JOURNAL FOR BUSINESS STRATEGY CLASS 4
Journal for year 7
This year is quite disappointing for the shareholders. The investorsof the company have been expecting to reap maximum dividend from theshares they hold. The company reports a lower Earning per Shares thanit was anticipated. For instance, the investors are expecting to earn$2.35 Earnings per Share. However, the company manages to pay itsshareholders only $2.19 per share (Glo-Bus, 2015). Thecompany’s Return on Equity meets the investor’s expectation hencethe company records high profit of 17.7%. Shareholders were expecting15% growth on ROE hence the results are satisfactory. The parameteris used to measure the profitability of an organization. Thepercentage indicates that the profit margin grew than what theinvestors are anticipating. A growth in ROE will attract prospectshareholders to the organization since it is doing well to theorganization. The company, therefore, should aim at maximizingprofits in order to record a high ROE in the following year (Glo-Bus,2015). The company’s image rating has improved by five thanthe investors expected it. The stakeholders expected the brand imageof the business entity to improve by 70.However, the image scoreimproves by 75. The improved image rating is a critical factor in thesuccess of the firm. Brand image is a paramount factor thatcontributes to the success of a business. It distinguishes asuccessful company from its competitors. Therefore, the companyshould try to maintain and improve its the image rating (Glo-Bus,2015). Considering the exchange rates, it seems that theshareholders will lose due to the negative change in Net revenue by1.3%. The investors will, therefore, be discouraged to invest in thecompany in year 7 from the previous year. There is a positive changeof 0.5% in the Net Profit of the company hence increase in growth.Compared to other markets, Latin America is the best with Net Revenueof $179.61 hence the shareholders prefer to invest in the region asthis will yield high profits in the year. Other companies located indifferent regions should, therefore, improve its operations, and thiswill attract more investors (Glo-Bus, 2015).
Glo-Bus, (2015).Corporate Lobby-A Company. [1.5.2015]. <https://www.glo-bus.com/users/CorporateLobby.html>.