International business finance Case Study Example | Topics and Well Written Essays - 3000 words

International business finance - Case Study Example The report comprehensively analyses the strategies at hand for the XP PLC multinational company and consequently recommends the best strategy/option to be adopted on the basis of financial facts. The XP plc Company’s strengths include diversified business operations in a number of countries. The company has a holding company situated in France. However, it has a number of subsidiaries operating in foreign countries such as in Germany, Australia, Monaco, and Poland. Additionally, the firm has stable sales revenue of over 60 million Euros. This is a clear indication that the company made superior products that are tailored for its customers, hence gaining customer loyalty. The customer loyalty comes about due to the satisfaction of the customers’ preferences and choices. For a company to continue operating in a business environment, it must be in a position to yield profits to cater for company expenses, financing activities, investment purposes and maximizing the company’s value. Since the firm is trading at a net profit of 8%, it has a stable future operation in the economy. A business organisation that is incapable of financing its business activities u sing internal funds such as equity is compelled to borrow from external sources available. Among the external sources of funds is the debt that increases the firm’s financial leverage. Since the proportion of the debt is smaller as compared to the equity, the financial risk is reduced hence a strength to the company that could otherwise be a threat had the debt outweighed the equity capital. The multinational company suffers from a stiff competition in the service industry. This has caused the company to at least diversify its operation worldwide to increase its products and services delivery. The company uses bureaucratic kind of management making it difficulty in making decisions faster. XP plc being a multinational company, it has a chance for diversity. The firm has

Broadcast Radio Stations Essay Example | Topics and Well Written Essays - 1250 words

Broadcast Radio Stations - Essay Example This paper will seek to provide the primary product or service of this business sector, ways of making money in this business, and explain how profitable this sector is. Additionally, the paper will also address the key corporations of this business, recent developments, and discuss the current prospects and direction of this business as well as include an overview of any other unique feature of this business. Primary service The primary product or service of broadcast radio stations today is listeners and the means of production owners. Research findings point out that, the main of broadcasting radio today is to communicate or rather air out issues to as many listeners as possible (Greb & Adams, 2003). This shows that acquiring the largest number of listeners is of paramount importance to broadcasting radios as of today (Slotten, 2009). This is because, if the number of prospective listeners of a particular broadcasting radio station is high, its demand for commercials is also high. Generally, having a huge volume of listeners dictates a radio station’s demand in the market given the fact that prospective clients opt for widely listened broadcasting radio stations (Sickles, 2008). The sector’s money generation Every business has ways in which it generates income. However, the case with radio station is a bit complex. Studies show that, most of the money obtained by broadcasting radio stations comes from advertisements (Enrique, 2008). When different companies and organizations as well as other parties come to realize that a certain broadcasting radio station has a huge following in terms of listeners, then these companies choose to advertise with that particular radio station. As such, when these companies or rather clients bring their advertisements, the radio station charges them (Sickles, 2008). Bear in mind that the common aim of these advertisements is to encourage those listening to buy the advertised product more. Apart from advertisements , radio stations also make money through announcements. These announcements could be mainly about certain messages or meetings whose aim is to reach masses. Radio stations charges these announcements with regard to the amount of the required airing time and the frequency with which to be repeated. Therefore, by charging companies for their advertisements and charging special announcements, radio stations generate money (Greb & Adams, 2003). Profitability It is understandable that this sector of telecommunication is indeed profitable. Nevertheless, many people fail to understand how broadcasting radio stations make profits. As explained, the demand for a radio station is high if it has the largest number of listeners and in this way, it gets to make its money (Ickes, 2006). Similarly, the level of profits of a radio station relies heavily on the number of listeners that it has. Observations have indicated that, radios stations with the highest number of listeners make huge profits ma inly because their demand is high (Sickles, 2008). Generally, companies and other radio station’s clients seek to make their advertisements and announcements through the most listened radio station. With that respect, radio stations that meet this requirement make huge profits, as the number of advertisements and announcements is always high (Enrique, 2008). Thus, it is agreeable that this sector of business generates very high profits but the level of these profits profoundly