BML 105 Business Decision Making
Module Code:
BML105
Credits:
15
Level:
4
Academic Department:
Business School
Programme to which Business School the BA (Hons) undergraduate degree routes module contributes: Tutor Responsible:
Chris Dancer
Entry Requirements:
No pre-requisites or co-requisites
Aims: This module aims to provide students with a practical introduction to business decision making. The interplay between decisions around the organisation, operations, sales and marketing, and finance is explored through students engaging with a business start-up simulation. A key focus to the module is the role that financial literacy plays in supporting effective management of a business. Scenarios will be used as the basis for supporting the understanding of key financial statements and techniques that are used to inform business planning and decision making. In addition the module provides a hands-on introduction to the use of financial modelling as a tool to support the business planning process. Learning Outcomes: On successful completion of this module students will be able to demonstrate: ยง The ability to identify and justify appropriate recommendations in response to a wide range of business scenarios. ยง An understanding of how management decisions in one area of a business can impact on other areas of the organisation. ยง An understanding of the underlying principles and concepts used in the construction of a profit and loss account. ยง An understanding of how budgeting techniques (particularly in relation to cash flow and income/expenditure) can be used to support business planning and decision making processes. ยง How an understanding of the nature of different types of cost can be used
to aid decision making. § The ability to use a spreadsheet to support the development of financial models. § The ability to interpret financial data and use this information in support of judgements made. Indicative Curriculum Content: § Key considerations relating to operations, sales and marketing, finance and organisational structure within the context of a simulated start-up business. § Financial information and its benefit to the range of stakeholders associated with a business. § The construction of trading, profit and loss accounts and their use as an indicator of financial performance. § The importance of cash to the business, cash flow forecasting and cash management. § Financial modelling and its use in support of the business planning process. § The nature and behaviour of costs and how the understanding of this aspect of finance can support decision making. Learning Strategy: The module will be built around weekly workshops. Learning will be primarily scenario led. In part this will focus on the use of a software based business start-up simulation that will enable students to develop an understanding of the range of business decisions that are encountered when running a business and how the outcomes of such decisions can impact on the organisation. Additional scenarios will be explored as the basis for introducing students to the core accounting based concepts that are explored within the module. The workshops are designed to be participative with an emphasis upon students discussing and working through problems as a means of developing further their knowledge and understanding of the subject area. A significant element of the module will focus upon the development of financial modelling techniques using a spreadsheet package. In addition to being directly relevant to the Business Decision Making module, this area of skills development will have a wider application to other areas of a student’s programme of study.
Mode of Assessment: Formative: The workshops provide an opportunity for students to apply their skills and develop their knowledge and understanding of the subject area in an environment that allows for formative feedback both from the tutor and also from other students. Additionally, reflection on the inter-workshop directed tasks is another source of feedback. Summative: Examination (60%): A 1½ hour examination will include a spreadsheet based test to examine students’ ability to develop a financial model that can be used as an aid to financial decision making. In addition there will be a series of short answer questions. (N.B. It is recognised that the standard length of time allocated to a Level 4 time limited assessment that accounts for 60% of the module grade would normally be approximately 1 hour and 10 minutes. However, it is envisaged that the total time required by students in preparation of this assessment would not exceed the preparation time required for a ‘typical’ Level 4 examination with a 60% weighting. The additional 20 minutes is to provide sufficient time to develop the financial model). Presentation (40% - 1,000 words equivalent) A brief presentation (approximately 5 minutes), documentation, followed by tutor questions. Assessment Criteria:
with
supporting
Examination: § Development of an effective financial model that enables a user to vary input data. § Quality of the presentation § Accurate application of the underlying accounting principles Presentation: § §
Evidence of the identification and justification of an effective decision making strategy in response to a business scenario. Clear structure and presentation of materials that are aligned to the requirements laid down in the assessment brief.
Indicative Reading: Recommended text: Dyson, J.R. (2010), Accounting for Non-Accounting Students, 8th Edition. London: Prentice Hall McLaney, E. & Attril, P. (2007), Accounting: An Introduction, 4th Edition. London: FT Prentice Hall Additional Reading: Millichamp, A.H. (2000), Finance for Non-Financial Managers. 3rd Edition London: Continuum International Publishing Group. Software: SimVenture