...EXECUTIVE SUMMARY: The report intends to provide the CEO of Yahoo! Inc with a marketing and financial plan to turnaround the company. Yahoo! Inc is facing significant threat from rival companies such as Google, MSN, AOL, Face book etc. The report has provided an overview of the company and the industry in which it is operating. The industry analysis has been done using porters five forces analysis. The analysis indicates that Yahoo! Inc is facing a moderate threat of new entrants. The industry has a moderate level of bargaining power of suppliers. On the other hand, the buyers have a higher degree of power. Moreover the threat of substitute products is also high. Yahoo! Inc is facing competition in the domains of search, communication, advertising and social networking from some major companies as rivals, thus resulting in high threat of competitors. The report has also analyzed the position of the competitor companies from their market and financial position. Yahoo is focusing on the target market of people belonging to different age groups, professions and lifestyle. The marketing and financial plan is based on the central objective of increasing the market share, sales and revenue of the company. It has been recommended that in the domain of marketing, the company should focus on developing its search, communication and media functions to fulfill the individual, professional and social needs of the people. Moreover, investment in social networking can also be beneficial....
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...Final Research Project: Financial Analysis of Yahoo! Inc. Group 4: Kwa’Bena Edwards Claudia Chavez Andrew Agubuzo Lydell Fletcher Ivan Adilkhayan University of Maryland University College August 1, 2014 This report was prepared for FINC 330: Business Finance, instructed by Professor Eric Ramon Table of Contents Executive Summary……………………………………………………………...………………2 PARTI I Financial Performance……..………………………………………………………….………3-9 Vertical Analysis of the Income Statement…………………………………….……….3-4 Vertical Analysis of the Balance Sheet……………………………………….………...5-6 Horizontal Analysis……………………………………………………………………….7 Financial Performance Summary……………………………………………….………8-9 Financial Ratio Analysis……………….........…...………………………………..….10-11 Financial Ratio Summary…………………………………………………………….12-13 DuPont Calculations………………………………………………..…………….……...14 Return on Equity Summary…………………………………………………………...…15 Other Areas of Financial Analysis…………………………………………….……..16-17 PART II Stock Performance………………………………………………………………………….18-20 Yahoo! Inc.’s Stock Performance……………………………………………………….18 Google Inc.’s Stock Performance……………………………………………………….19 Stock Performance Summary……………………………………………………………20 PART III Conclusion and Recommendation…..……………………………………………………..…..21 References……………………………………………………………………………………….22 Appendixes……………………………………………………………………………..……23-29 Executive Summary Yahoo! Inc. (YHOO) is a global Internet corporation that provides digital content and experiences through...
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...Content I. Introduction II. History and background on the company III. Financial analysis IV. Financial reports V. Current value of common shares VI. Summary and conclusions VII. Appendix I (Include footnotes giving sources of quoted and paraphrased material) VIII. Appendix II (Include appendices, if needed, containing correspondence or other supporting schedules and documents, including the financial statements) IX. References (Include appendices, if needed, containing correspondence or other supporting schedules and documents, including the financial statements) I. Introduction Yahoo! Inc. is a main player of internet information provider industry. Based on their I good operation performance in recent few years, more and more investor are re-purchasing their stocks. II. History and background on the company The US Public company, Yahoo! Inc. (Yahoo!), found in 1994 has been one of the largest technology company in the world. At the begining, the founders of the company create a website named “jerry and David’s Guild to the World Wide Web”, a simple directory of websites to help people navigate the Internet. In march 1994, that website name was renamed “Yahoo”. The “Yahoo.com” domain was incorporated in 1995 and is a Delaware corporation. Yahoo grew rapidly throughout the 1990s. As other companies of search engines and web directors, Yahoo added a web portal. At the year of 1998, Yahoo was the most popular starting page for web users. It also brought many...
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...Apple Inc Financial Report Analysis FINC 330 Business finance instructor: Philip Bradley Prepared by: Table of Contents Page 1) Company Description……………………………………………….…...... 2 Company background………………………………………..….. 2 Industry analysis………………………………………………..... 2 Products and services…………………………………….…......2 Investment strategy…………………………………….……...…3 2) Market Analysis……………….………………………………................... 3 Direct competitors…………………......…………………………. 3 Financial performance comparison…………………......………3 Growth comparison…………………......…………………...…...4 Trailing total returns comparison…………………......…………4 Ratio comparison…………………......…………………………. .5 Detailed ration comparison…………………......……………5 3) Financial Performance Analysis………………………………………...... 6 Ratio analysis........................................................................... 6 Detailed analysis................................................................. 7 4) Recommendations ……………………………………………………..… ..8 5) Conclusions……………………………………………............................ ..9 6) Reference…………………………………………………………………...10 7) Appendix……………………………………………………………….....…11 Income statement....................................................................11 Balance sheet.......................................................................... 12 Cash flow........................................................................
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...CASE STUDY FOR NIKE ------------------------------------------------- COMPANY PROFILE NIKE, Inc. (NIKE), incorporated on September 8, 1969, is engaged in design, development, marketing and selling of athletic footwear, apparel, equipment, accessories and services. NIKE is a seller of athletic footwear and athletic apparel across the world. ------------------------------------------------- Competition With Adidas Heating Up in Europe Nike has been gaining market share in Europe. According to data from Euro monitor, Adidas had 13.2% share of the western European sporting goods market in 2012, while Nike’s share stood at 12.4 percent. Nike reported an 11% rise in sales in western Europe in the first half of fiscal 2014, while Adidas posted a fall of 6 percent at constant currencies in its third quarter. The competitor gaining the most ground as of 2014 is Under Armour. The company is actively pursuing lucrative U.S. sponsorship deals similar to Nike’s, giving it a growing piece of market revenue. In Europe, Adidas is developing new products to compete head to head with the giant. Chinese companies Anta and Li Ning show a steady increase in sales within China. Both Puma and Skechers occupy a smaller part of the athletic apparel market, but both enjoy increasing revenues. ------------------------------------------------- KEY ISSUES OF NIKE Like almost every other global supply chain, Nike's global supply chain is a complex network that directly connects and impacts...
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...Yahoo! Case Analysis May 9 2007 Jason Drohn Bradley Bierer Carol Woods Michelle Victory Paul Rapela The strategy of implementation of an established dot com company, struggling to leverage current advertising methods with business objectives. Table of Contents Executive Summary......................................................................................................................... 3 History: ............................................................................................................................................ 5 Problem ........................................................................................................................................... 7 Competitive Analysis ....................................................................................................................... 9 Yahoo Financials............................................................................................................................ 12 Economics ..................................................................................................................................... 19 Demographics ............................................................................................................................... 23 Market Analysis............................................................................................................................. 30 CPM ..........................................................
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...Google Inc. is a global technology leader focused on improving the way people connect with information. They were incorporated in California in 1998 and reincorporated in Delaware in 2003. They maintain the largest, most comprehensive index of websites and other content all of which is free with any Internet connection. The corporation’s mission is as follows: “Our mission is to organize the world’s information and make it universally accessible and useful (Google, 1).” The mission can be broken down into two parts. First, the purpose of the company is to “organize the world’s information.” This objective is made possible through Google’s vast indexing over the Internet. Second, and perhaps most importantly, the company makes the information universally accessible and useful. Google’s technologies sort through a vast and growing amount of information to deliver relevant and useful search results in response to user queries. When the company started in 1998, the index contained 30 million documents, whereas today the index includes billions of web pages. Industry Google operates in the Internet Information Provider industry within the Technology sector. Its focus is on “building products and services that benefit [their] users and enable them to find information quickly and easily (Google 2005 Annual Report, 5).” In order to do so, the company follows a development philosophy which differs from other industries. Google initially makes products available...
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...search services, Yahoo!, was a directory of sites selected and organized into categories by human editors. The Web soon grew too large for directory-based search. AltaVista invented technology that automated search, relying on software “spiders” that created a searchable index of page contents and on algorithms that ranked page relevance based on the frequency of keyword references. Yahoo! added AltaVista’s algorithmic search engine, but in 1998 replaced AltaVista with Inktomi, which used parallel-processing networks to offer faster processing and a larger index. As website developers exploited search algorithms by repeating keywords on their pages, searches increasingly returned irrelevant listings—”spam”—that frustrated users. In 1998, Sergey Brin and Larry Page tackled this problem as graduate students at Stanford. Their PageRank algorithm reliably delivered more relevant searches by favoring pages that were referenced—”linked to”—by other pages. These links were called “votes,” because they signaled that another page’s webmaster had decided that the focal page deserved attention. The focal page’s importance was determined by counting the number of votes it received, weighting votes more heavily when they were cast by pages that Google had previously deemed to be important. This approach required PageRank to solve an equation with 500 million variables and 3 billion terms. In June 1999, Brin and Page announced first-round funding for their start-up, Google, from two elite...
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...I. SWOT ANALYSIS STRENGTHS | WEAKNESSES | * Strong broad band image provides edge over competitors * Robust financial performance strengthens investors’ confidence and provides capital for future growth avenues * Wide portfolio of offerings * Net Sales/Employee: 2010 * Liquidity Ratios – leader in Current and Quick Ratios | * Patent infringement lawsuits may affect financial condition and operating results * Profitability Ratios 2010 trailing Baidu and Microsoft in: * NPM, ROA, ROE, * Productivity Ratios 2010: * SG&A/Net Sales – trailing Baidu * COGS/Net Sales – trailing Baidu and MS | OPPORTUNITIES | THREATS | * Strategic Acquisitions to further strengthen the company’s portfolio * Rising popularity of Android to increase market share * Robust outlook for mobile advertising market provides growth opportunity * Entry into mobile payments market * Serving additional customer groups or market segments * Integrating forward or backward * Acquiring companies with attractive technological expertise or capabilitiesFurther penetration into international markets | * Intense competition may affect revenues and profitability * Slowdowns in market growth * Economy slowdown in both domestic and international markets * Board of Directors at risk for corporate conflcit * Loss of operation in China * Adverse economic conditions that threaten critical suppliers or distributors * Web spam and content farms may decrease...
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...Introduction: Yahoo Inc. in the last three months has been in the news, and the news has not been about investment in research and development (R&D), new products introduction and shareholders’ value creation strategy. On November 24, 2015, Standard and Poor’s (S&P), a credit-rating firm announced the cutting of Yahoo rating outlook to negative (BB+) from stable citing the decline in revenue growth and higher cost of attracting traffic to its website (CNBC, November 24, 2015). The rate cut will increase the cost of capital, reduce profit and reduce shareholders wealth. On November 9, 2015, Reuter’s News reported the hiring of the consulting firm McKinsey & Co. The focus of the consulting firm was to assist with the reorganization of the company’s core business (Reuters, November 9, 2015). The decision was a surprise development to the shareholders in that the current management under the leadership of Ms. Marissa Meyer had been at the helms of Yahoo affairs for almost four years and had spent about $7 billion on R&D, Merger and Acquisition. The turnaround initiatives expected with Ms. Meyer’s appointment as the Chief Executive Officer has not come into being, for there has been a high turnover of senior executives. The board of directors and senior management has failed in their attempts to turn around the firm. Yahoo share price has declined year to date by 34% as of November 25, 2015, whereas its’ main competitors Facebook, Goggle, and Microsoft...
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...Running head: WHY GOOGLE WAS ABLE TO BEAT YAHOO 1 Why Google was able to beat Yahoo: External factors influencing the development and domination of the twenty-first century internet giants Gregory A Totty MGT510 Strategic Planning Dr. Walter McCollum Colorado State University WHY GOOGLE WAS ABLE TO BEAT YAHOO Abstract The purpose of the following research is to illustrate how external factors can influence the development of market share in a new industry. The primary example is a case study of the organization known as “Yahoo”; the first internet only large corporation, which failed to grow with its early domination of the new emerging market of the World Wide Web. The evolving industry originally was a creative person’s domain. It was viewed in its infancy more like a vast library, than the center of all knowledge transfer much as it has become. The mistakes made by Yahoo early in the century, soon became an uncontrollable nemesis; and would eventually force the organization to re-organize. This research attempts to provide evidence for Yahoo’s demise along with the primary external factors that were either overlooked or their magnitude of 2 influence was not properly considered. Based upon the evidence provided, an alternative strategy for a similar percentage of market share was implemented by Google who, partially by learning from the mistakes of Yahoo, was able to forecast more accurately; resulting in a dominance of the same market today. Conclusions can...
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...1. Using competitor intelligence from the case material, assess the levels of market commonality and resource similarity that Google has with three key industry competitors. How will they influence competitive behavior and the intensity of rivalry? Market Commonality refers to the number of different markets two or more direct competitors are involved in. For instance Sony and Samsung are direct competitors and are involved in number of different markets which includes Smartphones, Televisions, and Hi Fi Systems and so on. Market commonality also pertains to the degree of importance each competitors give to their each market. For instance, Sony and Samsung may give more importance to their Television line of products because it either maybe their most popular products of all or it may be due to their anticipated future market of that product. Multimarket competitors are less likely to attack each other aggressively, but will respond aggressively when they’re being attacked. For instance Airlines industry is a multi-market industry wherein the prices are similar, but if the competitors comes up with a promotion, others would swiftly respond. Resource similarity on the other hand, refers to how the each of the firms’ resources both tangible and intangible can be compared. For instance, Sony and Samsung both are market leaders in LCD and LED manufacturing. Both have exceptional intangible resources in terms of designing products and their level of knowhow and technological expertise...
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...2.6 Other Google brands 3 Portfolio analysis via matrices in the 21st century 3.1 Why portfolio analysis? 3.2 Portfolio analysis and Google 3.3 Companies like Google 4 Conclusion Reference List II 1 2 2 3 4 5 5 6 7 7 8 10 11 III I List of figures Figure 1: McKinsey / General Electric Matrix Figure 2: Google’s brands in a GE Matrix 2 7 II 1 Introduction According to the list FT Global 500 from the Financial Times, Google is worldwide on position 39 from the companies listed in the stock exchange (Financial Times, 2009). Google was founded in 1998 by the software engineers Larry Page and Sergei Brin. Nowadays, only 12 years later, it has grown to one of the greatest international companies which has a huge influence on the daily life in industrial nations. Furthermore with 66 billion US-Dollars Google is the most valuable brand in the world. They started with a search engine which has pushed the former competition like AltaVista out of business. Google Inc. had in 2008 a turnover of almost 22 billion US-Dollars and it is still growing (Google, 2010). At the beginning they had a positive press but nowadays there are more and more critical voices because of their high market share in the search engine sector of almost 90%. Critics say that Google has too much influence and it is possible that they manipulate data. Google has many current projects where people fear a lack of their own data protection (The Register, 2009; BBC, 2007a). But Google does not...
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...Financial Management ------------------------------------------------- BUS508 Dr. Etido Akpan, Professor Financial Management Financial Statements and annual reports are crucial tools for evaluating a business and deciding whether or not to invest in that company. Google and Microsoft are two major corporations that lead Internet technology and information retrieval. Both corporations list their financial information on their respective websites (www.google.com and www.microsoft.com) on their Investor Relations pages for easy access. Google Incorporated (Google) was founded in 1998 by Larry Page and Sergey Brin and was incorporated on September 04, 2008. It was named as a play on the term “googol” which is the mathematical word for the number 10 followed by 100 zeros or 10 100. Google started primarily as a search engine, which is a website that searches the Internet for other websites based on terms entered by the user. Other lines of business include advertising, apps (such as Google Docs, Calendar, and email which Google calls Gmail), mobile and the Android operating system, Chrome (Google’s answer to the internet browser), along with various other products. There are approximately 32,400 full time employees with the majority split between research & development and sales & marketing, the remainder being in general or admin and operations ("Company," n.d.). Advertising is Google’s primary source of income, generating 96% of their 2011 revenue, with the...
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...Chinese Internet search platform through Baidu Online and Baidu Netcom. These companies hold the required licensing and approvals to operate the Company’s websites and advertising services.[ii] Within a few years, Baidu expanded its operations and established three PRC subsidiaries and two other PRC consolidated entities. By January 2008, Baidu launched a Japanese search service with three subsidiaries. To date, Baidu has been the most popular search engine in China and has succeeded in areas where Microsoft and Yahoo have failed: Beating Google at its own game by dominating the search engine market in 2007 with 60.4% market share.[iii] The paper aims to (1) perform an internal analysis on Baidu, to identify the competencies of Baidu; (2) perform an external analysis of Baidu to identify opportunities and threats; and (3) identify business strategies by Baidu and (4) recommend strategic actions to Baidu to compete better in future. INTERNAL BUSINESS FUNDAMENTAL ANALYSIS Organisation Structure and Human Resource Management. Baidu organisation structure works on a functional departmentalisation where the Chief Executive Officer (CEO) is aided by Chief Engineer, Chief Finance Officer (CFO) and 7 Vice Presidents spanning across Finance, Human Resources, Public Relations, Products, Sales and Finance, Legal and Research and Development (R & D) as shown in Chart 1. Each Vice President within their functional departments has either prior working experience in multinational corporation...
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