The Financial Detective, 2005
The Financial Detective, 2005
Financial characteristics of companies vary both from industry to industry and within a single industry for a variety of reasons. The challenge for any company in planning its strategy is the consideration of the industry’s economics in conjunction with their own strategy to help the company’s financial statements remain strong and competitive across both lines. In this case, we are asked to use this consideration of strategies to determine which company description belongs to which company’s financial statements. And explain the differences in the financial results across industries.
Case Problems 1. Match the financial statement with the company descriptions. 2. Explain differences in the financial results across industries. Industry | 1st Description | 2nd Description | Health Products (companies A& B) | This firm is the world’s largest prescription-pharmaceutical company, and has a very broad and deep pipeline of ethical pharmaceutical, supported by robust research and development budget. The company has divested several of its non-pharmaceutical businesses, and become the partner of choice for licensing deals with other pharmaceutical and biotechnology firms | This firm is a diversified health-products company that manufactures and mass markets a broad line of prescription pharmaceutical, over-the-counter remedies, consumer health and beauty products and medical diagnostics and devices. For its consumer segment, brand development and management are a major element of this firm’s mass-market-oriented strategy. | Beer (Companies C&D) | This firm is a national brewer of mass market consumer beers sold under a variety of brand names. It operates an extensive network of breweries and distribution systems. Also own a number of beer related businesses – snack, aluminum container manufacturing and theme parks | This firm produces seasonal and year-round beers with smaller production volume and higher
Financial characteristics of companies vary both from industry to industry and within a single industry for a variety of reasons. The challenge for any company in planning its strategy is the consideration of the industry’s economics in conjunction with their own strategy to help the company’s financial statements remain strong and competitive across both lines. In this case, we are asked to use this consideration of strategies to determine which company description belongs to which company’s financial statements. And explain the differences in the financial results across industries.
Case Problems 1. Match the financial statement with the company descriptions. 2. Explain differences in the financial results across industries. Industry | 1st Description | 2nd Description | Health Products (companies A& B) | This firm is the world’s largest prescription-pharmaceutical company, and has a very broad and deep pipeline of ethical pharmaceutical, supported by robust research and development budget. The company has divested several of its non-pharmaceutical businesses, and become the partner of choice for licensing deals with other pharmaceutical and biotechnology firms | This firm is a diversified health-products company that manufactures and mass markets a broad line of prescription pharmaceutical, over-the-counter remedies, consumer health and beauty products and medical diagnostics and devices. For its consumer segment, brand development and management are a major element of this firm’s mass-market-oriented strategy. | Beer (Companies C&D) | This firm is a national brewer of mass market consumer beers sold under a variety of brand names. It operates an extensive network of breweries and distribution systems. Also own a number of beer related businesses – snack, aluminum container manufacturing and theme parks | This firm produces seasonal and year-round beers with smaller production volume and higher