Principles of Corporate Finance Essay Example | Topics and Well Written Essays - 3250 words

Principles of Corporate Finance - Essay Example For example, the year 2008 witnessed a global financial crisis, which had a significant impact on the cash flows of firms that depend on banks for funding. Even if Timbercorp may not have been directly affected, it may have indirectly been affected by a reduction in demand for its products on a global scale as consumers find it difficult meeting up with payments. Secondly, the economic environment is constantly changing. Interest rates and exchange rates continue to change and this has an effect on Timbercorp’s financing and investment decisions. As earlier mentioned, the company is a leading participant in the agribusiness sector through the food and fiber industries and the land and water rights and infrastructure associated with these industries. The sector provides a lot of opportunities and threats. As far as opportunities are concerned, the agribusiness sector remains a crucial part of the global economy and it is estimated to be worth approximately US$5trillion. In addi tion to its importance for delivering food security, it also encompasses half of the world’s labor force and assets as well as 40% of consumer purchases. Global population is expected to grow to approximately 8.3billion by the year 2030. These developments will help boost demand for Timbercorp’s products. The company anticipates a 60% rise in the demand for food and fiber products by 2030. However, there are also challenges for the company. For example, the amount of arable land is declining and these may adversely affect the company’s ability to meet rising demand for its products. Other challenges facing the company include rising operational costs, limitations on the access of water resources, as well as rising oil and gas prices.  The company reports that high oil and gas prices had a material adverse impact on harvesting and transportation costs as well as on the costs of fertilizers.  

Able Corporation Essay Example | Topics and Well Written Essays - 1250 words

Able Corporation - Essay Example Strategy choice and implementation are the primary determinants of strategy success. The analysis of strategy performance over time provides important diagnostic inputs into the development of strategy choice concepts. The early discussion highlights the importance of matching the strategy choice with the conditions of the environment and the organization's skills and resources. The long-term importance of selecting a sound initial strategy has research support. In order to define the identity of Able Corporation, it is important to take into account the nature of business and market strategies. Research suggests marketing strategy should be conceptualized and investigated within the context of the organizational mission. Most marketing strategy frameworks address the role of organizational mission but few empirical investigations actually take mission into account. Perception of market needs does not mean that an opportunity exists for any particular company (Fill, 1999). Available opportunities must be related to the particular company's resources, including its personnel, financial, and physical resources. Profitable courses of action vary with individual corporate postures and goals. The overwhelming majority of innovative opportunities will be rejected. But it is necessary to screen the many to find the few that do relate to the resources and the mission of the company (Johnson and Scholes, 1998). This function of innovation relates to specifying the company's innovative opportunity by identifying the various practical alternatives that exist to remedy the discovered dysfunctioning. This is a job in which the technician can assume a major responsibility. An analysis of total company operations and methods in the light of market opportunities is helpful in sifting the opportunities to arrive at the few that are most relevant and profitable for the company's current situation (Doyle and Stern, 2006). Because of different organizational goals and missions, each organizational type defines a unique strategic situation. The first group was labeled "mom and pop shops." These firms are extremely small and possess little marketing expertise or resources. The second group are stable, high-payoff companies. These enterprises have achieved some success and may have acquired substantial marketing expertise within a limited market. Such firms have no aspirations for future growth. A third group is composed of growth-oriented small firms. These are new ventures with a mission defined by aggressive growth (Johnson and Scholes, 1998). In order to prioritize the implementation steps, it is important to analyze a current market situation and take into account possible changes and market fluctuations. The extent to which a marketing strategy should be modified over time is an important strategy choice issue. Successful enterprises select and retain a strategy on a continuing basis. This issue has critical implications for the new enterprise, particularly when entering a new product-market where the lack of experience in the market provides little or no direction concerning strategy choice. Entrepreneurship research also provides insight into two important marketing strategy options: strategic alliances and product diversification. Small firms are also utilizing collaborative marketing strategies. In an empirical study of entrepreneurial high-technology firms, small firms at a competitive disadvantage with rivals in their industry were likely to utilize joint ventures or other cooperative strategies to launch new prod ucts (Doyle and Stern,