'Etudes sur les th'eories de Almarai (Nordsprudence)

Running head: ACCOUNTING AND FINANCIAL REPORTING
Accounting and financial reporting
Name of the Student
Name of the University
Author Note

ACCOUNTING AND FINANCIAL REPORTING
Table of Contents
Introduction:...............................................................................................................................2
Discussion:.................................................................................................................................2
History, strategy, product and business model of Almarai:.......................................................2
SWOT, PESTEL and Porter’s analysis of Almarai:..................................................................3
History, strategy, product and business model of Nestle:..........................................................7
SWOT, PESTEL and Porter’s analysis of Nestle:.....................................................................7
Ratio analysis of Almarai and Nestle for the time period of three years:................................11
Cross sectional analysis of Almarai and Nestle:......................................................................13
Conclusion:..............................................................................................................................13
References list:.........................................................................................................................14
Appendix:.................................................................................................................................16

ACCOUNTING AND FINANCIAL REPORTING
Introduction:
The paper discusses about the external and internal environmental analysis of two
multinational companies operating in the food and beverages sector. History, business model
and the products of the companies are discussed elaborately for gaining an understanding of
the overall business. Internal analysis is conducted by the application of SWOT analysis that
assist in the identification of the strength and weakness of the company along with the
opportunities and threats faced by them (Kabiret al. 2017). External analysis on the other
hand is done using Porters five forces and Pestle analysis. In addition to the environmental
analysis, financial performance of the companies have also been evaluated by analysing the
financial figures using ratio and cross sectional analysis. Such assessment is done for
evaluating the liquidity, profitability and solvency position of the companies.
Discussion:
History, strategy, product and business model of Almarai:
AlmaraiCompany was established in year 1977 and is the largest food and beverage
distribution and manufacturing company of Saudi Arabia and is the largest vertically
integrated dairy company of the world. The brand is ranked number one in the region of
North Africa and Middle East and in Gulf cooperation council, it is ranked as number one in
most of the categories. Organization grew sustainably for the past forty years and its bedrock
principle “Quality you can trust” forms the basis of the success and it continues to provide
customers of all ages with the healthy products to the consumers. The portfolio of the
products of Almarai is diversified which ranges from bakery products, juices to infant
formula and poultry. Company also enjoys successful joint venture with PepsiCo and Chipita
(almarai.com 2020).

ACCOUNTING AND FINANCIAL REPORTING
The business model of Amlarai is structured for delivering the quality products and is tailored
for maintaining the commitment of ongoing improving and guides the team members across
the organization. Such model incorporates the operating framework that is defined clearly so
that the staffs and management work accordingly. The working culture having effective and
efficient process of management is facilitated by the practical application with the help of
business model. The business model resilience of the company has been proven from the
marketplace development (almarai.com 2020).
SWOT, PESTEL and Porter’s analysis of Almarai:
SWOT analysis:
Strength:
 The principle of Almarai demonstrates the ability and strength of the business to
overcome challenges.
 Strategic growth path is maintained by the group by its fundamental commitment to
quality.
 The poultry supply chain of the company is strengthen, integrated and streamlined by
the acquisition of Pure Breed Company.
 Strong market share is another strength of Almarai along with the craeful cost
management of the ingredients and strategic sourcing.
 Product line diversity, quality and the ability of organization to deal with market
adversity are the core strengths of Almarai Company.
Weakness:
 Organization often fails to implement the system of internal control and this impacts
the financial performance.