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Managing Investments and Ensuring a Strong Future for the Business, Coursework Example

Pages: 24

Words: 6505

Coursework

Executive summary

The automobile industry is one of today’s most important sources of economic strength especially dedicated to worldwide development. The capacity of organizations in the industry to perform well with the assumptions of adjustments in the ways by which transportation becomes a determinable factor for development that nations use as a form of measurement in par with the level of progress they are able to define their country with. Among the most successful automobile companies in the international industries at present include that of the Daimler Company. The organization is basically well noted for its excellent performance in the industry; basically focusing on how it was able to pioneer in establishing the basic foundations of the automobile production and distribution transactions around the globe. In the presentation that follows, particular elements of operation shall be used to measure out the overall performance of the business in the market.

To note, this financial report satisfies requirements associated with the case study assignment for the MIB Corporate Finance course.  The report provides a description of the company and a breakdown of its corporate governance structure. These sections are followed up by analysis of the company’s financial wellbeing through analysing the cash flow statement, a ratio analysis, reviewing recent and significant investments and then providing an overall summary of the companies status within the market. All ratio calculations are available in the excel document that is attached to this report.

Part 1: Company Finance Presentation

Company Description 

Daimler Group of Companies is a collaborative collection of different automobile brands sold under one umbrella of management. Top European brands such as the Mercedes Benz, Daimler Trucks, Mercedes Benz Vans and Daimler buses all come together under this particular company and are released in the market under one specific industrial identity. Noted as one of the pioneer organizations to ever exist along with the onset of the popularity of transportation industries, the Daimler Company was able to capture the taste of a particular market as it promised to provide high quality automobiles as part of its reputable background in the industry. As of now, the company is recognized as one of the top providers and producers of premium cars and high-end manufacturers of commercial vehicles.

As of now, the company also offers several services to the market which includes financing and leasing [dedicated to support loyal clients in their desire to own one of the automobile-models provided by the company]. The organization also provides fleet management services. In consideration with these options of supporting services, Daimler also truest o venture on financial investment programs and credit card account support services that are all designed to make it easier for clients [even coming from the middle-range income earners] to take note of what the company has to offer within their range of capacity to pay for the product and/or services that the business opens for the market to appreciate.

Being a part of the campaign dedicated in the ideal process of creating highly sustainable and innovatively designed automobiles, Daimler currently invests in research operations dedicated to finding better resolutions towards creating high-performing automobiles that are less in waste production, aiming to lessen emissions that usually come from low-edge designed automobiles that are not fully able to follow through the innovations required to define the function of automobiles in the modern industries. With this concentration towards future growth in leading the way towards producing high quality, innovative and sustainable automobiles Daimler Group of Companies is expected to face larger challenges but is also viewed to have a better share in the market as it enters an internationally acclaimed campaign towards proper sustainable living that supports environmental protection amidst the industrialization and modernization of living among human societies around the globe.

Corporate Governance

The organization is generally and centrally managed in Germany. The organization believes that keeping the procedures of planning, production and direction for local and international distribution of their products within a centralized location and guidance does provide the organization a better control of matters; allowing it to make a stronger stand in the international market. Although there are some aspects of the company’s operations allocated in far remote areas, huge operations including manufacturing and sales management are all handled within the company’s headquarters in Germany. Branched out distributers are guided under the said aspect of management. This then puts the company in a practical position of keeping the investments of the business also within a centralized state. Daimler demonstrates significant cases of overinvesting capital in regions like Germany. Instead of investing the majority of its manufacturing in Germany, the company could benefit from allocating some of those funds over to the United States.

The over capitalization infers that there is an unrealized potential for increased performance. German manufacturers, a group in which Daimler Group is recognized as being one of the most established, have a culture of installing manufacturing equipment that exceeds the requirements, and there has been no compensation for three acquired equipment in labor productivity. These are qualities assigned to the German corporate culture which has been most commonly defined as ¨communitarian or contractarian¨ (Logue & Seward, 1999, p. 88).

The system which applies the contractarian perspective is directed toward the creation of shareholder value. The communitarian perspective of financial administration in an organization is directed towards the creation of value for all of the stakeholders. The stakeholders that are included in the communitarian perspective include the local communities, stockholders, customers, employees and creditors. In becoming concerned with attaining a wider constituency, the organization may have the tendency of over investing. Daimler’s tendency towards over investment is beneficial to the creditors, when organizations attempt to diversify through insurance. In addition, over investment helps the personnel of an organization because it improves the quality of jobs and creates other employment opportunities. In addition, the communitarian quality enables the clients by creating a more extensive product line. Finally, the community is supported when the tax base is amplified.

Bradley (et al, 1999) identifies five primary forces in manufacturing that influence the automotive industry. He identifies these as modifications in the market caused from globalization, which has the outcome of changing the systems of corporate governance. He further recognizes the force of the automotive manufacturing industry as a representative maintaining an inherent position from which the company can assess the impact of the changes in the manufacturing ecosystem and its influence upon the corporate governance perspective. Notably, there are a variety of experts that view the two types of corporate governance which include the contractarian perspective and communitarian perspective as having the ability to co-exist in a competitive global market. Bradley et al. (1999) conducted studies which assessed the qualities necessary sustaining profitable competitiveness within a globalized market place.

The primary issue within a globalized marketplace is that all of the organizations are vying for capital resources, which the author argues compels corporations, and their home nations, to shift to a contractarian model of corporate governance. This can largely be seen as the reason Daimler has adopted such a model. Shareholders also contribute to Daimler’s decision of adopting this form of corporate governance model as they expect substantial compensation for their international investments. This is the difference globalization ushers into the market as these investors could have invested within their domestic markets.

Around thirty years ago, Daimler’s main five shareholders were all banking institutions. They accounted for more than 78% of the stock valuation. In fact, more than 30% of the stock was administrated by Deutsche bank, which resulted in Deutsche Bank administrating over than 41% of the voting stock during the 1990 fiscal year. This further indicates that as much as centralized investment is concerned, it could be analysed that risks are heightened as well. In this case, it is highly hoped that to reduce the risks, reinvesting in other institutions under different investment policies could help the organization keep a strong stand in its post in the industry. Although the company is already considered as a fully established entity, it could not be denied that Daimler could still fully be more dependent on a rather strategic form of investment that is better directed towards making comprehensive use of the assets available for the organization to use [especially in relation to creating a more distinct form of control on how its factors of industrial survival are protected well].

Ratio Analysis

This section analyses a Daimler’s financial statements, such as the cash flow, the balance sheet, and income statement. The ratios are also calculated and assessed. These ratio presentations shall be based upon the following data gathered from Daimler website and other trusted investment-watch portals in the internet.

Cash Flow Statement

In assessing Daimler’s 2013 and 2014 consolidated cash flow statements, it becomes clear that 2014 was not a successful year in regards to brining in revenue. Daimler Group’s cash flow to sales came out to negative 175,000 percent, while in 2013 the company brought in 33.8% cash flow to sales.  Despite the fact that 2014 showed negative revenue, the returns paid to the investors were substantial. This is part of the reason why the company is so appealing to investors, specifically its receivables turnover, which indicates a lot of customer activity, and its positive current and quick ratios. While these metrics are liable to attract more investment from bankers, Daimler needs to be careful not to overleverage itself. If the company relies too heavily on leveraging its debt, then it could take on more volatility than necessary. A prime example of this can be seen with the fact that Daimler had a negative 175,000 percent cash flow to sale ratio in 2014, most likely due to utilizing substantial debt to fund activities and then having a slow return on accounts receivable carry over to the 2015 fiscal year.  Ultimately however, Daimler’s profit margin is above the industry average.

The Current Ratio

The current ratio defines where or not a company can cover its short term debt as well as its long-term obligations. It’s a measure of liquidity.  It’s calculated by dividing the current assets by the current liabilities. In 2013 Daimler had a current ratio of 1.19 and in 2014 the company had a current ratio of 1.05. Due to the fact that the current ratio is above 1, it shows Daimler has a healthy financial standing and the ability to cover its financial obligations. Relating to operations within the company’s personal performance, the data in this graph  shows how the business have grown in serving the market further with what they need and expected from the organization.

The Receivables Turnover Ratio

The receivables turnover ratio measures how efficient a company is at collecting debts and their ability to extend credit. This basically evaluates how long a company can go without receiving payments, as well as how effective the company is at retrieving the payments its due. It’s usually calculated by dividing the net credit sales by the average accounts receivable. In 2013 Daimler had a receivable turnover ratio of 0.263, and in 2014, the company had a receivable turnover ratio of 0.19. This is a low receivable turnover ratio and could suggest that Daimler has bad credit policies or that they are ineffective at retrieving cash that they are due, but it usually just means a company has a high number of cash receivables. In this particular instance, it is most likely the case that Daimler has a high number of cash receivables due being a significantly large business with international operations worldwide.

The Debt to Equity Ratio

The Debt to Equity Ratio, or D/E, calculates the financial leverage of a company by dividing the total liabilities by the shareholder equity. High D/E signifies that a company’s growth is heavily financed with debt and due primarily to management taking large risks, while a low D/E is the contrary and could represent more stable growth and less volatility.  Daimler maintained a debt to equity ratio of .54 between 2013 and 2014. This is not good but it is not bad either, as the ratio is nearing attributes 54% of the company’s growth to leveraging debt. It could be ideal for Daimler to lower this ratio 10 percent to 15 percent to take on less risk.

Return on Equity

The company’s return on equity for 2013 was 20.11% and for 2014 it was 16.35%. This represents an increase of almost 3% above the industry average in 2014 and almost 8% above the industry average in 2013. As this ration reveals how much profit the company makes with shareholder investments, it demonstrates the company is effective at allocating the funds of its shareholder, but did see a slight dip in 2014 from the previous year.

Return on Assets

Daimler’s return on assets for 2013 was 0.052 while in 2014 it was 0.038. Both of these ratios are below the industry average. As this ratio tells what earnings were gained from invested capital, it suggests that Daimler is behind the industry average in regards to bringing in revenue through investments.

Recent Significant Investments

The Daimler Group experienced a challenge in 2012, when production of revenues declined, halting what had been a continuing growth the in the marketing of Mercedes- Benz automobiles and Daimler Group trucks. Daimler group also took on a significant financial risk in their investment of the joint Chinese venture of Fujian Benz Automobile Corporation, which was only further compounded by their repositioning of the European and North American business matrices of Daimler Buses. The expense incurred accounted for € 155 million of new costs (Daimler, 2013).

Recommendations with Solutions

With the current position of the organization in the international industry of automobile production and distribution, it could be understood that Daimler Company does have a relative control on the market especially in terms of market sector concentration. The market that it serves has a definite identity and follows a particular trend that basically engages in determining their automobile choices based on specific criteria that Daimler Company is able to follow through.

However, the new and modernized systems of automobile industries that the Company is enjoined with specifically require that the business engage in strategic ways to redefine the pricing options that the organization offers the market with. Practical options of distribution is further empowered through the current financial support services that the business provides its clients with. It is then proposed that somehow, recreating stronger points of distinction on how these programs are to assist in the hope of widening out towards a more constructive form of aiding the company to attract more buyers from different sectors of the market margin.

Another useful suggestion could include a concentration on how modern automobile production could actually follow through a more refined consideration on reassessing the sustainability of the products offered by the business to the market as it intends to draw a new line of distinction as to how the organization’s future is to be established as the challenge of automobile sustainability is a rising concern for many motorists at present [especially in utilizing mass transport options] for the sake of serving the expectations of the public.

Summary

Daimler is a reputable company within its market.  Its diverse revenue stream provides it with some security against market volatility, but the company could benefit from cutting is debt to equity ratio as it’s currently taking on more risk than might be deemed necessary for stable growth. The company appears to have a stable financial health; and while being limited in its capacity to retrieve accounts receivable, its low receivable turnover ratio could be attributed to the large number of transactions Daimler makes worldwide. After assessing the company’s liquidity, the organization appears to be financially sound, which most likely can be attributed to mergers conducted around the world with Fujian Benz in China and the acquisition of Chrysler Corp.

Part 2: Investment and Future Operations

Instruments of Raising Monetary Assets

The outline of how the organization thrives in the market includes a more distinct essence of how corporate finance management strategies do help the company in achieving its goals while it manages its assets. Relatively, these procedures allow Daimler Company to be more effective in mandating a more refined indication of pathway that would create a more extensive process of determining how the whole organization would grow in the future. At present, the company is trying to thrive as a reflective performer in the market amidst tight competition through fully controlling the manufacturing and distribution of four primary brands in the market [both local and international in nature]. These brands are dedicated to provide a more defined indication on how social and individual transportation is better defined in order to provide a better sense of satisfactory mobility.

The four primary brands controlled by the organization include Mercedez Benz, Daimler Trucks, Mercedes Benz Vans and Daimler buses. These brands, as they are noted for high quality and top performance, is also noted to have particular pricing rate; one that fits the rate of service and product reputation that they are expected to stand for. Noticeably, this makes it harder for the company to extend its effect towards a much wider set of market sectors. Community defined transportation automobiles [such as vans, trucks and buses] are priced at a level of insistence that these automobiles are actual investments for the clients to consider.

Individually designed personal cars on the other hand are noted for their reputable stance in determining the works of quality put into place in luxury and highly defined cars that does not only give them the option of mobility but also the mark that would redefine them as individuals taking their social strata in the community. The pricing of these cars is considered to be at a single strand alone; however, if the company wants to extend its market influence, the organization needs to make a distinct transformation on how the finances of the loyalists would actually be fit enough to seek through the consistent assumption on their capacity to take on the pricing options provided by the company. Financial services and assistance programs are then expected to make a huge difference on the rate of sales that the company is able to make in a year [especially in the hope of affecting both individual and public transport advancement]. This approach is one of the most effective strategies embraced by the organization in order to increase sales rate that fully accounts for the overall economic improvement to which the company is dependent upon.

Another conditional process making it easier for the company to increase its monetary resources is through investing in stocks. Daimler currently has invested its stocks in both Frankfurt and Stuttgeirt which stands at present as a definitive source of a more solid sense of financial stability; one that intends to protect the whole set of assets that the organization exists along with at present. To further improve the strength of the organization in furthering its stand towards a more constructive form of existence in the industry, Daimler company further tries to improve on how it extends the ways by which it spends its investments on its products, its brands, its research and its infrastructures with which the company works with to manufacture its automobiles. To meet with the standards that the company has promised itself in to [especially in engaging with the market that it hopes to serve] the organization basically entails to provide a more constructive approach in making sure that the company goals are reached while the demands of the market they serve is relatively provided for. Noticeably, this approach has been keeping Daimler Company in the limelight as one of the most sought after companies in the field of automotive industries especially in providing the most cost-effective and quality-defined conditions of market existence.

Future Growth Strategies

The future of the company is largely geared towards the concept of advancing in innovation and sustainability. The work of the administrators at present is basically focused on redefining how the creation of good automobiles could basically improve the ways by which the organization does create a more extensive pattern of redirection on how the quality of its automobiles could also embrace a new trend of being innovative and definite in making sustainable resolutions for the future. With this aspect of advancement noted in mind, Daimler is expected to yet again, pioneer into embracing a new sense of existence within an environment that fully indicates a better sense of its contribution towards creating a more definite course of progress, not only for itself but for the industry that it exists with.

To further fund this point of progress, the administrators of Daimler could see through the option of creating a more expansive process of enlarging the ways by which it extends its financial programs for the sake of the people it hopes to support. To do this, creating bank-based connections would help well in the process. This would increase the capacity of the organization to support prospective buyers [especially as they engage in transactions with the company; particularly determining how their loyalist ought to be protected and given ample assistance alongside the concept of improvement that the business hopes to embrace]. Through enrolling in distinct bank-policies that would help the company reach out to a wider range of buyers in the market, the organization is able to make sure that its loyalist would be given the chance to appreciate what the company intends to provide. This would of course increase the payables that the business incurs in a year. Nevertheless, it could be noted that the wider essence of recognizing these programs among target buyers would basically increase the rate of sales transactions that the business engages with annually.

The innovations geared towards making a more established sense of sustainably produced automobiles basically redefine the constancy by which the business ought to increase these tie-ups with the banks. Given the fact that they would be offering a new form of transportation with a new makeup process and a practically a higher price [considering the ways by which the said new models would be made upon], it is expected that these cars would be priced at a higher rate as well. Nevertheless, with the emergent existence of financial assistance programs and leeway payments provided for the buyers to take note of, it is hoped for that the attention given by prospective buyers into the said set of automobile models would be rather effective enough especially in mandating a better course of provision for the public to enjoy what the organization is willing to offer.

Funding the research procedures that goes behind the creation of these possibilities does provide a more distinct challenge for the business [that basically requires a new process of gaining the amount needed to extend the capacities of the business to embrace expansive forms of development. The increase of sales expected to be garnered from partnering with banks as they provide a much better set of options for buyers to acquire the products offered by the organization might not be fully capable of supporting these research operations. Hence, to make sure that the future of the company is secured especially in relation to how the organization functions alongside the campaign towards highly innovative and well-determined designs that would best fit the future of environmentally-friendly transportation options opened and offered for better public use, a distinct form of campaign shall be made for the current products of the business to further increase the rate of sales they are to be noted for. the marketing campaigns should be designed to create an attention-getting message that would get the target market to think into buying their own piece of personal cars as a form of investment. Putting a clear sense of reconstituting the ways by which the company embraces with the assumed direction of being fully financially assisted with their desire to own a personal automobile [from the Daimler group of brands] is expected to increase sales dramatically while the organization further affects a wider scope of market that is ready to appreciate what the business has to offer.

At present, the company is at the thirteenth position among all other highly expansive automotive organizations in the world. The construction of a good name is what the company highly depends upon. In the long run, the same strategy of upholding a good name in the market is what shall keep the organization at a much better condition of existence and market acceptance. While luxury is what spells the personal/individual automobile model offered by the company, it is high time to make a better statement that indicates how these automobiles also set up a more distinctive sense of indication on how highly directive and environmentally friendly automobiles would best fit the modern sense of living [especially among communities where massive environmental adjustments are needed for the sake of preserving what is left for the current generation to use. Through the continuation of research and production under this particular goal, the business is expected to take on a much stronger stand in the face of future competitions with other automobile producers both within local territories even towards the international market.

Given this particular thought in mind, the administrators of Daimler Company intends to adapt particular strategies that would best complete a much better sense of controlling and/or managing the financial assets of the organization. In consideration to this matter there are currently six particular strategies that the organization adapts to; which includes (a) capital structure management; (b) liquidity management; (c) cash management, ; (d) management of market price risks; and (e ) management of pension assets. These particular considerations of financial management in line with the business engaged in with by Daimler provide the business a much stronger foundation of existence especially as it faces a better form of directing its operations and the use of its monetary assets to ensure that the business would grow according to expectations.

Capital Structure Management entails a dedicated attention pointed towards the creation of structures [and their maintenance] which would all be directed towards creating areas that would best serve as the company’s vessel of operation in manufacturing high quality automobiles that they are going to offer to the market. Investing in these structures would mean a huge step up towards creating a more established process of production that would not need be hindered by instances where outside support facilities would fail to provide what the market demands for. These structures ought to be properly maintained, thus reducing the expenses that their failure may have as these matters would impact the overall sales operations of the business.

Liquidity Management strengthens Daimler’s capacity to pay for its payables at any time [especially when emergencies occur]. This allows the company to take on a rolling financial plan that would reduce monetary tension later on when unforeseen occurrences happen. The liquidity of all primary assets of the company keeps the investors of the organization at ease even when the sales rate gained by the business comes at an up and down figure [often challenging the capacity of the organization to remain stable] amidst all financial imbalances that are happening or might even happen in the near future. This approach also involves a distinct process of cash management where the group intends to manage the utilization and release of surplus materials in order to reduce the incurrence of waste and excess expenses from the company’s modern operations.

The proper approach to managing market price risks is also a form of investment that the business engages in. This option opens up towards the condition by which the administrators are able to effectively handle a distinct occurrence of fluctuation of the value of money in the international economy thus challenging the capacity of the business to keep a much better control on how it would support the needs of the organization to operate fully. This would also intend to protect the value of invested assets that the business has already subjected towards international stock programs. This approach basically makes it easier for the organization to hold the need to make an assumed decision, especially directed towards providing a constructive form of improving how the business handles the massive fluctuations in automobile pricing especially dictated by the pricing of primary commodities.

The management of pension assets on the other hand gives the organization a better sense of directing its assets towards a more defined path of improving the overall operation of the organization. This is basically geared towards improving how the business handles pension investments where the Daimler Company’s separate agency for Global Pension Committee operations is able to make a definite impact on how the rate of assets subjected towards particular outside investments are protected from risks. This way, the financial statements of the business are better identified well especially when it comes to making a definite turn on how the global investments of the organization are guided well in order for everything to be directed to profit for the organization instead of making a distinct source of monetary tension that the business could practically do away with.

These approaches to monetary management are assumed to create a massive form of protection for the organization’s primary assets as it enters different form of investment engagements. Practically, the different forms of managing corporate finance resources of Daimler are all directed towards making sure that the company’s stance in the market would best be able to make a definite turn towards determining a better course of operation for the business even amidst tight competitions in the market. The new challenges opened for the industry to take notice of [especially dedicated to innovation and sustainability] are basically embraced fully by the administrators of Daimler not just because they have to, but because they want to make sure that the name of the company names as productive as necessary especially in the eyes of the target market; hence ensuring ample cash flow from sales. As a result of these efforts, the current financial records have been noted as part of the company’s mark of successful monetary management operations:

From this figure, it could be realized how the organizational strategies of managing its financial assets does provide a much better source of distinction on how cash flows are better managed in the business in due recognition of the different factors affecting the operations of the business in both its local and international connections and business engagements. The investment activities of the organization have been properly protected through the assumption of proper monetary management that the organization embraces.

Income Statement and Balance Sheet

The current income statement yields that from the fiscal performance of the business in 2013, the progress the business took into account was more than just desirable for the administrators to take account of. The increase of sales and the increase of popularity that the organization takes into account is what make the business even more trustworthy for the market and the investors to trust.

Risk Scenario Analysis

To be able to set the adjustments needed to be accomplished by the business in line with the risks mentioned, the following table shall be used as basis of calculation. The changing pattern of investments shall be followed based on this particular data:

Encircled are the amounts of cash used for investment and operating activities that the business hopes to regard its function in. These activities are expected to make a mark on how the monetary assets that the company has today is being managed to protect its future business engagements.

Risk A: if the company overinvests within its own assets and the liquidation of its current assets; risks would be higher if particular fluctuations actually occur from the outside environment of the business.

The organization need to see to it that when it comes to managing its assets, assumptions of both the internal and external environment affecting the full function of the business should be carried into account. Balancing these factors particularly give a more effective insistence on how practical ways of adjustments within the company could protect it from massive fluctuations from outside activities within the market.

To be able to face this risk, the company needs to invest on outside stocks more. True, the company has two primary stock investments at present. Adding up to these particular investments does create a more distinct impact on how the company protects itself based on outside resources. To do so, it would be best to borrow from the bank [as part of the support system that they get from the said financial institutions as part of the financial assistance that they are providing their clients with].

Adjustment:

If [for the fiscal year 2014] the company spends €2,709 million, it would be adjusted to a flat €3million so as to provide a higher rate of investment that would specifically mandate a better insistence on how this specific amount of money would suffice the protection given to the current assets of the company from outside resources.

Risk B: If the company focuses on innovation and sustainability alone, the current market that the company already serves might not have full benefit from the overall function of the organization in designing contemporary automobiles that respond to the desire and demands of the current market.

The balance of attention that the administrators have on the current and future performance of the business is necessary in keeping the whole operation at bay. This is essential in making sure that the business is able to face massive challenges in the future through establishing a clear indication of its current standing in the market.

In this case, it is essential that the company pay-off its current debts in order to make way for possible new borrowing transactions from business loaning companies and institutions in order to produce more of the current models that receive a high demand rate from the market. It is essential that this condition be given particular attention to as it creates a more distinct assumption of how improved vision of the company’s current standing in the market could increase the competency that the organization carries into account especially when it comes to determining how strong it would be in pursuing a goal in developing highly innovative and sustainable automobiles for the modern motorists.

Adjustment:

The amount for operation totaling to €1,274 million shall be adjusted to an increase of at least 2-3% which yields an addition of €38.2 million [which is expected to be returned to the company in terms of increased sales]. The adjusted amount shall not be completely dedicated to manufacturing alone, but also towards protecting the marketing activities of the business directed to make market-recognition gain a much better response that would later on increase sales.

Risk C: If the company engages in high risk-high profit investments, it would likely affect the whole position of the company in the face of competition.

High risk-high profit investments could put the organization in a much jeopardizing position especially if not looked after completely. Relatively, it could be analyzed that with proper management of assets, the company could be well-protected from particular stock failures in the industry of investments.

Hedging would best respond to this problem. Dividing the investment into different policies would best cushion the organization from over investing in particularly high-risk investment setups. The decision on which specific policies to enroll the investments in should be fully engaged in by the administrators as they see the balance of how these investments would affect future operations.

Adjustments:

The amount for the investment activities amounting to €2,709 million in this particular risk shall be increased to at least one percent; which would be dedicated to being enrolled in a hedging investment choice. €27 to €28 million additional funding to hedged investments is expected to increase the protection that the business gets from outside resources that ought to increase the monetary assets and protect company operations in case financial issues arise in the international market.

In the News

2014 Paris Motor Show: Mercedes Offers Something for Everyone (http://www.nytimes.com/2014/10/04/automobiles/2014-paris-motor-show-mercedes-offers-something-for-everyone.html?ref=topics)

The new set of Mercedes Benz brands try to go beyond what is expected from luxury automobiles

The cross visiting of what makes a race car and a family car rolled into one is what makes the new set of automobiles representing the brand more of an enthusiastic feat for the company as it offers something for everyone.

The company is rather positive in seeing this approach as a better course of increasing sales through providing financial assistance to those that it hopes to entice in buying one of its newest designs of cars for the public to enjoy.

Daimler Sets Aside $748 Million Over E.U. Inquiry Into Truck Makers(http://www.nytimes.com/2014/12/19/business/daimler-eu-inquiry-into-truck-makers.html?ref=topics)

-improving the truck-production of the company is a good source of an intense empowerment of the organization in socially-defined existence. This investment is expected to be returned in double through increased rate of sales in the public utility vehicle sector of the company’s operation.

Hydrogen Fuel Cell Cars Return for another Run (http://www.nytimes.com/2015/04/17/automobiles/hydrogen-fuel-cell-cars-return-for-another-run.html?ref=topics&_r=0)

-in pursuit of putting the organization ahead of the line in creating newly designed innovative and sustainable cars, hydrogen fuel cars are expected to spearhead the campaign towards creating a more defined condition of development that would empower such course of improvement in the company. Relatively, it could be noted that when it comes to improving how alternative gas application and use is pursued, the company hopes that its investments in the process of developing such innovations would provide a huge change on how the environment is protected through the said assumption of corporate responsibility responded through effective transformational operations.

Summary

This part of the discussion and presentation shows a distinct indication on how investments and transformative management of assets could provide any particular organization of the considerable redirection of goals that it needs in order to secure its future in the market. Relatively, even though Daimler is an already grown organization, finding ways to fit its managerial operations with that of the current demand from the consumers [who the company hopes to serve] would best assure the organization of a brighter chance of even going further than the 13th place of the most recognized and profiting automobile organizations in the market today. Partnering innovation with the desire to provide the society with what it needs in a scale of how it needs it gives the company a chance to expand its market influence further [allowing it to increase sales as well as improve its reputation within the market sector it hopes to affect].

References

Brooks, Philip C. (2011). Oldham, Charles, ed. “Phantoms in a Postwar World”. The International Club for Rolls-Royce and Bentley Owners Desk Diary (Tampa, FL US: Faircount Media): 34–37, 39–40.

Richardson, Kenneth (1977). The British Motor Industry 1896–1939. London: Archon Books.

Thorley, Nigel (September 2003). Jaguar: All the Cars. Haynes Publishing.

Anderson, Roy Claude; Frankis, G. (2005). History of Royal Blue express services (Second ed.). David & Charles. p. 175.

Bradley, M. Schipani, C.A., Sundaran, A.K. & Walsh, J. P. (1999). The purposes of accountability of the corporation in contemporary society: Governance at a crossroads. Law & Contemporary Problems, 62(3): 9- 86

Daimler. (7 February 2013). Daimler with another strong year in 2012: Best figures for unit sales and revenue; Group EBIT of €8.6 billion. Daimler AG.

Daimler (2015). Interim report 2015. Daimler International Finance B.V.

Logue, D. E. & Seward, J. K. (1999). Anatomy of a governance transformation: The case of   Daimler- Benz. Law and Contemporary Problems, 62(3): 87- 111.

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