participant instructions - phs deca -...

FTDM-15 Provincial Team Event

CAREER CLUSTERFinance

INSTRUCTIONAL AREASFinancial-Information Management & Customer Relations

FINANCIAL SERVICES TEAM DECISION MAKING EVENT

PARTICIPANT INSTRUCTIONS

The event will be presented to you through your reading of the General Performance Indicators, Specific Performance Indicators and Case Study Situation. You will have up to 30 minutes to review this information and prepare your presentation. You may make notes to use during your presentation.

You will have up to 10 minutes to make your presentation to the judge (you may have more than one judge), followed by up to 5 minutes to answer the judge’s questions. All members of the team must participate in the presentation, as well as answer the questions.

Turn in all of your notes and event materials when you have completed the event.

GENERAL PERFORMANCE INDICATORS Communications skills—the ability to exchange information and ideas with others through

writing, speaking, reading or listening Analytical skills—the ability to derive facts from data, findings from facts, conclusions from

findings and recommendations from conclusions Production skills—the ability to take a concept from an idea and make it real Teamwork—the ability to be an effective member of a productive group Priorities/time management—the ability to determine priorities and manage time commitments Economic competencies

SPECIFIC PERFORMANCE INDICATORS Describe the need to accurately report a business’s financial position. Determine financial strengths/weakness of a business. Describe the relationship between accounting and finance. Explain the use of financial information to identify trends. Describe the need to analyze customer financial information. Explain the responsibilities of finance professionals in providing client services. Use Customer Relationship Management (CRM) technology.

CASE STUDY SITUATION

Published 2015 by DECA Inc. Copyright © 2015 by DECA Inc. No part of this publication may be reproduced for resale or posted online without written permission from the publisher. Printed in the United States of America.


You are to assume the roles of financial management consultants working for a small accounting firm. You have been asked to meet with a prospective client (judge) to discuss how your company could provide financial-information management for the client (judge). The prospective client (judge) is a young entrepreneur who has been in business for one year and has been managing all aspects of the business, including financial record keeping.

The client (judge) owns a well-known cell phone repair company called IFIX. The business has been operating out of a small rented space in the local mall as well as taking sales over the internet. The client (judge) has one extremely trusted employee that works a lot of hours. The company generated $225,000 in revenue last year and is continuing to grow and develop. Due to the amount of time repairing phones and managing the business, the record keeping has turned into an absolute disaster.

This is the first time that the client (judge) has hired someone to manage the financial information for the business. The client (judge) is a great repairer of cell phones but has very limited business or financial knowledge. Your team has been asked to describe how financial-information management could really assist with business decision-making.

Based on the client’s (judge’s) limited financial background, you have been asked to explain the following:

Describe the need to accurately report a business’s financial position. Determine financial strengths/weakness of a business. Describe the relationship between accounting (with an emphasis on cash flow) and

finance (with an emphasis on decision making). Explain the use of financial information to identify trends. Describe the need to analyze customer financial information.

You will conduct the conference with the client (judge) in the client’s (judge’s) office. The client (judge) will begin with an introduction and thanking you for your interest in the business. After you have briefed the client (judge) about the tools, strategies, and systems that are needed to access, process maintain, evaluate, and disseminate financial information to assist with business decision-making and have answered the client’s (judge’s) questions, the client (judge) will conclude the conference by thanking you for your time.

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JUDGE’S INSTRUCTIONS

You will assume the role of an entrepreneur that wants to hire a small accounting firm that can provide financial-information management. You have been in business for one year and have been managing all aspects of the business, including financial record keeping. You will meet with the financial management consultants (participant team) to discuss how the firm could provide financial-information management for your company.

You own a well-known cell phone repair company called IFIX. The business has been operating out of a small rented space in the local mall as well as taking sales over the internet. You have one extremely trusted employee that works a lot of hours. The company generated $225,000 in revenue last year and is continuing to grow and develop. Due to the amount of time repairing phones and managing the business, the record keeping has turned into an absolute disaster.

This is the first time that you have hired someone to manage the financial information for the business. You are a great repairer of cell phones but have very limited business or financial knowledge. The consultants (participant team) has been asked to describe how financial-information management could really assist with business decision-making.

Based on your limited financial background, the consultants (participant team) have been asked to explain the following:

Describe the need to accurately report a business’s financial position. Determine financial strengths/weakness of a business. Describe the relationship between accounting (with an emphasis on cash flow) and

finance (with an emphasis on decision making). Explain the use of financial information to identify trends. Describe the need to analyze customer financial information.

The financial management consultants (participants) will make their presentation to you in your office. When the financial management consultants (participants) arrive you will thank them for their interest in IFIX.

After the financial management consultants (participant team) have completed their presentation, you are to ask the following questions of each participant team:

1. What is your responsibility as a finance professional to me as a client in providing client services?

2. What technology can be used to help better manage my relationships with my customers?

Once the financial management consultants (participant team) have answered your questions, you will conclude the meeting by thanking them on their work. You are not to make any comments after the event is over except to thank the participants.

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SOLUTION

Describe the need to accurately report a business’s financial position:Accurate and timely financial reports show the progress and current condition of the business. This is so important because you can compare performance during one period of time (month, quarter or year) with another period, calculate trends and plan for a business’s future.

Determine financial strengths/weakness of a business:A financial analysis assists in identification of major strengths and weaknesses of a business. It will indicate if a firm has enough cash to meet obligations, a reasonable account receivable collection process, efficient inventory management policy, and enough capital. Financial analysis can be used for even granting loans or credit to customers. The income statement, the statement of recognized income and expenses and the balance sheet are key in determining the strength of a business. Other items to help determine the financial strength/weakness can be:

Liquidity ratios Net working capital Current ratio Quick ratio Profitability ratios

Describe the relationship between accounting (with an emphasis on cash flow) and finance (with an emphasis on decision making).Cash flow is the movement of money into or out of a business.

A statement of cash flow especially when used with the rest of financial statements, provides information that gives the users a change to evaluate the changes in net assets of a business, its financial structure (including liquidity and solvency). Historical cash flow information is often used as an indicator or the amount, timing and certainty of cash availability in the future. It will further help the user examine the relationship between profitability and net cash flow and the impact of changing prices.

Explain the use of financial information to identify trends:Trend analysis evaluates an organization over a period of time. Periods may be measured in months, quarters, or years depending on the circumstances. Financial information can help you improve profitability, financial structure, and inventory management. By identifying trends you can also look at potential problem areas to address them prior to the time when they appear. You can use several pieces of financial information to identify trends to include:

Ratio analysis Income statements ( to include comparative statements) Balance sheets Financial statement of all types!

Describe the need to analyze customer financial information:

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Financial analysis can also be referred to as financial statement analysis. It is performed by people who prepare reports using ratios that make use of information that is taken directly from the financial statements and other reports. These reports are usually given to top management in order to allow them to make business decisions to include:

Continue or discontinue its main operation or part of its business. Make or purchase certain materials in the manufacture of its products Acquire or rent/lease machines and equipment in the production of goods. Issue stocks or help negotiate for a bank loan to increase working capital. Make decisions regarding investing or lending capital. Other decisions that ultimately will allow management to make an informed decision

about the operation of its business.

ANSWERS TO JUDGE’S QUESTIONS:

1. What is your responsibility as a finance professional to me as a client in providing client services?The Gramm-Leach-Biley (GLB) Act requires that any financial institution (to include its employees), must ensure that the security and confidentiality of any customer information to include customer’s names, addresses, phone numbers, bank and credit card account numbers, income and credit histories and social security numbers.

2. What technology can be used to help better manage my relationships with my customers?The customer relationship management (CRM) technology allows businesses to manage their customers electronically. The biggest benefit is having all your customer data in one place and it organizes the customer experiences in one place allowing for better relationships in the future,

3.

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JUDGING THE PRESENTATION

Team members, assuming the role of a management team for the business represented, will analyze a case situation related to the chosen occupational area. The team will make decisions regarding the situation, and then make an oral presentation to the judge. The role of the judge is that of an executive for the business.

Participants will be evaluated according to the Evaluation Form.

Please place the name and identification number label on the Scantron sheet (unless it has already been done for you).

Participants will have a 30-minute preparation period and may make notes to use during the role-play.

During the first 10 minutes of the presentation (after introductions), the team will present their analysis, their decisions and the rationale behind the decisions. Allow the teams to complete this portion without interruption, unless you are asked to respond.

During the next 5 minutes, you may ask questions of the team to determine their understanding of the situation presented. Each member of each team should respond to at least one question. To ensure fairness, you must ask each team the same questions. After asking the standard questions, you may ask other questions for clarification specific to the current team.

After the questioning period, please thank the team and state that they will be notified of your decision soon. Then complete the Evaluation Form, making sure to record a score for all categories. The maximum score for the evaluation is 100 points. The presentation will be weighted at twice (2 times) the value of the exam scores.

A maximum score of “Exceeds Expectations” in any category means that, in your opinion, the information is presented effectively and creatively; nothing more could be expected of an employee.

A “Meets Expectations” rating means that the information is presented well. Though there may be a few minor problems or omissions, they are not significant. Creativity, however, is not shown to any great degree. A combined total score of 70 or better on the written and presentation sections will earn the participant team DECA’s Certificate of Excellence at the international conference.

A “Below Expectations” score means that the information presented does not meet minimum standards of acceptability.

A “Little/No Value” score means either that some major flaw has been noted that damages the effectiveness of the presentation (this may be a major omission, a serious misstatement or any other major flaw) or that the information presented is of no value (does not help the presentation at all).

We hope you are impressed by the quality of the work of these potential managers. If you have any suggestions for improving the event, please mention them to your series director.

We thank you for your help.

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FINANCIAL SERVICES TEAM DECISION MAKING, 2015

JUDGE’S EVALUATION FORMPROVINCIAL TEAM EVENT

INSTRUCTIONAL AREASFinancial-Information ManagementCustomer Relations

Participant: _____________________________

Participant: _____________________________

I.D. Number: ____________________________

Did the participant team: Little/NoValue

Below Expectations

Meets Expectations

Exceeds Expectations

JudgedScore

PERFORMANCE INDICATORS

1. Describe the need to accurately report a business’s financial position? 0-1-2-3 4-5-6 7-8 9-10

2. Determine financial strengths/weakness of a business? 0-1-2-3 4-5-6 7-8 9-10

3.Describe the relationship between accounting (with an emphasis on cash flow) and finance (with an emphasis on decision making)?

0-1-2-3 4-5-6 7-8 9-10

4. Explain the use of financial information to identify trends? 0-1-2-3 4-5-6 7-8 9-10

5. Describe the need to analyze customer financial information? 0-1-2-3 4-5-6 7-8 9-10

6.Explain the responsibilities of finance professionals in providing client services?

0-1-2-3 4-5-6 7-8 9-10

7. Use Customer Relationship Management (CRM) technology? 0-1-2-3 4-5-6 7-8 9-10

21st CENTURY SKILLS

8. Reason effectively and use systems thinking? 0-1 2-3 4 5-6

9. Make judgments and decisions, and solve problems? 0-1 2-3 4 5-6

10. Communicate clearly and show evidence of collaboration? 0-1 2-3 4 5-6

11. Show evidence of creativity? 0-1 2-3 4 5-6

12. Overall impression and responses to the judge’s questions 0-1 2-3 4 5-6

TOTAL SCORE

7

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