threats
Macroeconomic Factors: Home Depot’s future growth is connected to the growth of the U.S.
economy. Many factors could affect the growth that Home Depot is meant to have considering
its position on the market today.
Adjustable Rates was about 5% and 3.9% respectively, in Q4 2016. The company is also
exposed to U.S. dollar fluctuations on the international market since US Dollar is becoming
stronger.
Weather Related Issues: Sales for Home Depot is also connected to weather related factors. It
is common that customers tend to postpone their projects in case bad weather is expected.
Competition: In the home
improvement market Home
Depot’s competitor is Lowe’s.
There is competition from some
other companies with similar
products. (Amazon, Costco,
Best Buy, and Wal-Mart.)
Loyalty programs
Pro Xtra loyalty program was
introduced in 2013. This
program is meant for
professional customers.
Private label credit accounts

COMBINED ASSIGNMENT ONE: Business Accounting; Business Analysis and Principles of Marketing 11
Home Depot has a deal with Citibank (C) for credit card issuance.This partnership has a
Table 10. Home Depot Inc - Financial Report considerable impact on Home
Depot business. Around 2.8 million customers applied for a Citibank (C) card in 2014.

Product exclusives and customization


Color Solutions Center for paints that include Behr from Masco (MAS), Glidden (PPG), with
own Home Decorators Collection brands in the example of original and exclusive products
within Home Depot.

3.2 Segmentation, Targeting, and Positioning of Products and Services

3.2.1 PESTLE Analysis - Home Depot

Political Factors
Opportunity - International trade agreements expansion
Opportunity - Stability in regional politics
Threat - Government spending is unpredictable
US government is trying to increase international trade which adds to external political influence
to business. However, there is a factor of unpredictable government behavior (Trump
administration) in foreign policy.

Economic Factors
Opportunity - Consumers with increased disposable income
Opportunity - Housing market recovery
Threat - Capital cost increase
Home Depot should cease the opportunity to grow based on the increasing income of consumers
and frequent purchasing capacity of same, especially in the United States.
Social/Sociocultural Factors
Opportunity- Increase desire for high-quality products
Threat- Rise in wealth gap
Threat- Reduced preference for imported products
There is an opportunity to provide better/more durable goods. However, rising wealth gap
reduces the middle class, which is the company’s main market segment. Customers now moving
away from low quality imported items; which are found in Home Depot stores. With this trend,
the firm must focus on threats in its remote or macro- environment.
Technological Factors
Opportunity-Increased automation in businesses
Opportunity-Increased use of knowledge management systems
Opportunity- Increase mobile technology use
Opportunities exist for Home Depot to use business automation and improve productivity and
quality of service through knowledge management systems. Also, Hope Depot can keep
refreshed its mobile app to gain more consumers in the mobile market.
Ecological/Environmental Factors
Opportunity- Increase preference for green products
Opportunity- Increase private and public environmental programs

COMBINED ASSIGNMENT ONE: Business Accounting; Business Analysis and Principles of Marketing 12
Opportunity- Climate change
Development of policies that prioritize environmentally friendly products can benefit Home
Depot. Being involved in environmental programs will strengthen its public relations. Lastly,
improvements in business sustainability through recycling efforts and green energy used to
address climate change indicates significant opportunities in the company’s remote or macro-
environment.
Legal Factors
Opportunity-regulation of Information Security
Opportunity-Employment laws
Opportunity- Health and safety regulations
There is an opportunity in the external legal factor of information security as it will force
improvements on existing security measures linked to use of information systems. Also, Home
Depot must improve its practices to better employment and health and safety regulatory
requirements.

3.2.2 Home Depot (HD) Target Customers


 Do-it-yourself customers like homeowners, customers that purchase and carry our
installation themselves, using online or in-store resources.
 Do-it-for-me clients that seek third parties to provide installation services. HD provides a
multitude of installation services, i.e., floors, cabinets, countertops, heaters, and sheds.
HD also provide in-house consulting and installation services. Professional customers
include builders, contractors, interior designers, traders, and renovators to name a few.

3.2.3 Customer-friendly Approach


Home Depot’s customer service philosophy (‘whatever it takes’) has been one of its most
important selling strategies since the beginning, ‘The customer has a bill of rights’ at The Home
Depot.
3.2.4 Customer Initiatives
Home Depot invests large part of its profits in an attempt to provide a superior customer
experience. It has expanded the product range available to consumers by use of its online
channels.

3.3 Marketing mix and the Extended Marketing mix

3.3.1 Home Depot Marketing Mix

3.3.1.1Product
Home Depot sells materials for building, home improvement, lawn and garden products, kitchen,
doors, windows, grills, bath, lighting, fans, and appliances.
It provides products specifically for professionals,
such as lumber, paint and painting supplies,
plumbing equipment, cleaning and janitorial
equipment.
Price
Home Depot has on online purchases discounts as
part of Savings Center where it reduces up to 20%

COMBINED ASSIGNMENT ONE: Business Accounting; Business Analysis and Principles of Marketing 13
- 25 % off products such as play sets, kitchen faucets, and professional saws.
Place
The Home Depots operates in the
United States (including all 50 states, the District of Columbia, Puerto Rico, the Virgin Islands,
and Guam), all ten provinces of Canada, and the country of Mexico.
Table 11. Social Marketing Concept
3.3.1.2 Promotion
In 2008 Home Depot had a campaign called ‘New Low Prices’ with rebates and discounts on
over 1000 products.
The company started its ‘Aprons on the Floor’ initiative that was meant to improve customer
service by providing an increased presence of associates.
The company uses email newsletters to market its special offers.

3.3.1.3 Attracting New Customers


Home Depot’s regularly organizes workshops that are targeted at do-it-yourself customers.
Organized workshops provide both a learning experience and emotional connection for
customers that imprints loyalty.

3.3.1.4 Process
Information technology applications of Home Depot are being improved continuously.
Improvement in their associate's training and procedures are related to helping customers with
problem-solving, rather than teaching their employees how to make a sale.

3.3.1.5 Physical Evidence


The size of an average Home Depot store is about 9755 m2 of enclosed space together with
additional 2230 m2 of the outside garden area.
There are 30,000 to 40,000 different kinds of products available in the company inventory.

3.3.1.6 People
Frank Blake - Chairman and CEO of Home Depot.
The company takes good care of their employees and provides performance-based merit
increases as well as a 401(k) matching program. The company has around 400 000 associates
employed (2017).

IV - References:
1. Fig.4 - Blog by Accounting-simplified.com ‘What are Financial Statements?’ www.accounting-
simplified.com Web < http://accounting-simplified.com/financial/statements/types.html >
(Accessed 01 Jul. 2017)
2. Analysis by Edward Ferguson (2017) ‘Home Depot PESTEL/PESTLE Analysis &
Recommendations’ www.panmore.com Web <http://panmore.com/home-depot-pestel-pestle-
analysis-recommendations > (Accessed 02 Jul. 2017)
3. Blog by Forbes, Trefis Team -Contributor (2015), ‘Home Depot: Strengths, Weaknesses,
Opportunities, and Threats’ www.forbes.com Web

COMBINED ASSIGNMENT ONE: Business Accounting; Business Analysis and Principles of Marketing 14
<https://www.forbes.com/sites/greatspeculations/2015/10/06/home-depot-strengths-weaknesses-
opportunities-and-threats/#3c9181766fac > (Accessed 02 Jul. 2017)
4. Blog by Christine Rowland (2017) ‘Home Depot’s Marketing Mix (4Ps) Analysis’
www.panmore.com Web < http://panmore.com/home-depot-marketing-mix-4ps-analysis >
(Accessed 02 Jul. 2017)
5. About us Home depot web page www.corporate.homedepot.com Web <
https://corporate.homedepot.com/about > (Accessed 02 Jul. 2017)
6. Blog by Zachary Kremian, Supply Times (2012) ‘3 Inventory Valuation Methods: FIFO, LIFO
and AVCO’ www.fishbowlinventory.com Web <
https://www.fishbowlinventory.com/blog/2012/07/12/3-inventory-valuation-methods-fifo-lifo-
avco/ > (Accessed 04 Jul. 2017)
7. Blog by Amy Fontinelle - Investopedia (2015) www.investopedia.com Web <
http://www.investopedia.com/university/budgeting/basics8.asp > (Accessed 05 Jul. 2017)
8. Blog by Hitesh Bhasin (2017) ‘Concepts of Marketing’ www.marketing91.com Web <
http://www.marketing91.com/concepts-of-marketing/ > (Accessed 05 Jul. 2017)
9. Research was done by Research and Library Services Northern Ireland Assembly Research Paper
06/10 January 2010 ‘METHODS OF BUDGETING’ www.focusintl.comWeb <
http://www.focusintl.com/RBM150-0610.pdf > (Accessed 05 Jul. 2017)
10. Article by Nahid Mohsen Pour from Kensington College and Business &University of Wales
(2011) ‘INDETIFYING DIFFERENT SOURCESOF FINANCE TO PLC ADVANTAGES AND
LIMITATIONS’ www.academia.edu Web <
https://www.academia.edu/466098/IDENTIFYING_DIFFERENT_SOURCES_OF_FINANCE_T
O_PLC_ADVANTAGES_AND_LIMITATIONS> (Accessed 05 Jul. 2017)
V - Bibliography:
1. ‘Methods of sampling.’ www.pages.intnet.mu N.p., n.d. Web. <
http://pages.intnet.mu/cueboy/education/notes/statistics/samplingmethods.pdf >(Accessed 21
June. 2017)
2. Blog by Goleansixsigma.com ‘Data Collection Plan’ www.goleansixsigma.com N.p., n.d. Web. <
‘https://goleansixsigma.com/data-collection-plan/ >(Accessed 21 June. 2017)
3. Blog by Patrick Waddick ‘Building a Sound Data Collection Plan’ www.isixsigma.com Web. <
https://www.isixsigma.com/tools-templates/sampling-data/building-sound-data-collection-plan/
>(Accessed 21 June. 2017)
4. Blog by George Boykin ‘What Is the Difference Between Primary & Secondary Data When It
Comes to Market Research? ‘ www.smallbusiness.chron.com Web. <
http://smallbusiness.chron.com/difference-between-primary-secondary-data-comes-market-
research-56312.html >(Accessed 21 June. 2017)
5. Review written by Dominik Jasinski (University of Warwick); James Meredith (University of
Sheffield); Kerry Kirwan (University of Warwick) ‘A comprehensive review of full cost
accounting methods and their applicability to the automotive industry’ www.sciencedirect.com

COMBINED ASSIGNMENT ONE: Business Accounting; Business Analysis and Principles of Marketing 15
Web. < http://www.sciencedirect.com/science/article/pii/S0959652615007696 >(Accessed 21
June. 2017)
6. Blog by Accounting verse ‘Types of Costs (Cost Classifications)’ www.accountingverse.com
Web. < http://www.accountingverse.com/managerial-accounting/cost-concepts/types-of-
costs.html > (Accessed 21 June. 2017)
7. Blog by Investopedia May 25, 2017 ‘What are the different types of costs in cost accounting?’
www.investopedia.com Web. < http://www.investopedia.com/ask/answers/041415/what-are-
different-types-costs-cost-accounting.asp > (Accessed 29 June. 2017)
8. Blog by E –Finance Management ‘Types of Costs and their Basis of Classification’
www.efinancemanagement.com Web. < https://efinancemanagement.com/costing-terms/types-of-
costs-and-their-basis-of-classification > (Accessed 29 June. 2017)
9. Blog by Douglass A. Boufford ‘Understanding Basic Financial Statements’ www.bouffordca.com
Web. < http://www.bouffordca.com/FS/SampleFS.pdf > (Accessed 29 June. 2017)
10. ‘Chimimport AD Interim financial statements 31 December 2006’ www.chimimport.bg Web. <
http://www.chimimport.bg/uf/dl/FS_20070130_Chimimport_ENG.pdf > (Accessed 30 June.
2017)
11. Blog by My Accounting Course ‘Financial Statement Analysis’ www.myaccountingcourse.com
Web< http://www.myaccountingcourse.com/financial-statements/ > (Accessed 30 June. 2017)
12. ‘Consolidated Financial Statements for Nestlé 2015’ www.nestle.com Web <
http://www.nestle.com/asset-library/documents/library/documents/financial_statements/2015-
financial-statements-en.pdf > (Accessed 30 June. 2017)
13. ‘Guide to annual reports – illustrative disclosures 2016-17’ by KPMG www.assets.kpmg.com
Web< https://assets.kpmg.com/content/dam/kpmg/au/pdf/2016/example-public-company-limited-
illustrative-disclosures-2016-2017.pdf > (Accessed 30 June. 2017)
14. Overview by ICAEW ‘Knowledge guide to International Accounting Standards’ www.icaew.com
Web < https://www.icaew.com/en/library/subject-gateways/accounting-standards/knowledge-
guide-to-international-accounting-standards > (Accessed 30 June. 2017)
15. Blog by Investopedia ‘International Accounting Standards – IAS’ www.investopedia.com Web <
http://www.investopedia.com/terms/i/ias.asp > (Accessed 30 June. 2017)
16. Blog by Difference Between - ‘Difference Between IAS and IFRS’ www.differencebetween.net
Web < http://www.differencebetween.net/business/difference-between-ias-and-ifrs/ > (Accessed
01 Jul. 2017)
17. Blog by Maire Loughran (July 15, 2017) ‘The Three Types of Financial Statements’
www.thoughtco.com Web < https://www.thoughtco.com/the-three-types-of-financial-statements-
192716 > (Accessed 01 Jul. 2017)

COMBINED ASSIGNMENT ONE: Business Accounting; Business Analysis and Principles of Marketing 16
18. Paper by Shanker Trivedi, Nicola Short and the FISC Team ‘BUDGETS AND FINANCIAL
STATEMENTS: AN OVERVIEW’ www.yufa.ca Web < https://www.yufa.ca/wp-
content/uploads/2014/11/Budgets-and-Financial-Statements.pdf > (Accessed 01 Jul. 2017)
19. Blog by Business case studies ‘ Finance theory - Recording financial information’
www.businesscasestudies.co.uk Web < http://businesscasestudies.co.uk/business-
theory/finance/recording-financial-information.html > (Accessed 02 Jul. 2017)
20. ‘Core Concepts of Marketing’ by John Burnett (2008) - Book PDF www.saylor.org Web <
https://www.saylor.org/site/wp-content/uploads/2012/11/Core-Concepts-of-Marketing.pdf >
(Accessed 02 Jul. 2017)
21. Blog by Marketing Teacher.com ‘Category: Marketing Mix 4Ps and 7Ps - Free marketing mix
case studies.’ www.marketingteacher.com Web < http://www.marketingteacher.com/marketing-
mix-4ps-and-7ps/ > (Accessed 02 Jul. 2017)
22. Blog by Nathaniel Smithson (2017) ‘Home Depot’s Generic Strategy, Intensive Growth
Strategies’ www.panmore.com Web < http://panmore.com/home-depot-generic-strategy-
intensive-growth-strategies > (Accessed 03 Jul. 2017)
23. Blog by Prasad Dhamdhere (2016) ‘6 Strategies Behind the Home Depot’s Marketing
Domination’ www.socialannex.com Web < http://www.socialannex.com/blog/2016/09/29/6-
strategies-behind-the-home-depots-marketing-domination/ > (Accessed 04 Jul. 2017)
24. Blog by Phalguni Soni (2015) ‘Home Depot Sales Likely to Be Influenced by Macroeconomic
Factors’ www.marketrealist.com Web < http://marketrealist.com/2015/03/home-depot-sales-
likely-influenced-macroeconomic-factors/ > (Accessed 04 Jul. 2017)
25. Paper by Don Hofstrand - retired extension agriculture specialist (2013) PDF ‘Types and Sources
of Financing for Start-up Businesses’ www.extension.iastate.edu Web <
https://www.extension.iastate.edu/agdm/wholefarm/pdf/c5-92.pdf > (Accessed 04 Jul. 2017)
26. Blog by Harold Averkamp (CPA, MBA) ‘What is the traditional method used in cost accounting?
‘www.accountingcoach.com Web < https://www.accountingcoach.com/blog/taditional-method-
cost-accounting > (Accessed 04 Jul. 2017)
27. Blog by Investopedia (2015) ‘Zero-Based Budgeting – ZBB’ www.investopedia.com Web <
http://www.investopedia.com/terms/z/zbb.asp > (Accessed 05 Jul. 2017)
28. Blog by E-Finance Management (2015) ‘Zero Based vs. Traditional Budgeting’
www.efinancemanagement.com
29. Web < https://efinancemanagement.com/budgeting/zero-based/zero-based-vs-traditional-
budgeting > (Accessed 05 Jul. 2017)
30. Blog written by Ciel S. Cantori, Edited by Linda Richter (2011) ‘Walking Through an Example
of Creating a Zero-Based Budget’ www.brighthub.com
31. Web < http://www.brighthub.com/office/finance/articles/122853.aspx > (Accessed 05 Jul. 2017)

VI –Tables
1. Table 1. – Boat Spares Co – Balance Sheet
2. Table 2. - Boat Spares Co – Profit and Loss Statement

COMBINED ASSIGNMENT ONE: Business Accounting; Business Analysis and Principles of Marketing 17
3. Table 3. - Boat Spares Co – Cash Flow Statement
4. Table 4. – Management Accounting Techniques - Link between Financial Statements
5. Table 5. - A graph of MC, ATC and MR curves
6. Table 6. - Monthly Production Costs for Boat Spares Co (Example)
7. Table 7. - Estimated Total Mixed Production Costs for Boat Spares Co: High-Low Method
8. Table 8. - Scatter graph of Total Mixed Production Costs for Boat Spares Co
9. Table 9. - Estimated Total Mixed Production Costs for Boat Spares Co Scatter graph Method
10. Table 10. - Home Depot Inc. - Financial Report
11. Table 11. - Social Marketing Concept

COMBINED ASSIGNMENT ONE: Business Accounting; Business Analysis and Principles of Marketing 18