Home > Subjects > Management > Company Analysis Example

Company Analysis Example

Vision of a Company

In order to achieve the designed goals of the company, it is necessary to make the vision and mission, for my company, there are mission and vision, I have designed the mission and vision, which can support my plans, objects and can fulfill the demands of the customers. Each of the product lines of my company deals with the specific segment of the people and products are for various age groups so more customers can be attracted.

My company has the automated manufacturing system for manufacturing of my products. TheCompany Analysis Example automated manufacturing system includes the distribution of the product, manufacturing of the product, assembling of the product and processing of the product. My company and the members are motivated; we are trying hard to bring innovation and advancement in our products. There could be large investment from the company as the company is earning a good profit, in my point of view, any company could get more profit and generate revenue if investments are done. For the manufacturing of the product, in order to satisfy the customer’s demands, the company required about 4 million U.S dollars.

My company also has the good financial position, as to maintain the company financial condition there is need of long-term debentures, long-term borrowing, long-term bond and about 30%debt etc. In order to grow the business, we need to get about 60% from the stock issued and 10% of the earnings are required to retain the business, In this way, a financial statement would be better.

To bring the more investment for my company, I have to pay the dividends, as dividends are the right of the stakeholders, and they can be encouraged more to invest if dividends are paid on time to them. If we talk from the debts point of view, to reduce the interest payments the company needs to pay back its debts soon. The company can lead to bankruptcy if debts or interests on debts are not paid on the time; however, debts need to be paid on the time.

Account Payable 0%
Long-term debentures 25%
Long-term borrowings 10%
Long-term bonds 15%
Stock issued 30%
Retained earnings 10%
Short-term debts 0%

If we talk about the product differentiation and cost leadership, my company is serving good and services at the reasonable or lowest price, so the customers can get advantages, the lowest price can bring us profit. Most of the companies are not biased in prices but in order to achieve the competitive advantage and meet the manufacturing cost of the products we are offering lower prices.

Development of Strategies of a Company

For any business, if effective strategies are made then a company can able to achieve its mission and vision, with the help of the strategies companies can get strengthen and can achieve success. For my company, I have also designed the effective strategies so the company can easily achieve its mission and vision the strategies regarding the product differentiation and cost leadership are also effective, so there could be profitability and competitive advantages. The company is also giving the share to the industry from its product line or segment. The traditional and low-end segment is very important for any company, in order to achieve the industry average sales; the 60% share of this segment is required. The company is getting about 24 million U.S dollars after paying its all the expenses.

The company financial position is good on the market and it is operating all the finical operation effectively. The company would require about three years achieving its desirable position in the market if the company comes to know about its production the demands by the customers, financial functions etc. The demands of the company products are so revenue and earnings could be better. However, the company is investing for the improvement so the desired market position could be achieved efficiently and speedily.

The company is needed to increase focus on its product 1 because the selling of product 1 is greater than the product 2. The customers are demanding more for the product 1; in a way product, 1 is generating more profit than product 2. Therefore, the product 1 is the traditional and low product.

Core Competencies of a Company

In order to achieve the competitive advantage and profitability, the core competencies of any company need to be the focus on. For my company, there are three major core competencies that are, effective decision-making, technological advancement in operations and effective management of the team. As the core competencies of any business lead it towards success so the effective management needs to be a focus, if all the functions manage effectively then there will be the success. My company is focused on managing its finance, human resource, a process of manufacturing products, marketing etc. Moreover, my company has different departments, which are doing efforts for the innovation, research and development, technological advancement, etc. as we know through bringing innovation profitability will be there.

The above-mentioned strategies will be helpful for the business success; these core competencies can help the company to achieve its vision, mission, and the desired goals. The company needs to manage it, employees, effectively, the hiring process should be effective, so the effective workforce can be can contribute in the effective decision process and do great effort for the product advancement and innovation.

The company has to take decisions for its core competencies, in my company, the investments are there in the field of research and development so the better outcomes could be achieved. For the innovation and technological advancement, effective decision-making will play an effective role; the human resource management needs to efficient in a way. My company is focused on hiring the skilled force so the managers and employees could take the effective and efficient decisions themselves. In any company, there is the need to handle the critical situations, so efficient management is required.

To meet the demand of the customers, any company or business need to adopt the change so the company could achieve the competitive advantage in the market, and profitability could be there. My company is also focused on adopting the changes so the betterment, satisfaction, and profit could be there.

Competitors of a Company

Our company has many competitors in the market and the biggest competitor is XYZ. The competitor is also making the product 1 and product 2 like us; however, their product is somewhat different from our product, and they have the less quality as compared to our products. The competitor capital structure is consists of 40% equity and 60% debt, as the company is focused on targeting the lower a to middle class segment. The plants are manufactured by company XYZ; however, as compared to our plants, their manufacturing capacity is lower. For the competitive advantages, they are focused on the research and development, leadership strategies, cost-effectiveness, distribution channel etc.

As the company XYZ is recognized in the market and their products are focused on improving profit, however, the company is thinking to expand its business internationally, so the company could achieve the competitive advantages and higher market shares. Our competitor is providing the similar product in the high quality so it could be a threat for us. The competitors are focused on expanding internationally, but for now, they are targeting the domestic segments. The companies are focused on effective strategies to improve their sales this is the reason that competitors are getting or increasing their profit by 15% every year.

For the effective performance in the market, the company should have the larger market share as our company is also focused on achieving the largest market share, so the competitors can never beat us. If the company has the high market shares it means that, the company is going to achieve higher profitability. The equity and return on assets can analyze that how efficiently the company is working. My company is also trying to achieve the competitive advantage and focused on the strategies, this is the reason that my company is increasing its profitability every year and has the good position in the market.

Finance Structure of a Company

The finance structure of my company is good, as the performance ratio of my company, indicates that the current performance and is a guideline about, that what needed to do in the future. My company focused on the financial performance and includes its net margin as the performance ratio; the ratio can be helpful further in the identification of the company profitability. In future, to improve the profitability of the company, there is need to measure the assets turnover and the performance measure ratio; the efficiency could also be increased through this. We are focused on improving or increasing our revenue, we identified it as our goal. Moreover, the quick ratio is also performance ratio so we are making strategies for that too so the company could analyze it liquidity position.

The policy of account payable of my company is 30 days or a month. There are plans and one of them is for short-term loans, on which payments will be made in the period of one month. The current debts have a policy of 40% ratios, for the receivable and inventory; the funding accounts will be used. 5% of the total amount is the current portion of long-term debts. In the balance sheet, the long-term debts are very important as the long-terms debts are used to make capital investments. Retained earnings, common stock, and borrowing are also part of long-term debts.

In my country, I would like to buy additional plants so the profitability could be there and this could be possible through issuing the additional shares of my company. The equity ratio of my company is 35% and the debt ratio is 30%, if the company raises its additional debts then the company would have the disturb advantage position. Moreover, in the market, the issuing shares could give advantages, as the preference issuance of the stock can result in purchasing the extra types of equipment for the company and additional plants.

Related Posts

Leave a Comment

five × 5 =