AA201- ACCOUNTING MEASUREMENT & DISCLOSURE
TERM PROJECT
COMPANY: FRASER AND NEAVE, LMITED (F&N)
CONTENT PAGE
COVER LETTER 3
VISION & MISSION 4
COMPETITIVE STRATEGIES OF F&N 4
VALUE CHAIN ANALYSIS 5
INDUSTRY PROSPECTS 6
FINANCIAL ANALYSIS 8
NON-FINANCIAL ANALYSIS 9
RECOMMENDATIONS 10
APPENDIX A
APPENDIX B
To: Ms Tan
Chief Executive Officer
Lion Investment Company
Re: Investment in the Shares of Fraser & Neave Limited
Fraser and Neave Limited (F&N) diversified from its printing business to pioneer the aerated water business in Southeast Asia in 1883. From a soft drinks base, F&N ventured into the business of brewing in 1931, dairies in 1959 and glass bottle manufacturing in 1972, property development and management in 1990 and publishing & printing in 2000. In order to determine the desirability of the investment, the below are some of the aspects that haven been discussed to arrive at the recommendations.
Company’s Strategy
The company’s main core strategy is to stimulate group’s growth through practicing of operational efficiency, capturing new markets and venturing into new industries.
Value Chain Analysis
The value chains of F&N had been mapped out according to its industry which is identified as property and F&B. In this part of the report, the strengths and weaknesses of the of F&N’s value chains are evaluated.
Industry Prospects
The prospects of the different industries have been evaluated under this section. It is identified that the property and beer industries are growing with potential, while the other industries regarded as cash cow units.
Financial Analysis
An analysis on the financial performance of F&N has been done in the report. According to the analysis, the firm had not been performing well. However, in the report, the reasons for poor performance will be discussed further.
Non-Financial Analysis
The concept of Balance Scorecard is used here to evaluate the non-financial performance of F&N.