Internal Code: 1GHAG

Report Writing Assignment:

Case Study: Financial analysis is a tool which is used to know the financial strengths and weaknesses of a firm. It can also be used to obtain understanding in which company to invest in. In this report, the two companies are NIKE Inc and Adidas AG. Nike is an American multinational company (Nike, 2016), which designs sports shoes and sports apparels. The company is headquartered in Bevatron Oregon in Portland Metropolitan area. It’s the largest manufacturer of sports goods with a business turnover of US$30.601 Billion in the fiscal year 2015. On the other hand, Adidas is a German multinational company (Adidas, 2016), which designs and manufactures sports equipment’s, clothing, and other commodities. It is considered largest in Europe and second largest in the world with a revenue turnover of £19.291 as of 2016. According to Fortune Retail, the world’s second largest sports goods manufacturer Adidas has delivered proof of its success towards its path of victory by recording a jump of 23% compared to 20% of Nike in the fiscal of second quarter in the North American markets, following the double digits gain in the year 2015” (Kell, 2016). This shows that Adidas is outperforming Nike based on sales growth percentage. This news builds confidence on Adidas investors and more people are beginning to trust the brand. As an investor, however, knowing this, should only be considered as information on the surface. And, it is not enough to make decisions whether a company is good for investments. This case study will show the financial strengths and weaknesses of both companies based on financial analysis. Analysing both companies’ liquidity, solvency, and profitability together with vertical and horizontal analysis provides better decision making. LIQUIDITY Liquidity is very important for the company to run the business. Adalsteinsson (2014) stated that liquidity is a company capability for obtaining cash when needed. Cash availability determines whether the company should efficient the budget or invest it and whether it is profitable or unprofitable. There are three components in liquidity ratios, current ratios, quick ratios, and accounts receivable turnover. Task: Students will be provided with a case study of a complex financial situation involving a significant organisation.  Students should set about analysing the case study and then writing up a consultative report culminating in key recommendations addressed to management.  In preparing the report, students should: 1. analyse the financial statements of the business; 2. identify key ratios and apply ratio analysis; 3. argue the case of why the organisation may or may not succeed in the future and what the business should be doing to help it succeed; 4. consider the impact of the political competitive environment on the business; 5. discuss relevant ethical considerations when an organisation becomes insolvent; 6. include external factors that need to be taken into consideration and the likelihood of a merger or acquisition; 7. provide a recommendation, that is, would you invest in this company after your own analysis or under what circumstances would you buy/save the business. The precise format of the report will be founded on research of industrySgrade consultative reports undertaken by the student, using the Torrens University Library.  Students should, however, include an executive summary, introduction and conclusion at a minimum.  The report is to be limited to 2500 words, exclusive of formal document sections (i.e. title page, executive summary, table of contents, references list, appendices, etc.), citations, tables and graphs.  Students should aim for the demonstration of deep learning, founded on theory through thorough reading of scholarly literature, rather than on getting any aspect of this brief ‘right,’ submiting one file through Turnitin. A key hint for this assignment is to read the case study several times before attempting to write up a consultative report such as this.  Students should commence this assignment early, keep regular backups and ensure they submit the correct, final version.  Students should use this brief as the instruction set for the assignment requirements.  Additionally, the rubric below can be used to describe what unacceptable, functional, proficient, advanced and exceptional assignments might look like according to the criteria in the leftmost column of each row. As this is a Masters level subject, students are expected to engage with highSquality academic journal articles, using the Torrens University Library.  Textbooks, Wikipedia and, in general, anything that can be obtained through an open Google search page are considered supplementary material, unbecoming of a postgraduate.  

Eureka! You've stumped our genius minds (for now)! This exciting new question has our experts buzzing with curiosity. We can't wait to craft a fresh solution just for you!

  • Uploaded By : jack
  • Posted on : April 19th, 2018
Hire A Tutor
loader

Whatsapp Tap to ChatGet instant assistance