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Report on Financial Analysis and Management

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Added on  2019-12-03

Report on Financial Analysis and Management

   Added on 2019-12-03

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FINANCIAL ANALYSIS ANDMANAGEMENT1
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Table of ContentsINTRODUCTION................................................................................................................................3SUMMARIZING COMPETITIVE ENVIRONMENT.......................................................................3ANALYSING FINANCIAL PERFORMANCE OF BOTH COMPANIES........................................4CRITICAL EVALUATION OF THE CORPORATE STRATEGY ..................................................5CONCLUSION....................................................................................................................................7REFERENCES.....................................................................................................................................82
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INTRODUCTIONFinance plays most important role in organization as it is required to carry out day to dayactivities and in turn enhances overall efficiency of the enterprise. Further, financial managementdirectly supports in increasing productivity of the firm and in turn cost associated with the businesscan be easily saved through effective management of financial resources (Lemieux., 2012).Moreover, concept of financial analysis is also different where main motive of organization is toknow its present position in the market and it can be easily compared with those of competitors. Forconducting the present study two organizations have been chosen namely Ryanair and Eayjet whereboth firms operates in aviation sector and well appraised in the market for range of services it offersto its target market. Various tasks have been covered in the study which involves analysingcompetitive environment in which firm operates, evaluation of corporate strategy of enterprise etc. SUMMARIZING COMPETITIVE ENVIRONMENTRyanair and Easyjet carries out operation in the market where competition level is quite highand this acts as hurdle in accomplishing the desired aims along with objectives (Simkins andSimkins, 2013). Further, different drivers of change are present in the environment which firm hasto consider as it affects present performance and is likely to influence performance in near futurealso. Major drivers of change affecting performance of Easyjet and Ryanair are as follows:Economic factors: Economic condition of the market where both the companies areoperating is changing rapidly. Further, due to inflation purchasing power of customers hasbeen affected and due to this reason they does not prefer to purchase services which arecostly. This has directly affected profitability level along with sales volume of the entity(Joseph, 2013). Further, in near future also this driver can affect overall operations ofRyanair and Easyjet. Political factors: It involves government rules and regulations which affects overalloperations of aviation companies. Government has introduced laws in relation with safety ofpassengers, reducing burden on environment, payment of taxes and other duties etc.Therefore, Ryanair and Easyjet has to comply with legal guidelines so that operations can becarried out in effective manner. Further, political laws may also change in near future due towhich management has to change its overall practices (Birchall, 2014). Technology: This driver is also changing at faster pace as at present Ryanair and Easyjetworks with advanced technology as it saves overall cost associated with business andincreases profit margin. On the other hand, it is expected that technology will change in nearfuture due to which companies have to adopt latest tools for their benefit (Ahmed, 2010). 3
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