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Managing Financial Performance Assignment

   

Added on  2020-10-22

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Managing FinancialPerformance

Table of ContentsINTRODUCTION...........................................................................................................................1PART 1............................................................................................................................................1Evaluation of related ratios in order to assess performance of organisation:........................2PART 2............................................................................................................................................5Advantages and drawbacks of Zero Base Budgeting setting techniques:..............................5PART 3............................................................................................................................................7Strengths and weaknesses of the Balanced Score Card..........................................................7PART 4..........................................................................................................................................11Key financial issues..............................................................................................................11CONCLUSION..............................................................................................................................13REFRENCES.................................................................................................................................15

INTRODUCTIONFinancial performance refers to the act of performing financial activity. Financialperformance of an organisation helps in measuring results of an enterprise's policies andoperations in monetary terms. Financial position of the company is termed as an indicator ofsuccess for the organisation. It is an important aspect for financial risk management. For thisproject report GlaxoSmithKline plc organisation is considered. It is a pharmaceutical companysituated in Brentford, London. Establishment of this company takes place in the year 2000 bymerger of Glaxo Wellcome and SmithKline Beecham. In this project report critical analysis ofprofitability of the company, benefits and drawbacks of the zero based budget techniques ismentioned. Together with this strength and weakness of balanced score card for performancemeasurement is mentioned. List of financial issues that must be considered before makingfinancial decision (Austin, 2013). PART 1Overview of company:GlaxoSmithKline Plc (GSK Plc) is a science-led global healthcare company which isincorporated in United Kingdom (UK) which is engaged in three business that are research,develop and manufacture innovative pharmaceutical medicines, vaccines and consumerhealthcare products. As per annual report if GSK plc turnover was counted as £30186m totalemployees, strength was recorded as 98462 (Annual report of GlaxoSmithKline Plc, 2017). 80pper share distributed by organization to its shareholders. CEO’s statements upon value is asfollows “Our ambition is to drive a high-performance culture, putting science at the heart ofGSK, remaining true to our values and our purpose: to help people do more, feel better, livelonger.”As defined in 2015, new products are as follows: Pharmaceuticals: Relvar/Breo Ellipta,Incruse Ellipta, Anoro Ellipta, Arnuity Ellipta, Eperzan/Tanzeum, Nucala, Tivicay, Triumeq.Vaccines: Menveo, Bexsero, Shingrix. Value statement states that organistion has systematiccapital allocation execution team and board of changes are also defined in this context. Total revenues earned by Pifzer Inc. and subsidiary companies reported as £4711m for theyear 2017. 117 thousandemployed persons were recorded in organisation. In December 2017,our Board of Directors declared a first-quarter 2018 dividend of $0.34 per share, an increase1

from the $0.32 per-share quarterly dividend paid during 2017 (Annual report of Pifzer Inc.,2017). Evaluation of related ratios in order to assess performance of organisation:Ratio analysis: Proportion investigation is utilized to assess different parts of anorganization's working and money related execution, for example, its effectiveness, liquidity,productivity and resolvability (Bansal, Jiang and Jung, 2015). It can be characterized as aquantitative investigation of organization's execution assessment with the assistance of differentdata which is recorded in fiscal reports of the organization. The administration of GSK Plc isrequired these proportions to assess the progressions in fiscal summaries of two years. There aredifferent sorts of proportions, which are determined by the board bookkeeper from the budgetsummaries of two years of this association, which are as per the following:Profitability ratios:2

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