Premium Essay

Strategic Finance

In: Business and Management

Submitted By arijeet
Words 3373
Pages 14
Financial Management: Kota Fibres, Ltd.
Kota Fibres, Ltd. was founded in 1962 in Kota, India. Created to produce nylon Fibre,
Kota Fibres provided synthetic Fibre yarns to local textile weavers mainly to make the traditional women’s dress in India; the saris. Ms. Pundir was both the managing director and principal owner of the company. Kota Fibres used new technology and domestic raw materials to produce their quality product. The demand for saris amounted to 12 billion yards of fabric

The Case Papers
Kota Fibres, Ltd. was founded in 1962 in Kota, India. Created to produce nylon Fibre,
Kota Fibres provided synthetic Fibre yarns to local textile weavers mainly to make the traditional women’s dress in India; the saris. Ms. Pundir was both the managing director and principal owner of the company. Kota Fibres used new technology and domestic raw materials to produce their quality product. The demand for saris amounted to 12 billion yards of fabric, resulting in a stable and growing business. Demand fluctuated based on special Indian festivals and celebrations, and more specifically on the Diwali; a special celebration in mid-autumn. The unit growth forecast for Kota Fibres was 15% per year yet delivery of the yarn and several other small factors would soon play a part in their implausible success.
Consumers in the villages purchased the cloth from the cloth merchant. The cloth merchant granted credit in order to support sales. The suppliers were very competitive in order to keep the merchants. They were aggressive in price, service, and credit line. Due to the fact that profit margins were thin, Kota had policies which required a plan of seasonal production. Kota operated at peak capacity for two months and decrease capacity for the rest of the year. This caused continuous hiring and layoffs.
Kota had two distribution warehouses, but regardless,…...

Similar Documents

Premium Essay

Finance

...information is to support strategic, operational and control management decision making. Management accounting information is important for the managers. Information that provides an overview of the organizations in needed by the senior managers while the detailed information about the area of responsibilities is needed by the middle managers. Information to help to manage their operation day to day basis is needed by the operational managers. It is a main source of information for decision making improvement and control in organizations. Internal decisions makers which are referred as management usually create and use management accounting information not only for the use inside the organization but also to share with the external decision makers such as the suppliers. In order to meet the production schedule, the manager may design an accounting information system for suppliers so that they can help the producer to meet its objectives. It can provide estimates of the costs of the organization output too, so that the managers can make the best operational decisions. Considerable value to today’s organizations by providing accurate information about the activities requires for their success can be created by effective management accounting system. Question 2 I don’t agree with Murphy’s accountant. Most organizations have a group of staff who undertake a variety of accounting activities. There are many titles for the senior accountant within the finance function such as......

Words: 807 - Pages: 4

Premium Essay

Finance

...------------6! Quick Ratio!------------------------------------------------------------------------------6! Financial Stability! Investment Ratios! 7! 7! Financial Leverage ! -------------------------------------------------------------------7! Dividend Payout Ratio!----------------------------------------------------------------8! EPS! ----------------------------------------------------------------------------------------8! Strategic Analysis! Conclusion! 9! 11! Critically NEWS about Super Group!---------------------------------------------11! To Invest or Not to Invest!------------------------------------------------------------11! Bibliography! 12! SUPER GROUP - AHMAD SALEEM 2 ! Introduction! This is a report that intends to examine Super Group LTD (“Super”) from a various financial and strategic measures and will present to the investor an informed conclusion on whether to invest or not to invest in this Company. This report will be divided into three parts, namely: Financial analysis, Strategic analysis and a Conclusion to proceed or abstain from investing in the company. Super Group LTD introduction! Supper Group LTD is a leading instant food and beverage producer in the southeast Asia market. They are predominantly an instant coffee and tea company. It is currently the market leader and maintained the top market position in Southeast Asian key markets. The group currently owns and operates more than 15 state of the art......

Words: 2761 - Pages: 12

Premium Essay

Finance

...EBMA Level 8 Diploma in strategic Business Research and Leadership Direction Unit Title: Strategic Financial Analysis and Planning Table of Contents Executive Summary 3 1.Critique and evaluate research ....... 4 2.Critically apply modern financial tools 6 3.Use main types of investment appraisal tools 8 4.Critically evaluate the importance of research 10 References 11 Executive Summary The decision making of management is very crucial and involves various analysis to be performed. There are various ratios and methods that can be useful for mitigating the risks and increasing the expected returns with investments. The financial forecast is a mix of the behaviour, perception of management alongwith various techniques used for analysis of the different options available. Critique and evaluate research in financial theory and apply that research for decision making process 1.1 Describe the economic theory of choice as an illustration under certainty. The rational behind the economic theory of choice is to choose out of certain economic outcomes and representing the preferences through maximisation of the utility function of the outcomes. As per the von Neumann-Morgenstern expected utility model (1953), which is the workhorse of recent economics, the choices are made by people, so as to get the maximum utility. These preferences are based on intuition, self interest, past experiences......

Words: 3819 - Pages: 16

Premium Essay

Finance

...Publishing 2009 Corporate Strategy Analysis: General Electric Co. (1981–2008) – A Case Study Stanislav Bucifal Introduction The General Electric Company (GE) is widely regarded as one of the world’s most successful corporations of the 20th century. This paper aims to analyse critically the corporate strategy of GE during the period from 1981 to 2008 under the leadership of two very different but equally influential CEOs—Jack Welch and Jeff Immelt. The paper is organised in four sections. The first section describes GE’s corporate strategy from 1981 to 2001 with Jack Welch as CEO, followed immediately by a critical analysis of Welch’s strategic approach in the second section. The third section then describes GE’s corporate strategy from 2001 to 2008 with Jeff Immelt as CEO, followed again by a critical analysis of Immelt’s strategic approach in section four. Keywords: General Electric, Corporate strategy, Leadership, CEOs. 1. The Jack Welch Period (1981–2001) When Jack Welch took up his post as GE’s CEO in 1981 he embarked on a radical transformation of GE’s strategy, ushering in a new era of performance management and internal efficiency. Welch’s profit guidance aimed for earnings growth of 1.5 times to double of the GDP growth rate and his management philosophy found its articulation in GE’s slogan—Speed, Simplicity, Self-Confidence (GE 1995). These values would reflect not only in the organisation’s systems and processes but also in GE’s products and services through...

Words: 4709 - Pages: 19

Premium Essay

Finance

...made a in-depth research regarding the ethical aspects of fish farming, involving the feasible effects of antibiotics on consumers. Besides that, TGR is the retailer and wholesaler who offers different range of Atlantic salmon to the market. Their salmon comes in fresh, smoked, frozen, canned, hot smoked and small good ranges. These products are bought by Woolworth and Coles supermarket. According to the TGR's annual report 2013, the chairman and chief executive officer of the TGR had delivered the message to shareholders regarding the performance, operation and financial result throughout the strategic plan. The company has announced that they have clear sustainability plan and ensure that their strategic vision will be given high return to shareholders in the long term (Fitzgerald 2013). Zero harm, improve the business, maximise cash flow and gratifying returns are four strategic priorities to achieve the maximum sustainable earning growth. TGR has made the best practise in salmon production. For instance, TGR has expert advice from its partner, WWF-Australia on the evolution of the company's sustainability strategy to the environment, community and business. Thus, the company has renovated its operations to achieve process optimisation. TGR has shows its enormous efforts in fish stocks and health investment by increasing demand down to the company’s newest marketing campaign and product mix which allows imports to supplement supply(Ryan 2013). By concentrating on......

Words: 3006 - Pages: 13

Premium Essay

Finance

...SUGGESTED PROGRAM PLAN FOR FINANCE MAJORS FIRST YEAR Fall Semester (14 or 15 credits) Spring Semester (15 or 16 credits) ENG106 Writing Intensive First Year Seminar* HCS100 Hum Comm Studies HIS101 World History I* HIS106 World History II* MAT108 Finite Math MAT181 Applied Calculus I ________ General Education elective ISM142 Business Computer Systems* BSN101 Foundations of Bus Admin (2 crs.)* ________ General Education elective or a General Education elective* or ECO113 Principles of Economics (4 crs.) SECOND YEAR Fall Semester (16 or 15 credits) Spring Semester (15 credits) ACC200 Fundamentals of Financial Accounting ACC201 Managerial Accounting SCM200 Statistical Applications in Business* BSL261 American Legal Environment* ECO113 Principles of Economics (4 crs) ECO280 Managerial Economics or a General Education elective ________ General Education elective ________ General Education elective ________ General Education elective ________ General Education elective THIRD YEAR Fall Semester (15 credits) Spring Semester (15 credits) FIN311 Financial Management FIN313 Advanced Financial Management (SP) MKT305 Principles of Marketing FIN333 Applied Comp. & Security Analysis (SP) MGT305 Organizational Behavior SCM330 Supply Chain & Operations Management ________ General Education elective ________ Free elective ________ General Education elective ________ General Education or Free......

Words: 620 - Pages: 3

Premium Essay

Strategic

...Enterprise Banking, Trade Finance, Retail and Consumer Banking, Asset Leasing, Loan Syndication and Project Finance. HNB has an AA- credit rating from Fitch Ratings Lanka Limited, Sri Lanka’s main rating agency. HNB has been acknowledged globally by The Asian Banker as the Best Retail Bank in Sri Lanka for Six consecutive years for its performance from the year 2007 to 2012. The HNB umbrella of today has two local subsidiaries - HNB Assurance and Acuity Partners. HNB have been established for more than 120 years. Their ethos are so simple for its survival even in turbulent times. HNB remain firm in their belief that they must continue to be banking partner in the lives of the Sri Lankan people. HNB has put in place an effective Risk Management System with clearly stated procedures, utilizing various committees that constitutes senior management personnel with requisite expertise/experience. 1. Identifying Retail Banking Sector of HNB as a SBU HNB provides a wide array of products and services to its customers. But at a broader level it can be basically divided into two categories i.e Corporate Banking and Retail Banking. This assignment basically analyses about the retail banking category of HNB. Retail banking means providing services to individual customers and small and medium enterprises rather than dealing with big corporate customers. This report explains about the competitive strategy of bank, market analysis in which HNB operates, strategic......

Words: 2761 - Pages: 12

Premium Essay

Evaluate the Appropriateness of Businss Information Used to Make Strategic Decisions Finance

...Task 3 D1: Evaluate the appropriateness of business information used to make strategic decisions Finance The finance department collects information from each department and will compare which are doing well and which are not, they will also compare their information with their competitors. The information they receive will help them to make improvements on the stores that are not doing so well. The finance department will also make future targets for the business to achieve. Tesco finance department collect information about their sales/profit figures and put it in a report for end of the year, this is also can be used to compare with their previous years to improve. A way a business would obtain financial information is through deducting the cost by the profit in order to find out the operating costs. It will also be used to set budgets. Analyse sales, and also predict profits. Tesco financial information will help them to plan future budgets and spending’s. The information will also help them on how well their stores are doing. The advantage for Tesco is they can make improvements on which areas their business is not doing well and they can compare their previous year to make improvements on. Another disadvantage is Tesco can check their competitors finance reports to help with information to improve. When you manage your finances well, you know exactly what you're spending and what you're earning. You also know when funds will be available. The Financial......

Words: 704 - Pages: 3

Premium Essay

Finance

...V O LU M E 1 9 | N U M B E R 2 | S PRING 2007 Journal of APPLIED CORPORATE FINANCE A MO RG A N S TA N L E Y P U B L I C AT I O N In This Issue: Valuation, Capital Budgeting, and Disclosure Enterprise Valuation Roundtable Presented by Ernst & Young 8 Panelists: Richard Ruback, Harvard Business School; Trevor Harris, Morgan Stanley; Aileen Stockburger, Johnson & Johnson; Dino Mauricio, General Electric; Christian Roch, BNP Paribas; Ken Meyers, Siemens Corporation; and Charles Kantor, Lehman Brothers. Moderated by Jeff Greene, Ernst & Young. The Case for Real Options Made Simple 39 Raul Guerrero, Asymmetric Strategy Valuing the Debt Tax Shield 50 Ian Cooper, London Business School, and Kjell G. Nyborg, Norwegian School of Economics and Business Administration Measuring Free Cash Flows for Equity Valuation: Pitfalls and Possible Solutions 60 Juliet Estridge, Morgan Stanley, and Barbara Lougee, University of San Diego Discount Rates in Emerging Markets: Four Models and an Application 72 Javier Estrada, IESE Business School Rail Companies: Prospects for Privatization and Consolidation 78 James Runde, Morgan Stanley A Real Option in a Jet Engine Maintenance Contract 88 Richard L. Shockley, Jr., University of Indiana A Practical Method for Valuing Real Options: The Boeing Approach 95 Scott Mathews, The Boeing Company, Vinay Datar, Seattle University, and Blake Johnson, Stanford University Accounting for......

Words: 6818 - Pages: 28

Premium Essay

Strategic

...Harper Adams University College BAs of International Business Management STRATEGIC MANAGEMENT BH003/DB362 Corporate strategy development To: PAT OAKLEY HAUC ID: 07192000; 07192100; 07192400 07192500; 07192800; 07195000; 8th December 2009 (Word count= 5, 232 excluding references) Content Page Section Page Summary 1 1. Introduction 2 2. Background 2 2.1 Kesa Electricals 2 2.2 DSG International PLC 2 3. The review of intended strategy of Kesa and DSG in the first year 3 3.1 The intended strategy of Kesa 3 3.2 The intended strategy of DSG 3 4. Analysis of external environment 3 4.1 Analysis of macro-environment 4 4.2 Analysis of industry 4 5. The importance of stakeholders 5 5.1 Kesa’s stakeholders 6 5.2 DSG’s stakeholders 6 5.3 Stakeholder mapping 7 6. Marketing management 8 6.1 Kesa Company 8 6.2 DSG Company 9 6.3 Compare and contrast the Companies 10 7. Operation management 12 7.1 Comparing the differences between Kesa and DSG with 6M’s frame 14 8. Human resources 16 8.1 Intangible factors of Kesa 16 8.2 Four Cs analysis of Kesa 16 8.3 The intangible factors of DSG 18 8.4 Four Cs analysis of DSG 18 9. Finance director 20 9.1Horizontal and vertical analysis 21 9.2 Ratio analysis 21 10. Change Management 26 11. The evaluation of two companies’ intended strategy in 06-07 30 11.1 The evaluation of Kesa’s intended strategy in 06-07. 30 11.2 The evaluation of...

Words: 10231 - Pages: 41

Premium Essay

Finance

...will reveal which is which. WHAT IS ASSET MANAGEMENT? The people here manage investments for private funds, individuals and organizations. It’s a diverse area with many roles – including researchers, portfolio managers and sales people. Their common goal is to make their clients’ money make more money. They do this by investing in things like: • stocks – also known as equities, a stock is typically a ‘share’ of ownership of a company • bonds – these are basically loan agreements: a company or government issues bonds and receives money in return, while the bondholder receives a fixed amount of interest on the money they have lent 02 So is it right for you? Asset Management could be a great career if you: • have the strategic skills and insight to develop products at the forefront of the industry • like to think ahead; the role is about developing sound investment choices that meet a client’s objectives • want to work with, and influence, some of the world’s biggest investors • are dedicated and are prepared to put in the hours to develop your specialism. But before you decide, also be aware that: • foreign exchange – also known as forex or FX, this is currency of other countries • your performance will be transparent, and success measured by the portfolios you manage • property – i.e. real estate. • the market never sleeps; you have to work hard to stay on top of developments The various functions within Asset Management are......

Words: 4674 - Pages: 19

Premium Essay

Finance

...Annual Report and Annual Report and Financial Statements Financial Statements 2015 2015 “ think the store is I genuinely trying to improve performance and there is evidence of progress.” Ipswich “ hen I shop in Tesco W now there is an overall better feel.” “ lease keep the P prices low, the shelves well stocked and the tills manned with enough staff.” “ ontinue to work on customer C service – it makes a big difference.” Newton Abbot Aylesbury “ he store is of vital importance T to the local community, long may it continue to be so.” Maldon London In this report: Strategic report Chairman’s statement CEO introduction Three priorities Our business model Key performance indicators Financial review Environmental and social review Principal risks and uncertainties Corporate governance Financial statements Other information Page 2 3 5 8 10 12 18 22 26 72 146 FINANCIAL HEADLINES £69.7bn £1.4bn £961m £(6.4)bn 9.42p £(8.5)bn Group sales Group trading profit Underlying profit before tax Statutory profit/(loss) before tax Underlying diluted earnings per share Net debt (13/14: £70.9bn) (13/14: £3.3bn) (13/14: £3.1bn) (13/14: £2.3bn) (13/14: 32.05p) (13/14: £(6.6)bn) The champion for customers Our business was built with a simple mission: to be the champion for customers – to help everyone who shops with us enjoy a better quality of life...

Words: 97179 - Pages: 389

Premium Essay

Strategic Finance

... STRATEGIC FINANCE Student I.D.#: SP16-EX-0053 Program: MBA Name: Malik.M.Umair Wasif Student I.D.#: SP16-EX-0053 Program: MBA Course Title: A.R.M Instructor: Sir Umair Baig TABLE OF CONTENT S.NO. | CONTENTS | PAGE NO. | 1 | Scope of the research paper | 3 | 2 | Introduction | 3 | 3 | Research methodology | 3-4 | 4 | Conclusion | 4 | 5 | Limitations and future direction of research | 4-5 | | (a) Limitations | 4 | | (b) Future direction of research | 5 | BEST PRACTICES IN ESTIMATING COST OF CAPITAL 1. THE SCOPE OF THE RESEARCH PAPER: It is a survey research paper presenting the results of the cost of capital survey of advisors, corporations etc showing a close alignment among the groups on the use of common theoretical framework and on many aspects of estimation. Variations are found on large number of joint choices regarding cost of capital. 2. INTRODUCTION TO THE TOPIC: The paper is about presenting evidence that how some of the most financially sophisticated companies and financial advisers estimate capital cost. The evidence to be presents is valuable in several aspects. First is to identify the most important ambiguities in the application of cost of capital theory and the second is helping interested companies benchmarking their cost of capital estimation practices against best practice peers. Third is that the evidence sheds light on the accuracy with which the capital costs can be reasonably estimated. The cost of capital......

Words: 2961 - Pages: 12

Premium Essay

Finance

...students to the Ken Blanchard College of Business, key concepts of leadership, and an overview of how the science of organizational behavior contributes to effective leaders and managers. 4 ACC-502 Accounting Practices This course is designed for individuals who are preparing for more advanced coursework in accounting and for students who have not had accounting in undergraduate work. Topics covered include the principles and practices of financial accounting and the fundamentals of managerial accounting, such as cost behavior and budgeting. The course covers accounting theories using computational examples, and homework is problem solving. 4 FIN-504 Finance Principles This course is designed for individuals who are preparing for more advanced coursework in accounting and is designed for students who have not had finance in undergraduate work. Topics covered include financial analysis, financial planning, asset evaluation, capital structure, and working capital management. 4 SYM-506 Applied Business Probability and Statistics The purpose of this course is to prepare students in mathematical, probability, and statistical concepts for their upcoming studies in quantitative methods. The course is intended for those students who have not had any prior statistical education, although students who have had statistics should also consider taking the course as a refresher. 4 ECN-601 Economics The first half of this course covers those aspects of economics that are......

Words: 914 - Pages: 4

Premium Essay

Finance

...Strategic financial management can be described as the allocation of scarce resources to identified possible strategies among competing opportunities and taking necessary actions to monitor the progress of the chosen opportunity so as to achieve set objectives. The Chartered Institute of Management Accountants of UK (CIMA) defines Strategic Financial Management as “the identification of the possible strategies capable of maximizing an organization’s net present value, the allocation of scarce capital resources between competing opportunities and the implementation and monitoring of the chosen strategy so as to achieve stated objectives”. In order to understand what Strategic Financial Management is about, it is necessary to know the meaning of the two words ‘strategy’ and ‘strategic’ as provided by Oxford Advanced Learner’s Dictionary, 6th edition. Strategy: This is the process of planning something or carrying out a plan in a skilful way. STRATEGIC FINANCIAL MANAGEMENT Strategic: This is done as part of a plan that is meant to achieve a particular purpose. If the above definitions are used as a guide, the strategic financial management can be defined, as those aspects of the overall strategic plan of an organization that concern the financial managers. For example, there are many aspects of a business plan (to be discussed later under Corporate Strategy): marketing and sales plan, production plan, personnel plan, capital expenditure plan, etc. All these plans have......

Words: 5662 - Pages: 23