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Principle of Financial Management Assignment - Big Star Limited company

   

Added on  2020-10-22

16 Pages4303 Words165 Views
FinanceData Science and Big DataCalculus and AnalysisStatistics and ProbabilityPolitical Science
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Principle of financialmanagement
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Table of ContentsINTRODUCTION...........................................................................................................................1Industry Description.........................................................................................................................1a.) The size of the industry and the level of competition............................................................1b.) Regulator/s of the industry.....................................................................................................2c.) Industry groups that help regulate behaviour........................................................................2Company Description......................................................................................................................2a.) The main source of business..................................................................................................2b.) The ownership structure of your company...........................................................................2c.) Company’s role within the Financial System.........................................................................2Financial Instrument Analysis.........................................................................................................3a.) The financial instruments of Big Star Limited company.......................................................3b.) OBS business compared to Balance Sheet business of Big Star Limited company..............3Part A: Financial Ratio Analysis .....................................................................................................3a.) 3 key financial ratios of Big Star Limited company...............................................................3b.) The financial ratios based on the financial statements..........................................................3c.) Critical analysis of the financial ratios of Big Star Limited company....................................3Part B: Competitor Analysis............................................................................................................3a.) Identification of Big Star Limited company main competitors............................................3b.) Basis of competition in the industry......................................................................................3c.) Critical analysis of the competitors........................................................................................3Financial Market Analysis ..............................................................................................................3a) The financial players within the industry...............................................................................3b.) The need for government intervention...................................................................................3c.) Critical analysis of the company which includes unethical practices and compliance withlaw. ..............................................................................................................................................3Findings, Conclusion and Recommendations..................................................................................3REFERENCES................................................................................................................................4APPENDIX......................................................................................................................................6
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INTRODUCTIONFinancial management is an effective process which helps in formulating plan,organizing, controlling, directing and monitoring the financial resources to achieve commongoals and objectives of the company effectively. This study will highlight, the specific description of the industry with specific size andthe level of competition. This study will include company description and critically evaluate themainsourceofbusiness and theproductsandservices offered by them. It will highlight, company'srole within the financial system. This study will examine financial instrument analysis.Furthermore this study will highlight, financial ratio analysis to identify the strengths andweakness of internal factors. This will also evaluate competitor analysis to identify theopportunities and threats refer to external factors of the company. This study will also includefinancial market analysis. Lastly, it will include conclusions and recommendations. Big Star Energy is a oil and gas production and exploration company. This company isheadquartered in Australia. This company mainly focus on producing and exploring gas and oilfrom its landholdings and well- bores which include Texas, USA, Midland Basin, Dawsoncountry. Industry Descriptiona.) Thesizeoftheindustryandthelevelofcompetition. Big Star Energy mainly deals in oil and gas exploration industry sector company. It hasproduction in Texas, USA, Midland Basin, Dawson country. Big Star Energy limited companymainly operates in natural gas sector and crude petroleum sector. This company deals in energysector, in oil, gas and coal industry. The sub- industry of this company in exploration andproduction (Marti and Scherer, 2016). The level of competition of this industry is moderate and the size of the oil, gas and coalindustry is also large as they export goods across the globe which leads to higher operationalefficiency, performance and productivity. Australia is one of the 34th largest oil producing country in the world. The industry ishighly exposed to trade and focus on exporting the goods which will eventually increase theindustry revenue by 83% in 2019. Industry export heavily across the globe which influencegrowth and volatility of oil and gas exploration industry.
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b.) Regulator/softheindustryThe production, extraction and exploration of petroleum which mainly includes oil andgas and it is effectively regulated at state, territory and federal level in Australia (Oil and gasregulation in Australia: overview, 2019). Most oil and and gas production is regulated at territoryand state level. On the other hand, Commonwealth government regulates offshore production ofoil and gas (Offshore Petroleum Regulatory Regime, 2019). c.) Industrygroupsthathelpregulatebehaviour.National Offshore Petroleum Safety And Environmental Management Authority(NOPSEMA) And National Offshore Petroleum Titles Administrator (NOPTA) effectivelyperforms regulatory functions within specific oil and gas industry.Company Descriptiona.) Themainsourceofbusiness.Big Star Energy Limited company mainly deals in exploration and production services of oiland gas. The main source of the business is to import and export goods and services across the globe.It has wider scope and leads to long term sustainable growth and development of the Big Star EnergyLimited company (Gitman, Juchau and Flanagan, 2015). The products and services offered by BigStar Energy Limited company are energy efficiency, energy generation, renewable energy spectrum,oil and gas exploration and production, exports of oil and gas, etc. This Big Star Energy Limitedcompany mainly focus on producing and exploring gas and oil from its landholdings and well- boreswhich include Texas, USA, Midland Basin, Dawson country. b.) The ownership structure of yourcompany. Big Star Energy company is a limited company which is owned by trusts, individuals,associations, institutions and corporations (Three Basic Types of Business Ownership Structures –Advantages and Disadvantages, 2015). The ownership of the company is divided into the number ofshares owned by each individual. The stocks of the company are traded on stocks exchange and atAntares Energy Limited. Limited company has its own legal identity and the owner shareholders ofBig Star Energy Limited company are not liable to all the profits and debts incurred buy the firm.c.) Company’s role within the Financial System.The Big Star Energy Limited company is traded on stock exchange with Antares EnergyLimited (ASX) code in BNL. They allows exchange of funds between various regulators like
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