BM6023: The financial characteristics of companies vary for many reasons The two most prominent drivers are industry economics and firm strategy: Managerial Accounting & Finance Case Study, HWU, Malaysia

University Heriot-Watt University (HWU)
Subject BM6023: Managerial Accounting & Finance

The financial characteristics of companies vary for many reasons. The two most prominent drivers are industry economics and firm strategy. Each industry has a financial norm around which companies within the industry tend to operate.

An airline, for example, would naturally be expected to have a high proportion of fixed assets, while a consulting firm would not. A steel manufacturer would be expected to have a lower gross margin than a pharmaceutical manufacturer because commodities such as steel are subject to strong price competition, while highly differentiated products like patented drugs enjoy much more pricing freedom.

Because of the unique economic features of each industry, average financial statements will vary from one industry to the next. Similarly, companies within industries have different financial characteristics, in part, because of the diverse strategies that can be employed.

Executives choose strategies that will position their company favourably in the competitive jockeying within an industry. Strategies typically entail making important choices in how a product is made, how it is marketed, and how the company is financed. Strategies among companies in the same industry can differ dramatically.

Different strategies can produce striking differences in financial results for firms in the same industry. The following paragraphs describe pairs of participants in several different industries. Their strategies and market niches provide clues as to the financial condition and performance that one would expect of them.

Stuck in Completing this Assignment and feeling stressed ? Take our Private Writing Services.

Get Help By Expert

Malaysia assignment help provides you case study writing help in which our expert writers will assist you and write your Managerial Accounting & Finance Case Study in a 100% flowless & error-less manner before the deadline of your university at a reasonable price.

Answer

Recent Solved Questions

Online Exam & Assignment Writing Services

51770+ Orders Delivered

4.9/5
5 Star Rating

Confidential & Secure Assignment Help For

Group Assignment Help

Online Exam -Test & Quiz

Cheapest Price Quote

Diploma & Certificate Levels

Semester & FYP Papers

Summative & Individual

GBA & Reflective

Last Minute Assistance

Sample Assignment Download

CSC404 Programming II Assignment Sample UITM Malaysia
This course is an introduction to the art of computer programming. Students will be introduced to many different concepts and languages, including single-dimensional arrays, multi-dimensional arrays, records with named fields…
Computer & It
ECE126 Introduction To C Programming Assignment Example UiTM Malaysia
C is a powerful programming language that has many applications in engineering. In this course, we'll explore how C works and its uses for solving problems like these. C is…
Computer & It

UP TO 15 % DISCOUNT

Instant Paper Writing Services by Native Malaysia Writers

Plagiarism Free Solutions
100% Original Work
24*7 Online Assistance
Native PhD Experts
Hire a Writer Now

Get Assistance for Assignments, online Exam, and Projects Writing