Strategic Planning Different Financial Measure

Question :

Select a different financial measure from prior week/s and write one to two paragraphs describing how that financial measure is created (e.g., ROS=Profit/Sales) and cite your source, its value to the firm, and how your performance compares with the competition and over time.

Answer :

Define & Describe a Financial Measure

Select a different financial measure (from the table above) for each round and write one to two paragraphs describing:

• how that financial measure is created (e.g. ROS=Profit/Sales) and cite your source and include References (25% of grade),

• what this measure tells a firm about its performance (25% of grade), and 

• how your company’s performance in CAPSIM on that particular measurement compares with the competition and over time (50% of grade).  

• Note: there are a total of nine templates to complete, but only eight financial measures.  For Round 8 in Week 7, please select one of the other financial measures from the Courier or Annual Report that you are interested in learning more about.

Details for each measure can be found under in CAPSIM under Reports, Industry Reports and then Capstone® Courier.  You may also wish to review Reports, Debrief Reports, and then any of the available reports.  You can also find supplemental analysis for each Round by going to Reports, Debrief Reports, Debrief, and then Round Analysis.

Begin Your Analysis Here:

The Competition Round 3 has been completed and considering the report of this round, it can be said that some inadvertent bad decisions have been taken that has hit the position of the company significantly. The company again took huge emergency loan and most of its metrics fell flat on the floor. However, it can be said that still not everything is lost and there exists some possibility of revival. Taking the market share into consideration, it can be said that the company still has 15.73% market share, which is slight improvement from the previous year by around .50%. The company has to utilize this aspect to make some comeback. The plan is to sell the manufacturing capacity for the products that are not doing good and exiting those markets and to focus only on the products that can be continued with. Selling of production units may help comeback. Now, coming to the market share, it is the overall market that is controlled by a specific company (Fotheringham, 2014). It is calculated by dividing the company’s sales over a period by total sales of the industry for the same period. Currently, it tells that Andrews still has some possibility. In general, it tells the market that is still under control of a company, which can utilized to increase sales or push new products. However, it is quite clear that the competitors are doing almost equally to Andrews as the highest is with Baldwin with 18.15% and the rest are between Andrews and Baldwin.

References

Fotheringham, S. (2014). Market share analysis techniques: a review and illustration of current US practice. In Store choice, store location and market analysis (pp. 120-159). Taylor and Francis.