Looking at the impact of external environment on select companies, we’ll look at both Ford Motor and General Motor companies. The Ford Motors company approximately had 14 percent market share in the U.S. automobile industry (David, 2011). The company had recovered a lot after the impact of recession in the year 2008. The company has been investing in developing vehicles which use alternate energy sources, and is having global presence and brand reputation for its automobiles. The company has received government support during the recession period, and had to cut down thousands of jobs and adopted latest machinery for enhancing the productivity of the company.
In 2012, Costco’s net income is $1.709 billion USD; then it is increased to $2.039 billion USD in 2013, $2.058 billion USD in 2014, and $2.377 billion USD in 2015. Overall, Costco’s net income increased by 39%, and these increases occurred through out the four fiscal years. This is a strong indication that Costco is becoming more profitable. Costco Wholesale Corporation has two parts of revenue, one is its sales of merchandises, and another one is the membership fee consumers has to pay in order to enjoy its service. During the 2015 fiscal year, Costco’s membership base grew by six percent and has more than 81 million members worldwide.
In the United States as of 2015, there were 263,610,219 registered motor vehicles on the road. This is a drastic change compared to the number of cars just a century ago. The idea of the automobile dates back to the late seventeenth century when a small steam powered vehicle was invented for the Chinese Emperor. The actual practical automobile, however, dates back to the late nineteenth century in Germany with Karl Benz’s Motorwagen. Widespread use of the automobile in the United States began in 1908 when Henry Ford began mass producing his Model T.
INTRODUCTION In June 2008, TATA Motors announced the acquisition of brands Jaguar and Land Rover from the car producing giant Ford Motors. The deal was valued at US$ 2.3 billion and is considered an overall success even from intercultural perspective. On the contrary, the deal was speculated to be a huge failure as the world was entering into recession in 2008 and Jaguar Land Rover (JLR) was incurring huge losses. The deal was an all cash deal with 100% acquisition of Jaguar Land Rover’s businesses.
According to bellow fund statement of Ford Motor Company during the year ended 31st December 2000, Company has funded $ 140,933 Mn through short term funds of $ 15,764 Mn and long term funds of $ 125,169. The company has utilized $ 132,004 Mn of those funds to invest in short term investments and $ 8,929 Mn invested in long term investments. Therefore, company has funded short term investments through long term sources of funds. If we further analyze the main contributing items for this situation it is clear that investment in Noncurrent assets has been reduced (a long term source) to fund debtors/ accounts receivable (a short term investment).
Enterprise level - Ford in its organizational structure have a traditional company hierarchy. For example, executive vice President, report to the CEO Mark Fields. Middle managers report to the executive vice President. Ford 's organizational structure to support this feature is for the purpose of effective top-down control method of the traditional business management.
NAFTA has also benefited United States Of America in multiple ways, including the way it has reduced USA’s trade deficit. The trade deficit between the United States and Mexico and Canada has increased by an average of 150 billion dollars per year, and produced a trade surplus in the United States favor of $28 billion after 15 years of trade. Doing this it has also increased USA’s investment of tangible assets, including mining, manufacturing, insurance, and banking. The investment in USA’s money in tangible assets in Mexico and Canada has increased by 2 percent e year since NAFTA has been signed. One major benefit that US obtained during this agreement was having lower oil prices.
Competition The leader in automobile sales for quite a long time has been Toyota. It achieved the golden milestone of the largest selling car in history in 1974 and has remained on the top of the mountain since then (holding 12% global market share in 2013). In contrast Honda holds a comparatively paltry 4% market share and their earnings are less than half of Toyota. That being said, both are major manufacturers in the world automobile market.
Does the acquisition make strategic and financial sense? Provide a concise explanation in support of your assessment. (250 words max) Ans 2) Microsoft must have valued LinkedIn over $26 billion. This is more than 8 times the LinkedIn revenue of last 12 months ( $3.2 billion).The ratio is ~5 times Trailing twelve months for public companies on market places shows that price paid/valued by Microsoft is premium.
Based on data from Statistica, in 2013, under the leadership of Bill Gates, Microsoft had a net income of 23.15 billion U.S. dollars. This figure shows not only the success of Microsoft but also the talent of Bill Gates. According to American express, introverted leaders tend to be greater listeners, which is the vital element in leading others. A study conducted by a professor from Harvard Business School, whose name is Francesca Gino declared that combination between enthusiastic teams and quiet bosses can be create great success, because introverted leaders listen carefully to what followers share. For example, Mark Zuckerberg is CEO and Co-Founder of Facebook social network.
State Farm has indicated dependability, keeping up its 12.5% piece of the overall industry from 2011 to 2013, even as the general size of the business sector developed more than 3% every year. In spite of the fact that the organization puts third in the condition of New York, State Farm is the biggest auto back up plan in the nation with a national piece of the overall industry of around 18.5%. It is likewise specified among the best-appraised auto back up plans broadly. Dynamic Dynamic has a piece of the overall industry of around 6.9% in New York on composed premiums of $765 million. Albeit Progressive is a long ways behind the top organizations regarding piece of the overall industry, it has made strong additions.
The income statement from Lowe’s Companies, Inc. covers consolidated statements of earnings, consolidated statements of Comprehensive Income, Consolidated Balance Sheets which covers assets and liabilities, Consolidated Statements of Shareholders ' Equity, Consolidated Statements of Cash Flows. In overall, Lowe’s made a good business in the year 2014 when compared to its revenue in 2013. The net earnings of Lowe’s in 2013 (as of Jan 31, 2014) was USD 2,286 million, whereas the net earnings in 2014 is (as of Jan 31, 2015) is USD 2,698
The activity ratio or better known as the inventory turnover ratio due to its ability to determine on average how long inventory sits can be used as one of the best indicators showing how efficiently a company is turning its inventory into sales. By figuring out average inventory (last year plus current year divided by two) and dividing it by Cost of Goods Sold (includes labor costs as well as cost of materials) you will be able to find your activity ratio. Blizzards inventory consists of roughly 125,500 units a year costing roughly $1.6 million (12.63 AR) to produce, while close competitors like Sony, an entertainment company who manufactures technology as well as, produces roughly 624,289 units at about $5.2 million (7.66 AR) to produce annually,
For example, prior to the invention of the assembly line an Automobile was considered a luxury only for the rich. After Henry Ford invented the moving assembly line, middle class Americans were also able to purchase this commodity. Due to Henry Ford’s assembly line invention, factories in modern society have produced highly intelligent assembly lines. Ford’s creation has caused a reverberation throughout history and even in the 21st century. For instance, Ford’s own company, today, can create up to 605 cars in 10 hours.