Purpose  This assessment enables students to critically engage with financial indicators and apply them to real- world investment decisions, simulating the strategic thinking of institutional investors.

MCRIT011-IT Strategic Management Assignment

Assessment Summary 

MCRIT011-Assessment 2 Brief

Submission Format : Report or Presentation (Power Point or PDF)

 Applying Financial Indicators in Strategic Investment Decisions

Purpose

 This assessment enables students to critically engage with financial indicators and apply them to real- world investment decisions, simulating the strategic thinking of institutional investors.

By analyzing data and evaluating options such as index funds and technology-focused equities,   students will gain insight into how investment choices impact shareholder value. This practical task supports the unit’s learning out comes by requiring students to assess strategies for increasing shareholder returns, develop a data-driven investment strategy, and present findings in a professional report format. In doing so, students will bridge their understanding of IT strategy with core financial principles and investor behaviour. 

The assessment also fosters analytical thinking and effective business concepts—key skills for preparing management reports for stakeholders and financiers.

Learning Outcomes

• Apply key financial indicators (ROE, EPS, Credit Rating, Share Price) to inform investment decisions.
• Simulate real-world strategic thinking of large investors.
• Evaluate the role of index funds and passive investing.

• Develop critical thinking on portfolio construction in technology-focused markets.

Task Description

You are part of a Strategic Investment Committed asked with allocating $10,000 in to index funds and individual companies. Your role is to:

Watch the video

Watch the following videos as part of your research on “How to Invest in Index Funds (Even with Little Money)”to understand the role and benefits of index funds: https://www.youtube.com/watch?v=c7JJGGDQmEQhttps://www.youtube.com/watch?v=VJXh0Qduup0

Conduct Market Analysis

Use current or simulated market data to evaluate 3–5 investment options, such as:

1. Index funds(e.g., SCP500, Nasdaq100, ASX200 Tech Index)
   1. Individual technology companies
   2. Emerging market ETFs or tech-focused mutual funds

1. Apply Key Financial Indicators

For each company/fund selected (from any market), research and include the following indicators:

1. Return on Equity(ROE)
   1. Credit Rating(if available)
   2. Earnings Per Share(EPS)
   3. Share Price trend(past1year)
   4. Image Rating (brand strength or ESG factors, if applicable)

Investment Decisions Justification

Allocate your$10,000 investment across at least three options (from any market), with clear justifications using financial indicators and your strategic reasoning.

Reflection

Conclude your report with a brief reflection (200–300words):

“How did this task change the way I think about investing, and what did I learn about the relationship between IT strategy and finance?”

Recommended Structure

Front Page Details

• The front page must clearly display the student’s full name and student number.

Second Page

• Table of contents (not part of the word count)

1. Executive Summary–1Mark
2. Introduction–1Mark
3. Overview of Investment Options–3Marks
4. Financial Analysis (using indicators)–3Marks
5. Investment Portfolio Plan–3Marks
6. Strategic Justification–2Marks
7. Reflection–1Mark
8. References (not part of word count)–1Mark
9. Presentation slides and content–3Marks
10.  Presentation skills–5Marks
11. Professional Appearance–2Marks

Notes

• Late submissions will incura penalty of 10% per day, in accordance with university policy.
  • Students must adhere to academic integrity guidelines. Review the Academic Integrity slides carefully. All work must be paraphrased in your own words with appropriate in-text citations and a  minimum of three academic references.
  • Submissions must be checked through Turn it in. Reports showing more than 10% AI-generated content, including the use of generative AI tools for writing, translating, or paraphrasing, may be subject to formal academic misconduct procedures.
  • Use of generative AI (e.g., Chat GPT, Google Gemini) is not permitted for writing or paraphrasing any part of the assessment.
  • Students  are strongly encouraged to use real or current financial data from credible sources. Suggested platforms include:
    • Google Finance
    • Yahoo Finance
    • ETF Database
    • ASX
    • Morningstar

Ensure your report reflects authentic, well-researched analysis and maintains the highest standards of academic honesty.

Criteria       Excellent (HD)(85–100%)      Good(D)(75–

84%)

Satisfactory (C)(65–74%)

Pass(P)(50– 64%)

Fail(N)(0–4G%)

Application of Financial Indicators (30marks)

1. Analysis and Investment Reasoning (25marks)
2. Portfolio Allocation and Diversity (15marks)
3.  Reflection and Insight (15marks)
4.  Structure, Clarity, and Referencing (15marks)

Demonstrates expert use of all required indicators (ROE, EPS, Credit Rating, Share Price, Image Rating) with insightful interpretation.

Clear, strategic, and well- supported reasoning for each investment choice; includes risk analysis and realistic assumptions.

Portfolio is balanced, diverse, and aligns with investment strategy; reflects excellent decision-making.

Deep, thoughtful reflection on investment learning and connection to IT strategy; highly self- aware.

Report is professionally presented, well- organized, clear visuals, accurate referencing (APA/Harvard).

Demonstrates  strong understanding and use of most indicators with solid interpretation.

Good reasoning and justification with some strategic insight and valid assumptions.

Portfolio is mostly diverse and shows good decision-making.

Good reflection with clear personal insights and learning outcomes.

Clear presentation and organization; minor referencing issues.

Adequate use of key indicators; some analysis may lack depth.

Some reasoning and basic justification; may lack depth or detail.

Basic diversity and some strategy evident in allocations.

Adequate reflection; demonstrates some personal insight.

Acceptable structure and language; referencing present but inconsistent.

Basic  application of indicators; superficial or inconsistent interpretation.

Investment logic is vague; lacks clear rationale or overly simplistic.

Limited diversity; lacks coherence with strategy.

Basic reflection; lacks depth or clear takeaway.

Poor organization; writing errors and limited referencing.

Indicators are missing or inaccurately used. Little to no financial understanding demonstrated.

No clear reasoning or justification; unsupported decisions.

Portfolio is poorly structured or not presented.

Reflection missing or shows no meaningful insight.

Disorganized, unclear, or no referencing provided.

MCRIT011A-Assessment 4 Brief

Executive Summary and Presentation Pitch to Financial Partners

Objective

The purpose of this assessment is to develop a Business Report and a Presentation Pitch to financial partners that evaluates the business's performance over the last 10months and present plans for expansion to take the company to an IPO or industry sale.

The focus will be on financial growth, operational efficiency, and strategic development, with a balanced score card approach adopted for review.

The report and presentation should highlight key successes, areas for improvement, and strategies for the next period, aligning with investor expectations and long-term business sustainability.

This business report and invest or pitch should be presented in a professional format:

Use clear visuals (tables, graphs), financial analysis, and strategic insights to justify funding and business expansion decisions:

Recommended Structure Front Page Details

• The front page must clearly display the student’s full name and student number.

Second Page

• Table of contents (not part of the word count)

Executive Summary of the Preceding 12Months

Ï Display and explain the Score card results

Ï Overview of business growth and change over the preceding period.

Ï Key achievements and milestones reached.

Ï Major financial and strategic improvements.

Business Performance Analysis–5Marks

Ï Positive Aspects: Highlight two major improvements or strengths that have significantly contributed to business success.

Ï Opportunity for Improvement: Identify one key weakness framed asan unexploited opportunity.

Overall Strategy and Tactics–5Marks

Ï Out line over arching strategic direction.

Ï Discuss how strategies implemented in the last 12months align with long-term objectives.

Ï Tactical decisions made to strengthen competitive positioning.

Specific Strategies by Key Areas

1. Financial Performance–2Marks

Ï Trend analysis show casing financial progress (Profit/Loss) over the last 12months. Include a graph.

Ë Net Profit=Total Revenue-Total Expenses(Financial Report)

Total Revenue=Price per unit × Number of units sold (Financial report) Example::500 per cloud subscription× 10,000 subscriptions =:5M revenue Total Expenses=Fixed Costs + Variable Costs (Ledger report. Sum up the total expenses from each month)

Investor Expectations

ÏD iscussion on investor-related metrics and business valuation indicators:

Ë Earnings Per Share (EPS) = Net Profit ÷ Total Shares Outstanding – 1Mark

Example::2M ÷ 1M shares=:2per share

Total shares outstanding represents the sum of all shares issued by the company, minus any shares held by the company a streasury stock.

Ë Return on Equity (ROE)= Net Profit ÷ Shareholder’s Equity–1Mark

Example::2M ÷:10M=20% ROE

Shareholders' Equity=Total Assets – Total Liabilities.

Calculate these figures from the Finance/Ledger or Financial reports

In simpler terms: If a company were to sell all its assets and pay off all its debts, the remaining amount would be the shareholders' equity. This represents the value attributable to the company's owners (shareholders).

Total Assets:

This includes all the resources a company owns, such as cash, investments, property, equipment, inventory and office amenities (for the purpose of this report, disregard depreciation).

Total Liabilities:

This includes all the debts and obligations a company owe stoothers, such as loans, accounts payable, and deferred revenue.

Ë Stock Price Trends: Projection of potential share price post- IPO for the next year–1Mark

To calculate the Stock Price Trend projection post- IPO for the next year, you’ll use a combination of valuation, earnings, growth projections, and market expectations. Here's as implified approach suitable for your business report or student assignment.

Formula 1: Price-to-Earnings (P/E) Based Projection

Estimated Stock Price= Projected Earnings per Share (EPS) × Industry Average P/E Ratio

🔹Definitions:

EPS (Earnings per Share)= Net Income/Total Shares Outstanding P/E Ratio= Market Price per Share/EPS

(Use industry average or comparable company as benchmark)

Example:

Projected Net Income next year:$5M Total Shares: 2M

EPS=$5M/2M=$2.50

Industry Average P/E Ratio=20

Estimated Stock Price= $2.50×20=$50

Formula 2: Using PEG Ratio for Growth Adjustments

Projected Stock Price= EPS×P/E×(1+Growth Rate)

If the company is expected to grow significantly:

Add projected growth rate (in decimal, e.g., 25%=0.25) Adjusts for future performance beyond one year

Example with Growth:

EPS=$2.50 P/E = 20

Growth Rate=25%(0.25)

Projected Price=$2.50×20×(1+0.25)=$62.50

Additional Tips for Reports:

Use real market comparable (e.g., ASX-listed peers) for P/E.

Make clear assumptions: projected income, total shares, industry ratios. Include a sensitivity analysis with best case/worst case stock price.

Ë Brand and Image Rating: Market perception score based on customer satisfaction and

growth– 1Mark

Operations Performance–3Marks

Ï Major operational decisions and their impact on efficiency- choose2:

Ë Plant capacity decisions and production levels

Ë Inventory management strategies

Ë Worker productivity improvements

Ë Investment in plant upgrades and automation

Ë Link age of operational decisions to overall business strategy

Learning and Development

Ï Key initiatives to enhance work force capability and engagement-choose2:

Ë Training programs and TQ Minitiatives

Ë Incentives, remuneration, and performance-based bonuses

Ë Over all investment in employee development and engagement