Udoka corporation case study Essay Example | Topics and Well Written Essays - 3000 words

Udoka corporation case study - Essay Example Operational process is the core area that has to be very efficient to retain the sustainability of a company. Therefore, in order to maintain a higher level of operational process, proper evaluation and controlling activities are inevitable. The evaluation of operational analysis can be done using the financial evaluation techniques specifically the ratio analysis. Besides, the management decisions and future strategies should also be analysed for determining the future growth of company in terms of operational performance. Hence, in this regard necessary information is essential like the financial data and management planning for operational process. However, merely computing the operational ratios will not offer very clear picture of a company’s performance. The results of evaluation must be compared with the peer rivals and with industrial average performance. There are also other financial techniques apart from the ratio analysis like horizontal analysis which is helpful i n comparing company performance in comparison to performances in previous years. As this report aims to evaluate operational performances of Udoka Corporation, outcome from the horizontal analysis can be used to assess improvements or degradation in Udoka’s performance. The primary aim for this analysis to is identify the underlying issues in Udoka’s operational performances and accordingly a set of plausible and specific recommendation will be offered. Brief Description of Udoka Corporation Udoka Corporation is engaged in mobile manufacturing business and technology and innovation is the base of this company. It is operating in a highly competitive business environment where every aspect of performance is crucial for sustaining in such severe competitive market. It is expected that in coming years the industry competitive will be fiercer and hence, it is necessary for Udoka to take necessary action to acquire an upper hand position in the market. The management of Udo ka is considering for investing for ensuring Udoka’s future, and in this process, it is very necessary to make proper decisions based on prevailing condition of finance and based on industry forecast. Analysis of Operational Performance Operational process includes the management cash receivable, cash payable, inventory turnover etc. Using these parameters, cash conversion cycle and operational cycle can be determined. To make better decisions for future growth, the proper evaluation of current status is indispensible which also offer indication of prevailing operational performance (Walton and Aerts, 2006, p.261). Using the financial data of Udoka Corporation, operational performance of the company has been determined. Table 1 represents horizontal analysis of Udoka’s financial statement and the table 2 depict the analysis of its operational performance. Table 1: Horizontal Analysis of Udoka’s Financial Statements Financial Analysis 2011 2,010 2,009    Actual Actual Variance % Actual Variance %    ?m ?m ?m    ?m ?m    Total sales 50,710 45,639 5,071 11% 41,075 9,635 23% Cost of sales 33,337 26,471 6,866 26% 24,645 8,692 35%                         Ratio of CS/Sales 66% 58% 8% 13% 60% 6% 10%                         Gross profit 17,373 19,168 -1,795 -9% 16,430 943 6% Gross margin 34% 42% -8% -19% 40% -6% -15%                         Operating expenses            

Business Research Individual Work 1 Week 8 Essay

Business Research Individual Work 1 Week 8 - Essay Example Lastly, there was the stratum for the 100 taxi drivers in each of the major company who were to be interviewed. Random sampling was used in each of the strata mentioned above for example for choosing the countries, cities, taxi companies and lastly for the taxi drivers. There was no specified order for choosing any of the categories above and hence an assumption that the interviewers chose the kth item in each stratum is used. This sampling method not only simplifies the whole sampling method in the large population as well as reduces the expenses of having to travel to different places or collect unnecessarily large information. The fact that there are diverse drivers also makes the information collected generalizable (Zikmund, Babin, Carr and Griffin, 2012). The population in this case study was the taxi drivers because they were the ones whose information was being sought and who formed the basis for the whole research. However, in order to get the information from the taxi drivers but ensure the information was generalizable as well as was accurate and reliable, it was necessary to work harder. The taxi drivers had to be found in different countries which meant not only choosing the countries but the cities as well. Since the number of interviews to be conducted were many, it was necessary to find a taxi company with large number of drivers than the provided approximate of 100 drivers in each company so that they can be randomly chosen. The sample in the case was the number of the taxi drivers in each major taxi company which is 100 specified in the case study. The 100 taxi drivers were declared the sample because they were the ones who were to participate directly in the interviews for the research being carried out. The sampling method as mentioned above is the stratified sampling technique which is under the probability sampling methods because it is purely based on probability and not on judgment of the