What do you know about financial analysis?

What do you know about financial analysis? Use these resources and steps to work through the material. If you wish to do additional research, feel free to do so. If you grasp the concepts, feel free to move to the task and spend your time completing it. Your first submission will be a draft. Once you receive feedback from your instructor dig deeper into the content and analysis to submit a well rounded assignment.

Conduct a financial SWOT analysis on Chrysler and GM.

Finance Basics

In general, finance is a field that should be dealt with the investments of assets as well as liabilities over a time under conditions of uncertainty. In other words, it could be the management of a large amount of money especially from a government and certain large companies. It is a time value of money that determines the purchasing power of varied one unit of currency over a specific period of time. However, financial analysis is a way of evaluating businesses, budgets, projects, and other more finance-related entities in order to determine their performance as well as suitability. The main purpose of the financial analysis is to examine a past and current financial data so that the performance and financial position of the company could be evaluated, and the potential risks of future are estimated. Now we would conduct financial SWOT analysis for two companies such as Fiat Chrysler automobile LLC and GM (general motor) company.

Financial SWOT analysis on Chrysler Company

Strengths

Company’s financial mergers will produce more expansion of the business. The cost-effectiveness of Chrysler would ensure the more revenue generation as well as the increased market value of the share. Fiat Chrysler automobile LLC always try to differentiate between its product categories. It has a large number of sales that surpasses across one million unit sales per annually.

Weaknesses

The biggest weakness is that the preferences of customer go to different brands because of high sales rate. Alliances within other finances like budget, projects will generate the unproductive losses. Another major weakness is that the share price and profits are reduced due to the presence of a large amount of market penetration. The company faces a severe financial crisis if product lines are not trimmed.

Opportunities

The high pay – off with improved quality could expand the plant growth toward Europe. A major opportunity for their business is winning a management in the most appropriate way. This opportunity widely increases the productivity and efficiency of the organization.

Threats

One of the major threat for the organization is the decreased confidence in dealers as well as other associates. The increased number of competitors within better pricing, product, and promotional strategy also leads to a bigger threat.

 

Financial SWOT analysis on GM Company

Strengths

In terms of production ability, the effective scale economies will enable the competitive advantage. One of the major strength is that the high closing value of the stock will attract an investor in order to invest their money. General motor sells their products almost in all countries around a world. The sponsorship capabilities and large promotional strategy will enhance the overall company’s position.

Weaknesses

The overall sale of the product is reduced due to increased competition in the global market. Most of the time, less diversification of portfolio securities increases the risks in investment. Another major weakness is that in developing countries, limited participation has widely affected the potential growth of the organization.

Opportunities

In the current financial analysis, forecasting of higher earnings will ensure high capital flows to the company. Getting an advance technique in production will definitely increase the volume as well as share value. It should implement a proper strategy for the electric car.

Threats

The major threat to the general motor is fluctuation in fuel prices, share values and intense competition in most of the countries’ operations. The lower ratio of leverages reduces the savings as well as the profitability of the organization.

 

References

Bhasin, H. (2018, February 9). SWOT analysis of Chrysler – Chrysler SWOT analysis. Retrieved from https://www.marketing91.com/swot-analysis-chrysler/

Bhasin, H. (2018, January 13). SWOT Analysis of General Motors – GM SWOT analysis. Retrieved from https://www.marketing91.com/swot-analysis-general-motors/

Jurevicius, O. (2016, December 8). General Motors SWOT analysis. Retrieved from https://www.strategicmanagementinsight.com/swot-analyses/general-motors-swot-analysis.html