Wait a second!
More handpicked essays just for you.
More handpicked essays just for you.
Financial statements and cash flow
Don’t take our word for it - see why 10 million students trust us with their essay needs.
Recommended: Financial statements and cash flow
The financial cost and cash flows are significantly changing by quarter after quarter. The rise in cash flows, reduce the risk of financial management as the company can easily pay the financial costs. It is observed that on the other side when there is a downfall of cash flows Company have high financial management risks. According to the correlation analysis, the value of the correlation is 0.012 which is highly insignificant as the limit of the correlation value is 0.953. So there is no relation between profit and leverage. It is also found that financial cost has a positive of correlation with profit as this correlation is verified by Pearson correlation value 0.378. By these findings, it is clear that financial risk is not an important …show more content…
They are very diverse and are now operating in 185 countries. Their marketing campaigns have been very effective and people are aware of their brand name. A Workforce which is available to Etisalat is skilled and competent. Their market strategy and distribution channels are very competitive and expansion of their sales networks has allowed them to expand globally. They are not only a huge player in the domestic market, but also in foreign markets. All these attributes show that Etisalat’s operational and financial risks are lower than many …show more content…
They have diversified operations and it seems like they are not focused on as much on the quality of service as they should be. Some of the products are getting bad reviews such as Black Berry, DSL Modems and New Internet Connection Setup. Some areas have poor or no coverage as there are no boosters, especially areas with high building. Most of the service issues are rising because Etisalat has outsourced their operations to third parties and they are not committed to customer service. Customers complain about long waiting hours on centers and phone. This increases the operational risk for the company due to which they can experience loss of sales and in turn this can translate into financial
In a competitive environment where market is changing instantly, organizations are in a fix to design a strategy that could market their products enticing the consumers to buy their products and services. Market is the arena for business gladiators who fight out for maximum share and profitability and this is possible only through effective marketing strategy. Competing in present economy means finding ways to break out of commodity status to meet customers’ needs better than competing firms (Ferrell and Hartline, 2010). The intensity of competition has increased after the introduction of media and internet where the companies present their product in the best way through advertisements, product reviews, blog entries, etc. With the advancement in technological innovations, companies have found various ways of providing services to the consumers in a cheaper and effective way and this has resulted in communication revolution in late 1990’s as the cellular technology was unfold in most of the regions. Singtel Optus Pty Limited (Optus) is one such company that has evolved during this period as a leader in integrated communications and this paper is assumed to make an analysis of the company’s marketing strategy and its financial position in the market industry.
AT&T, founded in 1983 has been one of the pioneering telecommunication multinational corporations with a diverse customer base. The company ventured into vertical integration in order to obtain the benefits of expansion and escalated its product offerings by manufacturing phones, launching satellites, devising switchable equipments and providing an range of customers numerous services. However, the integration led to an plethora of problems leading towards an ultimate failure.
Channel Exposure- AT&T is adequate in its point of sales. They intend to match most competitors in using Radio Shack, BEST Buy, Walmart, Mall locations, high visible real estate traffic.
The industry environment has a more significant effect on the firm’s strategic actions. By five forces analysis including threat of entry, the power of suppliers, the power of buyers, product substitutes and the intensity of rivalry among competitors, AT&T is to find its position in the industry. Mentioned before the company acts as the first mover in lots of segments of the industry environment it is competing in. Having an intensive rivalry because of the speedly developing high tech requirements of the environment and the R&D forces of the leader companies, new entrants are discouraged. Late movers have commonly less chance to be able to compete and gain advantage over to companies such as AT&T and its competitors.
In fact, some of the biggest threats to the company’s growth are the government’s regulation that increases the risk to the underlying business. In addition, the risk of losing the exclusive contract for the iPhone would be a major loss for AT&T. Most of the consumers choose AT&T because of their exclusive contract for the iPhone. Hence, this loss of business will significantly influence the AT&T's profitability and revenue. Moreover, the antitrust authorities play an important role on approved the merger of AT&T.
The final model used to compute the cost of capital was the earning capitalization model. The problem with this model is that it does not take into consideration the growth of the company. Therefore we chose to reject this calculation. The earnings capitalization model calculations were found this way:
What do you understand by the phrase “stakeholder analysis”? Attempt a stakeholder analysis of an organisation that you are closely associated with.
The telecommunications industry is of vital importance to the development of the information-based economy. AT&T need to supply access to cost efficient, timely and innovative telecommunications services.
Any successful business owner or investor is constantly evaluating the performance of the companies they are involved with, comparing historical figures with its industry competitors, and even with successful businesses from other industries. To complete a thorough examination of any company's effectiveness, however, more needs to be looked at than the easily attainable numbers like sales, profits, and total assets. Luckily, there are many well-tested ratios out there that make the task a bit less daunting. Financial ratio analysis helps identify and quantify a company's strengths and weaknesses, evaluate its financial position, and shows potential risks. As with any other form of analysis, financial ratios aren't definitive and their results shouldn't be viewed as the only possibilities. However, when used in conjuncture with various other business evaluation processes, financial ratios are invaluable. By examining Ford Motor Company's financial ratios, along with a few other company factors, this report will give a clear picture of how the company is doing now and should do in the future.
Firm-specific Risk is the probability of financial loss to an investor because of factors related to a specific company, within a specific business sector. Firm-specific Risk is also known as Non-systemic risk or Unsystematic risk and is related to a company’s inability to generate earnings. Firm-specific risk should be considered in addition to Market Risk when considering the total risk of an investment. The best protection against firm-specific risk is investment diversification, which lowers the probability in relation to a specific company.
Firms exist with the purpose of create and deliver economic value (Bensaco et al 2010, p. 365); therefore, business that create better economic value than its competitors will attain an advantage position in market place. Companies might try to improve its sales (profit) through domestic expansion, product diversification or by internationalisation; this report will focus on the reasons of espressamente Illy to expand internationally; additionally, its sources of competitive advantage and, the analysis of three markets in which company want to participate.
Organizations that have high free cash flow, creditors are willing to invest in these companies since these companies have powerful tools for debt repayment and they clearly have greater financial flexibility. On the other hand, cash enables managers to develop growth opportunities and development programs that will lead to an increase in company 's value. The free cash flow theory was first introduced by Jensen (1986), he stated that “Free cash flow as cash flow left after the firm has invested in all available positive NPV projects”.
EABL’s weaknesses include its geographic diversity and weak operating profit margins. The geographic diversity can expose the company to areas of volatility such as market softness, which was experienced in Uganda, Tanzania and South Sudan. Uganda’s consumer purchasing power was affected by an economic slowdown; Tanzania’s beverage alcohol sector had a 25% rise in excise duty; and South Sudan’s consumer economy was impacted by a scarcity of hard currency. Furthermore, EABL’s operating profit in fiscal year of 2013 had a decrease of 19.5% compared to 2012. This is most likely due to the cost of sales increasing by 10% as the high prices of utilities, energy costs, warehousing and distribution, costs, depreciation, increased import cha...
This report is mainly based on the case study Emerging Nokia, using the frameworks and concepts we have learned to analyze the case. This report is divided into 5 parts, first is the summary of the case, the second part is about the competition Nokia faced, the third part is the factors that contributed to the success of Nokia, then the challenges Nokia may face in China and the recommendations to them and the last part is the conclusion of the report.
According to (Power!), cash flow management is described as an important process of supervising, analysing and controlling our personal financial situation. Cash flow includes two critical components which is income (inflow) and our expenses (outflow). Developing cash flow management is an important step in order to track your own spending and manage your income proactively. Moreover, you should track this weekly, monthly or even quarterly. To prepare a clear cash flow statements, three steps should be taken. First step, you should make a clear list of your inflows. Second step, you can know how your money have spent by recording your cash outflow monthly. For instance, you should write down all of your expenses and differentiate your fixed