TLDR;
This video provides a comprehensive guide to tackling the AIB open book exam (OBE), focusing on effective financial management. It emphasises using the provided study guide, understanding stakeholder needs, analysing financial statements, evaluating financial risks, and considering funding sources. The guide also stresses the importance of applying theoretical knowledge to a chosen organisation and adhering to word count limits.
- Use the provided study guide as the primary resource.
- Understand and address stakeholder needs in relation to financial management.
- Analyse financial statements and calculate key ratios.
- Evaluate potential financial risks and recommend appropriate actions.
- Compare debt and equity funding implications and consider short-term finance methods.
Introduction to the OBE [0:02]
The session begins with a welcome and instructions regarding the OBE. It is crucial to download and use the provided document for the exam. The OBE is described as a hybrid between a traditional exam and an assignment, offering a longer duration than a standard exam but shorter than a typical assignment. Students are advised to fill in all required details, such as centre membership numbers, which can be obtained from their coordinator.
Key Guidelines and Resources [2:25]
Before taking the OBE, learners should read the AIB timed OBE guide. The modules currently provided are for levels four, five, and six. Students should preview the unit syllabus and learning outcomes, preparing study notes from lecture materials. The format and structure of the exam are also highlighted.
Important Considerations for the OBE [4:01]
Background information on the chosen organisation is a key element. Unlike traditional universities, AIB only permits the use of Arial or Calibri fonts. Copy-pasting from the internet or using platforms like ChatGPT is discouraged. Proper content structure and Harvard referencing are essential. Students can share their documents for review and receive feedback via WhatsApp. The final submission must be saved as a PDF.
Utilising the Study Guide [6:37]
All materials are available in the Google Classroom. The study guide is the primary resource for this module, and relying on external sources like ChatGPT or Google may lead to straying from the syllabus. Students from different centres should request the study guide from their relevant contact.
Word Count and Organisation Selection [8:10]
The assignment or OBE should be 3,500 words, with a tolerance of 150 words below and 800 words above. Markers are instructed to stop marking once the maximum word count is reached. Answers must be based on a real organisation relevant to the questions. The organisation's name, size, main markets, products, services, key competitors, and customer segments should be included. A 200-word organisation summary is required but not included in the overall word count.
Analysing Stakeholder Needs (Question 1) [18:39]
Question one requires analysing the different needs of the organisation's stakeholders and how these impact its financial management strategy. Stakeholders are those interested in the business and its results. Identifying various types of stakeholders is crucial, using resources like page 13 of the study guide, which discusses stakeholder power and interest. Remember to link stakeholder analysis to financial management.
Evaluating Financial Statements and Ratios (Question 2) [25:15]
Question two involves evaluating the use of financial statements and calculating key financial ratios to understand business performance. This question has three parts: evaluating financial statement use, calculating key financial ratios, and understanding business performance. Use the organisation's annual report (e.g., Nestle's 2020 report) and show calculations, possibly using Excel or Google Sheets. Formulas are provided from page 34 onwards in the study guide.
Assessing Financial Risks (Question 3) [31:27]
Question three requires evaluating the main sources of potential financial risk, using suitable techniques, and recommending appropriate actions to reduce exposure. This involves identifying risks, using risk identification techniques, and recommending justified actions. Page 45 of the study guide lists different types of risk. Apply the theory to the chosen organisation, referencing management reports and providing examples for justifications.
Comparing Funding Sources (Question 4) [34:10]
Question four compares the implications of debt and equity funding sources and analyses factors to consider when selecting a short-term finance method. State the amounts of debt and equity funding the organisation has. Section 4.2 addresses factors for short-term finance.
Analysing Non-Financial Factors (Question 5) [36:56]
Question five analyses non-financial factors influencing the organisation's investment decisions. These are non-financial considerations. Section 5.3 and page 95 of the study guide are relevant.
Final Advice and Support [38:15]
The examiner wants to see an understanding of the company and the requirements. The examinations are marked centrally by AIB to ensure fairness. Students are encouraged to share their documents for review before submission to avoid unexpected results. It's recommended to work on assignments and exams in parallel. The study guide contains all necessary information, and students can message for help if needed.