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the internal strategic position analysis of GET
I want to use M model to analyze. but my writing is not satisfactory. could u mind revising it for me?Internal analysis
I will use M model to analyze GET’s internal strategic position.
Machinery. GET don’t need to buy new machine to increase production capacity. Although the question don’t give the utilization percentage of train, the recession has caused the fall of passengers . so the utilization must be lower.
Management: GET’s management has rich operating experience and knows the market very well. This is strength of GET which can help GET sell their services.
— Revenue/employee per year=320/3010=$106312
Number of employees per rail kilometer=3010/920=3.27
Both efficiency ratios over-perform industry norms. This may be due to their highly qualified employees and good work efficiency. It improves productivity.Money.
–ROCE=70/(660+2000)=2.63% Gearing ratio=2000/2660=75%
ROCE is significantly lower compared with industry average. The gearing ratio is much higher than industry average. This may help to explain the fact the GET uses long-term debt to solve the shortage of fund due to the cancel of subsidies. The finance cost is high and must be paid regularly and reduces GET’s net profit margin and may not be acceptable for shareholders.
— Operating profit margin=PBIT/revenue=70/320=22%
Gross profit margin=110/320=34%
The 2 profit margin ratios are both much higher than industry average. It may partly because their technical system advantages improve work efficiency and productivity. It will generate more cash and we can reduce long-term debt gradually and finally improve financial position.
— Current ratio=585/200=2.93 acid ratio=310/200=1.55
Both liquidity ratios are higher than industry average. So the company can easily meet its short-term liabilities.
Manpower. The effect on manpower is uncertain because normally GET will make their employees redundant in recession, but Number of employees per rail kilometer is lower than industry average, it has higher work efficiency.Markets. GET’s booking and paying system is very successful and is adopted by their competitors. So they are a market leader.
Materials this is not mentioned
Make-up its organization structure don’t need to change.
I’ve improved/corrected the English only. I have not rewritten the answer in any other way.
Internal analysis
I will use the M model to analyze GET’s internal strategic position.
Machinery. GET doesn’t need to buy new machines to increase production capacity. Although the question doesn’t give the utilization percentage of trains, the recession has caused a fall in passengers . So, the utilization must be lower.Management: GET’s management has rich operating experience and knows the market very well. This is a strength of GET which can help GET sell their services.
– Revenue/employee per year=320/3010=$106312
Number of employees per rail kilometer=3010/920=3.27
Both efficiency ratios over-perform industry norms. This may be due to their highly qualified employees and good work efficiency which could improve productivity.Money.
–ROCE=70/(660+2000)=2.63% Gearing ratio=2000/2660=75%
GET’s ROCE is significantly lower than the industry average. The gearing ratio is much higher than industry average. This may help to explain the fact that GET uses long-term debt to solve the shortage of funds due to the cancellation of subsidies. The finance cost is high and must be paid regularly, and this reduces GET’s net profit margin and this may not be acceptable for shareholders.
– Operating profit margin=PBIT/revenue=70/320=22%
Gross profit margin=110/320=34%The two profit margin ratios are both much higher than the industry average. It may partly because their technical system advantages improve work efficiency and productivity. It will generate more cash and we can reduce long-term debt gradually and finally improve the financial position.
– Current ratio=585/200=2.93 acid ratio=310/200=1.55
Both liquidity ratios are higher than industry average. So the company can easily meet its short-term liabilities.Manpower. The effect on manpower is uncertain because normally GET will make their employees redundant in a recession, but the Number of employees per rail kilometer is lower than industry average; Get has higher work efficiency.
Markets. GET’s booking and paying system is very successful and is adopted by their competitors. So they are a market leader.
Materials this is not mentioned (therefore don’t mention it at all in the answer)
The Make-up its organizational structure doesn’t need to change.
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