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.
Nobody downloaded yet

Business analysis - Essay Example

Comments (0)
Summary
[Instructor Name] Business Analysis: Haefren Baum Financial Analysis The financial analysis of Haefren Baum indicates that the company’ total assets are DM.847mn in 1995 up by 3% but majority of them consist of high receivables pending and inventory holding by the company…
Download full paper
GRAB THE BEST PAPER
Business analysis
Read TextPreview

Extract of sample
Business analysis

Download file to see previous pages... The current ratio which is well above the benchmark of 1 should not be viewed as a healthy sign because the company is having major issues with its receivables and inventory management. The company has large amount of receivables pending resulting in high receivables days and the situation is the same for the company’s inventories. The company has good asset turnover but it is also declining over the period from 1993 to 1995. The company has a negative profitability in 1994 and 1995 because of its inability to generate profits. Though the company paid dividend in 1993 and 1994 the amount due from stockholders has been significant which could further dampen the company’s capital position. The financial ratios have been attached to this report as Appendix II. The company’s operating cash flow has declined sharply in 1995 leading to a negative figure of DM494,000 which surely have implications for the long term survival of the company if it is not able to recoup its business by altering its marketing and operating strategies. Marketing Analysis Haefren Baum is a home furnishing retailer which is engaged in selling high quality home furniture products of a German manufacturer Wiegandt GmbH Cologne. The understanding of the high-end furniture market suggests that the demand in this market is cyclical which is affected by two major factors – consumer buying confidence and also by the overall economic conditions. Due to the fall in the German economy during the year 1993 i.e. GDP indicated a negative growth of 1.2% the demand for furniture dropped and sales deteriorated. Haefren Baum’s sales also declined after 1993 showed as YoY decline of -19% (1994) and -5% (1995). In order to tackle the challenges the company cut down its pricing and also opened up new outlets Rhineland suburban areas however due to the competition attracting to the market it is difficult for a small retailer like Haefren Baum to survive for long as it is also facing problems with generating profits and maintain a strong cash position (Crane and Millett). Operations Analysis Since the company sells home furniture of Wiegandt GmBH Cologne therefore the amount payable to the company has reached DM 54,017.18. From the analysis it could be indicated that the operational efficiency of the company is becoming weak as the number of days that receivables are due for payment and the inventory held in its stock are increasing. Furthermore, the company is taking longer period to pay off its liabilities. The company has generated loss in 1994 and 1995 which suggests that the company is facing major difficulties in devising its strategies to coup up with the tough market conditions prevailing in Germany. Due to expansion of outlets the company’s borrowing has increased significantly and no positive outcome has been achieved. The credit department of the company must lay off loans and sell of non-profitable outlets to cut down pressure on its cash position. Appendix I: Cash Flow Statement Cash From Operating Activities 1994 1995 DM ‘000s DM ‘000s Net Profit -16 -55 -16 -55 (Increase)/Decrease in Receivables -386 35 (Increase)/Decrease in Inventory 8 -8 Increase/Decrease in Accounts Payables 8 88 Deferred Charges 32 0 Miscellaneous Accruals 74 -331 Current Maturities on Long-Term Debt 327 -223 Estimated Federal Income Tax -104 0 -41 -439 -57 -494 Cash Flow from Investing Activities Sale / (Purchase) of Net Buildings, Fixtures and ...Download file to see next pagesRead More
Comments (0)
Click to create a comment
CHECK THESE SAMPLES - THEY ALSO FIT YOUR TOPIC
Business analysis
Conducting the Activity of Elicitation 5 2.1.2.1. Results of Elicitation 5 2.1.2.2. Stakeholders That May Provide Requirements, and May Participate in the Activity of Conducting the Elicitation- Listing 6 2.2. Documentation of Elicitation Results 7 2.2.1.
5 Pages(1250 words)Essay
Apple Inc. Business Analysis
The paper explains the strategies the company is using, or it used to address the changing economics, and the tactics the company used to ensure successful implementation of business strategies and achievement of strategic goals. The role of human resource management in the achievement of business goals of a company are also expounded in detail.
6 Pages(1500 words)Essay
Business analysis
However, this answer will be influenced by many internal and external factors surrounding the individual and can result in cognitive bias. A cognitive bias occurs when the answers given by the participants are different from the real facts. This occurs due to the fact that individual always want to be regarded as good and acceptable to others as well as the society.
11 Pages(2750 words)Essay
Business Analysis
Similarly all costs or expenditures are listed down which are cash outflows (negative cash flows) for the boutique. Subtracting the cash outflows from cash inflows gives the net cash flows
4 Pages(1000 words)Essay
Business analysis
For this purpose, it has become essential for the organizations to analyses their businesses with respect to activities, nature of function, processes, and environments that affect them. Marks and Spencer plc, commonly known as M&S has originated from Britain and has
12 Pages(3000 words)Essay
Business Analysis Report
The case recording system used by all three boroughs are the same. However, the version of the software used by each borough and the level of customisation differs. With the merger arrangements the staff from the three boroughs can access any of the systems as
2 Pages(500 words)Essay
Business Analysis
Though following the generational fashion trend and the customer buying preference, the products will be designed to meet the broad needs of the targeted clients. The business will mainly focus on the
6 Pages(1500 words)Essay
Business analysis
This study would be dealing with different aspects of an industry. It would comprise of competitive strategies undertaken by different players in the industry and to the degree these innovative strategies has benefited the companies. The industry which has
20 Pages(5000 words)Essay
Business Analysis
The third aspect of this analysis is an analysis of the appropriate techniques of strategic analysis to particular business problems. This work, therefore, presents a reflection of the understanding of the concepts in
4 Pages(1000 words)Essay
Business Analysis
This product is not only used in private homes but also in restaurants. In China it is a difficult task to sell dishwashers. This product holds importance in other countries but has no such relevance in China. Only 1% of total Chinese households
2 Pages(500 words)Essay
Let us find you another Essay on topic Business analysis for FREE!
Contact us:
+16312120006
Contact Us Now
FREE Mobile Apps:
  • About StudentShare
  • Testimonials
  • FAQ
  • Blog
  • Free Essays
  • New Essays
  • Essays
  • The Newest Essay Topics
  • Index samples by all dates
Join us:
Contact Us