Assignment List

BACHELOR OF BUSINESS ADMINISTRATION (HONS) PROGRAMMEBACHELOR OF INTERNATIONAL BUSINESS (HONS) PROGRAMME | ACC2203 : FINANCIAL ACCOUNTING

MAY 2012 SESSION – GROUP ASSIGNMENT

NESTLE MALAYSIA

Company Background

“ Nestlé with headquarters in Vevey, Switzerland was founded in 1866 by Henri Nestlé and is today the world 's leading nutrition, health and wellness company. There are about 280,000 people employed and have factories or operations in more than 80 countries worldwide.

Nestlé began in Malaysia in 1912 as the Anglo-Swiss Condensed Milk Company in Penang and later, growth and expansion made a move to Kuala Lumpur necessary in 1939. Since 1962, with its first factory in Petaling Jaya, Nestlé Malaysia now manufactures its products in 7 factories and operates from its head office in Mutiara Damansara.

Having gained the trust of generations of Malaysians, Nestlé is one of the oldest brands in the country, has grown together with the nation and was listed on the Bursa Malaysia in 1989. The Company has since grown in depth and magnitude, taking its place as part of the Malaysian psyche and part of the community.

Today, the Company employs more than 5000 people and manufactures as well as markets more than 300 Halal products in Malaysia. Its brand name such has MILO®, NESCAFÉ®, MAGGI®, NESPRAY® and KIT KAT® have become trusted household names and enjoyed for generations.”

Required:

You are required to analyse the financial performance and financial position of Nestle Malaysia for the 2011 and 2010. (Please obtained the annual report for both years separately)

Guidelines * An analysis of the company’s corporate social responsibility implemented for Malaysia for the year 2011. (2-3 pages only) (10 marks) * You should include the following ratios in their performance analysis: * Profitability ratios, efficiency ratios, liquidity ratios, financial gearing ratios and investment ratios. (refer to the text book or notes for the formulas) * Show clear computation for each ratio for 2011 and 2012. * Critical analysis of each group of ratios. * Conclusion should be made on the performance of NESTLE for 2011 and 2010.

You should do some research on the future plans and prospects of the company to support your analysis. Attach the financial statements only as appendix.
(60 marks)

* Discuss the global competitive advantage that Nestle has over its competitors globally and in the local market in the year 2011.
(20 marks)
Your assignment should have the following format:

* Cover page * Table of contents * Contents * References * Appendices

(10 marks)

Additional information: * The report must be printed and binded. * The font: Times New Roman: Size: 12. * One and a half (1½) line spacing. * The relevant information about the financial statements must be bound together with the report. * You can utilize a variety of available sources (newspapers, books, journal, annual report, etc ) to complete your assignment.

* Due Date – 2 July 2012

References: * Appendices (10 marks) Additional information: * The report must be printed and binded. * The font: Times New Roman: Size: 12. * One and a half (1½) line spacing. * The relevant information about the financial statements must be bound together with the report. * You can utilize a variety of available sources (newspapers, books, journal, annual report, etc ) to complete your assignment. * Due Date – 2 July 2012