Critically Evaluating Strategy Assignment

Added on - 22 Nov 2020

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U2 - DISCUSSIONQUESTION
TABLE OF CONTENTSINTRODUCTION...........................................................................................................................1MAIN BODY...................................................................................................................................1Critically evaluating strategy and future................................................................................3CONCLUSION................................................................................................................................3REFERENCES................................................................................................................................4
INTRODUCTIONIn order to sustain in the competitive environment, it is essential and important fororganisations to have robust financial positions. Philip Morris International is a multinationalcorporation founded in America which specialises in manufacturing cigarette and tobacco(Crosbie, Sosa and Glantz, 2017). The balance of assets versus liabilities on a company’s balancesheet is considered by stakeholders when analysing a company. In this context, the report willhelp in comprehending the financial statements and income statement of Philip MorrisInternational from year 2014-2016.MAIN BODYTo survive in competitive positions and enhance the productivity and profitability ofcompanies, it is important for them to maintain effective and efficient financial position. PhilipMorris International is an American multinational corporation which was founded in 1900, hasspecialisation in manufacturing cigarettes and tobacco.Stakeholders before investing in any company first analyse the total balance of assets andliabilities of the company (Kim, et.al., 2016). The more the value of net assets as compared to netliability means that the company has more possibilities and opportunities to sustain in the marketenvironment. if company does not able to balance its assets in liabilities and it may have to faceWhilst in short term circumstances, it may not give rise to major issues for an organisation, but itis normally considered to be an alarming sign that the corporation can no longer be able to coverits obligations and will potentially bankrupt and be forced into liquidation or possibly snapped upat a bargain price by another company (Wang, 2014). In this context, the balance sheet andincome statement of Philip Morris International for period of 2014 to 2016 is described below inthe table.Table1: Balance Sheet Position of Philip Morris International(Source:Philip MorrisInternational Inc. Annual Report,2017)Philip MorrisInternational2014 In Us$ Million2015 In Us$ Million2016 In Us$ MillionTotal Current Assets154841580417608Total CurrentLiabilities151121538616467Current Ratio1.021.031.071
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