Module Identifier RD24920  
Module Title BUSINESS PLANNING AND CONTROL  
Academic Year 2003/2004  
Co-ordinator Mr Penri James  
Semester Semester 2 (Taught over 2 semesters)  
Other staff Mr Anthony O'Regan  
Pre-Requisite RD15810 Business Management  
Mutually Exclusive RD29010 Farm Management  
Course delivery Lecture   44 Hours 22 x 2 hour lectures  
  Practical   24 Hours 8 x 3 hour practicals  
Assessment
Assessment TypeAssessment Length/DetailsProportion
Semester Assessment Business Development Plan: Outcomes assessed: 1, 2, 3, 4, 5  80%
Semester Assessment Financial Statements Exercise: Outcomes assessed: 1, 2  20%
Supplementary Assessment Re-submit revised business plan based on alternative data  100%

Learning outcomes

On successful completion of this module students should be able to:
Outcome 1
Preparation of a business plan

Performance criteria:
a. Budgets are prepared and reconciled.
b. Objectives are identified and met.
c. Realism and prudence are demonstrated.
Ranges:
Financial statements - Balance sheet - Cash Flow - Trading Profit and Loss Account - Gross margins
Objectives:- Personal-Business
Resources:- Capital-Labour-Land
Planning:- Physical-Financial-Uncertainty-Risk

Outcome 2
Interpret and analyse a set of financial statements
Performance criteria:
a. Strengths and weaknesses of the financial statements are identified.
b. The underlying trends and variances are established.
c. Key aspects are recognised and reported.
Ranges:
Financial Statements:- Balance Sheet-Cash Flow-Trading Profit and Loss Account -Funds Flow Statement-Gross Margin Account
Data:- Physical-Financial-Comparative Analysis-Net Farm Income-Management and Investment Income
Variances:- Financial-Physical-Timing-Planning-Production

Outcome 3
Prepare an Investment plan, including appraisal and selection of appropriate finance
Performance criteria:
a. Relevant income and expenditure is identified.
b. Cash timings are identified and reported.
c. Suitable financing is suggested and interpretation of results is performed.
Ranges:
Financial:- Capital-Revenue
Timing:- Inflation-Discounting-Risk
Taxation:- Relief-Allowances

Outcome 4
Recognise the functions and scope of UK taxation.
Performance criteria:
a. Different taxes are identified and explained.
b. Income tax liability is calculated.
c. Tax planning is addressed.
Ranges:
Taxation:- IT-IHT-CGT-CT-VAT
Reliefs:- Capital-Revenue-Allowances
Scope:- Business-Personal

Outcome 5
Identify the merits of different business structures
Performance criteria:
a. Alternative business structures are identified.
b. Strengths and weaknesses of the structures are established.
c. A knowledge of the tax consequences is demonstrated.   
Ranges:
Structures:- Partnership-Sole Trader-Company
Operation:- Taxation-Control-Flexibility-Reporting

Brief description

Business planning, decision making, taxation and investment appraisal are all essential aspects of management and necessary for successful business control. This module provides a comprehensive understanding of the concepts and principles involved in managing a business and incorporates analysing and solving business problems. In addition this module provides students with appraisal techniques essential for managers in planning and controlling the business.

Transferable skills

.1 Independent project work
Business planning assignment allows students to develop own ideas on the future direction of case study farm. This will be based on own collection of data, own analysis and own planning procedures.

.2 IT and information handling
Case study submission is word processed.
Extensive use of spreadsheets for accounts/budget construction
Extensive data analysis using spreadsheets

.3 Use and analysis of numerical information
Preparation of farm budgets
Analysis of farm budgets

.5 Oral discussion and presentation
Each student is interviewed by a Bank Manager who will establish the feasibility of the plan
Bank Managers will indicate a willingness to lend money for investment based on students' proposed plan and interview performance

.6 Careers need awareness
Planning case study is based on a real life scenario which a student could be expected to encounter
Interview with Bank Manager is based on real expectations

.7 Self-management
The planning assignment requires the selection and analysis of appropriate information, within a specified timescale, to allow for the development of a plan. The volume of information encountered will not see the assignment submitted within set deadlines if self management is not practiced.

.8 Group activity
Farm visits are a group activity.

Reading Lists

Books
Warren, M F (1998) Financial management for farmers 4th. Blackwell Science
Barnard A and Nix J (1979) Farm planning and control CUP
Throup, G Making profits with dairy cows and quota
Secrett M (1993) Mastering Spreadsheet Budgets and Forecasts - A Practical Guide
Norman and Coote The farm business
Turner and Taylor Applied farm management

Technical Reports
MAFF Farm incomes in the UK (published annually)
Farm Business Survey (published annually)

Journals
CAP Monitor
Agra Europ

Notes

This module is at CQFW Level 5