Reasons Why Motorola's Fundamentals Are Strong And Why Pricewaterhousecoopers Should Consider Their Investment Opportunity

- The Threat of Substitutes is high, since mobile product-life cycles are short. For example, Motorola is currently

There are many competing brands of smart phones and Samsung has reported a decline of profits in 2014. Information from GSM arena shows than Samsung released 54 new phone models in 2014 , compared with 24 by HTC , 11 Motorola and 2 by Apple, leading to increased production costs and lack focus on a specific customer segments thereby losing some of its competitive advantage (GSM Arena , 2015).The lack of popularity of its own OS (Tizen ) and dependence on Google’s Android platform makes it vulnerable on google to develop an “ecosystem”. There are component integration issues as well as loss revenue from potential App sales (Strategic Mangement insight , 2015). Negative publicity from litigation due to patents are likely to continue as technology patents are vague and Samsung with is large portfolio is likely to infringe on some of the patents (Tibken, 2014).

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

To analyze firm performance we are going to focus in no four key areas: financial, position, profitability, market performance, and organizational health. To identify position for a public company we are going to use the total debt/equity metric. The company has a debt/equity of 40.4 which is more than First American Financial at 21.72. From a profitability standpoint we will focus on the net profit margin ROE, and relative return on assets. Fidelity’s net profit margin at twelve months is trailing at 8.73% trending above First American Financial, one of its direct competitors at 5.66%, which puts them in the top 3 companies in its industry. (“Yahoo” 2015). When looking at the return on assets they are slightly ahead of First American Financial with a 4.92% versus their 3.84%. As we take a look at ROE we see that Fidelity did just a bit better than FAF with 11.48%. We can conclude that Fidelity fared well on profitability. Comparing First American Financial to Fidelity in regards to market performance fidelity is trending up with a 1.26% change, while FAF is on a downtrend of 1.68%. Lastly, we look at organizational health. Employees have ranked Fidelity at 3.7 out of 5 stars, which put them at a good grade in this category (“Glassdoor” 2015).

For my project I decided to analyze the financial status of the CVS Corporation. CVS is one of the largest retail pharmacies in the United States and a fortune 500 company. The word of mouth from friends that currently work for the CVS Corporation and my consistent positive encounter with company as customers propped my curiosity about the company. Additionally, the CVS Corporation’s mission to lead their costumers to a better health and the corporation’s innovative attributes were also determining factors in my decision to evaluate the CVS Corporation (” CVS health,” 2015).

It is always important to know the value, strengths, and weaknesses, of a company to make proper assessments

"They have an excellent management team, an excellent strategy. They communicate well with shareholders. They hold themselves to a high degree of transparency. There are other company-specific things that they do well. They have very strong margins, returns and they seem very disciplined at maintaining those margins and returns. Generally speaking that should make for a good investment."

One dilemma Smith faces centers around the pressure Verizon is putting on Motorola to make design changes that could affect the product launch date, volume, and potential sales. Another unique challenge Smith faces is leading a team comprised of departments representing different project outcome and communication needs (Sawhney, Miniati, Junsoo, & Goodman, 2014). Smith’s ability to lead a cohesive and productive team affects a number of stakeholders including the CEO, VP of Product Development, department heads and their teams, the Verizon Droid team, and end-users.

Unambiguously, my current assignment sparked the interest to use Verizon as my research subject. My objective in researching Verizon’s financial statements was gaining a better understanding of the company’s short and long term goals, once again the old adage "Study the past if you would define the future...” has proven to be correct. As I embarked on this journey, I reviewed the requirements, after selecting Verizon, and subsequently realized that my choice was not a “traditional” manufacturing entity; as such I focused my analysis on key types of financial ratios. My analysis will discuss Verizon’s performance as it relates to Asset Productivity, Financial Strength, and Profitability. Through my research, paired with the course’s content my initial impression of this project changed, as did my appreciation for the role of the Verizon’s Financial Management team.

You would not buy a home, car or other large purchases without researching what product offered you the most for your money. The same is true when investing in a company. Investors do avid research on multiple companies to find what company matches the investors' criteria. In this paper Team C will research both AT&T and Verizon's financial documents. Team C will compare selected ratios, cash flow and make recommendations how both companies can manage cash flow for the future.

Many analysts would note that based on the consensus of the world population, the company’s equity is of the highest value as they are currently ranked as industry leader in market capitalization (source: Yahoo Finance) which conveniently brings me to my next evaluation.

Motorola, famous amongst mobile phones, and one of the top cellular phone companies in the world till late 1990, later it was captured by the company Nokia. While writing this case we have thrown light on the challenges and problems faced by Motorola around 2006-2007. One of the ideas incorporated in order to recapture the market in the year 2006 was to slash the prices of almost all the cell phones which impacted the returns of the company. Motorola did announce in the year 2007 that they will revive shortly and would have the market share back.

EV: Generally, the threat of substitutes is low in the smartphone industry as there are not definite products that can readily substitute the smartphone. Consumers rely heavily on Smartphone and would not be able to find a close substitute that has all the function of a mobile phone. Furthermore, Nokia is a long and established company with many loyal customers. These people may continue to stay faithful to Nokia and are hence less resistant to change. Also, the perceived level of product

After researching Motorola one of the most delightful things that I discovered is that the biggest opportunity is their wide range of products that are well placed in the market, when the military has a need Motorola is here, when public safety has a need Motorola is there as well as the general population. Also understanding the fact that they have a very strong promotional strategy, by using different tools they tempt their customers towards an exciting era of innovation. The fact that Motorola has been involved in the venture of

Key External Factors Opportunities Overall Market Size Increasing Annual Market Growth Rate Low Technological Requirement Threats High Competitive Intensity High Inflationary Vulnerability High Customer Demand Environment Impact Social impact TOTAL 0.30 0.15 0.20 0.05 0.05 1.00 3 2 3 3 2 0.9 0.3 0.6 0.15 0.10 2.80 0.05 0.10 0.10 3 3 3 0.15 0.30 0.30 Weight Rating Weighted Score