Financial Analysis Case Study - 1100 Words

Financial Analysis (Case Study Sample) Content: DIAGEO PLC COMPANYby Students NameCourse Code + TitleInstructorInstitutionCity, StateDateDIAGEO PLC COMPANYCompany Summary Diageo PLC Company was incorporated in October 1886 and is engaged in international manufacture of premium drinks. It deals with a wide range of brands inclusive of brands like Johnnie Walker, Crown Royal, JB, Windsor, Buchmans and Bush-mills whiskies, Smirnoff, Ciroc, and Ketel One vodkas, Baileys, Captain Morgan, Jose Cuervo and Guinness. These brands and many more are classified as spirits, beer, wine and ready to drink. The firm's business is structured in Europe, Africa, North America, Latin America, the Asian Pacific and the the Caribbean. Diageo boasts of selling its products in over 180 markets all over the world (Neely, 2002). It has a strong team of roughly 36000 employees, constituent of a diverse workforce working towards the growth and nurture of their business and brands. Contributions made towards giving deeper insights on consumer needs and enhanced relationships with their stakeholders have been attributed to the different backgrounds of these colleagues. With a market capitalization of 79.45 Billion and revenues of up to 20 Billion annually, it is amongst the best performers in the market for its variety of ventures (Bichler, Shimshon; Nitzan, Jonathan 2010). The firm's strategy is to drive growth and margin expansion in a responsible and sustainable way so as to deliver long term wealth and value creation for its shareholders in the long term period. To achieve this Diageo has at its disposal a broad band range, geographical reach to its customers and expertise of its employees who share the same values. 0perating costs skyrocketed by  £339 million from  £7,564 million in 30th June 2012 to  £7,903 million in 30th June 2013 due to an increment in the cost of sales of  £215 million from  £4,228 million to  £4,443 million, an increase in marketing spend of  £96 million from  £1,691 million t o  £1,787 million, and an increase in other operating expenses before exceptional costs of  £28 million, from  £1,645 million to  £1,673 million. Cost of sales was  £4,443 million in 30thJune 2013 compared to  £4,228 million in 30th June 2012. The 1% volume increase together with some favourable mix impact added  £37 million to the cost of sales. Increases on utilities, logistics and materials amounted to around 4% of cost of sales Net sales were  £76 million in the year ended 30 June 2013, up  £6 million compared to last year. Net operating charges were  £149 million as observed in the year ended 30 June 2013 having been  £165 million in the year ended 30 June 2012. The reduction comprised a  £10 million decrease in corporate costs, primarily due to a reduction in acquisition costs and  £6 million favourable exchange rate movements (Nemethy, 2011). In the year end 2012, sales increased to  £14,594 million from  £13,232 million in the year ended 30 Jun e 2011. Operating costs increased from  £7,052 million in the year ended 30 June 2011 to  £7,574 million in the year ended 30 Jun 2012 as a result of an increase in cost of sales of  £245 million, an increase in marketing expenditure from  £1,538 million to  £1,691 million, and an increase in operating expenses of  £114 million. Cost of sales summed up to  £4,228 million in the year that ended 30 Jun 2012 compared with  £3,983 million in the year ended 30 June 2011. This amounted to a 2% or so increase in volume amounting to  £110 million to cost of sales. Increase in cost of materials and utilities amounted to 5% of cost of sales. Operating profit noted for the year ended 30 June 2012 was observed to have increased by  £563 million up to  £3,158 million (Reddy, Appannaiah Sathyaprasad, 2010). In accordance to the group's overall strategy, the groups management is committed to improving shareholder wealth in the long term, by investing in the various brands o f the diverse business to ensure delivery of continued improved results on the return from these investments and by managing the capital structure. Diageo manages its capital component to maximise flexibility, achieve capital efficiency and give the necessary level of accessibility to debt markets at favourable costs. To ensure management of the same, the group regularly reviews its debt and equity capital levels against its agreed upon policy for capital structure. Financial Performance analysis (past five years)Income statement data2013 million2012 million2011 million2010 million2009 millionSales 15,48714,59413,23212,95812,283Operating profit3,4313,1582,5952,5742,418Profit for the yearContinued operations2,594 2,083 2,017 1,762 1,704 Discontinued operations0 (11)0 (19)2 Total profit for the year2,594 2,072 2,017 1,743 1,706 Dividend per share (pence)47.443.240.438.136.1 The table above shows steady growth of the company's financ ial position and performance as indicated by the growth in sales volume and operating profit of the company over the past five years. Return of shareholders funds has as well increased steadily over the years leading up to the year end June 2013 as indicated by the dividend per share. Continued growth of profits for year end is indicative of a steady rise in earnings per share for the shareholders profitability (Alexander, Sinnett, 2005). The two major competitors facing it off with Diageo (DEO) in the premium drinks market are SAB Miller (SAB) and Pernod Ricard SA (PVT1) (Martin Nissan, 2003). In the Trailling twelve Months (ttm), statistics put SAB miller ashead in terms of having the highest revenues at 22.31 billion in comparison to 19.41 B and 11.15 B for SAB and PVT1 respectively. The industrial average for the same is 19.14 B showing that both SAB and DEO are doing well at their level of performance. In all other respects however, SAB performs at relatively poor in compar ison to DEO as indicated by the Gross Margin, Earnings before Interest aand Tax (EBITDA), operating margin and net margin in the ttm. Figures stand at: EBITDA of 6.65 B and 5.85 B; Operating margin of 0.32 and 0.20 and an operating margin of 4.46 B and 3.38 B for DEO AND SAB respectively. Generally, SAB does not have as much exposure to the premium beverage market as does DEO. It does however, have more exposure to emerging markets around the globe. With the growing demand for beer in the market SAB stands at a better advantage as opposed to the more dorminant spi...

Iraq s Capital And Its Impact On The World - 1110 Words

Introduction The foundation of a people’s economy, politics, and security lies in its knowledge. There is no more lasting way to transfer such knowledge than through a book. With a vision of securing the future of Muslims, ancient Arabic-Islamic civilization worked hard to build public libraries where every son and daughter of Allah could learn from the past and build the future. Perhaps, no city has played a more major role in this pursuit than Baghdad. Baghdad, through the ages, has fueled the development of the arts and the sciences. The reputation of Iraq’s capital was synonymous to learning in the ancient world. Its academic influence spread to different countries, cultures, and dialects. Baghdad is also a reflection of the challenges that Muslims faced in their goal to preserve knowledge. Just like the famed city, other Islamic cities and states have lost many libraries due to conflicts and wars. It is estimated that throughout history, the Muslim world lost near ly eight million books and great libraries, like the Cortoba library in Iberia and Dar Al Elm library in Egypt. To better appreciate the Islamic civilization’s contribution to knowledge and to understand the issues that hinder us from developing our academic sources, this essay will discuss the rise and fall of one of the world’s greatest libraries, Bait Al Hikmah, more commonly known as, The House of Wisdom. The Rise of the House of Wisdom Baghdad: Where It All Began To study The House of WisdomShow MoreRelatedBurger Fuel Is A New Zealand Gourmet Burger Restaurant1628 Words   |  7 Pagesprovide a healthier menu than its competitors by reducing salt, sugar and additives. Burger Fuel have their own radio station. Part 1.2 – External Environment Burger Fuel is a part of the Food/Hospitality Sector. 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Nokia Vertu - Case Study Analysis Free Sample

Question: Prepare a case analysis for Vertu Nokias Luxury Mobile Phone for the Urban Rich? Answer: Introduction: This assignment helps to analyze the case study of Vertu. It is a brand of luxury phone manufactures that is operated by the Nokia. Vertu offers various types of luxury phones those have manufactured by utilizing luxury products, like diamonds, exotic leather and sapphires. It was founded officially in the year of 1998 in United Kingdom. During the time of its launch, it has sold many luxury phones in various countries of world (Vertu Official Site,2015). Therefore, this assignment conducts the SWOT analysis of this company. SWOT analysis on Vertu: Strengths Exclusive ranges of luxury phones, attractive series of Signature, Symbian etc Phone technology Microsoft Windows Cost advantage compared to other companies of luxury phones Rich people of U.K are the targeted customers of Vertu Associated with the brand name of Nokia which is a popular multinational company of phone and related equipments Weakness Limited to one specific market sector All systems are not user friendly Application of these phones have become outdated Phones are high priced High price but the features are not high like other smart phones Opportunities Promoting the brand within some untouched areas This company has started to enter into several new market sectors This company can manufacture products for low as well as medium price market Vertu should expand its marketing activities to various developing countries Threat Emergence of new technologies in mobile phones, like android phones, Apple smart phones are counted as immense threat for this luxury phone Level of increased competition Lack of better software in this luxury phones Lack of better gaming facilities and other updated applications Many companies are coming with extra as well as updated version of mobile and phone technology with extra ordinary and effective application Table 1: SWOT analysis of Nokia Vertu As stated by Schrempf (2011), Vertu has expanded its business area in many countries. However, the business activities of Vertu are still missing in the developing countries. It has operated its business activities within United Kingdom and other countries. The main focus of this type of phones is the rich people of the market. Therefore, it has operated its effective business within one specific sector of market. New technological evolution has become and various types of mobile phones, like apple, android and Smartphone has come to the market with effective and updated features. However, Vertu has to face immense competition as because the new technological advancement is lacking in this phone. On the other hand, Langbour (2011) criticized that, innovative capacity is missing in this company. This brand slowly accepts the new technological advancement. The software application needs to be updated. Case study analysis of Vertu: Vertu, the company that is operated by Nokia, has produced luxury mobile phones that are manufactured by utilizing many valuable materials, like silver, gold leather etc. Vertu has launched the first luxury phone ever in the market. Attractive craft of these phones are very popular feature of this phone. These phones are generally made from gold, ceramic, diamonds, sapphire, exotic hardwood etc (Vertu Official Site, 2015). This luxury phone manufacturing industry has the potential market of rich people of different countries. Major rich customers are located in Germany, United Kingdom, United States, Japan etc. On the other hand, Schrempf (2011) argued that the economy of the developing countries has been increased. Therefore, several companies like Gold Vish, Tag Heuer, and Christian Dior has entered within the market sector of luxury phones. Therefore, Vertu has suffered from lack of new technological advancement within the technology of the phone. Therefore, Doz and Kosonen (2011) stated that, the mother company Nokia has also faced several internal issues, like accountability, internal collaboration, leadership. The capacity of producing innovative luxury phones with high technological devices has been decreased. There are various new types of phones, like Android, Apple and other Smartphone has entered into the market segment of luxurious phones. This company also offers some value added services like, online facility, CNC facility etc. However, Vrontis and Thrassou (2013) stated that, Vertu is lacking from different innovative idea for producing this type of phone. Vertu needs to expand its business into the developing countries. This company also needs offer those luxury phones at a low cost and with high technological devices in order to attract the customers of all levels of market. Conclusion: This assignment has discussed some drawbacks of the company of luxury phone, Vertu. This company does not acquire new technology that will help to compete with the apple, smart phones and other android phones of the mobile market. However, this company has produced many attractive series of luxury phones. Reference list Books Vrontis, D. and Thrassou, A. (2013) Innovative Business Practices. Newcastle upon Tyne: Cambridge Scholars Publishing. Journals Doz, Y. and Kosonen, M. (2011) Letter to the editor: Nokia and Strategic Agility: A Postscript. California Management Review, 53(4), pp.154-156 Langbour, N. (2011). Krief, Huguette : Entre terreur et vertu. Et la fiction se fit politique (17891800), 2010. Kritikon Litterarum, 38(3-4), pp.189-192 Schrempf, J. (2011). Nokia Siemens Networks: Just Doing Business or Supporting an Oppressive Regime?. Journal of Business Ethics, 103(1), pp.95-110 Websites Nokia, (2015) Nokia [online] Available at: https://company.nokia.com/ [Accessed 10 Mar. 2015]. Vertu Official Site, (2015) Vertu Official Site [online] Available at: https://www.vertu.com/ [Accessed 10 Mar. 2015]