Case 6: the Financial Detective
Case 6 : The Financial Detective
Financial data is the most crucial information in describing any sort of business, but this information is also useful in differentiating between different types of businesses. In any specific industry, many key players are present, yet their strategies and implementations of business vary greatly. Two firms may achieve the same earned profit, yet go about securing this profit in radically different ways .A close analysis of financial data for each business can be used to understand and explain these different strategies employed by a given company and how that strategy affects the financial performance of each company. This case calls for the examination of two different companies within the same field and, through analysis of selected financial information, determining which set of data belongs to which company based on the different characteristics and strategies employed by each company. The results of this analysis are as follows.
Health Products The two companies listed here manufacture and market health care products. The first is the world’s largest prescription-pharmaceutical company containing a broad pipeline of ethical pharmaceuticals backed by significant research and development, which has recently divested many of its non-related business holdings and is considered the partner of choice in terms of licensing agreements. The second company is a diversified health-products company that manufactures and mass markets a broad line of pharmaceuticals, over-the-counter drugs, health and beauty products and medical devices. Brand development and management is key to this company.
Company A is the more diversified company, while Company B is the world’s largest pharmaceutical company. A major signifier here is the intangible assets owned by Company B, 46.1 vs. 22.2, which would explain the patents and licensing deals mentioned in the company description, as well as the robust research and development budget. Another
Financial data is the most crucial information in describing any sort of business, but this information is also useful in differentiating between different types of businesses. In any specific industry, many key players are present, yet their strategies and implementations of business vary greatly. Two firms may achieve the same earned profit, yet go about securing this profit in radically different ways .A close analysis of financial data for each business can be used to understand and explain these different strategies employed by a given company and how that strategy affects the financial performance of each company. This case calls for the examination of two different companies within the same field and, through analysis of selected financial information, determining which set of data belongs to which company based on the different characteristics and strategies employed by each company. The results of this analysis are as follows.
Health Products The two companies listed here manufacture and market health care products. The first is the world’s largest prescription-pharmaceutical company containing a broad pipeline of ethical pharmaceuticals backed by significant research and development, which has recently divested many of its non-related business holdings and is considered the partner of choice in terms of licensing agreements. The second company is a diversified health-products company that manufactures and mass markets a broad line of pharmaceuticals, over-the-counter drugs, health and beauty products and medical devices. Brand development and management is key to this company.
Company A is the more diversified company, while Company B is the world’s largest pharmaceutical company. A major signifier here is the intangible assets owned by Company B, 46.1 vs. 22.2, which would explain the patents and licensing deals mentioned in the company description, as well as the robust research and development budget. Another