GU2 Name: Qin Lifei SCN: 085447041 Date: 30/12/2009
? Secondly, there was no possible to analysis Motorola’s profitability position in five years (2005-2008) just with in three thousand words.
With the help with my tutor’s guide I quickly found solutions. ?
I change the Criteria of Motorola’s Cash flow trend analysis to analysis on Absolute numbers’ trends of the financial statements that are much easy for me and will allow me to complete within the deadline. ?
Then for the second problem I gave up the analysis on 2005 and 2006 when got my tutor’s permit, after it I can fish it within the limit words.
Other wise in order to perfect my report I added a Criteria: analysis on conventional profitability ratios before the criteria comparison of its profitability ratios with its major competitor Nokia’s profitability ratios that will complement the data which will be needed in the third Criteria and support much more information for Motorola’s shareholders which focus on the company.
1.4 R(relevant)
My analysis was also relevant to the Criteria I had set. I analyzed Motorola’s three Absolute numbers’ trends: Net sales, Gross margin and Net profit before tax to illustrate my trend analysis; in Conventional profitability ratios analysis I analyzed Motorola’s Gross profit percentages, Net profit percentage and Return on capital employed percentage during 2006 to 2008 to explain the Company’s profitability trends; lastly for the Motorola’s and Nokia’s Profitability ratios comparison I compared two companies’ Gross profit percentages, Net profit percentage and Return on capital employed percentage during 2006 to 2008 to show the gap between Motorola and Nokia.
1.5 T(time-bound)
The Time-bound I set was also work effective, I was going to finish my report by 17 weeks in 30, December and I finish the report exactly within the dead-line.
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GU2 Name: Qin Lifei SCN: 085447041 Date: 30/12/2009
2. The effectively of planning and implementation stages 2.1 The Brief stage:
In this part I introduced the topic of my report; the company I will choice; the research methods I will use and the Criteria I had chased. Some parts of Brief stage weren’t effective.
The topic of my report financial statement analysis on Motorola was good because my major is accounting I am good at it and I have lots of interests in it, the topic is perfect for me.
The choice of company was effective, the company public their financial statements in the internet for free, it is easy for me to get the information of the company and there are many financial reports about Motorola in the internet I can gain lots of help from them in my report writing.
The research methods I planned weren’t effective. I planned to use Both Primary research and Secondary research, but in fact all of my data were got from Secondary research. It was hard for me to get the Primary data, I tried to call Motorola’s financial department in China but they were refused my survey and I can’t found any other ways to got information from them. I revised my plan after it: focused on Secondary research try to found as much useful information as I can.
The Criteria I set was also can’t work. Originally, I am going to set two Criteria to analyze Motorola’s profitability position that's: the company’s cash flow trend during 2005 to 2008 analysis and comparison of its profitability ratios during 2005 to 2008 with its major competitor Nokia’s profitability ratios. But the analysis will use lots of knowledge without I have learned. So I changed my Criteria to: analysis on trends of Absolute profit numbers in the financial statements; analysis on conventional
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GU2 Name: Qin Lifei SCN: 085447041 Date: 30/12/2009
profitability ratios and analysis comparison on profitability ratios with those of in Nokia, its major competitor, to find out Motorola’s relative disadvantages in profit making.
2.2 The Planning stage:
The plan for the Primary /Secondary research did not work effective.
The Primary research is totally spent me 5RMB and 2days, the Secondary research spent me 210RMB within 28 days, which are didn’t with my plan of use 21 days and 90RMB on Secondary research; 8 days and 108RMB on Primary research.
The mainly reason for the change is it is hard for me, a common customer to get Primary data in China. So I changed my plan: in the first 20 days I mainly search on the Internet I found the company’s annual report from 2005 to 2008 and some relevant report about Motorola. The cost of surfing internet is accounted 5 Yuan per day and I spent 100 RMB for it add the print fees 70RMB for the Annual report and others’ report the spend on it is 170RMB. I spent the last 8 days in Campus library; in there I found the information about Motorola’s background and some professional knowledge which will help my report. It is free for the students to read books in the Campus library but I spent 30RMB for the data cope and transportation.
The Timescale for Stages was effective. There are three main stages included in this project investigation: planning stages, developing stage and evaluation. I fished the project within 17 weeks just like I planed but there was little diffidence in the specific time of each stage. Actually the Planning stage occupied me 7 weeks not as 6 weeks in the plan. The reason for it was there were breaks of National Day and an athletic meeting that I haven’t planned in. Because of I wrote the Developing stage a week late than my plan so I did my best and as far as possible to save my time in the stage, as a result I finished it in the thirteen weeks and catch up with my plan in the Evaluation.
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GU2 Name: Qin Lifei SCN: 085447041 Date: 30/12/2009
2.3 The Developing stage:
In this stages most part were processed smoothly but I found there were still some of insufficient in my report after the discussion with my tutor: ?
First, I should give a short introduction before each of the analysis and summary the analysis after explication which may let readers read the report easier. ?
Then, in the report I should more focus my readers, the shareholders of Motorola. I should stand on shareholders’ position, link my analysis with shareholders’ needs and interests, and offer them as real information as I can. ?
Lastly, I should not only present the Company’s profitability data trend but also should give a judgment on the trend, to say it is a good sign or not. That will let the readers who just have little professional knowledge to understand the analysis easily.
After the supplement my report becomes more prefect and more focus on my readers.
3. Assessment of strength and weakness of this report 3.1 Strength: ?
Reasonable and clear format
Thank for the study of the last year, I already grasped the report’s format and use the skill in this report. This report is dividend in three 3 stages: planning stage; developing stage and Evaluation. Planning stage is for me which include the project for my analysis. Developing stage is support analysis on Absolute numbers’ trends of the financial statements; analysis on conventional profitability ratios; comparison of its profitability ratios with its major competitor Nokia’s profitability ratios and recommendations to Motorola shareholders. The Evaluation is use to let myself examine my writing.
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GU2 Name: Qin Lifei SCN: 085447041 Date: 30/12/2009
?
Easy to understand
I used easy understand and accurate language in this report in order to encourage reading at the same time supply correct information. I hope the report will help the shareholders of this company who have less professional knowledge to get more useful information then do the better investment. ?
Be punctual
I always tried to catch up with my tour’s speed. I made a plan for myself and strict follow it. That all allow me finish it within the dead line.
3.2 Weakness: ?
Too little Primary research
It is hard for me to get the Primary data; I tried to call the Motorola China’s financial department manager but failed. The environment in China can’t allow us to do Primary research. So in this report too relay on Secondary data may reduce the report’s accuracy. ?
Insufficient evidence
Influenced by the limit in Primary research I often had a headache with sufficient evidence. Like: I can’t found specific reasons for Motorola’s Absolute numbers’ trend. That may let shareholders feel confused and can’t do best invest.
4 Recommendations for future development
Experienced the three stages: Planning; Developing and Evaluation. And after the above three steps I found I have many things need to improve: ?
For the “insufficient evidence” problem, I should enrich my accounting knowledge; improve my ability of use the analysis tool and expand my horizon on the industry, that allow me to get more evidences easily in the future report
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