Financial Statement Analysis Project FI504 Accounting and Finance: Managerial Use Date: 06/12/2011 Table of Contents Executive Summary…………………………………………………………..3 Brief Background of HP……………………………………………………...4 Environmental Scanning – SWOT Analysis………………………………...5 Major Competitor IBM……………………………………………………..7 Financial Ratio……………………………………………………………….9 Liquidity Ratio……………………………………………………......9 Activity Ratio…………………………………………………….……9 Solvency Ratio…………………………………………….…...……..10 Profitability………………………………………………………...…11 Overall Analysis and Recommendation……………………………...……..12 Recomendation..……………………………………………..……………….13 References……………………………………………………………….……14 I. Executive Summary: This report stands from the point of view of Hewlett-Packard (HP), and discusses about its business condition. In order to put up a clear picture of HP’s business level, a comparison in finance is made between HP and one of its biggest competitors, International Business Machines (IBM). The main criteria of this paper are financial analysis which is used to analyze whether an entity is stable, solvent, liquid, or profitable enough to be invested in. The evaluation is done by focusing on the income statement, balance sheet, and cash flow statement.
How strong are the competitive forces confronting Blue Nile and other online retail jewelers? Which one of the five competitive forces is the strongest? In the online retail jewelry industry there is a strong power of buyers and suppliers, and a stronger difficulty of entry. In the diamond industry the biggest threat is competition from other online retail jewelers as well as huge completion from brick-and-mortar retail stores. While all five of the competitive forces are strong when analyzing Blue Nile and other online retail jewelers, the strongest competitive force is analyzing rivalry determinants.
| 2. BRIEF SUMMARY OF CASE SITUATION Business or Industry Description Blue Nile had grown to become the world’s largest online retailer of certified diamonds and fine jewelry. | Blue Nile’s Current SituationBlue Nile reported $302 million in 2009. In 2010 Blue Nile management was concerned about the lingering effects of poor economic condition in the United States on the diamond jewelry industry and how it should pursue expansion in international business. | 3.
The parent company has been broken down into three separate brands to specifically cater to a different target market. They also created a competitive advantage by offering eclectic merchandise and a unique retail experience. Table of Contents Title Page 1 Abstract 2 Executive Summary 2 Table of Contents 3 Overview of Urban Outfitters 4 Accounting Analysis 4 Financial Analysis 5 Financial Ratio Analysis and Forecasting 5 Intrinsic Evaluations 6 Conclusions 7 References 7 Appendix 8 A. Consolidated Balance Sheets 8 B. Consolidated Statements of Income 9 C. Consolidated Statements of Cash Flows 10 D. Pro Forma Consolidated Balance Sheets 11 E. Pro Forma
Stock Pitch: ANF(NASDAQ: ANF) Linqian Peng • Nan Xu • Dongmei Ye • Wei Zhang TABLE OF CONTENTS Strategy Analysis 1 Industry Analysis 1 Rivalry among Existing Firms-High 1 Bargaining Power of Buyers-High 1 Bargaining Power of Suppliers-Low 1 Threat of New Entrants-High 2 Threat of Substitutes-Medium 2 Firm Analysis 2 Firm’s strategy 2 SWOT Analysis 3 Accounting Analysis 4 Critical Accounts and Success Factors 4 Adjustments and Consistency 5 Effect on Ratios of Capitalizing Operating 5 Adjustments for Leases, Depreciation, or Inventory Accounting 6 One-time Item Adjustment 6 Revenue Recognition Policy 7 Consistency in Accounting Policies 8 Profitability Analysis 9 Abercrombie & Fitch 's Ratios 9 Comparing ratios to competitors 10 Forecasting 11 Forecast Income Statement 11 Forecast Balance Sheet 12 Forecast Cash Flow 13 Valuation 14 Strategy Analysis Industry Analysis Rivalry among Existing Firms-High Abercrombie & Fitch (ANF) has many competitors such as American Eagle, GAP, Forever 21 and Buckle in Clothing industry. Fashion, price, service, store location, selection and quality are the principal competitive factors in this industry. Also, it is very difficult for ANF to differentiate its main products such as knit and woven shirts, graphic t-shirts, fleece, jeans and woven pants, shorts, sweaters, and outerwear to its competitors’ same products only by more special designs and more attractive styles. In addition, customers' loyalty can be easily affected by fashion trend and customer preference, which is very hard to predict. Bargaining Power of Buyers-High Customers are price sensitive for buying Clothes.
Blue Ocean Strategy Plan MKT/421 Introduction In today's competitive market where companies attempt to outperform one another by creating a brand new product or adjusting an existing product in attempts to appeal to a larger customer base are referred to as a Blue and Red Ocean strategy plans; “Red Oceans represent industries in existence today, and the industry boundaries are defined, accepted, and the competitive rules of the game are understood. Blue oceans denote all the industries, not in existence today- the unknown market space untainted by competition." (Kim & Mauborgne, 2004, p. 82(10), 76–84.). Movie theaters are one example of a Red Ocean. Initially, individuals would watch movies at a drive-in movie theater that later progressed to indoor movie theaters where customers were given the opportunity to purchase foods and beverages.
Enterprise System Research assignment Enterprise System Research assignment Integration Integration Profits Profits CRM CRM HR HR Finance Finance Marketing & Sales Marketing & Sales Table of Content ERP System 3 Key Components of Enterprise System 3 Actual Components 3 Functional Areas 4 Benefits and costs of ERP system Implementation 5 Comparison between SAP, Oracle and Microsoft Dynamics 6 ERP Implementation cases 8 Executive Summery 9 Background 9 Hewlett-Packard 10 Motivation for Implementation 10 Launch Strategy 10 Implementation Issues 10 Results of Implementation 11 Chatzigeorgiou GP 12 Motivation for Implementation 12 Launch Strategy 12 Implementation 13 Results of Implementation 13 Comparison of the two companies 14 Conclusion 14 Resources 15 ERP system Enterprise Resource Planning (ERP) software applications act as the central company-wide information system. ERP systems integrate all of an organization’s departments, divisions, lines of business and geographical locations into a single, shared, unified and enterprise-wide information system. Key Components of Enterprise System Actual Components * Transactional database * Management portal/dashboard * Business intelligence system * Customizable reporting * Analyzing * External access via technology such as web services * Search * Document management * Workflow management Functional Areas ERP software typically has Accounting, Business Intelligence, Financial Management, Procurement, Inventory & Stores Management, Sales & Distribution Management, Manufacturing, Human Resources Management, Project Management and Customer Relation Management Modules. Functional Areas | Contents | Finance/Accounting | It is the production of information about
Blue Ocean Strategy is a strategy to create new market space. According to Kim and Mauborgne (2004) the business universe consists of two different kinds of spaces: Red and Blue Oceans. Red ocean is the market space where industry boundaries are defined and known. Here companies try to outperform their rivals to grab a greater share of the market. As the market space gets crowded, prospects for profits and growth are reduced.
Giventhat the jewelry is made to order, clients at Blue Nile must be willing to wait to receive theirorders, unlike at Tiffany or Zales. The Tiffany brand is very strong and well established. It is associated with glamour, trust, andcustomer service. These associations allow the company to sell at higher margins than itscompetitors. Diamond and other high-end jewelry purchases are expensive, and many customerswill trade off other factors for the Tiffany customer experience when making such purchases.Moreover, when spending thousands of dollars for a single item, customers often want to see andfeel what they are buying.
It also discusses the impact of these cultural differences on their management practice from five aspects: cooperative strategies, conflict management, decision-making, work-group characteristics, and motivation systems. The 21st century is an era of the globalization of world economy. Cross-national business is facing great challenges in cultural differences. In one survey entitled What is the biggest barrier in doing business in the world market, cultural differences ranked first in all eight items including "law, price competition, information, language, delivery, foreign currency, time differences, and cultural differences. Hofstede (1993) believes that the spread of businesses onto the global stage brings the issue of national and regional differences to the fore.