Part 2 – Financial Strategy Task – 2000 Words

Part 2 – Financial Strategy Task – 2000 Words

Detailed guidance

You will be required to work individually and to critically evaluate a business scenario that will be put before you. You will write a report that; identifies the strategic options that are available to the organisation; requires you to utilise relevant financial tools and techniques to critically evaluate each option; will include considering the implications of each option for the organisation; justifies and recommends a strategy for the organisation to follow.   In doing so, you will apply and utilise relevant financial techniques, critically evaluate and assess key information and make reference to relevant financial theory.
 
The following table presents Engie’s (an energy company) financial information for 2017.
Statement of Financial Position
 
 
Based on the above Engie’s (an energy company) financial information for 2017.
 

• Appraise Engie’s capital structure using the tools discussed in the module.

1. Critically evaluate theoretical advantages and disadvantages of the company’s capital structure with regards to the debt and equity structure of the business. How these advantages and disadvantages apply to the specific company? Your answer must be accompanied by significant evidence from the literature (1000 words for 1a and 1b).

• Assess the above company from a short-term financing perspective and comment on the application of the matching principle. What conclusions can you draw, how are they linked with the academic literature?

1. Critically evaluate the potential advantages and disadvantages of the Engie’s strategy around the working capital and backup your answer with significant evidence from the literature (1000 words for 2a and 2b).