Module learning outcomes:
Pauline Marriot is the director of Marriot Inns Ltd. The company has traded for 30 years and has in the past achieved very good levels of growth and return on capital, but this is now changing. In recent time it has failed to introduce new product lines, relying on traditional products and little has been invested in New Product Development.
You are a business planning consultant for a firm of Management Consultants. Marriot Inns Ltd is one of your clients. In recent times the business has experienced increased turnover but a downturn in overall performance.
Pauline Marriot has had a meeting with your director and she has stated that she wants to introduce tighter management control within the company by introducing a system of responsibility accounting.
You receive the following memo from your Director, Christina Parks, regarding this case.
To: Business Planning Assistant
Date: 21st May 2021
From: Christina Parks, Director
Subject: Marriot Inns Ltd. – accounts information
You are aware that I met with Pauline Marriot yesterday and that she is concerned with the latest results shown in the final accounts that have recently been prepared at year end.
The file attached contains a summary of the company’s abbreviated profit statements and balance sheets for the past three years; together with additional information and performance indicators for their business sector as a whole for the period under review.
I would like you to examine this information and meet with me on Friday morning to discuss the form and presentation of a detailed financial analysis of the company over the three-year period.
Signed: C. Parks
Marriot Inn Ltd Financial information.
DESCRIPTION OF THE TASK – WHAT YOU ARE BEING ASKED TO DO?
Conclusion: Consolidate the key findings and overall remarks and suggestions (150 words)