Accounting for Managers
Order Description
Using the Annual Report and Accounts of Hyundai Motor Company available at:
https://worldwide.hyundai.com/WW/Corporate/InvestorRelations/FinancialInformation/FinancialStatements/index.html
(You need the data under the heading: Financial Statements: Annual Reports. You then need the consolidated statements. For instance, these begin on page 82 of the 2015
Annual Statement).
You should:
(a) Evaluate the performance of Hyundai in the following areas, using ratio analysis:
– Profitability
– Liquidity/Solvency
– Working capital efficiency
– Long term financial structure
– Investors’ perspective
You must use earlier years’ financial accounts to supplement your analysis if you wish to be specific with certain trends that you have identified (see below for
specific instructions).
In addition you could also consider the performance of Hyundai in comparison with its peer group of competitors (see below).
You should summarise your findings and make particular reference to the interests of the different stakeholders of the company.
Note: Any accounting ratios for Hyundai must be calculated (and workings shown) and not extracted from external databases, although, further analysis may be supported
by downloading ratios from external databases for competitor companies.
(40%)
(15% will be awarded with regard to the relevance and accuracy of the ratios and 25% will be rewarded according to the quality of your written analysis)
When completing Part (a) take the following into account:
1. 5 years of analysis would be worthwhile.
2. Benchmarking to at least one competitor
3. Make sure that you explain why the ratios are changing and what the implications or conclusions of this are.
4. Don’t forget to comment on the views of specific stakeholders.
5. Contemplate your presentation. This work lends itself to the use of graphs, charts, tables and so on.
Task Two
Considering your response to Task One and any further reading you are required to provide advice, accompanied by rationale, as to whether you would recommend a buy,
sell or hold (if they are already owned) policy for investors/potential investors in Hyundai shares.
(10%)
Task Three
Lee and Jo (2007, P3336) state that, “Korean automakers are no exception in attempting to adopt TPS [Toyota Production System], so as to enhance their operational
efficiencies and business competitiveness. TPS has been a prime benchmark for Korean automakers, as they have viewed Toyota as an exemplary role model, having made
successful inroads into global markets.”
Following on from this Lee and Jo (2007) go on to indicate that for a variety of “socio-contextual and organisational reasons” (p3336) other companies, such as
Hyundai, may go on to develop ‘deviant’ forms of TPS within their own context.
You are required to consider the reasons why TPS may not be adopted by other car manufacturers, such as Hyundai, in the exact image of TPS. You should provide a
critical analysis of these reasons (including a wide range of supporting academic literature, beyond Lee and Jo (2007)). In addition, given that the authors were
writing in 2007 you should provide a consideration of the possible consequences (positive and negative) of TPS (often referred to as JIT) within the turbulent
manufacturing environment of 2017.
Your work must be supported by appropriate and credible academic and practitioner literature in order to support your critical analysis and the Harvard style of
referencing must be adopted.
(50%)
(Total 100%)
