Practical and Written Assessment

Practical and Written Assessment Assignment example
Masters
Assignment
Finance & Accounting
Pages 14 (3514 words)
Download 0
Finance and Accounting: Practical and Written Assessment Table of Contents Answer 1 3 Answer 2 5 Answer 3 8 MINI CASE 2: GOVERNANCE FAILURE AT ENRON 10 Answer 1 10 Answer 2 13 Answer 3 15 Reference List 18 Appendix 1 20 MINI CASE 1: PORSCHE CHANGES TRACK Answer 1 Porsche Automobile Holding also known as Porsche is a German company headquartered in Zuffenhausen, Baden-Wurttemberg…

Introduction

As far as the profitability of the company was concerned, it has been quite impressive in past decade in the automotive industry, as the growth and profit margin of the company in Figure 1 reveals. Figure 1: Growth of Profit and Margin of Porsche Source: (Moffett, 2005) The strategy that Porsche followed for both Cayenne and Boxster was a combination of outsourcing, licensing and in sourcing to influence the investment of the shareholder. Due to this strategy of the company, they enjoyed high return on the invested capital (ROIC), as the increasing sales of the product line shows in Figure 2. Figure 2: Augmenting Sales of Various Product lines of Porsche Source: (Moffett, 2005) During the fall and summer of 2005, two significant announcements were made by Porsche, which changed the directions. The first announcement was that Panamera would be manufactured by the company through company’s own funds and in their own factories. The second decision was that Porsche invested around 3 billion in Volkswagen AG at an interest rate of 20 percent, which was an underperforming automaker of Germany then (Eiteman, Stonehill and Moffett, 2010). In this section of the study, the focus of discussion would be on the strategic decisions that the company has made which augmented its ROIC. ...
Download paper
Not exactly what you need?

Related papers

KPMG: The Internal Controls Practical Guide
Supervisory control is vital in ensuring that sales orders have been reviewed by two parties at the very least. According to the KPMG guide for internal controls, it is important that an organization adopt a culture where internal control is inherent in terms of accountability and operations, to ensure effectiveness of controls (Stock 1999, 24). Shipping – In order to determine the occurrence of…
Working capital trade-offs of. Porsche AG, Daimler AG, and BMW.
This section would be discussing the working capital trade-offs of three luxury car manufacturing companies Porsche AG, Daimler AG, and BMW. …
Environmental Impact Assessment
This shows the fast growing trend of establishing wind energy infrastructure and it is evident that we are going to see many similar projects been commissioned. On one hand it is a very healthy step to shift from non-renewable fuels to green technologies such as wind energy but these technologies also have some issues regarding their impacts on environment and need to be scoped and studied.…
Risk Assessment: Internal Control Evaluation from an Auditors Point of View
A proper internal control system entails the execution of efficient and effective control activities at different areas of an organization. The internal control system should be set up by the management parallel with the strategies and objectives established by the board of directors or management, and should incorporate all workers in the organization. The activities should be evaluated and…
ASSESSMENT
Non-conventional types of dividend payments, particularly share repurchases are in most cases used currently, and therefore, the dividend decision is much more multifaceted and complex than it was in the past. In addition, there are more significant types of shareholders who should be satisfied today-particularly institutional investors-while managers once merely have to satisfy individual…
CAPM (Capital Asset Pricing Model) and Its Practical Use.
It is carried out through a properly designed and professional model that does not require to be completely renewed on a case by case basis. It has, therefore, met the requirements of the Asset Management industry in which the capacity to correctly price securities, and to properly infer the right rate of return. These are used to determine traditional and innovative alternative assets and provide…
Finance Assessment
In this concept one stocks performance is benchmarked by the performance of another stock. The returns which will be generated are compared relatively to other stocks of similar nature operating in the markets (Gitman, 2003). The major difference between both the absolute and relative return is that absolute return is concerned about the returns which are generated from one particular asset or…