HOW TO RECOVER FROM A FINANCIAL CRISIS IN BUSINESS.
HOW TO RECOVER FROM A FINANCIAL CRISIS IN BUSINESS:
THE CASE OF SAMSUNG CORPORATION FINANCIAL ASSESSMENT OR
THE CASE OF VOLKSWAGEN CORPORATION FINANCIAL ASSESSMENT:
Both companies are among the top companies in their area in Europe and worldwide in terms of
footprint, turnover, profits, technological advance and innovative products and services despite the
recession by reinvesting their profits and focus on long term growth. Both of them are always ‘on
the way’ and constantly see possibilities to improve for the future through a healthy competitive
environment.
However, each of them for different business reasons had to face and cope with a severe financial
crisis quite recently. In their effort to steadily apply the strategy “value for money” to their
customers and satisfy them with innovative applications in their sectors, they have not succeeded
to offer the desired products/ services based on the customer’s expectations and satisfy them with
innovative applications in their sectors. Therefore, both have launched extensive crisis
programmes for a lower cost structure at their companies, where the main focus is to have a quick
recovery the sooner the better.
Sources taken from Annual Summaries that both companies release every quarter, both of
them are listed in Stock Markets and numerous web sites and Press Release Sources.
Requirements:
Please start up by consulting a number of related books and articles on financial reporting and
managerial accounting/costing in your library and the electronic folder of your pack. List the
desirable characteristics of financial reports as outlined in such books and articles. Examine the
annual reports of SAMSUNG or VOLKSWAGEN CORPORATIONS with all the financial
statements included (at least 3 financial years per company) towards the following points:
1. Examine these reports and then make the appropriate financial assessment on it to see how
far in your view it appears to contain the desirable characteristics of financial reports as outlined in
the textbooks. (You must show all workings, that is to analyze the financial performance and risk
position of these companies as disclosed by its financial statements and explain ratios calculated
for at least 3 financial years per company and make and comparison between the years before and
after the crisis with the respective detailed analysis). (50% of the total mark)
2. Given the focus of SAMSUNG or VOLKSWAGEN CORPORATIONS on the customer, the drive
to reduce costs and “value for money” concept and quick recovery plans, technological innovations
with huge investments regarding future and always “looking forward” and the emphasis on
“customers and suppliers” working together to overcome the crisis, You are required to:
Discuss, using relevant academic literature to support your arguments, the potential for using
strategic management accounting/costing concepts and techniques to help promote and facilitate
SAP or VOLKSWAGEN CORPORATIONS ambitions for the future with a comparison with similar
companies such as (APPLE for SAMSUNG or BMW for VOLKSWAGEN for example).Prepare a
written report on your findings and present them on your assignment and provide a practical
example on a specific area regarding their accounting and financial implications. (50% of the total
mark).
HOW TO RECOVER FROM A FINANCIAL CRISIS IN BUSINESS
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