Report for Potential Investor Assignment Example | Topics and Well Written Essays - 1750 words

Report for Potential Investor - Assignment Example Financial Analysis The Company’s Financial Analysis is based on the last 5 year’s financial data as per London Stock Exchange Website (Source: Robert Wiseman Dairies Fundamentals). ... the raw milk and oil prices (Source: annual report 2011, pg 17, web version) For 2011, the Company has reported an operating margin of 4.1% (Source: annual report 2011, pg 11, web version) after adjusting for non recurring items like closure of Okehampton Dairy and Cupar Depot (Source: annual report 2011, pg 17, web version) Net Profit Margin : Calculated as the ratio of Net Profit or Profit after tax to Revenue NPM 2.96% 4.03% 0.78% 2.68% 3.99% The profit margin of the Company is quite volatile as seen from the 5 year data. The Company benefited from lower finance cost which declined from ?1.3m to ?1.0m (Annual Report 2011, Pg 17, Web Version) and lower effective tax rate, down to 20.9% from 27.3%(Annual Report 2011, Pg 17, Web Version) in 2011 but the gains on absolute basis were more than offset by reduction in operating profit. Return on Equity : Calculated as the ratio of Net Income to Shareholder’s equity RoE 16.73% 25.61% 4.89% 13.85% 17.28% Net Profit Margin 2.96% 4.03 % 0.78% 2.68% 3.99% Asset Turnover (Sales/Assets) 2.72x 2.69x 2.75x 2.46x 2.50x Financial Leverage (Asset/Equity) 2.08x 2.36x 2.28x 2.10x 1.73x The return on equity for a Company justifies the investment of shareholder’s funds in that firm. It should be higher than the cost of equity which implies the Company has been adding value to shareholders. A high RoE is desirable, it should be analyzed in its components based on Dupont’s formula (i.e ROE = Net Profit Margin * Asset Turnover * Financial Leverage) to assess impact of each of component on ROE. Based on this, volatility in net profit margin it seems has made ROE volatile with Company managed to improve its asset turnover (conversion of asset employed in sales) over

Strategic Management Research Paper Example | Topics and Well Written Essays - 3000 words - 1

Strategic Management - Research Paper Example It would represent hoe differentiation has helped in the achievement of success and attainment of customer loyalty worldwide. The study would also reflect the value chain analysis of the organization where it would be mentioning the primary activities and the secondary activities performed. The value chain analysis is an important part while planning for the business strategies as it helps in determination of the activities that are taking place in the business operations. Google does not provide only physical products to its customers. Thus the value chain analysis of the corporation is slightly different. The study would be concluding with discussions of the entire study. The SWOT Analysis, PESTEL Analysis and Porter’s five forces analysis would be mentioned in the appendices. Introduction Today, Google is the most renowned web search engine server. It searches higher than 22 billion pages and makes use of a unique algorithm which helps in receiving the targeted result of th e searched queries. It offers a large number of useful features, high technology based databases, various shortcuts and other services. Googling is to know the way in which Google thinks and search accordingly. It helps in searching in such manner which would work best for the user’s needs. Thus, it includes recognizing the procedure of exploiting Google’s strengths. It also includes knowing the procedure of accessing or using special databases and other features of Google. It is basically one spider program which helps in finding pages on public web followed by building databases from those web pages. Wordnet describes the spider as the computer program which prowls the internet in search of publicly accessible resources which could be added to the database. The similar search box in the home page of Google helps the users by providing them different ways of searching database by means of terms or symbols that would act as the search limiters. The unique page rank sys tem of Google helps in deciding that how the results would be organized for the purpose of display. Company Background Google Inc., is one of the American multinational corporation which is specialized in internet related products and services. It includes searching, cloud computing, different types of online advertising technologies and other software related programs. The organization derives its maximum profits from the AdWords (Google, 2013a). The company was established in the year 1998. It was followed by an initial public offering on 19th August 2004. The mission statement includes organizing the information all over the world and making it easily accessible and meaningful. The unofficial slogan of the organization is ‘Don’t be evil’ (Google, 2013b). After the establishment, Google has seen a rapid growth in terms of partnership, acquisition and chain of the product offerings. The online productivity software of the organization includes one official suite (Google Drive), email (Gmail) and the social networking website (i.e. Google+). The desktop products include various applications for editing or organizing photos, web browsing and various other features such as instant messaging. The organization leads in the development of the ‘Android Cellular Operating System’