WK2AssgnJacksonM

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Walden University *

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6070

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Finance

Date

Feb 20, 2024

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docx

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Uploaded by EarlExploration6672

Module 1 Assignment: Financial Management Decision Making Report prepared by: Marquis Jackson Date: November 5, 2022 Walden University WMBA 6070: Managerial Finance 1

Company Profile, Part 1 The company profile that is currently being highlighted is Sirius XM. Sirius XM operates out of New York, NY and is publicly traded on the stock market using NASDAQ code SIRI. They exist in the radio broadcasting industry, providing satellite radio broadcast in multiple countries. Satellite radio is able to provide a more unique array of content than what is offered by terrestrial radio. “Terrestrial radio is limited to geographic regions. Although syndicated content from other markets may appear in local ones, that content is broadcast and received locally. Satellite radio, on the other hand, covers an entire continent with the same programming.” (Laukkonen, 2022). Having this consistent and widespread programming gives people access to unique content and perspective. This widespread presence also gives advertisers the opportunity to reach a larger demographic and potential increase their target market. While satellite radio is typically subscription base, it helps with their ability to provide this diverse content. Mission and Vision Statements When reviewing a company profile, it is also important review their mission and vision statements. “The mission and vision of an organization are integral to the company’s strategy because they are used to define future goals and operational tactics. While mission and vision are terms that are often interchanged, they actually refer to two separate aspects of the company.” (Ahmed, 2019). The mission statement highlights company strategies and the intentions behind these strategies. The vision focuses more on the future goals of the company and trajectory that they would like to achieve. 2

Communicating these messages clearly and effectively shows internal and external stakeholders what they should expect from the business. The following are the mission and vision statements on Sirius XM. As previously mentioned, you can see that the mission of Sirius XM spotlights what they want to provide from day one. They want to be diverse and entertaining for all of their current listeners. The vision gives insight into the future intentions of the organization. Their future goal is to expand their market and continue to make their services more easily accessible. Mission Statement SiriusXM's mission statement is "To be a diverse, vibrant, and valued service in audio entertainment that is vital to listeners." (Zippia, 2022) Vision Statement “To shape the future of audio where everyone is effortlessly connected to the voices, stories and music they love.” (SiriusXM, n.d.) Value to Shareholders When analyzing the value to shareholders, there are 3 areas to highlight. Those three areas are work environment/organizational culture, financial stability, and opportunities for further domestic and international growth. All three areas seem to be areas in which SiriusXM thrives. The first area that I would like to discuss is the work environment and organizational culture. Work environment is extremely important and has a significant impact on 3

employee retention, productivity, and morale. From what I gathered after looking at the career section of the SiriusXM website is that they strongly promote a healthy work-life balance. This is seen in a few different areas of their benefits and employee perks. Some examples of this are allowance programs to help support family growth, employee assistance programs, wellness resources, and early weekends. Sirius states that “We loved our Summer Fridays so much, we made them year-round. Whether you’re remote, in-office, or somewhere in the middle, the majority of our employees can end the workweek every Friday at 12:30 pm.” (SiriusXM, n.d.). These things are extremely important to employees and their families because they are able to spend additional time together without some of the additional stresses that other people may experience. From my own personal experience, perks like this would be beneficial to me as it would give me more time to spend with my kids. The second area we are acknowledging is the financial stability of the organization. Currently, according to the investor relations section of SiriusXM’s website, there has been a consistent 4% increase in gross revenue generated year after year. While most of the revenue generated by SiriusXM comes from their approximately 34 million subscribers, they have ventured into a view other revenue generating activities. “ SiriusXM is also a minority investor in SoundCloud, the world's largest open audio platform.” (SiriusXM, n.d.). In addition to this, Sirius XM has been able to acquire multiple other platforms such as Pandora, Stitcher, and Simplecast. These acquisitions have helped fuel some of the growth experienced by SiriusXM and has also given them a greater presence in the music streaming and podcast industries. “Year-to-Date Capital Returns to Stockholders Total $1.8 Billion” (SiriusXM, n.d.) 4

Finally, the opportunities for further domestic and international growth. “SiriusXM provides service in the U.S., Puerto Rico, and Canada. For security reasons, we must currently block access to our streaming service from selected countries.” (SiriusXM, n.d.). As we are aware, different countries have different standard for what they acceptable and appropriate programming and content. SiriusXM is currently being impacted by these regulations, but I hope to see this evolve in the future. From a domestic standpoint, they are accessible anywhere thanks to the satellite coverage. From an international standpoint, there will need to be a global evolution. I believe that this will be possible in places such as Europe and South America, sooner rather than later. Until then, there are people in other areas who disobey the rules of their local government by masking their locations using a Virtual Private Network (VPN). This VPN can make it appear as though your Internet Provider (IP) address is located in one of the permitted territories and in turn, allow you to listen to SiriusXM from anywhere in the world. While I am positive that this is not something Sirius would promote or condone, their nearly 150 million listeners are willing to do what they need to in efforts to listen to their great content. 5

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