NORAM Simulation

In addition, during the simulation, we operated as co-managers of a multi-product firm in the internationally environment, and in this case being located in four geographic areas is pretty challenging. First of all, it is important to take a look at the interest rate of every location because they vary a lot and can have a big impact in the revenue of the company.

Revenues, profit and high gross margins combined with a sound control on company expenses and a wealthy cash flow report

How did the corporation perform the past year overall in terms of return on investment, market share, and profitability?

Industry averages and financial ratio reports determine the financial health of an organization. Solvent, efficiency, and profitability are compared by key financial indicators and ratios that measure several companies within the same industry. The publicly traded company chosen by Team A is ExxonMobil. “The largest publicly traded international oil and gas company in the world. ExxonMobil makes products that drive modern transportation, power cities, lubricate industry, and provide petrochemical building blocks that lead to

In general, the company had a good fiscal year. It improved its ability to generate profit. All of the main

Liquidity, solvency, and profitability are the three characteristics that will be used to see a company’s success. A simple financial statement will not

Before the simulation started our group decided that we wanted to put customer satisfaction as our top priority, over market share and profit. After our first quarter, we began to panic because every

Based on your review of the financial statements, suggest a key insight about the financial health of the company. Speculate on the likely reaction to the financial statements from various stakeholder groups (employee, investors, shareholders). Provide support for your rationale.

Our sales force was a recurring problem throughout the simulation, calling for change each period. We found the most effective area in the sales force is mass merchandising. While we lowered the sales force in grocery stores and the drug store each period except the first 3 periods, Dropping Grocery store and drugstore sales

Now determine the WHY behind their performance. For example if profitability is declining or profits are negative, try to identify why. Look for evidence in the common-size statements that you prepared as well as industry information in the case. The purpose is to link strategic analysis with financial analysis to gain an understanding of why the company is performing the way it is.

These statements can also be used to make a company look stronger, than they appear. Therefore, it is important for investors to do extra research on companies. As an investor, the information will be used to decide the true financial position of a company. If one is, a government official this information can be used to find out if a company is out of compliance. This is an important

As we were going through the simulation, it became clear that a lot of our predictions weren’t very solid and that what actually happened set us back. Being in a position where you have to make future predictions is difficult as there are a lot of variables that are out of our control. When we would have stock outs or an excess of inventory it was due to our

This description of the company will include what types of products and services are provided by the company, if the company owns any subsidiaries including a description of each, and what type of market the company operates in. An investor will also find discussions about direct competitors, any specific regulations that apply to the company or industry, any labor issues, and any other information that would be pertinent to know about the operating health of the company. Also included in the business summary are the most significant risks that apply to the company itself, the industry it operates in, the region it conducts business in, or the entire economy. Unresolved comments from the SEC staff on previously filed reports will be found in the business summary section of the 10-K. Unresolved comments include any inquiries the SEC may have raised about previously filed statements that have yet to be resolved at the time of the company’s current filing of the 10-K (U.S. Securities and Exchange Commission, 2011). Two final sections included in the business summary are a detailed listing of any significant properties the company owns and any significant pending legal

Concerning our responsibilities and roles for the simulation, my primary engagement was to take over the marketing department to help ensure desired goals were going to be achieved through various advertising tools and mediums. Whereas my second responsibility was also under the marketing category; marketing research. By having access and analyzing different market/industry data, this helped my team members and myself to allocate and identify which markets we need to launch our products in. Furthermore, examining our

This simulation involved a company, which was introducing two types of cellphones to the market. As a group, we acted as the company, and therefore were tasked with deciding how these products were designed, project their demand, in addition to picking between suppliers and how much to produce. Later, at the end of each year of sales, we faced our company’s board where they analyzed our performance and voted based on how well they thought we performed for the year.