Samsung And Huawei. Comparative Strengths And Weaknesses. Finance
Just do part 4
Five Financial Ratios to calculate process and results
And answer five questions from part 4
Fall 2019 1 Pennsylvania State University – Abington FINANCE 301: Corporation Finance (Sec 101) Fall 2019 Team Project This group project (written report) is 15% of the course grade, and group presentation of the project is worth 5%. Please note that all group members are required to present. Please check Canvas for your group number. Deadline: October 6th, 2019 (midnight) • The following 3 sets of documents should be uploaded to Canvas: written report, power point presentation and copies of 2018 financial statements you used to conduct ratio analysis. • All submissions must be done through Canvas. • Presentations will take place in class on October 8th, 2019. Project details: • Pick 2 competitor corporations. Conduct an analysis of these 2 organizations and conclude which company has performed better in 2018. • Prior to starting your project, make sure that the instructor approves two corporations you intend to analyze. • The written report should include the following parts: 1. Introduction of the two corporations (half page). 2. Research both companies and provide a discussion of their comparative strengths & weaknesses (1 page) 3. In a table (a template is provided on Canvas), present calculations and results of calculating the following 5 classes of financial ratios using 2018 financial data. In each ratio category, you should calculate the most relevant ratios for the industry you are considering. • Short-term solvency (or liquidity ratios) • Long-term solvency (or financial leverage ratios) • Asset management (or turnover ratios) • Profitability ratios • Market value ratios 4. Provide a detailed discussion of the 5 classes of financial ratios relating to the material covered in class (2-3 pages – the focus of this assignment). • Which firm has better solvency/liquidity? • Which firm has a stronger ability to service its long-term debt and make interest payments on time? • Which firm uses its existing assets more efficiently to generate sales? • Which firm is more profitable? Fall 2019 2 • Which firm has a higher market value? 5. Conclude which of the 2 organizations has performed better in 2018. 6. Make sure to cite any sources you use and to provide a reference list. Notes: • Financial statement of companies can be found on their websites. Annual reports can often be found under the ‘Investor Relations’ website section or on the EDGAR website (https://www(dot)sec(dot)gov/edgar/searchedgar/companysearch.html). • The following documents should be submitted by October 6th, 2019 (midnight) to Canvas: written report, power point presentation and copies of 2018 financial statements you used to conduct ratio analysis. Written Report: • The first page should contain the following information: Class name & section, term, group number, and names of all group members who contributed to the project. • The report should be written using font size 12, double spaced, numbered pages. • The report should not be longer than 5 pages (the first page of the report with students’ names, table with ratios and reference list do not count towards the 5- page limit.) Power Point Presentation: • The first slide should contain the following information: Class name & section, term, group number, and names of all group members who contributed to the project. • Presentations will take place in class on October 8th, 2019. Team Presentation: • All group members are required to present. • Each group is allocated 10 minutes per presentation. Grading Criteria: The written report will be evaluated based on the following criteria (15%): • Content: adequate coverage of topic, logic of arguments, presentation of all calculations, relevance and indication of all used resources. • Presentation/Clarity: use of appropriate headings, appropriate organization, and ease of understanding. • Accuracy: free of spelling, grammar, and content errors. Presentation will be evaluated based on the following criteria (5%): • The ability to explain material in a clear and convincing way. • Displayed materials should be self-explanatory, organized and should enhance the verbal presentation. • Presenters should speak clearly and loud enough for observers. Fall 2019 3 • The ability to handle questions in a graceful manner. • The presentations should not run over the allocated time slot. Late submission of group project: • The grade for group project received up to 24 hours after the published submission deadline will incur a 20% deduction. • Work submitted more than 24 hours after the published submission deadline will not be accepted.
Samsung and Huawei
Student’s Name
Institutional Affiliation
Date
Samsung and Huawei
Samsung is an electronic company which is based in Suwon, South Korea. Founded in 1938 by Lee Byung-chul the company deals with electronics and is one of the biggest manufacturers and dealers of electronics and semiconductors in the world today. Since its foundation it has expanded its operation in more than 80 countries and the workforce has rose to approximately308,000 employees. By the year 2018 the revenue of Samsung has amounted to US$ 40billion.Samsungs competitor is Huawei Company founded in 1987 by Ren Zhengfei in Shenzhen Guangdong, China. It is also one of the largest manufacturers and retailer of electronics and phone accessories. By the year 2018 the income of Huawei was approximately US$ 8.6billion and about 188,001 employees. The two companies are rivals in the business using different strategies to trade (Omair et al., 2010).
Comparative strengths and weaknesses
Some of the strengths of Samsung include;
Has strong operating system and best software. The company uses the high technology of the android software, which is one of the open source technologies. The android software is now used by other companies working alongside Samsung. The company provides to the customers the best features options and software in their devices for use. Samsung has taken lead of the electronic business because of this strategy and therefore using it as a competitive advantage over other rivals in the industry.
The company has product diversity. The company manufactures and retails a wide number of products to the market. This offer the customers the chances of choosing the variety they need. When the sale of some products comes down because of the price reduction in the industry, the price of other products increases in price and sales therefore no loss is experienced. This product diversity and stability enables the company to compete with other rivals in the market (Rasheed, 2012).
Weaknesses of Samsung
The company ensures that it has kept the profit margin low because of the high number of manufacturers of electronics in the industry. This is done to retain the customer
Lack of dependence on software. The company does not have its own software in its devices. This makes it to rely on other software developers in its operation. This has hindered their business greatly.
Strengths of Huawei
The strengths of Huawei include;
The company has large product portfolio. Huawei has engaged in the production of many varieties of smartphones. The numbers of smartphones that are produced by the company have been increasing over time. This has enabled the high sales of smartphones hence high profits. This is one of the best strategies used by Huawei against the competitors.
The Company uses of technological innovation. The use of high-level technology has boosted the operations of Huawei. It has made use of the research and development as a strategy in business. The smartphones of Huawei are endowed with high quality cameras than any other company. The introduction of 5G technology has boosted the sale of Huawei products (Xie, 2016).
Weaknesses
Huawei has inadequate capital. Huawei has relatively invested low capital in its operation compared to its rivals Samsung. This has led to the company struggling to compete with the competitors. It has little capital left for marketing and branding of its bu...
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