Nobody downloaded yet

Interpretation of Financial Statements and Performance Management - Case Study Example

Comments (0) Cite this document
Summary
This paper "Interpretation of Financial Statements and Performance Management" focuses on the launch of a new product amidst threat to its long-standing market share of about 12%. Developed by its own production director, the product has the potential to deliver long-term profits to the company. …
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER96.5% of users find it useful
Interpretation of Financial Statements and Performance Management
Read TextPreview

Extract of sample "Interpretation of Financial Statements and Performance Management"

Download file to see previous pages Cleanup Limited has initiated the discussion on a new product that has been designed by the director of the production division. But the discussion on the new product was premised on the recent analysis that the market share of the company, while steady for a number of years at 12 per cent, is now becoming under serious threat from competitors and a maturing market. Hence, the main challenge is how to secure the hold of the company on the 12 per cent market share. The company should come up with fresh strategies that would allow it to hold on to the 12 per cent market share, and if the company would be aggressive enough, it should even aspire for an increase in its share of the pie.
How can Cleenup defend or increase its market share? Several strategies include market creation for a new product, market penetration for a current product, product differentiation for the current market. According to Kotler (1994, p.383), market share can be expended by continuously searching for “new users, new uses, and more usage” for the product. Defending market share, on the other hand, would simply require a management mentality of “continuous innovation” (Kotler, 1994, p.385). Firms should avoid the temptation to be complacent, and Kotler advised not to be content with “the way things are, and (the firms) leads the industry in developing new products and customer services, distribution efficiency, and cost-cutting” (Kotler, 1994, p.385).
This brings the discussion to the new product design developed by the director of the production division. After investing on research and development to the tune of ₤350 thousand, and securing a patent for the design of the product at a cost of ₤275 thousand, the directors are to determine which course of action to take next, realizing the financial rewards and requirements of each option available.
Vis-à-vis the financial considerations, the directors of Cleenup are considering three options: sell the patent, develop a prototype and sell the right to manufacture, and manufacture the product itself.   ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Interpretation of Financial Statements and Performance Management Case Study”, n.d.)
Interpretation of Financial Statements and Performance Management Case Study. Retrieved from https://studentshare.org/business/1707903-interpretation-of-financial-statements-and-performance-management
(Interpretation of Financial Statements and Performance Management Case Study)
Interpretation of Financial Statements and Performance Management Case Study. https://studentshare.org/business/1707903-interpretation-of-financial-statements-and-performance-management.
“Interpretation of Financial Statements and Performance Management Case Study”, n.d. https://studentshare.org/business/1707903-interpretation-of-financial-statements-and-performance-management.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF Interpretation of Financial Statements and Performance Management

Interpretation of Financial Statements

...?Interpretation of Financial ments Table of Contents Interpretation of Financial ments Table of Contents 2 Introduction 3 Financial analysis of Next Plc (NXT) & Ted Baker Plc (TED) 5 Recommendation 9 Reference 10 Bibliography 12 Introduction The financial statements of a company provide important financial information about the business operations. With the help of this information one can compute financial ratios relating to liquidity, profitability, gearing and efficiency that help in assessing the financial performance of the company.   Next Plc   Ted...
7 Pages(1750 words)Essay

Financial statements

...the liabilities of the company and its equity. The balance sheet is used by financial analyst to determine how much a company is worth. The information contained in the balance sheet and income statement can be used by a financial analyst to perform ratio analysis. Three examples of ratios are the net margin, return on equity, and return on assets. The third financial statement is the statement of cash flow. Cash is the most important asset of a company because cash is needed to run the daily operations of a firm. If a company runs out of cash the firm will not be able pay its current obligation such as payroll and the...
3 Pages(750 words)Essay

Financial Performance Interpretation. Stilsim

...? Financial Performance Interpretation Naif Al-Hajri Assignment 2 BSAD 495 Section H2FF Roger Kisiel Franklin November 27, 2010 INTRODUCTION The financial information of company would enable us to get a better insight. Finance is considered as the lifeline of the business. Whether the business is small, medium or large and irrespective of the industry it operates in, finance is needed to establish and run the business. The analysis of the finances of Stilsim can be done on the basis of its financial constraints. Financial ratio can be used to measure its performance. Financial ratio can be described as...
3 Pages(750 words)Essay

Financial Statements

...for the company’s operating expenses and costs of revenues. Part III. There are several primary intended audiences of the financial statements. They use the financial statement to enhance their decision making activities, in relation to company mentioned in the financial statements. A net profit financial statement encourages the parties to invest in the company. A net loss scares the parties away from investing in the bankrupt company (Wild, Shaw, Chiappetta, 2011). The stockholders use the financial statements as basis for deciding whether to invest more funds in the...
4 Pages(1000 words)Essay

Financial statements

...to take place in a later date, as opposed to the income statement and the cash flow statement, which records transactions that have taken place. References Penner, S. J. (2004). Introduction to health care economics & financial management: Fundamental concepts with practical applications. Philadelphia, Penns: Lippincott Williams & Wilkins. Sinha, G. (2009). Financial statment analysis. New Delhi: PHI Learning Pvt Ltd. US Securities and Exchange Commission. (2007). Beginners' Guide to Financial Statements: The Basics. http://www.sec.gov/investor/pubs/begfinstmtguide.htm Wahlen, J. M., Bradshaw, M., Baginski, S. P., &...
4 Pages(1000 words)Research Paper

Financial statements interpretation

...important tools used to interpret financial statements and to understand the company and its financial performance on the whole, is 'Ratio Analysis'. The main reason is that the ratios are simple to calculate. Moreover, they provide a standard for comparison between companies or between the company and the industry in general. They can also be applied to various time periods of the same company and can provide valuable information related to the trend and future prospects (Pendlebury and Groves, 2004). The ratios that are chosen for analyzing VDB Limited include Operating Profit Margin, Return on Assets, Current Ratio, Quick Ratio, Average Collection...
5 Pages(1250 words)Essay

Financial Management of financial statements

... Micro Chip's Consolidated Statement of Operations for the period September 26, 2004 through September 25, 2005. Assume a 15% tax rate and restructuring costs of 2% of the new sales figure. Micro Chip Computer Corporation Consolidated Statements of Operations for the Period September 26, 2004 to September 25, 2005 Question 2.Discuss your results from question number #1. What assumptions have you made Do any of your assumptions seem unreasonable Micro Chip Computer Corporation forecasts that its sales will increase by 20% from the current level. This will result to $10,000.80 gross revenue in the following period. Since the percentage sales method is used to compute the other components of the financial statement, it is assumed... , and...
3 Pages(750 words)Essay

Financial Performance Interpretation (Strategic management Class)

...companies to give us an idea of how well Stilsim Company is performing. FINDINGS ANALYSIS & COMPARE TO COMPETITOR Despite the fact that Stilsim has been performing profitably for the past two and a half decades, a SWOT analysis shows that the reason why they have been suffering financially lately is due to them not implementing upgrades to keep up with the fast growth of the business. If we compare Stilsim to a competitor such as Cross Country Healthcare we can see that it is performing satisfactorily as shown in Table 1 below. Table 1: Financial Comparison of Stilsim & Cross Country Healthcare StilSim Cross Country Healthcare...
5 Pages(1250 words)Essay

Interpretation of financial statements (report)

...RUNNING HEAD: Interpretation of financial ments (report) Interpretation of financial ments (report) of of Professor Date 1. Introduction This paper seeks to prepare a report for Devi Patel as senior manager of WBS Ltd, which includes the computations for 2009 and 2010 by providing relevant explanations of and comments on the financial performance of the company. The paper will use financial ratios of profitability, efficiency, liquidity and solvency to see whether the company performs in comparison with industry averages. The need to compare with the industry is dictated by the assumption that if similar players would most at least be showing a certain level of performance as WBS is doing or they could be doing better... ...
7 Pages(1750 words)Essay

Financial Statements

...I. Essential financial information on the management of the enterprise The memo to the board will inform them that basic financial information will be submitted through the four financial statements that include income statement, balance sheet, statement of stockholders’ equity, and cash flow statement. The financial statements will provide the overall performance of the company, and where financial ratios can be derived and computed to analyze company performance. The introduction of the new spark plug manufacturing process in the Unites States, which is said to be very successful, will be confirmed and validated by the financial statements to be presented. While the financial statements will provide the overall financial health... an...
8 Pages(2000 words)Essay
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Case Study on topic Interpretation of Financial Statements and Performance Management for FREE!

Contact Us