Forums › OBU Forums › General Queries Topic 8
- This topic has 312 replies, 84 voices, and was last updated 4 years ago by maryam20.
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- April 17, 2015 at 7:23 am #241574
@hannah0275
I can only answer queries that I can understand and yours unfortunately are not clear. What do you mean by:
“I have subtitled two types performances and using PESTEL analysis for business performance and ratios and revenue anaysis for financial performance. Is this good method to divide company’s financial and business performance in two sections?” ????Have you read my article on Evaluation & analysis on our homepage http://www.opentuition.com/obu as I stress the importance of INTEGRATING factors from the SWOT and PESTLE when EXPLAINING the factors in the financial analysis?
Again I do not understand the following commentary – I appreciate English may not be your first language but if I don’t understand it neither will a marker:
”Net profit margin was dropped from 3% in 2010 to -12% in 2013, by analysing this margin, we can assess the ability to expand the business through additional debt or other investments. However it does not look feasible”
What are you trying to say here? It has to be clear. So the net profit fell from +3% to a net loss of 12% but after that I don’t know what you are saying. I know what you SHOULD be saying and that is explaining exactly why this company went from a profit to a loss situation – what factors produced this – bad management decisions (i.e. ones that were not based on the SWOT but should have been) e.g. attempting to enter a difficult market, loss of contracts, attempting to cut costs that impacted on quality that resulted in loss of sales overall? PESTLE factors – changes in the law regarding its operations making them more difficult/expensive? Obsolescence – the product is too dated in technological terms? Changes in consumer preferences (social factors)? You need to research the reasons. The SWOT & PESTLE factors often lie at the heart of what has gone on (hence the reason I talk in my article about integrating the two).The structure of the RAP is set out in the Information Pack which all students must familiarise themselves with this. A degree is about thinking and researching for yourself and working some things out for yourself too – this is not the mentor’s task
The conclusion should be a summary of the principal findings i.e. the main points that influenced and impacted on the company’s performance and results over the last 3 years
Regarding Referencing: the marker needs to be able to identify exactly what is being referenced so references go in the text unless the whole paragraph is being referred to. The rule is every idea or use of a source must be referenced each time including the graphs and charts
If you are struggling through lack of guidance then I suggest that you look for a very good mentor (by the way I am not a mentor I am the Forum Moderator. We recommend The Learning Luminarium as they are very experienced and offer a variety of packages suited to different students’ needs). You will need to have a mentor to certify your work.
April 21, 2015 at 8:38 pm #242122AnonymousInactive- Topics: 0
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@Anna. The link you provided is not working.
February 1, 2016 at 10:45 am #298845AnonymousInactive- Topics: 0
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I am doing Topic 8 for my RAP but there are only three company in the industry and only one is listed, as such the other are refusing to give me there information as in FS, can i go ahead and do the RAP without a Comparator?
February 1, 2016 at 12:50 pm #298851You do not state which companies you are looking at but the choice is worldwide so you will have to use listed companies in another country if necessary.
You must either use a comparator or bench mark against industry averages but you will have to supply proof of the industry averages i.e. a publicly available document that shows these. If you do not use a comparator/ industry average for Topic 8 you will failed by the marker.
Comparisons should now be made over 3 years as only doing this for one year will mean you don’t get higher than a C grade.
February 2, 2016 at 8:08 am #298932AnonymousInactive- Topics: 0
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Thanks Traphena, am helped
February 19, 2016 at 2:08 pm #301159@trephena, Could we still aim for an A grade if we base our analysis on unconsolidated financial statements of a group company? For example can I only use KLM’s financial statements and compare it with British airways solely?
February 19, 2016 at 4:13 pm #301167@trephena, DO you think its better to use the Porter Five forces model or the PESTEL model for a company which has a global presence. I will be using SWOT but i am not sure about what other model to use. Please guide me and if you have any other suggestion please share it too.
Thanks
February 19, 2016 at 5:55 pm #301174Interesting question as normally I think Porter’s 5 forces is of limited use but I can see where you are coming from with this. Porter’s may be better – it depends on the industry as a PESTLE could still be relevant. What you really need to do though in addition is read the CEO and directors reports for the last 4 years – yes 4 years – as the earliest one will give you some idea of the management plans for future years (the 3 you are looking at). Try to focus on the company strengths and opportunities and see how they have built on these if possible. Also even if not doing a full PESTLE consider how slowdowns or surges in the global economy may have impacted on results and how the fall in the global price of oil has affected things in the last year or two when looking at costs, revenues, turnover and margins.
I always suggest starting Part 3 with the application of the models and trying to bring in the factors from them as much as possible in the financial analysis. (I have seen comments from markers going on about how management strategies should be discussed when evaluating results and that the models need to be better integrated into the work generally). Although you probably only can apply 2 models in your report because of word count limitations it may be worth looking at SWOT, PESTLE and Porters when drafting your ideas as they could possibly all help you do a better all round analysis.
February 21, 2016 at 6:58 am #301341Hi
I have pick the Mobile telecommunication industry and my company is rogers.I have two ask two questions1. My company issued its 2015 financial statements on 11 feb according to the Obu 2015-2016 packet we don’t have to pick the year if the statements are issues less than 90 days before the start of the submission period.In my case it does fall in that category.Is it okay if i take years 12 13 14 ?
2.Since my company is a telecom company its sales consist of all other telecom products also asides mobile telecom. Where I have to show industry sales should i should sales related all telecom products or Mobile only as Mobile only sale aren’t available.
Hope someone helps.
February 21, 2016 at 12:46 pm #301400need some help with the structuring ….my mentor is a dud ….. HELP !
February 21, 2016 at 11:06 pm #3014861. Yes you can analyse 2014, 2013 & 2012 year ended financial statements.
2. You can mention both mobile & all telecom products. I will recommend to highlight those items in industry which are your company’s main product(s). In-case if no data available for only mobile then you can skip it in industry analysis and mention overall statistics.
Regards,
Hammad Ahmed Qureshi – OBU Registered Mentor.February 21, 2016 at 11:07 pm #301488February 22, 2016 at 3:42 am #301501@trephena Thanks for the reply. I highly appreciate the feedback
February 26, 2016 at 9:07 pm #302245First of all you should read Bsc info pack 2015/2016 and make a list of questions.
I will be happy to answer you. If you have any specific question, feel free to ask me.
Regards,
Ali Farooq
OBU Registered MentorMarch 12, 2016 at 4:13 pm #306061Hello,
i have selected glaxosmithkline for RAP. But i am confused whether i should choose its parent company based in UK or its subsidiary in India for evaluation . And if i choose subsidiary will i have to evaluate performance of parent company also.
And second issue is about choosing the competitor company for benchmarking the performance i am planning to choose pfizer, is it the right choice.Thank you
March 12, 2016 at 6:46 pm #306076Hi, Roop, Hope you are well!
1. If you choose UK Based Parent Company then you will have to look at its diverse performance over range of regions or countries where it control operations including India. If you chose Indian and you have standalone accounts available for Indian Operations only then you are not required to analyse parent company as their figures are not included in Indian company financial statements that you are analysing.
2. Company Pfizer is fine and also Glaxo as both meet criteria of OBU for topic 8 & 15 that they are Pharmaceutical companies.
4. Remember if you select UK company accounts for Glaxo operations then Pfizer accounts should also be of UK, if you use standalone accounts covering only Indian operations then you cannot compare UK Pfizer financial statements with Indian Glaxo. Comparison must be Like With Like.
Regards,
Hammad Ahmed Qureshi – OBU Registered Mentor.March 13, 2016 at 12:02 am #306107roop1234
You will bring all these issues to the attention of your project mentor, He/she guides you step by step and develop your research skills.
I suggest you to select companies from same countries because you will analyze Business and Financial performance over three year period. to keep balancing your report you will have to have reliable information from different sources to help you end your report within word limit. Both countries have different business and financial environment and how will you make sure your analysis is more meaningful and like with like,
You can select any of the following companies for your research project
Novartis
Pfizer
Roche
Sanofi
Merck & Co.
Johnson & Johnson
GlaxoSmithKline
AstraZeneca
Gilead Sciences
Takeda
AbbVieKeep in mind you can find different sources easily during your project, only annual report is not enough to prove your deep research. most of the information students access online. Does this sound good to you
Regards,
Ali Farooq
OBU Registered MentorMarch 13, 2016 at 2:07 pm #306179March 13, 2016 at 5:09 pm #306202Yes, you can subject to information available on GSK Pharmaceutical Ltd.
Regards,
Hammad Ahmed Qureshi – OBU Registered Mentor.March 15, 2016 at 5:37 pm #306513you can select for your RAP. and make sure you will have sufficient information for both companies in India. If you do find more information in India then you should evaluate those annual reports otherwise select both companies in the UK.
Regards,
Ali Farooq
BSC registered MentorMarch 25, 2016 at 10:03 am #308247Hello I am writing on pfizer co.
I want to know when i calculate net profit margin ,do I need to take net profit attributable to pfizer or total net profit?
Thank youMarch 25, 2016 at 9:45 pm #308315Both are fine, depending you what you are analyzing buti recommend total profit as it tells overall company’s performance and amount invested in it.
Regards,
Hammad Ahmed Qureshi – OBU Registered Mentor.March 26, 2016 at 3:20 pm #308343In Pakistan, there is no listed Airline and mobile company, I am going with pharmaceutical industry and as per my knowledge there are only two company which are listed GlaxoSmithKline and Sanofi. Can i chose both of them, one as my main company and second for benchmarking purpose? Do i need to write my report in $ or local currency?
One thing more, can i write in “reason for choosing this industry” as there are no mobile and airline listed company available in Pakistan?
March 26, 2016 at 8:27 pm #308357PIA is listed in Pakistan and yes you can go for GSK and Sanofi. You need to write your report in currency in which accounts are made.
Yes, this is good idea and useful to write reason for selection of industry.
Regards,
Hammad Ahmed Qureshi – OBU Registered Mentor.March 27, 2016 at 3:54 am #308362I wanted to clarify something, persons submitting for Period 32(May) can only do so for companies in the designated industries?
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