Case Study Week 3 - Victoria Chemical compounds PLC
1 ) What changes, if any, should the grow manager (Morris) ask the financial controller (Greystock) to make to his analysis? Morris should ask the Economical Controller for the make the following changes to his analysis: вЂўInclude the cost of the rolling stock. These would become an essential asset from the Merseyside Works. The expense to occur in 2010 and then lowered over the subsequent 10 years. These types of would become an asset in the Merseyside functions. вЂўIgnore the requests with the Director of Sales. The assumption is the fact Victoria Chemical compounds uses consolidated financial accounting in that they are going to consolidate the books of both Rotterdam and Merseyside. The impact of cannibalisation will probably be picked up during these consolidated accounts and will either generate income or a loss. Either way the proposed improvements will be examined at loan consolidation. VC must continue to pioneer in the two locations to boost overall benefit. вЂўVC Merseyside should not carry on with the add-on of the update to the EPC production range. The original justification was declined on the basis of monetary reasons i actually. e. a poor NPV. The inclusion on this project will dilute the general project expense returns and would therefore not add value for the business. Similarly, the product operates in a declining market slowly being substituted by substitute synthetics rubberized compounds. The question of likely future layoffs decision should not form area of the decision making method. The business provides a responsibility to its stakeholders to maximise comes back and to improve its total competitiveness and sustainability. There is also a clear conflict with client positions] with the associate plant manager promoting the project for his own personal gain. This will play no part inside the investment decision. вЂўAdjust the low cost rate to consider the effect of 3% inflation.
a. What should she carry out with the remarks from:
i. Transport Section