Financial Data and Strategic Decision Making.

Task 1 – Financial Data and Strategic Decision Making
 An evaluation of the sources of financial data which can be used to inform
business strategy.
Finance management is an important factor that contributes to a company's competitive
advantage. The vital assessment of a company's income streams is significant to finance
management. Fiscal management also requires developing precise strategies for marketing,
people, and expenditure to improve the firm's responsibility. Essentially, accountability in the
management of a company's financial resources is critical to its long-term growth and profitability
(Arabi, 2014). The plan also allows a company to enhance its client base and willingness to invest,
resulting in an exceptional performance in the stock exchange market. A critical examination of
Samsung Plc's financial statements and fiscal strategy is vital for improving modern company
managers' and investors' understanding of how to maintain a firm's responsibility.
The study improves stakeholders' and potential investors' understanding of Samsung Plc's
financial status. According to fiscal analysis, financial data is critical for the formulation of
various decisions inside a corporation. Financial data also allows stakeholders to gain meaningful
insights into a company's financial status. Fiscal data is also required for the development of risk-
mitigation measures.
Samsung is one of South Korea's most powerful companies. According to respected periodicals
such as Forbes and the New York Financial Times, Samsung is the world's second-largest maker
of information technology equipment. The firm also manufactures semiconductors, lithium-ion
batteries, chips, flash memory, and hard drives. Samsung benefits from strategic alliances with
Dell, Hewlett Packard, Apple, HTC, and Sony. The strategic alliances allow the South Korean
company to keep its market dominance. A thorough examination of the company's financial
records shows a total market worth of more than $300 billion US dollars. Samsung generates an
annual income of more than $100 billion US dollars. With a total asset advantage of over 26
billion US dollars, the international corporation also dominates the stock exchange market. The
corporation provides over 20% of South Korea's GDP.
 The sources of financial data that informs a business strategy
A company's financial data comes from a variety of sources. Financial statements, for
example, such as balance sheets and trade and profit accounts, provide reliable information about
a company's financial situation and performance.
The balance sheet provides vital information about an organization's assets, obligations, and
flexibility to the stakeholders. The balance sheet improves the calculation of several financial
statistics such as liquidity and current ratios. When evaluating a company's financial performance
and market domination, the computation of the ratios provides a valid reference point.
The profit-and-loss statement also gives accurate and essential information about a company's
performance. The profit-and-loss statement predicts a company's total loss and net revenue. The
declaration also allows a firm to obtain relevant information about its competitive advantage and
growth. Furthermore, fiscal analysts demonstrate that the statement serves as a powerful reference
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point during the formulation of crucial judgments inside modern multinational corporations such
as Samsung Plc.
 An assessment of the need for financial data and information in relation to
the formulation of business strategy.
Financial data and information are required for the formulation of major choices such as
• monitoring performance
• determining how to boost profits
• company growth Savings on expenses Policy development.
Financial data and information are required for the formulation of major organizational
decisions. According to the research, fiscal statements such as balance sheets and profit-and-loss
accounts give critical information about a company's success. For example, financial data from the
balance sheet is critical in a firm's choice to expand its sales volume to boost its profitability. The
trustworthy information provided by the balance sheets helps the relevant stakeholders to create
strategies that aim to improve the purchase of diversified additional assets. The data also allows
important stakeholders inside modern corporations such as Samsung Plc to develop strategic plans
aimed at increasing the company's dominance over rising market entrants such as Apple, HTC,
and Sony.
The study also demonstrates that the profit-and-loss account gives critical information about a
company's monetary success over a specific period. The data gives a strong reference point for the
prior year's performance. For example, information from the profit and loss account may lead to
stakeholders making decisions such as reducing various indirect expenses to increase profitability.
The profit and loss account information also helps the management team to develop precise
strategies that improve the distribution of money among stakeholders. As a result, modern
business managers must constantly adhere to financial data from various fiscal accounts to make
sound judgments.
 An analysis of the risks related to financial business decisions.
The unemployment rate has risen.
Consumer purchasing power is dwindling.
Rates of inflation
Inconsistency in leadership (lack thereof)
Financial decisions in business can expose you to a variety of hazards, both systematic and
non-systematic. The systemic dangers are caused by various adjustments in the macro-
environment. For example, negative external financial indicators such as an increase in
unemployment rates and a reduction in consumer purchasing power may cause massive losses to a
firm's financial investments. A decrease in customer purchasing power may cause a decrease in a
company's sales volume, undermining its excellent financial success. Introducing negative
indicators such as high inflation rates may also discourage enterprises from purchasing financial
assets, resulting in a growth standstill.
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Non-systematic hazards arise from a company's microenvironment. Poor management and a
lack of harmony, for example, may cause the failure of many financial decisions. The General
System Theory constructions also show that a lack of harmony among the key parts in a specific
organization might result in losses on various financial choices and investments. As a result,
during the formulation of financial choices, management should focus on the coordination of the
essential parties. The management should also collect detailed input on the importance of various
financial decisions in increasing a company's profitability and relevance. Adopting a suitable
leadership approach also aids in the formulation of competent financial judgments, therefore
protecting a form from massive losses. The method also allows stakeholders to detect potential
uncertainties that may impede the efficacy of various financial decisions. This factor is also
important in aiding the development of effective risk-mitigation strategies.
 A review of methods that can be used for appraising strategic capital
expenditure projects and strategic direction.
According to a review of the literature, capital expenditure assessment is critical in a company
organization. Using evaluation tools aids in determining the worth of investing in a certain
business. Using assessment metric tools also aids in the identification of a firm's spending,
strategic direction, and investment portfolio. As a result, corporate managers employ many
assessment approaches, such as calculating Net Present Value (NPV).
The NPV assists managers and stakeholders in various firms in determining financial resource
shortages and excesses after investing in a certain strategic direction and capital expenditure plan.
According to the NPV's tenets, corporations should focus on investing in endeavours that increase
a company's financial resources. The approach also proposes that managers use a variety of
techniques to assess the influence of future uncertainties and emerging macroeconomic indicators
on specific capital expenditure and strategic direction (El Hanandeh & El-Zein, 2007). A
comprehensive study of future uncertainties and threats assists managers and key stakeholders in
embracing appropriate investment portfolios.
A critical assessment approach is the Internal Rate of Return (IRR). The approach aids in
determining the temporal value of a certain investment portfolio across its lifespan. The strategy
helps company managers at global firms such as Samsung to assess the relevance of participating
in a certain endeavour (Leviauskait, 2010). The IRR assists investors and managers in determining
the expected rates of return. The feedback serves as a useful foundation for deciding on capital
expenditure, strategic direction, and investment portfolios.
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Task 2 – Discussion Paper
 An interpretation of the financial statements of Samsung PLC to assess
the current viability of the organization.
An Overview of the Existing Financial Statements
The Company’s Profits and Sales 2011-2017.
The graphic aids in the estimation of Samsung Plc's profitability and sales volume. It aids
in projecting Samsung Plc's sales and profitability improvement over the last seven years across
several quarters. According to the financial study, the South Korean enterprises' sales volume
would continue to expand steadily. However, the company's profitability has been subject to
regular changes. According to financial analysts, the developing tendency is due to increased
rivalry from established corporations like Apple and HTC. In addition, the company confronts
significant and complex rivalry from rising market entrants such as Sony. The financial report also
shows a strong sales performance in the first quarter of 2017. However, the essential stakeholders
should concentrate on developing an appropriate plan to address the company's declining
profitability.
The Company’s Sales Volume per Segment.
The examination of the company's sales per category is also important in determining market
share and dominance. Feedback is also necessary for the design of strategy in crucial areas such as
marketing to boost the company's sales volume (Leviauskait, 2010). CE stands for consumer
electronics, DS for varied device solutions, and IM is for information technology and mobile
communications. According to the graphic, Samsung achieved significant sales in the IM segment
from 2011 to the second quarter of 2014. However, sales in the area have seen a large fall in sales
volume, resulting in unfavourable swings in the firm's profitability. The fiscal diagram also
demonstrates that the South Korean corporation has had an amazing performance in terms of the
sales volume of the designed solutions (Leviauskait, 2010). Analysts credit the company's rise to
Samsung's ability to build strategic alliances with well-known firms like Dell, Hewlett Packard,
and Apple. The picture also illustrates that the corporation should adopt the proper approach to
handle the stagnation in consumer electronics sales volume.
 A comparative analysis of financial data using ratio analysis for Samsung
PLC. You are advised to download consecutive years’ accounts from the
Samsung PLC website.
An Overview of Fiscal Statements
Samsung's 2016 balance reflects a market worth of more than $300 billion, a 10% gain over the
previous year. The record also forecasts a 15% growth in overall asset leverage. The purchase of
firms such as Proximal Data, Yesco Electronics, Rich Communication Services, and VIV
Company is credited with the favourable trend, according to the company's management. Profit-
and-loss records for the corporation show additional returns of almost 22 billion US dollars (Reilly
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