3,000-word individual report Essay Example | Topics and Well Written Essays - 3000 words

3,000-word individual report - Essay Example They are investing in foreign countries to explore potential resources existing in these nations. They use innovative business strategies to enhance the profitability of business and quality of products and services offered to the customers. Undoubtedly, this improves the competitive advantage of the company and helps it to acquire a competitive position in the market. To develop a better understanding of globalisation and its impact on contemporary business environment; an in-depth analysis of business environment of China will be conducted. This analysis will help to identify the motivational factors as well as the obstructions faced by the international company. This analysis will also assist in understanding features of national innovation system existing in China’s automobile sector which help to attract high amount of foreign direct investment. And finally, the strategy to be followed by Volkswagen will be discussed to introduce innovation in the existing business process. This report basically discusses the globalisation strategy to be selected by one of the well know international brand, Volkswagen for expanding its business. The company was established in 1937 by the Nazi trade union in Germany. The term â€Å"Volkswagen† means â€Å"peoples car†. With time, the company diversified its market and became an international brand (Volkswagen). As per the market data, Volkswagen has a dominant position in China. In the second quarter of 2010, China was the most profitable market of Volkswagen (Cremer, 2010). The data published by the company reflects a sharp increase of â‚ ¬172m in operating profit during Q3 in China market (Schà ¤fe, 2010). From January 2010 to September 2010, the company performed well in China, registering a stupendous growth both in terms of volume and profitability. In the last three quarters, Volkswagen sold 1.48 million cars in China; a growth of 39 percent on y-o-y basis. This

Financial Statement Analysis Case Study Example | Topics and Well Written Essays - 500 words

Financial Statement Analysis - Case Study Example This shows that the short-term financial position of Advance Auto Parts and Pep Boys is slightly better than that of AutoZone. While a low current ratio shows that the short term financial position is endangered, a very high current ratio would indicate idleness of working capital. It would mean that cash is not being utilized in an optimal way. For example, the excess cash might be better invested in equipment. A current ratio can be improved by increasing current assets or by decreasing current liabilities. Acquiring a long-term loan instead of short-term debt, selling an idle or less useful fixed asset are some of the many ways of improving the current ratio. The quick ratio (also called 'acid test ratio') indicates the liquidity of a business. The quick ratio looks only at a company's most liquid assets and compares them to current liabilities. It tests whether a business can meet its obligations even if adverse conditions occur. In general, quick ratios between 0.5 and 1 are considered satisfactory as long as the collection of receivables is not expected to slow. AutoZone has a very low quick ratio of 0.173 times.