Financial Performance of Unilever Plc
Introduction:
Financial performance of a company depends over various financial factors as well as non financial factors of the company. It becomes mandatory for every investors as well as chief financial officer of the company to evaluate and analyze the performance and the position of the company to make various decisions in a better way. Measurement of financial performance of an organization could be done through conducting various studies and methods such as the financial performance of a company could be evaluated through conducting the study of ratio analysis or the budgetary reports could also assist the organization to identify the changes into the financial position. Further various other methods such as variance analysis, measurement techniques, better strategies of the company, competitor position of the company, market position of the company, changes in the industry, economical position, financial boom or crisis etc also make an impact over the financial position of a company.
In the given report, various methods of measuring the financial performance has been evaluated and for each study, different companies have been taken into the concern and the performance evaluation and analysis study has been done over those companies so that the better understanding could be enhanced over the performance and financial measurement techniques. Firstly, the study of ratio analysis has been done over the Unilever Plc to analyze that how the company is performing in terms of finance in the company. For this study, various competitors of the company have been analyzed so that a better conclusion could be given. Financial statement of the company has been analyzed for this study as well as the macro economical factors have also been taken into the context to evaluate the position of the company into the economy.
In addition, study has been performed over the budgetary techniques and their importance in an international company which is Capital Land plc. This study depicts that how the budgetary techniques make an impact over the financial position of the company. Through this study, it has been evaluated that how the budgetary techniques affect the operational performance of a company. It depict that the better the budgetary techniques and their implementation would be in an organization, the better the position of the company could be evaluated and better strategy could be made.
More, the study has been performed over the performance measurement techniques and their impact over the position and the performance of the company. Through these techniques, it has been found that how the performance of an organization could be evaluated and the environment of the organization could be impacted. Lastly, it has been evaluated that how an organization taka a decision about spending some expenditure over diversification of the organization or some other investment proposal.
Ratio Analysis
For measuring the financial performance of a company, firstly, the study of ratio analysis has been done over the Unilever Plc to evaluate that how the company is performing in terms of finance in the company. For analyzing the performance and the position of the company, financial statement of the company has been analyzed as well as the competitors’ performance has also been evaluated (Saunders and Cornett, 2014). Further, the macro economical factors have also been taken into the context to evaluate the position of the company into the economy. For this study, various competitors of the company have been analyzed so that a better conclusion could be given. Following is the evaluation study over Unilever Plc is:
Ratio analysis is a financial measurement technique which assists the chief financial officer, financial analyst, investors or other stakeholders of the company to evaluate that how the organization is performing as well as it also assist the organization to evaluate the strategies and policies in a perfect manner (Madhura, 2011). The study of ratio analysis of Unilever Plc is as follows:
|
Particular |
Formula |
2015 |
2016 |
||
|
Return on capital employed |
Operating profit / total assets – current liabilities |
(53272000/(52298000-20019000)) |
1.65 |
(52713000/(56429000/205556000)) |
1.47 |
|
Gross Profit |
Goss Profit / Sales |
(53272000/53272000) |
1 |
(52713000/52713000) |
1 |
|
Operating profit margin |
Operating profit / sales |
(53272000/53272000) |
1 |
(52713000/52713000) |
1 |
|
Gearing ratio |
Long term liabilities / capital employed |
(16840000/(52298000-20019000)) |
0.52 |
(19519000/((52298000-20019000)) |
0.54 |
|
Interest cover |
EBIT / interest expenses |
(53272000 / 0) |
0 |
(52713000/(52298000-20019000)) |
1.47 |
|
Working Note |
|||||
|
2015 |
2016 |
||||
|
Operating profit |
53272000 |
52713000 |
|||
|
Total assets |
52298000 |
56429000 |
|||
|
Current liabilities |
20019000 |
20556000 |
|||
|
Gross profit |
53272000 |
52713000 |
|||
|
Sales |
53272000 |
52713000 |
|||
|
Long term liabilities |
16840000 |
19519000 |
|||
|
EBIT |
53272000 |
52713000 |
|||
|
Interest expenses |
0 |
568000 |
|||
|
Capital employed |
32279000 |
35873000 |
The above evaluated ratio over Unilever plc depict that the return on capital employed is a position which express about the operating profit and the impact of capital employed over the total return of the company. This position takes the concern of the return which could be given by the company to its shareholders (De Haan and Amtenbrink, 2011). Through this study, it has been found that the position of the company has been worst from 2015 in 2016 due to the lower rate of return on capital employed. The ROCE level of the company has been changed due to the less demand of the products in the market. On the other hand, competitive company pepsico’s ROCE has been calculated and it has been found that the ROCE of Unilever is way better as ROCE of PepsiCo is 0.1604 in 2016.
Further, the study of gross profit of the comapny depict that what is the position of the gross profit an organization in context with the total sales of the company. Gross profit rate of an organization depict about the profitability position of a company. The study of gross profit of the company depict that the position of the gross profit of the company is similar in both the years (Brigham and Ehrhardt, 2013). No changes have taken place into the gross profit position of the company in 2015 as well as in 2016. The gross profit level of the company has not been changed due to the fixed % profit strategy of the company on the products. On the other hand, competitive company PepsiCo’s gross profit has been calculated and it has been found that the gross profit of Unilever is way better as gross profit of PepsiCo is 0.55 in 2016.
Budgetary Techniques in a Global Company
More, the study of operating profit margin of the comapny depict that what is the position of the operating profit an organization in context with the total sales of the company. Operating profit rate of an organization depict about the profitability position of a company. The study of operating profit of the company depict that the position of the operating profit of the company is similar in both the years. No changes have taken place into the operating profit position of the company in 2015 as well as in 2016.
Further, the position of gearing ratios of the company has been evaluated. This study of gearing ratios depict about the position of the capital employed on the basis of the capital employed of the company (Weygandt, Kimmel and Kieso, 2015). This depict that what is the position of the long term liabilities in the context of the capital employed of the company. Through this study, it has been found that the position of the company has been better from 2015 in 2016 due to the higher rate of return on capital employed. The operating profit level of the company has not been changed due to the fixed % profit strategy of the company on the products. On the other hand, competitive company PepsiCo’s operating profit has been calculated and it has been found that the operating profit of Unilever is way better as operating profit of PepsiCo is 0.1325 in 2016.
Further, the position of interest coverage of the company has been evaluated. This study of interest coverage depicts about the position of the EBIT on the basis of the interest expenses of the company. This depict that what is the position of the interest in the context of the total profit of the company (Von Hagen and Harden, 2014). Through this study, it has been found that the position of the company depict about the higher expenditure from 2015 in 2016 due to the higher rate of interest in 2016. On the other hand, competitive company PepsiCo’s interest coverage ratio has been calculated and it has been found that the interest coverage ratio of PepsiCo is way better as interest coverage ratio of PepsiCo is 8.61 in 2016.
Further, the competitor of the company has been analyzed to identify the position of the company in the market and the performance of the company in comparison of its competitors. And the macro economical factors of the company have also been analyzed to identify the position of the economy and its impact over the performance and the position of the company (Stevenson and Sum, 2002). Through the competitor and peer analysis, it has been found that the position of the Unilever plc is much better in comparison of the competitors. The main competitor of the Unilever plc is PepsiCo Limited. This depict that the revenue of the company is higher in the market as well as the market share of the company is maximum in the industry. This company has diversified its market into the international market and that is why the performance and the position of the company have been better in the industry.
Performance Measurement Techniques
The above table of the peer and the competitors of the company depict that the position of the company has been better. It depict that the company is performing outstanding in terms of competitive analysis. It depicts that the market capital and the CAGR ratio of the company is also better and depict about the better performance and the position of the company. Though, this analysis also depict that internet coverage of the company is higher in the industry (Niu, 2006). The analysis depict that the entire subsidiary companies of Unilever plc would perform better in the market and would not impact over the position and the performance of the company.
The macro economical factors of the country depict about the various changes into the industry in last few years which has affected the position and the profitability state of the company. Through this analysis, it has been observed that currently, the entire international market is suffering with the huge loss. Investors have divested their amount from the industries and the market and thus the liquid position of the companies have been affected and it has also affected the operations of the company. Further, the government interference of the company has also been evaluated and it has been found that the government do not interact more into the FMCG industry of the country (Juan García-Teruel and Martinez-Solano, 2007). The operations and the functions of the company are evaluated according to the industry regulations.
Further, the environmental aspect of the company has also been evaluated to identify and analyze that how the environment and the society is impacted over the position, performance and stability of the organization. Through the evaluation, it has been found that the environmental factor of the economy is according to the functions of the company and do not affect the operations of the company and lastly, the corporate governance policies of the company has also been evaluated to identify the performance and the position of the company in the society and it has been found that the company has planned various CSR programmes to evaluate the performance of the company in terms of managing the social responsibility (Horngren, 2009).
Thus, through this study, it has been found that the position and the performance of the Unilever plc in terms of financial and non financial factor of the company is better than any other company in the industry.
Decision-Making for Significant Capital Expenditure
For measuring the financial performance of a company, secondly, the study of budgetary techniques has been done over the capital land plc to evaluate that how the company is performing in terms of finance in the company. In addition, study has been performed over the budgetary techniques and their importance in Capital land plc. This study depicts that how the budgetary techniques make an impact over the financial position of the company. Through this study, it has been evaluated that how the budgetary techniques affect the operational performance of a company. It depict that the better the budgetary techniques and their implementation would be in an organization, the better the position of the company could be evaluated and better strategy could be made (Hogarth and Makridakis, 2011).
Capital land plc is operating is business into the international market. This organization is one of the largest organizations in real estate industry. Various strategies and policies of this company have helped the organization to enhance the business and make the organization’s performance better. Further, the financial and non financial, both the factors of the company are depicting about the positive performance of the company. In this report, study has been performed over the budgetary techniques and its impact over the financial position of the company (Graham, Harvey and Puri, 2013).
The budgetary techniques are of many types and it affects and manages the position and performance of the company in various ways. These techniques depict that an organization must be very caution while evaluating and identifying the best budgetary techniques and its implementation over the organization. The best budgetary techniques of an international company assist the Capital Land plc in managing the financial performance of its manufacturing department as follows:
It is quite tough for an organization to evaluate and identify the future of the business. For forecasting the changes and the performance of the company in the future, company could use the budgetary technique. Budgetary techniques help the Capital Land Plc in identifying the market position and the prediction about the future which helps the organization to make various better decisions about the performance and the sales of the company. Budgetary techniques take the concern of historical data and the prediction about the future and on the basis of those figures and information, future sales of the capital land plc is evaluated by the management of the company so that the goods could be manufactured by the manufacturing management accordingly (Garrison, Noreen, Brewer and McGowan, 2010).
At the same time, it is quite tough for an organization to evaluate and identify the future expenses and the changes of the business. For forecasting the changes and the performance of the company in the future, company could take the help of various methods so that the budgetary reports could be prepared. Budgetary techniques help the Capital Land Plc in identifying the customers’ needs and the demand through communicating the same with the marketing team of the organization. The information from marketing department would help the organization to make various better decisions about the performance and the total consumption of the company. Budgetary techniques take the concern of various non financial information and financial data to forecast the future consumption of the capital land plc so that the goods could be manufactured by the manufacturing management accordingly.
Further, Capital Land Plc finds it tough to identify the total capacity of the machineries. This problem could be resolved through communicating the same with the technical team of the organization. The information from technical department helps the organization to make various better decisions about the performance and the total manufacturing capacity of the company. Budgetary techniques take the concern of non financial information and financial data to forecast the machineries capacity of the capital land plc so that the goods could be manufactured by the manufacturing management accordingly (Faleti and Myrick, 2012).
Capital land plc makes various decisions about the performance and the position of the company on the basis of budgetary reports. In this issue, Budgetary techniques help the Capital Land Plc in identifying the various non financial information and financial data to forecast the performance and the total profitability position of the company. The information from budgetary techniques helps the organization to make various better decisions about the total goods which is manufactured by the manufacturing management of the capital land plc.
More, it has been evaluated that monitoring the business performance of the company is a tough task. Budgetary techniques help the Capital Land Plc in identifying the performance of the company through identifying the various non financial information and financial data. This technique monitors all the related aspect through conducting the various studies over entire related factors and thus it becomes easy for the analyst and the manufacturing manager of the company to monitor the business performance (Weygandt, Kimmel and Kieso, 2015). Variance analysis study is the most used technique to identify the performance of the company and the position of the company in the market.
More, budgetary techniques help the Capital Land Plc and its managers to identify and evaluate all the related factors and their responsibilities. This technique helps the line managers and middle level manager to generate and enhance the sense of caution and care to improve the responsibility level. It evaluates the administration of the Capital Land Plc to study about all the related factors (Davies and Crawford, 2011).
More, budgetary techniques help the Capital Land Plc and its managers to make some new policies and strategies according to the position and the performance of the organization. This technique helps the top level management and middle level management to guide the lower level management and labour so that they could perform their duties perfectly (Weygandt, Kimmel and Kieso, 2015). It evaluates the administration of the Capital Land Plc to study about all the related factors.
Further, budgetary techniques help the Capital Land Plc and its managers to make some direction plans according to the changes and the prediction about the organization. This technique helps the manufacturing managers to generate and enhance the sense of responsibility in the labour and the employees of the organization. It evaluates the administration of the Capital Land Plc to improve the performance and the position of the company (Warren, Reeve and Duchac, 2013).
Further, budgetary techniques help the Capital Land Plc and its managers to set up a coordination and communication program so that the better evaluation over the position and performance could be done. This technique helps the manufacturing managers to identify various financial data and non financial information such as the market prediction, choice of the customers, competitor position, supplier’s state etc (Van der Stede, 2011). It evaluates the administration of the Capital Land Plc to improve the performance and the position of the company.
It is required for every organization to identify the objectives of the business so that the work could be done in the same way. Further, budgetary techniques help the Capital Land Plc and its managers to define the goals and the objectives of the organization. This technique helps the manufacturing managers to evaluate and define the objectives to the labour and the employees of the organization. It evaluates the administration of the Capital Land Plc to improve the performance and the position of the company (Radebaugh, Gray and Black, 2006).
Further, budgetary techniques help the Capital Land Plc and its managers to set up a coordination and communication program so that the better evaluation over the position and performance could be done. This technique helps the manufacturing managers to identify various financial data and non financial information such as the market prediction, choice of the customers, competitor position, supplier’s state etc (Nobes and Parker, 2008). It evaluates the administration of the Capital Land Plc to improve the performance and the position of the company.
More, budgetary techniques help the Capital Land Plc and its managers to make some new policies and strategies according to the position and the performance of the organization. This technique helps the top level management and middle level management to set the communication so that they could perform their duties perfectly. It evaluates the administration of the Capital Land Plc to study about all the related factors (Needles, Powers and Crosson, 2013).
Define responsibility:
Further, budgetary techniques help the Capital Land Plc and its managers to define the responsibilities of the organization. This technique helps the manufacturing managers to evaluate and define the responsibilities to the labour and the employees of the organization. It evaluates the administration of the Capital Land Plc to improve the performance and the position of the company (Marginson, 2009).
Motivates employees and labour:
Further, budgetary techniques help the Capital Land Plc and its managers to make some direction plans according to the changes and the prediction about the organization. This technique helps the manufacturing managers to generate and enhance the sense of responsibility in the labour and the employees of the organization. It evaluates the administration of the Capital Land Plc to improve the performance and the position of the company (Lafond and Roychowdhury, 2008).
Thus, through this study, it has been found that how the performance of an organization could be better and how the budgetary techniques have enhanced the position and the performance of the company.
Performance measurement techniques are some methods which are used by the companies and the organizations to manage and identify the position and the performance of an organization in the market. These measurement techniques assist the company and the peers to analyze their position. Performance of an organization is an objective assessment which is analyzed against the well defined benchmark and some techniques. It is required for every organization to evaluate the performance on the basis of various variables to make a better decision (Horngren, et al, 2005). Performance measurement techniques depict that why it is important to evaluate? How could it be evaluated? What are the criteria? Who could measure the performance and when could it be measured?
Performance appraisal is a periodic, systematic and impartial rating which depends and analyzed according to the excellence criteria and the evaluation and comparison through past data with current data (Horngren, 2009). This system takes the concern of various financial and non financial data to measure and evaluate the position and the performance of the company. Performance measurement techniques are used by the companies to enhance and manage the production and the motivation of the employee of the company, more; it helps an organization to evaluate various financial and non financial data. It offers various bases to the company and the analyst to make a decision (Garrison et al, 2010).
Performance measurement techniques are of various types. The measurement techniques have been divided mainly in financial and non financial measurement techniques. Financial factors evaluate the financial data and the information of the company and on the basis of that data, the performance and the position of the company is evaluate whereas non financial factors evaluate the non financial data and the information of the company and on the basis of that data, the performance and the position of the company is evaluate (Deegan, 2013).
Following are some of financial and non financial measurement techniques which evaluate and measure the position and the performance of an organization:
Financial factors evaluate the financial data and the information of the company and on the basis of that data, the performance and the position of the company is evaluated. Following are some of financial measurement techniques which evaluate and measure the position and the performance of an organization:
Ratio analysis is a financial performance measurement technique. This analysis assists an organization into identifying and evaluating the position of an organization through evaluating the financial statement of the company. This study takes the concern of current and historical financial statement of an organization and evaluates those figures on the basis of various variables to make a better decision about the position of the company in terms of liquidity, profitability, stability etc (Eriotis, Vasiliou and Ventoura-Neokosmidi, 2007).
Horizontal analysis is a financial performance measurement technique. This analysis assists an organization into identifying and evaluating the position of an organization through evaluating the financial statement of the company. This study takes the concern of current and historical financial statement of an organization and evaluates those figures on the basis of historical year or a base year to make a better decision about the position of the company in terms of various figures such as total assets, revenues etc (Datta, ISKANDAR?DATTA, and Raman, 2005).
Trend analysis:
Trend analysis is a financial performance measurement technique. This analysis assists an organization into identifying and evaluating the position of an organization through evaluating the financial statement of the company. This study takes the concern of current financial statement of an organization and evaluates those figures on the basis of various figures such as total assets, revenues etc. this performance measurement technique depict that how could the performance of a company could be better.
Capital structure analysis is a financial performance measurement technique. This analysis assists an organization into identifying and evaluating the position of an organization through evaluating the financial statement of the company. This study takes the concern of capital of an organization and evaluates those figures on the basis of industry or competitors capital structure. this performance measurement technique depict that how the cost of the company could be reduced to enhance the performance of the company (Brown, Beekes and Verhoeven, 2011).
Cost of capital analysis is a financial performance measurement technique. This analysis assists an organization into identifying and evaluating the position of an organization through evaluating the financial statement of the company. This study takes the concern of cost of equity; cost f debt and capital structure of an organization and evaluates those figures on the basis of return of the company. this performance measurement technique depict that how could the profitability position of a company could be better.
Share position is a financial performance measurement technique. This analysis assists an organization into identifying and evaluating the position of an organization through evaluating the financial statement of the company. This study takes the concern of current share price of an organization and evaluates those figures on the basis of historical data, intrinsic value and market changes. This performance measurement technique depict that how could the performance of a company could be better (Brewer, Garrison and Noreen, 2005).
Non-financial performance measurement techniques:
Non financial factors evaluate the non financial data and the information of the company and on the basis of that data, the performance and the position of the company is evaluated. Following are some of non financial measurement techniques which evaluate and measure the position and the performance of an organization
Environmental analysis is a nonfinancial performance measurement technique. This analysis assists an organization into identifying and evaluating the macro economical position of an organization through evaluating the information and news from external sources. This study takes the concern of current changes of an industry and market place and evaluates those figures on the basis of historical data and market changes (Bierman, 2010). This performance measurement technique depict that how could the performance of a company could be better.
EVA:
EVA (Economic value analysis) is a non financial performance measurement technique. This analysis takes the concern of various non financial and macro economical factors to evaluate the changes and the performance of the company in near future. This study takes the concern of current position of the country and evaluates that information on the basis of current position of the industry and the organization. This EVA analysis technique depict that how could the performance of a company could be better.
Economical analysis is a nonfinancial performance measurement technique. This analysis assists an organization into identifying and evaluating the macro economical position of an organization through evaluating the information and news from external sources. This study takes the concern of current changes of an industry and market place and evaluates those figures on the basis of historical data and market changes (Weygandt, Kimmel and Kieso, 2015). This performance measurement technique depict that how could the performance of a company could be better.
KPIs:
KPIs are a non financial performance measurement technique. This analysis assists an organization into identifying and evaluating the position of an organization through evaluating the various studies and performance indicators of the company. This study takes the concern of current position of an organization and evaluates that information on the basis of historical data and market changes (Williams Haka, Bettner and Carcello, 2005). This performance measurement technique depict that how could the performance of a company could be better.
Policies and culture is a non financial performance measurement technique. This analysis assists an organization into identifying and evaluating the position of an organization through evaluating the various studies over the culture of the company. This study takes the concern of current and traditional position of an organization and evaluates those information on the basis of historical data. This performance measurement technique depict that how could the performance of a company could be better.
Balanced scorecard is a non financial performance measurement technique. This analysis assists an organization into identifying and evaluating the position of various departments of an organization through evaluating the various factors of the organization such as financial factors, marketing factors, technological factors etc. This study takes the concern of current and traditional position of an organization and evaluates that information on the basis of historical data. This Balance scorecard technique depict that how could the performance of a company could be better.
Employee motivation is also a non financial performance measurement technique. This analysis assists an organization into identifying and evaluating the position of an organization through evaluating the employee motivation level of the company (Zimmerman and Yahya-Zadeh, 2011). This study takes the concern of current position of an organization and evaluates that information on the basis of historical data and market changes. This performance measurement technique depict that how could the performance of a company could be better
Corporate planning is a non financial performance measurement technique. This analysis assists an organization into identifying and evaluating the position of an organization through evaluating the various studies and performance of the planning of the company. This study takes the concern of current position of an organization and evaluates corporate position of the company (Ahmed and Duellman, 2013). This performance measurement technique depict that how could the performance of a company could be better
Through this analysis, it has been found that the measurement techniques are of various types and assist an organization into identifying the level of the performance.
Lastly, it has been analyzed that if I would be managing directors of a large public company and a proposal could be got by me of some significant expenditure than I would take the concern of various variables and the following risks would be determined by me to make the decision more significant:
Internal risk:
Being managing director of a company, it becomes requisite for me to evaluate entire factor related to the investment and make a better decision about the position and the performance of the company. Through the analysis, it has been found that the following risk and issues could be raised in the organization:
Being a manager, it is compulsory for me to evaluate that whether the company would be able to raise and enhance that much funds. Raising and enhancing the funds in an organization is the biggest task for an organization as various studies must be conducted by the company before identifying the less risky and costly sources (Besley and Brigham, 2008). It is important for me to analyze that whether the company would be able to enhance that much amount if the fund and the risk and the cost of the company would be in control?
In addition, being a manager, it is compulsory for me to evaluate that what would be the total cost of the company if the investment has been done by the company in the proposed investment. Analyzing the cost of an organization is the time taking task for an organization as various studies must be conducted by the company before identifying the cost of various factors of the company and their impact over the position of the company. This issue is one of the biggest issue as if the cost of company is higher than the internal rate of return of the project than the project is not worthy.
Further, interference of the stakeholders of an organization is the risky and issue raising task for an organization as various problems are created by them in the company and further, they also affect the entire decisions of the company. It is important for me to analyze that whether the company would be able to make the investment without the interference of the stakeholders? (Brown, Beekes and Verhoeven, 2011)
Interference of the board of directors of an organization is the risky and issue raising task for an organization as various problems are created by them in the company and further, they also affect the entire decisions of the company. So, it becomes significant for me to analyze that whether the company would be able to make the investment with the consultancy of the board of directors? (Bryson, 2012)
Being managing director of a company, it becomes requisite for me to evaluate entire factor and make a better decision about the position and the performance of the company. Through the analysis, it has been found that the following risk and issues could be raised in the organization:
Economical condition of an industry and organization is the risky and issue raising task as it changes very rapidly and further, they also affect the entire decisions of the company (Datta, ISKANDAR?DATTA and Raman, 2005). It is important for me to analyze that whether the company would be affected by the changes into the economical position and how much would it impact over the investment of the company?
Market position of an industry and organization is the risky and issue raising task as it changes very rapidly. Further, they also affect the entire decisions of the company. It is important for me to analyze that whether the company would be affected by the changes into the market position and how much would it impact over the investment of the company? (Davies and Crawford, 2011)
Government rules:
Government rules of a country is the risky and issue raising task as it changes very rapidly and further, they also affect the entire decisions of the company. It is important for me to analyze that whether the company would be affected by the changes into the government rules and how much would it impact over the investment of the company?
Conclusion:
Through the above study, it has been evaluated that the financial performance of a company depends over various financial factors as well as non financial factors of the company. Measurement of financial performance of an organization has been done through conducting various studies and methods such as the financial performance of a company could be evaluated through conducting the study of ratio analysis or the budgetary reports could also assist the organization to identify the changes into the financial position. Further various other methods such as variance analysis, measurement techniques, better strategies of the company, competitor position of the company, market position of the company, changes in the industry, economical position, financial boom or crisis etc also make an impact over the financial position of a company. It is requisite for every investors as well as chief financial officer of the company to evaluate and analyze the performance and the position of the company to make various decisions in a better way.
In the above report, various methods of measuring the financial performance has been evaluated and for each study, different companies have been taken into the concern and the performance evaluation and analysis study has been done over those companies so that the better understanding could be enhanced over the performance and financial measurement techniques. Firstly, the study of ratio analysis has been done over the Unilever Plc to analyze that how the company is performing in terms of finance in the company. For this study, various competitors of the company have been analyzed so that a better conclusion could be given. Financial statement of the company has been analyzed for this study as well as the macro economical factors have also been taken into the context to evaluate the position of the company into the economy.
In addition, study has been performed over the budgetary techniques and their importance in an international company which is Capital Land plc. This study depicts that how the budgetary techniques make an impact over the financial position of the company. Through this study, it has been evaluated that how the budgetary techniques affect the operational performance of a company. It depict that the better the budgetary techniques and their implementation would be in an organization, the better the position of the company could be evaluated and better strategy could be made.
More, the study has been performed over the performance measurement techniques and their impact over the position and the performance of the company. Through these techniques, it has been found that how the performance of an organization could be evaluated and the environment of the organization could be impacted. Lastly, it has been evaluated that how an organization taka a decision about spending some expenditure over diversification of the organization or some other investment proposal.
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