Internal Analysis of Texas Instruments

1743 Words7 Pages
3.0. INTERNAL ANALYSIS 3.1. Organization Analysis 3.1.1. Structure and strategy TI has a decentralized structure, which comprises the company’s BOD and executive officers. The BOD commits effective and responsible corporate governance. The board deliberates its governance practices annually to ensure they make sense for the company in today's business environment (The Economist, 2009). The BOD nominates the executive officers of the firm. They comprise the chief financial officer and chief executive officer as well as the leaders of the firm’s principal business functions and units. Strategy TI is aware that its customers depend on the company to assist them innovate and get to market first. The company, therefore, drive toward…show more content…
It istaking the company’s stock price and comparing it to its earnings, cash flow, or book value (Nishi &Doering, 2000). As of August 2015, Texas Instruments, Inc had a potentially good value play as its share prices traded at $46. The value looks overpriced. However, TXN shares have a possible intrinsic value in the range of 43 to 58 dollars. 3.3.2. Growth Analysis The growth analysis provides information concerning how well the company is doing over time in terms of net profit, revenue, and operating income. As previously strated, it is predicted that TI's market share in analog semiconductors is set to increase from 18.3 per cent in 2014 to about 19% by the end of the forecast period. The gross margin on Analog products is forecastto increase from 58.9 per cent in 2014 to 50 % by the end of our forecast period because of the lower production costs from TI's Richardson fabrication plant. 3.3.3. Profitability Analysis Profitability ratios generally signal how well the company’s operations are upholding as well as the impacts of liquidity, debt,and asset managementon operating results. The Analog segment is still the most valued segment for TI, contributing more than 60% to its revenues and 70 per cent of its operating profit in 2014. Texas Instrument is the market leader in analog semiconductor industry with a market share of 19 percent.Texas
Open Document