Afin8067 International Financial Management Syndicate Report
Group Component (20%)
The length of the group component is 1500 words. Only the first 1500 words will be read and your mark will be based on this.
Ensure that all sources are referenced using the Harvard Referencing Style and that all assertions etc are supported by literature.
Assignments must be presented in a professional manner and should be spell and grammar checked.
Assignment Question
As a recent graduate of Afin 8067 you and your friends have been lucky enough to be offered a consulting opportunity at Bridge Consulting Pty Ltd.
In this assignment you are required to review the International Financial Management of a company of your choice by completing the tasks listed below.
Required:
The report should be structured in the following manner:
• Brief Executive Summary.
• Critical analysis of the cu
ent international financial risk management tools used by company chosen. International financial risk management relates
to the management of commodity, cu
ency and interest rate risk. This should also include recommended improvements.
• Critical analysis of the funding used by company chosen. This should look at the types and sources of funding used. This should include any
ecommended improvements.
• Any other issues you may wish to raise. Marks will be awarded on your ability to cover issues discussed in class. This should include any recommended
improvements.
• Any calculations should be contained in an appendix to the main report.
The report and executive summary need to be of a high standard and contain persuasive but balanced arguments.
• Presentation
• Depth of Research
• Quality of Analysis
• Level of Persuasive Argument
• Application of the concepts covered in class.
Any questions about the assignment should be addressed through the discussion board function in iLearn.
Submission:
• One member of the group must submit the assignment to Turnitin and note down the receipt number and similarity percentage.
• These details need to be placed on the front page of the assignment submission.
• One member of the group needs to submit the assignment via the group assignment link in ilearn.
• Failure to properly submit may result in a late penalty until it is submitted co
ectly.
Group Assignment Effectiveness
1. You need a timeline and rules of communication/meetings!
2. Meet with a purpose as to what you want to achieve.
3. Assign each member a task and a deadline for completing the task.
4. Meet regularly to review each other’s work.
5. Make sure the final report is cohesive – one member gives it the final polish.
Group Component Grading Ru
ic
100% 80% 70% 60% 50% 30%
Weighting Excellent Very good Good Acceptable Marginal Fail Overall
Relevance of content to topic 30% -
Depth of Research 20% -
Depth of Analysis 20%
References quality and quantity 15% -
Presentation 15% -
Overall -
Individual Report (20%)
This section should be no more than 500 words.
Based on the group component, each member should.
1. Prepare a
ief introduction
2. Highlights the strengths and weaknesses of the group analysis conducted
3. Recommend any areas of improvement for the analysis
4. Conclusion (Including recommendations)
You should also comment on the relative strengths and weaknesses of your entire analysis (inclusive of the syndicate report). Your discussion should focus on
what the analysis has accomplished and what are the limitations. As above, it is expected that the individual report limit would be 500 words. The report is to be
submitted electronically via Turnitin within iLearn.
Each student must submit their assignment to Turnitin by the due date.
Individual Component Grading Ru
ic
Introduction 0 mark 1 mark 2 mark
No attempt or little structure
of an Introduction.
Clear introduction that
includes most of:
- Issue
- Findings
- Recommendations
Includes all of:
- Issue
- Findings
- Recommendations
Analysis of the
strengths and
weaknesses of the
Syndicate report
and associated
concepts
0 marks 2 Marks 4 Marks 6 Marks
Little attempt to develop
appropriate arguments.
Limited attempt at
evaluating concepts. Lists
the pros and cons of the
analysis but little evaluation
of the strength of one over
the other etc.
Well-developed arguments.
Attempt to evaluate a wide
variety of concepts.
Structuring of
materials/arguments in a
logical manner.
Well-developed
arguments.
Analyses all issues in a
logical and consistent
way to reach
appropriate conclusions
Excellent structuring of
materials/arguments in a
logical manner.
Recommend any
areas of
improvement of the
analysis
0 marks 2 Marks 4 Marks
Little attempt to develop
ecommendations.
Development of basic
arguments that have little
elevance to the
strengths/weaknesses
identified
Well-developed arguments.
Detailed
Recommendations.
Structured to reflect the
issues identiofied above
Conclusion 0 Mark 1 Mark 2 Marks 3 Marks
Little of no conclusion Simple attempt at
conclusion. Not
summarizes the issues or
introduces new concepts.
Makes a reasonable
attempt at conclusion but
fails to provide an end point
to the analysis
Excellent Effort. Clear,
concise and allows reader
to make a definite
decision.
Depth and quality of
esearch
0 Mark 1 Mark
2 Marks
Very little attempt of
esearch displayed and/or
no reference list.
•
Use of some research to
support some arguments.
Research that is of a poor
quality or not acceptable.
Fails to use academic or
industry journals. Contains
e
ors.
Excellent quality of
esearch including
academic or industry
journals. No referencing
e
ors. All arguments are
supported.
Grammar, Spelling
and Referencing
0 Mark 1 Mark
2 Marks 3 Marks
Poor grammar, spelling and
esearch. Many
fundamental grammar and
spelling e
ors.
Some evidence of co
ect
spelling, grammar and
esearch. Contains many
e
ors.
Good quality of spelling,
grammar and research.
Contains some e
ors
No E
ors
AFIN8067: INTERNATIONAL FINANCIAL MANAGEMENT
Session-1, 2020
SYNDICATE REPORT on
Flight Travel Group Ltd.
Submitted by Group 12
-Ajay Yadav
-Aditya Dum
e
-Muhammad Zark
-Sarvika Sood XXXXXXXXXX)
-Shubham Shokeen XXXXXXXXXX)
-Yupa Kalya
Contents
Background Information 2
Critical Analysis 3
International Financial Risk Management 3
Interest Rate Risk 3
Foreign Exchange Rate Risk 3
Sources of Finance 4
Background Information
Flight Center Travel Group is one of the leading travel agency groups in Australia and operates throughout the globe with a network of more than 20,000 employees worldwide. In addition to its direct network in multiple countries including the USA, UK, China, Germany and Canada, FCTG also collaborates with local operators in various countries using licensing agreements. It is a listed company in the Australian Stock Exchange and has won multiple national awards for being the best firm in the travel agency industry.
It’s main areas of business include travel retailing. Also tour operators, hotel management, Destination Management Companies (DMCs) and wholesaling are included. It mainly focuses on two areas of the travel industry, leisure travelling and corporate travelling. It divides its business model into two segments in order to target effective markets in the best way possible. Where corporate travel is popular in the foreign markets, there is high demand for leisure travelling within and outside of Australia from the residents. (S., et al., 2019)
During the financial year ended 2019, FCTG hit a record Total Transactions Value of $23.7 billion, which was $2 billion higher than the TTV for the year 2018.
Contrary to the increase in total revenue and transactions value, FCTG did not earn Profits Before Tax, standing at $343.1 million, higher than the preceding year, even though they met the budgeted targets for the year. Perhaps the change in business mix and investments during the year can be held responsible for the unexpected turnout.
Apart from the change in business mix, FCTG also experienced a decrease in sales within Australia and its leisure travel industry, even though the boom that followed through from growth in international sales, especially in the Asia-Pacific region and in the USA, covered for the loss of sales revenue from Australia. According to the Annual Report, the slump in Australian demand came about due to a number of factors; including a new sales system,
and consolidation and a new wage mechanism for front-end sales staff. (H., et al., 2009)
During the year, FCTG made investments in technological advancements and software to improve their global standing in the travel industry using $352 million of company owned funds and $185 million in bo
owings. This may have negatively impacted the gearing ratio of FCTG.
In addition to this, the company strives to provide a user-friendly experience to its customers with increased automation, especially in its corporate travel plan, which consists of Corporate Traveler, FCM and the MICE.
Critical Analysis
International Financial Risk Management
Interest Rate Risk
Annual report of ‘Flight Center Travel Group Ltd’ states, the company engages in a number of transactions on the basis of bo
owing, which involves interest payments at varying interest rates throughout the fiscal year. This makes the company prone to the risk of fluctuating interest rates. For instance, the fiscal year 2019 saw a bo
owing of $250 million from different debt facilities. The company recognized $160 million by the end of the year and thus, these required interest payments at year end.
For Flight Center Travel Group Ltd, there is a big chunk on long-term bo
owing which are due to be paid in more than 2 years, i.e. $100 million.
A very strong measure of ‘interest rate risk’ and its impact on the financial statements of an organization is