GU2 Name: Qin Lifei SCN: 085447041 Date: 30/12/2009
Brief
1. SMART objectives of project
Motorola was founded in 1928; it is one of the world's wealth hundred businesses. The business scope of this company covers the broadband communications, embedded systems and wireless networks.
In this report I will use Motorola’s annual report during 2004 to 2008 which I found in Motorola’s website and try to raise the veil of its financial situation by analyze Motorola’s cash flow position and profitability ratios. I hope this will help the shareholders of Motorola to have a clear see of this company’s advantages, disadvantages and the risk in the future then do the best invest.
The main objective of the project should be achieved within 17 weeks in 30, December.
2. Statement of the issue to be investigated
A company’s cash flow performance will show the development trend of the company and the company’s future, profitability ratios will reveal the company’s ability of making profit, it relate to shareholders’ return of investment. Both of cash flow position and profitability ability are the most be concerned by people. In this report I will analyze Motorola’s cash flow and profitability ratios to help the shareholders make investment decision by be awarded with its advantages, disadvantages and risks.
3. Reasons of the choice of the issue
The reasons of me to choose this issue will be show as follow: ?
As we all know an economic crisis outreached in 2008 and it still will continue for a period of time. In this situation it is harder for shareholders who have poor knowledge of finance to have a clear view of the company and invest correctly;
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GU2 Name: Qin Lifei SCN: 085447041 Date: 30/12/2009
therefore I will help them to see clearly of the situation. ?
Maximum profitable is every profitability company’s goal so it has the necessary to analyze company’s profitability. ?
Cash is the most liquid assets of all business, without sufficient cash flow a business will be unable to pay current liabilities or unable to fund investment in new fixed assets, eventually the business will grind to a half. To analyze the company’s cash flow will help shareholders to know the company’s future and do the invest best. ?
My major is accounting, I have learned this field’s knowledge in class and I show big interest in it. ?
Relevant information could be referred to the HND student Guide DE39 34, Business Accounting: Advanced.
4. Justification for the choice of busing
Motorola has weathered tough macro environments and reinvented itself many times by being much focused on innovation and customers over the past 80 years. In 2008, amidst the most challenging global economic environment in decades, Motorola delivered solid financial results in their Enterprise Mobility Solutions and Home and Networks mobility business.
To chose Motorola company has the following reasons: ?
Motorola has a strong global brand, talented people and a proven record of creating disruptive technologies and innovative products that advance the way the world connects. We can have a rough idea of the whole mobile phone industry by analyze Motorola as an example. ?
In the economic crisis which outreached in 2008, Motorola displayed unfavorable position compare with its biggest opponent Nokia. It is worth to analyze Motorola’s financial performance right now.
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GU2 Name: Qin Lifei SCN: 085447041 Date: 30/12/2009
? There are many Motorola’s loyal customers at every corner of the world that who are very concern about it.
5. Sources of information and reasons to chose it.
The two main sources of the information I will use in this report are: secondary data and
primary data.
5.1 Secondary data
Data is that has already been collected by someone else for a different purpose to yours is secondary data.
The information we get from internet, books, newspapers, profession journals and others’ report are all called secondary data.
The secondary data can provide: ? ? ?
5.2 Primary data
When the data collector is the one using the data for analysis, the source is primary.
The data which collect by observation, experimental research, telephone surveys, interview, etc. are primary data.
To use primary data we can get following benefits: ? ? ?
fill the information gap
addresses specific research issues know the truth
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large amounts of information, quickly, and cheaply
GU2 Name: Qin Lifei SCN: 085447041 Date: 30/12/2009
6. Conduct investigation and methods chose
I will use secondary and primary research as a tool to help my investigation.
6.1 Secondary research
In this report I will mainly use secondary data because it is hard for the common customer to get the company’s financial statements personally but it is easy for us to get Motorola’s financial information from internet and library.
Internet
Nowadays, computer almost penetrating every Conner of the world, therefore on-line research is the most convenient way to find out ideal information. I found out Motorola Corporation’s annual report from year 2004 to year 2008 on www.motorola.com. Advantage: ? ? ?
ease of access low cost to acquire
may allow the researcher to cover a wider geographic or temporal range Library
The data collection process is informed by expertise and professionalism that may not available to smaller research projects. I will find some data about Motorola’s background and history after day’s research in the Beijing International Studies University library, it will help me a lot by know the company better. Advantage: ? ? ?
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save time, save money, convenient to gain,
GU2 Name: Qin Lifei SCN: 085447041 Date: 30/12/2009
6.2 Primary research
There was some information that I can not found in secondary data so I tried to research it personally. It is more heard method to get information by many limits I will do a telephone survey to fill the information gap.
Telephone survey
I will find Motorola’s financial department’s telephone number in telephone directory and try my best to get the information I will be wanted. Advantage ? ? ? ?
Addresses specific research issues Greater control
Efficient spending for information Proprietary information
7. Statement of the criteria
?
I will indicate the company’s cash flow position by analyze the company’s cash flow trend. ?
Nokia is a strong competitor for Motorola I will show the shareholders the company’s position by compare with Nokia.
8. Timescales for conducting the investigation
Primary /Secondary research Sources of information Secondary data September 9- 28 Time Investigation method Internet In this time period I will research Motorola’s financial statements on line and print its annual report. Secondary October. Library 5/36
Activities Duration (days) 19 Money (￥) 70 The internet search should be 12 20