Context:Part A of the assessment assesses students’ understanding of the finance and treasury function and the financial environment in which an organisation operates. Students are expected to...

Business Report
Group Members:
Student Name & Roll Numbe
Table of Contents
    Content
    Page No.
    1. Executive Summary
    1
    2. Introduction
    2
    3. Financial Management, Corporate Governance and Financial Environment
3.1 Goals and Governance
3.2 Financial Environment
3.3 Role of Finance and Treasury Department
3.4 Management and Directors
3.5 Major Shareholders
3.6 Compensation of Directors and Top Executives
3.7 Key Performance Indicators (Accounting and Market)
3.8 Company Performance
    
2, 3
3
3, 4
4, 5
5
6
7
8
    4. Risk and Return
    8, 9
    5. Capital Budgeting Decision
    10, 11
    6. Conclusion
    11
    References
    12
1. Executive Summary
The report gives an overview of the financial management, corporate governance, and financial environment of the company ‘Woolworths Group Limited’. The authors of the report have described each of the sections on financial management, corporate governance and financial environment using both qualitative and quantitative data from the company’s annual report. The report also outlines the risk and return of the company in comparison to the risk-free rate and the market return in Australia. Lastly, the report describes the capital budgeting decision of the project the company is looking to undertake using professional judgement in long-term financial management.
2. Introduction
The report analyses the corporate governance of the firm ‘Woolworths Group Limited’ which is one of the largest retail companies in Australia. The method used to analyse is by identifying the goals and various practices undertaken by the firm regarding corporate governance. Next, the financial management and financial environment of the firm are evaluated to see how the firm is performing in the industry (i.e., Retail) and the market. Next for the firm the risk and return are evaluated using the calculation of Beta which is a measure of a company’s risk in the market. Lastly, the report outlines the capital budgeting decision that is evaluated for a new project the firm is evaluating to undertake in the cu
ent financial year. The capital budgeting decision is undertaken using scenario and sensitivity analysis and various methods like NPV, IRR, Payback, etc.
The company, i.e., ‘Woolworths Group Limited’ is the largest retail company in the country (Australia) with a 37% market share and covering industries such as grocery, beverages, snacks, clothing, and many more
3. Financial Management, Corporate Governance and Financial Environment
3.1 Goals and Governance
The goal of the firm is to ‘Increase Customer Satisfaction’ which the firm is looking to achieve using the following steps:
· Building out the retail ecosystem
· Anticipating the customer needs
· Living the purpose of the company with the teams and customers
· Build a better tomo
ow
The firm gives a lot of emphasis on good corporate governance which they believe is necessary to create sustainable growth for the company, society and its stakeholders. Also, this creation of sustainable growth will make sure that the firm is enhancing the long-term shareholder value.
The firm has also included one of the core values of good corporate governance in its core value which is ‘We do the right thing’ which means that the company is only looking to do the right thing for society and consumers.
Woolworths Group Limited follows all the recommendations of the ASX Corporate Governance Council’s Corporate Governance Principles and Recommendations throughout each year and keeps on amending it as ASX amends to be on track with the recommendations and good practices.
3.2 Financial Environment
The company operates in the ‘Retail Industry’ which is one of the most competitive environments in the whole world because of the competition, and therefore the company’s financial environment is the complex, and difficult as the company needs capital to expand which though they earn by making net profit on the sales, but overall the faster the company looks to expand the faster the company will need more capital from the outside if it is not generating enough cash from its operations.
3.3 Role of Finance and Treasury Department
The finance and Treasury Department is one of the core departments of any company and is responsible for many things including money, debt, capital, etc.
The role of the Finance and Treasury Department are:
· Manage the financial resources: The most important role of the finance and treasury department is to manage the company’s financial resources and maintain the appropriate resource
· Planning and Budgeting: Another core role of the finance and treasury department is to plan and prepare a budget which will be used to calculate the shortcoming which the...