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UoR Home > Module Descriptions > AP3A39: Business Management (Business Control)

AP3A39: Business Management (Business Control)

Module Provider:

Agriculture

Number of credits:

10 [5 ECTS credits]

Level:

H (Honours)

Terms in which taught:

Spring

Module Convenor:

Dr TU Rehman

Pre-requisites:

Co-requisites:

Modules excluded:

Module version for:

2006/7

Aims:
This module provides the student with an understanding of the control function of management, particularly for measuring the performance and the analysis of deviations from the expected results in financial terms. Further it provides familiarity with the use of some common business control techniques and the knowledge of how to set up individual enterprise physical and financial control systems.

Assessable learning outcomes:
At the end of the modules students should be able:

  • To describe the control function of management and its role in the management process, concentrating on financial control;
  • To outline the theoretical requirements of an effective control system;
  • To use physical and financial records to assess the performance of a farm business through (i) Comparative Accounts Analysis and Bench Marking and (ii) Balance Sheet Analysis using ratios over the long-term combined with 'Business Health Diagnostic' methods, whilst demonstrating an understanding of the limitations of these techniques and the pitfalls associated with their use;
  • To provide a critical appraisal of the techniques of control based on annual budgets and budgeted cash-flows;
  • To identify the likely causes of deviations from expected performance;
  • To carry out the appraisal of the use of capital investment funds using Net Present Value, Internal Rate of Return and Annuity calculations and, be able to interpret and evaluate the results of these calculations for financial control.

    		•

    Additional outcomes:

  • Experience in writing evaluative and critical reports (as consultants/advisor) on the financial performance of a business;
  • Familiarity with setting up of spreadsheets for investment appraisal and for monitoring flow of funds within a business;
  • Use of sources of information and data on Comparative Accounts Analysis and Bench Marking.

    		•

    Outline content:

  • Introduction to the module, its objectives and contents.
  • Theoretical considerations related to the control function of management.
  • Evaluating farm business performance: 'profit' versus other measures of performance.
  • The concepts of 'Business Performance' and 'Bench Marking'.
  • The crucial issues related with comparing 'like-with-like'.
  • Sources of standard data.
  • Critical review of comparative analysis and bench marking.
  • Budgetary control in business management.
  • Evaluation of the capital structure of a business and long-term Balance Sheet
    ratios analysis.
  • Diagnosing the 'financial health' of a business.
  • Controlling the use of investment funds using investment appraisal techniques.
  • Bringing it all 'together' - economic concepts, business planning and business control.

    		•

    Brief description of teaching and learning methods:
    Combination of lectures, assessment of assigned reading, classroom exercises and 'work on your own' set assignments. There are four pieces of set work and an end of term test. Relevant further reading (particularly articles from refereed journals) is recommended for individual lectures as appropriate; however, key references include the following:
    1. Boehlje, M.D. & Eidman, V.R. (1984). Farm Management. John Wiley & Sons, New York.
    2. Dayananda, D., Irons, R., Harrison, S., Herbohn, J. and Rowland, P. (2002). Capital Budgeting: financial appraisal of investment projects. Cambridge University Press, Cambridge.
    3. Kay, R. D., Edwards, W. M. & Duffy, P. A. (2004). Farm Management (5th Edition). McGraw Hill, New York.
    4. Olson, K. D. (2004). Farm Management: Principles and Strategies. Iowa State Press, Ames.
    5. Price, C. (1993). Time, Discounting and Value. Blackwell, Oxford.
    6. Sizer, J. (1989). An Insight into Management Accounting (3rd Edition). Penguin Business, London.
    7. Turner, J. & Taylor, M. Applied Farm Management (2nd Edition). Blackwell Science, Oxford.
    8. Warren, M. (1998). Financial Management for Farmers and Rural Managers (4th Edition). Blackwell Science, Oxford.

    Contact hours:

      Autumn Spring Summer
    Lectures   14   
    Tutorials/seminars   6   
    Practicals      
    Other contact (eg study visits)      
           
    Total hours      
           
    Number of essays or assignments   4   
    Other (eg major seminar paper)      

    Assessment:
    Coursework
    It is divided over five components as follows:
    Component Weight
    Test on assigned reading - theoretical requirements of a control system 7.5%
    The Eastgate Exercise - Comparative Analysis and Bench Marking for measuring performance 7.5%
    The Brookfield Exercise - Long -term Balance Sheet Ratio Analysis - 'To approve or not to approve the loan' 10%
    End of module test 25%
    Relative percentage of coursework: 50%
    Penalties for late submission
    Standard University rule applies: 10% marks deducted for work submitted up to one week late. Work submitted more than one week late will be awarded a zero mark.
    Examinations
    One-hour examination paper
    Answer one question from two provided
    Relative percentage of examination: 50%
    Requirements for a pass
    40% overall course mark
    Reassessment arrangements:
    By Re-examination in August/September
    Page last updated 10/Apr/2006
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