Business Analysis Project

Business Analysis Project

TABLE OF CONTENTS
1. INTRODUCTION.......................................................................................................................3
1.1 Purpose..................................................................................................................................3
1.2 Case analysis..........................................................................................................................3
1.3 Background of the organization.............................................................................................3
1.4 Key issues..............................................................................................................................3
1.5 Rationale behind the selection of company...........................................................................4
2.1 RATIO ANALYSIS..................................................................................................................4
2.1.1 Profitability ratio analysis...................................................................................................4
2.1.2 Liquidity ratio analysis.......................................................................................................7
2.1.3 Financial health: leverage ratio...........................................................................................9
2.1.4 Efficiency ratios................................................................................................................10
3. STRATEGIC ANALYSIS.........................................................................................................11
3.2 Competitive analysis............................................................................................................12
3.2.1 Porter five force analysis..................................................................................................12
3.2.2 New forces in construction industry.................................................................................14
3.3 Operations and organisation analysis..................................................................................14
3.4 Key success factors:.............................................................................................................14
3.5 Operations visibility:...........................................................................................................14
Balance score card.....................................................................................................................15
5.0 Limitation of financial models and conventional analysis..................................................16
5.2 Limitation of financial models in analysing the performance.............................................17
6.0 Conclusion...........................................................................................................................17
6.1 Recommendation.................................................................................................................17
REFERENCES..............................................................................................................................18

1. INTRODUCTION
1.1 Purpose
The main purpose behind carry out such study is to shed light on the financial health and
performance of Eversendai in against to the competitors like Muhibbah & Sunway. Besides this,
it will also provide deeper insight about the key issues and condition of external market. Further,
report will also depict about the manner in which financial models and conventions helps in
doing suitable analysis of business. It will also include the details about recommendation through
which Eversendai can attain success in the competitive business environment.
1.2 Case analysis
Eversendai is one of the leading organizations that is operated in the construction
industry of Malaysia. Portfolio of the company includes wide range of services such as long span
and roof structure, high rise building, plant & construction, oil & gas etc (Eversendai Malaysia,
2017). Further, Eversendai has expertise in including innovation aspect in construction project
through including composting infrastructure.
1.3 Background of the organization
Eversenadi is one of the leading business organizations of Malaysia which is known for
turnkey projects, oil & gas upstream & downstream as well as infrastructure and composite
structures. Company has employed 15000 people and having attractive portfolio of more than
300 accomplished projects over 14 different countries of the world. With the motive to maximize
the level of productivity and profitability Eversendai makes focus on safety, quality and client
satisfaction to a great extent (Eversendai Malaysia, 2017).
1.4 Key issues
To assess the issues and measure the level of competition following analysis has been
done:
Basis of difference Eversendai ( main
company)
Muhibbah (rival firm) Sunway group
Compliance with safety High Follow to the moderate Moderate

level
Adherence to quality High Moderate Moderate
Focus The main focus of the
organization is to meet
the client’s requirement
to a great extent.
It lays emphasis on the
maximization of
profitability.
Sunway group makes
focus on increasing the
level of profit margin
rather than client’s
satisfaction.
1.5 Rationale behind the selection of company
The main reasons behind the selection of Eversendai are that it was operated in the
construction industry of Malaysia from several years. Besides this, company is recognized for
the quality and safe projects offered by it to the customers. Hence, by analyzing the financials of
latest accounting years scholar would become able to present the fair solution of issue.
2.1 RATIO ANALYSIS
2.1.1 Profitability ratio analysis
Return on invested capital (in %)
Particulars 2012 2013 2014 2015 2016
Return on Invested Capital
%
Eversendai 13.93 4.12 4.03 4.43 -13.26
Muhibbah -10.73 9.41 6.99 5.74 8.47
Sunway 6.06 20.14 8.85 7.41 5.25