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Most Recent Articles
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- Transforming Grounds
A strategic dilemma every corporation might face at some point has to do with the difficult decision of expanding its business through the acquisition of another company. In many cases, this type of direct investment , like in the 2000 acquisition of Nabisco by Kraft, the second only to Swiss-based Nestle in the food world market, purchasing a business unit or an entire corporation is a strategic investment choice of major importance for all stakeholders. In fact, experienced managers around the globe, like Kraft Chief Executive Officer Roger Deromedi, attest that a company has to investigate and evaluate the opportunity of acquiring another company thoroughly before its Board of Directors reach such a decision.
When a marketing manager thinks of opportunity or problem tracing it is imperative to begin by uncovering its overlapping characteristics. For this reason it is considered absolutely necessary to conduct what businesses refer to as "situation analysis." This type of research is an informal study of what information is available in the specific area. It can help define the problem/opportunity and specify what additional information-if any-is needed. Such industry-related reports, like McKinsey's, are of great importance and value in order to obtain and maintain a closer look of the specifics of the industry under focus and its environment. Specifically, the industry's background and trends, the level of the industry's consolidation, customer fragmentation, technological upgrading, international market forces, the ability of a company's personnel to understand the customers' needs and the significant economies of scale, are some of the areas this report has to cover. In addition, conducting an environmental analysis and examining the socioeconomic factors of the market(s) in question can assist those who are about to take a decision to identify the key success factors that have to be considered in depth and improved/expanded if the company examined is actually acquired. Also, this type of preliminary research has been also referred to as a SWOT Analysis, since it is important to identify the strengths, weaknesses, opportunities and threats that such a business decision entails. - Financial Ratios In Sports
Financial statements both report on a firm's position at a point in time and on its operations over some past period. However, their real usefulness lies in the fact that they can be used to help predict the firm's future earnings and dividends as well as the risk factor of these cash flows. From equity investor's viewpoint, predicting the future is what financial statement analysis is all about. From management's viewpoint, financial statement analysis is useful both as a way to anticipate future conditions and, more important, as a starting point for planning actions that will influence the future course of events for the firm.
Financial ratios are designed to show relationships among financial statement accounts. Ratios put numbers into perspective. They provide the necessary comparisons in order to comprehend the firm's current situation along with it's past performance and its future potentials and threats. Such comparisons are made by ratio analysis. It must be pointed out that according to financial analysts, a single ratio is relatively useless in making relevant evaluations of a firm's health. Thus, if it is to be effectively interpreted a ratio must be systematically compared with other ratios of the examined company, or even the industry competitors during a specific period of time. - Working Capital Management
Financial management decisions are divided into the management of assets (investments) and liabilities (sources of financing), in the long-term and the short-term. It is common knowledge that a firm's value cannot be maximized in the long run unless it survives the short run. Firms fail most often because they are unable to meet their working capital needs; consequently, sound working capital management is a requisite for firm survival.
About 60 percent of a financial manager's time is devoted to working capital management, and many of the potential employees in finance-related fields will find out that their first assignment on the job will involve working capital. For these reasons, working capital policy and management is an essential topic of study. In many text books working capital refers to current assets, and net working capital is defined as current assets minus current liabilities. Working capital policy refers to decisions relating to the level of current assets and the way they are financed, while working capital management refers to all those decisions and activities a firm undertakes in order to manage efficiently the elements of current assets. - The Environment Of The Eu Banking System
Banks are defined as a business organisation that performs services in relation to money. Specifically is the process of keeping money for customers and paying it out on demand, in the form of deposits, borrowings and exchanges. It has become a cliché to note the revolutionary impact of information technology (IT) upon any industry, but the real upheaval lies just ahead. As experts back in the 90s stated, "If the number-crunching mainframe computers of the 1970s formed the childhood of IT, and the flowering of personal computers during the 1980s marked its youthful adolescence, then the 1990s seem likely to see the passage of IT into adulthood". As it has been foreseen, during the 21st Century, technology became directly related to almost every single activity and function of a bank. Deposits, withdrawals, loans, transfer of capital and updating are just some of the functions that are carried out electronically, as computers support communication networks or ATMs.
In the late 1990s, banks have come to realise even more and understand better the importance of technology since they have tried to take advantage of its progress. The computer sciences and all aspects in telecommunications, with particular emphasis on the Internet capabilities, constituted one of the most profitable areas banks decided to invest. These two fields of technology have had the greatest potential for growth and profitability. Currently, as the banks anticipate the rapid IT growth potentials, they continue to give a lot of emphasis on the technology of e-banking-the transactions with banks through Internet-and e-commerce of products and services. Noticeable is the fact that almost every bank in the globe currently offers e-banking services via their Internet links. - Property Rights And The Eu
The European Community (also referred to as the European Economic Community) has as its task the establishment of a common market and the progressive approximation of the economic policies of Member States. The term common market has been defined as an area, which consists of two or more Member States that abolish tariffs and other trade barriers in their mutual trade, set-up a Common External Tariff with third non-EU countries and apply the principle of the free movement of the sources of production (goods, labor, capitals) within the territory of that area.
One of the fundamental principles of the European Union is the free movement of goods between Member States. Thus, Member States are prohibited from imposing any restriction on imports or exports might hinder the free movement unless EC Law allows it. The European Union's Institutions through their instruments and law regulations strive to develop a free commercial network that does not suffer from custom duties, quantitative restrictions, or other charges having equivalent effect on imports or exports. - Planning Ahead For Your Family’s Financial Security
No one likes to imagine that illness or death could compromise their family's financial security. But, tragically and all too often, these things devastate families and leave them in a vulnerable financial position just when they need the most security. Spending only a few hours preparing for such a scenario might save your family needless trouble. Once, only fathers needed to worry about this, but today with two-earner families comprising the majority of American families, both partners should actively participate in planning to ensure financial security for themselves and their children.
At the very least, each partner should have a simple will specifying who will receive assets and who will take guardianship of the children. Financial professionals advise naming one person to control the financial assets and another person to take physical custody of the children. You can prepare your own wills by purchasing a kit online or at an office supply store. Although this is a good short-term solution, you should consult a lawyer as soon as possible, particularly if you have a lot of assets or there is disagreement in your extended family about who should serve as guardians for your children. - Protecting Against Identity Theft
Identity theft is a horrible problem. Those whose identities are stolen must go through so much legwork just to get their lives back on track. The worst part about identity theft is the fact that so many people believe that it could never happen to them. In all honesty, they could be no further from the truth. More than 500,000 American citizens' identities are stolen per year, and we've written this article to provide some tips when it comes to protecting your identity.
- First and foremost, you need to make sure that you keep your social security number safe. Your credit reports and bank accounts are linked to your social security number, and if an identity thief has that information, their work is made a lot easier.
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