Financial and Business Analysis Report: Venus Mobile Company

This report presents a comprehensive financial and business analysis of Venus Mobile Company. It begins with an introduction outlining the company's international operations and the report's objectives. The analysis covers market and industry trends, followed by an external analysis using PESTLE and Porter's Five Forces models to assess political, economic, social, technological, legal, and environmental factors, along with competitive dynamics. The product life cycle stages of Venus Mobile are also discussed. An internal analysis, including SWOT analysis, evaluates the company's strengths, weaknesses, opportunities, and threats, alongside its resources, capabilities, and competencies. Strategic options and recommendations are provided, along with a stakeholder summary and forum contribution report. The report concludes with a summary of findings and recommendations, referencing relevant sources. The report highlights the company's financial performance, strategic options, and potential changes in its business functioning to achieve its goals. The report also includes market analysis, external analysis, internal analysis and strategic recommendations for the company. The report emphasizes the importance of understanding the company's market position and financial performance, and offers strategic recommendations for improvement.

RUNNING HEAD: Financial analysis and business analysis of Venus Company
1
Name of the student-
Topic- Financial analysis and business analysis of Venus mobile Company
University name

Financial analysis and business analysis of Venus Company
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Table of Contents
Introduction...........................................................................................................................................3
Market analysis and industry analysis of Venus mobile Company....................................................4
External analysis of the Venus mobile Company..............................................................................4
PESTLE analysis of the Venus mobile Company..........................................................................4
Portal’s 5 models of the Venus mobile Company..........................................................................6
Product life cycle stages of the Venus mobile Company...............................................................7
Internal analysis of Venus mobile Company.........................................................................................7
SWOT analysis of Company.................................................................................................................9
Strategic Options Evaluation...............................................................................................................11
Strategic recommendation for the accepted project.............................................................................13
Stakeholder Summary.........................................................................................................................15
Forum contribution report...................................................................................................................18
Conclusion...........................................................................................................................................19
References...........................................................................................................................................20
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Financial analysis and business analysis of Venus Company
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Introduction
Organization is accompanied with the complex set of activities in which various
functions are performed. This Venus mobile Company has been running its business on
international level to sell its mobile phones around the globe. This company has increased its
overall effectiveness and efficiency of the business in determined approach. However, this
report has reflected the financial performance of Venus mobile Company as compared to its
other rivals in market. This report has also revealed all the required changes in the business
functioning and financial performance of Venus mobile Company which should be
undertaken to achieve its certain goals and objectives. In addition to this, after evaluating the
internal, external analysis and identifying the strategic recommendation of the company,
management department of company and other CEO of company could easily make changes
in its business functioning with a view to grasp the desired results and objectives of the
business.

Financial analysis and business analysis of Venus Company
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Market analysis and industry analysis of Venus mobile Company
The CEO of the Venus mobile Company should evaluate that the operating profit of
company has gone down and reflects negative outcomes for the organization. If company
wants to reduce its negative outcomes and increase its overall profit then it will have to
change its business structure and create core competency by using product differentiation and
cost leadership strategy to increase the overall productivity and efficiency.
External analysis of the Venus mobile Company
This External analysis of the Venus mobile Company is accompanied by various tools
and strategic analysis methods which help in evaluating the industry trend and analysing
where company stands in market as compared to other rivals.
PESTLE analysis of the Venus mobile Company
This analysis is used to evaluate political, social, environmental, legal and
Technological factors (Brooks, Heffner and Henderson, 2014).
Political factors
It is observed that Venus mobile Company has been offering its goods and services in
Asian country. The political environment of these countries is stable and less fluctuated. It is
considered that if management department of company is preparing its business plans on the
basis of present political factors then they could chose to believe on existing policies and
rules.
Social
These factors of the Venus mobile Company are accompanied by the values,
perception, belief and other personal factors of employees. It is considered that people in
India, China, Africa and North India are more inclined towards the quality of the products
which are available at least cost. It is considered that if Venus mobile Company could sell
best quality of phones at reasonable cost then it will attract more clients in these markets on
domestic and international level. However, customization of these products in market will
also attract more clients in market (Bohari, Hin, and Fuad, 2017).

Financial analysis and business analysis of Venus Company
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Economical
Economic factors of Venus mobile Company is accompanied by national growth,
gross domestic product, national income and Earning per person in the specified countries.
GDP of India, Africa and Africa is average 8%. The tariff rates have been revised to $ 25 on
routes from USA to Asia and Asia to USA. This rate is comparatively less as compared to
increased inflation rate of the country. However, growth domestic product of Latin America
is around 7.5% which is higher than other countries. It is considered that if company could
use these factors then it could easily determine the fellow of its products supply in market and
increase the overall productivity in determined approach.
Legal
It is consisted of all the legal policies, laws and rules in the particular economy. It is
considered that Venus mobile Company could sell its products and services at very low cost
in India, Africa and Latin America due to the less tariff and traits imposed by the government
of these countries. In addition to this, India is more inclined towards allowing other
international companies to start their business in its economy with a view to increase its
overall foreign exchange reserve. Venus mobile Company before offering its mobile phone in
these countries could believe that these countries will have stable and less restricted
government policies and rules. This will help company to sell its smart phones in these
countries at very low cost (Machmud and Sidharta 2014).
Technological factors
With the ramified changes in technologies and client’s inclination towards new
technologies, Venus mobile Company needs to adopt cyber computing enterprises resources
planning to add more features in its smart phones. This could be used to increase the life
cycle of the products offered in market. However, Venus mobile Company needs to evaluate
existing offering of the clients and should add more features in its existing smart phones to
attract more clients in domestic and international market.
Environmental factors

Financial analysis and business analysis of Venus Company
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The environment factors of the India, Africa and Latin America are positive and there
are less acts of gods are seen. Venus mobile Company could customize its smart phones as
per the people’s needs and demand in these countries to increase its overall sales.
Portal’s 5 models of the Venus mobile Company
This Portal’s 5 models could be used by CEO of company to evaluate all the external
factors of the business on domestic an international level
Buyers power- It is considered that there are high numbers of buyers on international
level. The market growth in numerical terms in considered that Europe expected to grow at a
rate of roughly 15%, USA just under 20%, and Asia of over 30%. This has shown that there
high numbers of buyer to Venus mobile Company which would reduce the buyers power
(Rothaermel, 2015).
Supplier’s power- Venus mobile Company is focusing on customizing its products in
all the untouched market such as India, Africa and Latin America by using its own raw
material supplied from the existing market share. Company has been maintaining an effective
supply chain by importing material from the existing suppliers. These suppliers have strong
position in market due to their relation with the company (DaSilva and Trkman, 2014).
New entrants in market- It is evaluate d that international market of the mobile sales
is expected to grow 15%, USA just under 20%, and Asia of over 30% which shows lucrative
industry area for the new entrants in market. However, new entrants may find difficult to
enter in this business industry due to its high fixed cost and high volume of variable cost.
Rivals power in market- It is evaluated that there are other several rivals such as
Samsung, Apple, and MI that are offering good amount of smart phones on international
level. These rivals have strong brand image on internationals level. Therefore, rivals powers
on international level are strong (Boons, and Lüdeke-Freund, 2013).
Substitution of the products
It is evaluated that Smarts phones are continuously changing which becomes
substitute to other old smart phones. Venus mobile Company could evaluate the changes in
smart phones features. It is analysed that Substitution of the smart phones offered by
company is high as compared.

Financial analysis and business analysis of Venus Company
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Product life cycle stages of the Venus mobile Company
There are several life cycle stages which needs to be considered by Venus mobile
Company in order to increase its overall market share and turnover in market
Introduction stage
In this stage, Venus mobile Company will offer its base smart phones with premium
offer to attract clients in market. At this stage, company will have increasing market share
and will reflect that company has higher economic growth in its business (Matzler, et al.
2013).
Growth stage- This stage will arise when the smart phones offered by Venus is
accepted by clients and showing high amount of inclination towards this products. However,
this growth will continue to increase with the increase in demand of the clients in market.
Maturity stage- This is the time when the demand of the phone products is met to its
fullest and its gives the indication that company should add more features in its existing smart
phones to increase the overall sales of the product. It also reflects the needs of making
changes in existing phones in determined approach. If Venus mobile Company does not
make changes in its existing products then it will lead existing offered product to decline
stage.
Decline stage- It is the last stage in which the offered Smart phones offered by
company will be less likely to be sold in market and demand of the same will also decreased
by very drastic rate. It is the last stage and will put negative impact on the overall sales of the
company (Wirtz, et al. 2016).
Internal analysis of Venus mobile Company
This company has wide amount of resources and capabilities which are used to
increase the overall outcomes of the business. There are several factors which assist in
determining the actual value of the organization.
Resources- It is evaluated that Venus mobile Company has been facing loss of around
$ 107.04 billion which is very high in numbers. In addition to this, other companies are
having positive growth in their profit. Management department of Venus have failed to

Financial analysis and business analysis of Venus Company
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collect the required amount of information which is the biggest demerits of its market failure
(Harmon, 2014). Venus mobile Company needs to reduce its cost of capital to increase its
overall capital employed in determined approach. In addition to this, Venus mobile Company
also needs to invest more capital in Asian market as there is high growth as compared to
other international market.
Capabilities- Venus mobile Company has international brand image and the growth
rate of market is expected to grow at a rate of roughly 15%, for Europe USA just under 20%,
and Asia of over 30%. The production cost in USA for the smart phones is also 20% less as
compared to other rivals in market. Venus has also invested in the development of Tech-1, 2
and has been investing in other technical innovation to increase its overall outcomes of the
business (Aithal, Shailashree and Kumar, 2015).
Competencies- Venus has failed to achieve its increased sales and lower down its cost
of sales. This has increased the overall loss of the business to 516,865. Nonetheless, by
investing in development of Tech-1, 2 and has been investing in other technical innovative
machines, company wants to increase the overall outcomes of the business and create core
competency by using product differentiation strategy (Winterhalter, Zeschky and Gassmann,
2016).
PROFIT FOR THE
ROUND
1,305,30
1
2,067,73
5
704,42
5
509,53
1 594,696
-
516,86
5
49,51
7
In addition to this, global sales of the Venus has also gone down by 40% as compared to
other rivals in a market which could be analysed by looking at this graph

Financial analysis and business analysis of Venus Company
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Source of competitive advantage- The main source of competitive advantage is related to
development of Tech-1, 2. In addition to this, company have also determined to increase its
overall sales and lower down its production cost. The investment in these tech units will help
company to create core competency in product differentiation and cost leadership strategy
SWOT analysis of Company
This analysis helps company to evaluate all the strength, weakness, opportunity and
threats of the business.
Strength
It has strong international brand image.
Company invested its capital for
development of Tech-1, 2 to create core
competency in its innovative products.
The total demand of the high tech smart
phones is increased by average 42% which
will allow company to increase its overall
turnover of company (Klang, Wallnöfer, and
Weakness
It is considered that Venus mobile Company
has been facing high loss in its business due
to the tough competition in market.
The sales of the company have gone down by
30% as compared to other rivals offering in
the market.
In addition to this, due to the high tariff and
traits for the import and expert of the

Financial analysis and business analysis of Venus Company
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Hacklin, 2014.).
Company has strong network coverage and
made effective strategic alliance with other
organizations while outsourcing its business.
business, Venus has problem of high cost
while selling its smart phones in USA, Asian
countries and Latin America.
Opportunity
The main opportunity of the company is
related to increased use of cyber computing
enterprises resources planning. There are
several dashboard portals such as Amazon, E
Bay and other authorized dashboard
mechanism (Wheelen and Hunger, 2017).
Company has also invested its capital in the
technical department to sell highly featured
smart phones.
Venus could increase its overall demand of
the products by lower down its overall price
of the smart phones between $ 2500-3000.
Another opportunity is related to client’s
inclination towards the smart phones having
new features in the phones.
Threats
The main threat which Venus mobile
Company has been facing is related to high
cost of production and less effective cyber
computing system in its business.
Company has no strategic alliance with other
authorised dealers which may decrease the
overall sales.
Other rivals named Mercury, Saturn, Uranus,
Jupiter, Neptune and mars are having high
increment in profit which may be high threats
for the Venus.
Venus has failed to deliver good amount of
offers to its clients and also faced high fixed
cost in its business.
Venus has high cost of the mobile ranging
from $ 4500- 6000 which are high in range
and attract less customers in market
(Scolozzi, et al. 2014).
Criticism of tool- This SWOT analysis has shown that if Venus could use its all these factors
in appropriate manner then it could increase its overall turnover and profit in determined

Financial analysis and business analysis of Venus Company
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approach. Nonetheless, if external factors of the company changes then strategies prepared on
the basis of SWOT analysis will be of no use for the business (Grant, 2016).
Strategic Options Evaluation
It is the strategic plan which would be implemented by Venus mobile Company to
mitigate the present problems and issues of the business. It is considered that company should
develop cyber computing enterprises resources planning in its business value chain to reduce
the overall cost of the production. This cyber computing enterprises resources planning will
help Venus mobile Company to create a dashboard to sell its products through its own portal
around the globe. After evaluating the case study, it is evaluated that Europe only 10% of
phones are sold through Amazon and other markets such as Asia and USA are facing issues
of developing online portal. It is considered that if cyber computing enterprises resources
planning is used by organization then it will allow company to increase its sales at least by
35% which will increase its overall outcomes. In addition to this, consideration paid to retails
sellers will also be saved by using this cyber computing system. However, this project
strategic option will require high amount of initial investment which could be used to lower
down its overall operating expenses and increasing its revenue throughout the time.
Strategic project evaluation in numerical data (Carmona, 2014).
Particular Year 0 USA
Asian
Countries
Other
countries
Sales growth rate 20% 30% 25%
Variable Costs as % of Sales 20% 25% 30%
1,13
,353
Sales 1,36, 1,8 2,35

Financial analysis and business analysis of Venus Company
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023.60 3,613 ,763
Variable Cost 27,205
4
5,903
70
,729
Fixed Cash cost 60 65 70
Depreciation 100 100 100
Earnings Before Interest and
Taxes
1,
08,659
1,3
7,544
1,64
,864
Tax 43,464
5
5,018
65
,946
Net Operating Profit After
Taxes 65,195
8
2,527
98
,919
Depreciation 100 100 100
Investment in Net Working
Capital 900 54,184
1
5,645
(70
,729)
Investment in Fixed Assets 600 (180)
Free Cash Flow (CF)
(1
,500) 11,112
6
6,981
1,69
,928