Week 4 Assignment

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Business Finance

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Prior to beginning this Interactive Assignment, review the sections of Chapters 5, 8, and 9 in the Abraham’s textbook on Assessing the Company and Operational and Budget Planning. Also read the online articles Analyze Investments Quickly With Ratios (Links to an external site.)Links to an external site. (Elmerraji, 2017) and What Is an Annualized Budget? (Links to an external site.)Links to an external site. (Ashe-Edmunds, n.d.).

Using the same publicly traded company you used in the Environmental Scanning Interactive Assignment, and this downloadable Operating Budget Template., research the company online by accessing the Mergent Ashford University Library online database which offers company financials, descriptions, history, property, subsidiaries, officers and directors. Also, access the Business Insights: Global Ashford University Library online database which offers information on global companies, and industries. It includes SWOT reports, market share data, financial reports, case studies, business news, and company comparison charts. (View the Mergent tipsheet and Business Insights tipsheet documents for suggested methods of searching Ashford University Library databases generally as well as specific advice for searching these two databases). You can always conduct research using credible online sources of corporate financial information, just be sure that wherever you obtain financial information that you cite your source.

For this Interactive Assignment, you are going to look at the financial statements for the company you selected and, using the previous quarter’s financial data, interpret the data and propose a budget for the next Quarter based on your current and previous analysis of company performance. Complete the budget template using this Operating Budget Template:

  • List your current sales, discounts and allowances, net sales, margins, operating costs, and earning before and after taxes.
  • Choose a minimum of two financial ratios (below) and include in your analysis.
  • Prepare the next quarter’s budget based on your interpretation of past data.

Include at least two of the following types of relevant financial ratios in your analysis. Review the online article Analyze Investments Quickly With Ratios (Links to an external site.)Links to an external site. (Elmerraji, 2017) and Chapter 5 in the Abraham’s textbook to help with this portion of the budget:

  • Profitability Ratio
  • Liquidity Ratio
  • Solvency Ratio
  • Valuation Ratio
  • Leverage Ratio

(NOTE: Incorporate the feedback you receive from your instructor and peers and save your work. It will be part of your Strategic Plan Final Project for this course).

Initial Post: In your initial post, provide a brief description of your company and provide a summary of your Operating Budget along with a rationale that supports suggested budgetary changes. Attach your Operating Budget Template to your initial post for review by your instructor and your peers.

I download my previous assignment if you need them.

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Running head: SWOT ANALYSIS 1 SWOT ANALYSIS Michael Wetzel BUS402 Strategic Management and Business Policy Instructor: Anthony DiGaetano February 20, 2018 Running head: SWOT ANALYSIS 2 Cloud Energy Peak INC. SWOT Analysis Company Profile Cloud peak energy identifies as a major industry player in the energy sector and specializes in coal production and operates as the only pure-play powder river basin (PRB) coal firm. Cloud peak energy ranks among the largest U.S based coal producers and employs high standards of safety to conveniently mine low sulfur, subbituminous coal and provides an efficient logistics system (Cloud Peak Energy — Energy to Power the Country. 2018). The powder river basin is famous as the lowest cost major coal mining field whereby Cloud peak energy owns and runs three mines which are spring creek, the antelope, and Cordero Rojo mines. The Cordero Rojo and the antelope mines are in Wyoming while the spring creek is in Montana. The company was incorporated in July 2008 through a corporate spin-off from the parent company, Rio Tinto Energy America and has since risen to be a famous brand in the energy sector. The company runs its operations through the headquarter offices located in Gillette, Wyoming. Besides, Cloud peak energy is listed as a public company and trades on the New York stock exchange (NYSE). As reported in 2016, the company mined and shipped a total of 59 million tons of coal from its three mines (Cloud Peak Energy — Energy to Power the Country. 2018). Notably, the company serves the American market as well as the global market. Cloud peak energy is also entitled rights to undeveloped coal and complementary surface assets in the Northern PRB which reinforces the long-term company goals. Clod energy peak has recorded excellent financial results whereby a detailed comparison against the industry averages, it reflects substantial performance. The fiscal period ending on December 2017, the annual reported was $213.89 M although there was a negative sales growth of -6.16% (Financial Statements - Cloud Peak Energy Inc. - Wall Street Journal. 2018). Running head: SWOT ANALYSIS 3 Moreover, the net income of the company recorded a -27.22% decline which reflects on the critical market fluctuations and the roaming global energy crisis. According to the Wall street journal, Cloud Peak energy Inc. statement of the financial position indicated that the firm had accumulated cash and investment balance of $107.95M, total liabilities of $690.89M (which $410.21M consist of debt). The shareholders’ value for the company stands at $1.01B where the book value per share is $13.41. In the energy sector and particularly coal production and supply, the firm faces competition from companies including Alliance holdings, Hallardor Energy, Westmoreland Coal, Peabody Energy, BHP Billiton plc and Foresight energy among others. The coal mining sector is highly competitive, and Cloud peak energy must compete with mega industry players including Alliance holdings, Alliance resources partners, Arch Coal and BHP Billiton Plc. Considerably, the volatility of the energy sector proves a considerable shake-up for the entire industry. SWOT Analysis The SWOT analysis entails a comprehensive evaluation of internal environment to ascertain what the business should critically concentrate on, the areas that need improvement, the possibilities of improvement as well as a considerable level of threats. The essence of SWOT analysis is to develop a detailed business profile of the firm that would contribute to the strategic planning of the company (Helms, & Nixon, 2010). The strength factors represent the integral endowment of the company, while weakness entails areas and functions that need improvement to realize the optimal potential of the firm. The opportunities constitute chances within the industry that could propel the company to immense prosperity whereas threats could drain and substantially impact the present and future performance. 4 Strength SWOT Analysis Environment Opportunity ✓ Extensive investment in technological approach. ✓ Availability of undeveloped and large reserves of developed coal mines. ✓ Deployment of a sustainable approach as the primary business strategy. ✓ Massive financial endowment to finance the cost-intensive operations. ✓ Highly skilled and committed workforce to coordinate between mining and logistic management Weakness Company Running head: SWOT ANALYSIS • Marketing ineffectiveness would present an ideal avenue to improve and exploit various untapped markets. • The changing paradigm in the adoption of coal energy around the world could pave a way for new market or the extinction of coal as a reliable source of energy. • It is vital for the company to align its sustainable resource to the potential of a diversified marketing approach to overcome ineffectiveness in the market strategy. Table 1: Cloud Peak Energy SWOT Matrix Strengths Threat ➢ The global energy crisis necessitating sustainable energy sources. Cloud peak Energy adopt sustainable approach which is one integral strength to provide solution to the global energy crisis. ➢ The Immense growing demand for energy sources and inadequate energy source options provides a convenient platform for Coal popularity and exploitation of the large reserves owned by Cloud peak energy. ❖ With time, technology becomes obsolete necessitating upgrades which may involve high costs to implement thus a significant blow to the company. Running head: SWOT ANALYSIS 5 The fundamental factor endowment of the company identifies as a substantial contribution to its success (Helms, & Nixon, 2010). Cloud Peak set of strength constitutes the contributing factor to its establishment and exceptional performance as one of the largest coal producing companies in America. First, the company boasts of the financial and technological endowment that enables it to run mining operations and logistics management. The substantial investment in the mining of coal as well as handling logistics necessitates substantial financial and technical endowment whereas Cloud peak has managed to deliver. The proceeds from the corporate spin-off and the proceeds of an IPO in 2009 substantially contributed to the financial kit (Cloud Peak Energy — Energy to Power the Country. 2018). The advancement in technology pushed the firm to third largest coal company in America and contributed to its prosperity in the long run (Amer, & Daim, 2010). Secondly, the company owns and operates three coal mines ensuring that the company can conveniently mine and ship the coal to different market around the world. The three coal minefields are a great asset for the company enabling it to exploit the coal resources profoundly excellently. Cloud peak energy is endowed with coal reserves in the excesses of 1.1 billion tons of coal. In addition, Cloud peak enjoys exclusive rights to undeveloped coal and contemporary surface asset which constitutes another vital factor to build its excellent operations. The vast reserves of coal enable the company to satisfy the demand in the market while it concentrates on low sulfur products as a safety observation. Thirdly, the company has an employee base of more than 12,000 workers. The large employees base ensures the running of operations in the minefields and excellent coordination of logistic functions. The company is endowed with a highly qualified workforce which ideally contributes to the substantive organization and execution of business operations. The company Running head: SWOT ANALYSIS 6 also has established distribution and sales markets thus facilitating exceptional logistic system management. The establishment of an excellent distribution system ensures that the company links well with the market (Cloud Peak Energy — Energy to Power the Country. 2018). The excelling in mining and efficient logistic management contributes to the growth and development of the firm. Weakness Weakness comprises a factor that are dragging the growth of the firm. Weakness represents critical areas that a firm need to improve and deliver efficient performance. The main weakness for Cloud peak energy Inc. constitutes the lack of diversification in the marketing approach which translates to a marketing strategy ineffectiveness (Helms, & Nixon, 2010). The concentration on the mining and supplying of coal products in America and some limited parts of the world involves a highly competitive sector which in turn results in lack of diversity. The firm lacks a competitive advantage which would distinguish it and hence an ineffective marketing strategy. The other weakness involves the lack of innovative adoption to enhance the practice of coal mining and logistic planning of the company. Evidently, the company experienced poor financial performance and negative growth rates. The company does not commit investment towards research and development which in turn would result in incredible input into fostering business’s operations (Cloud Peak Energy — Energy to Power the Country. 2018). A shorthand in research and development bars the firm from capitalizing on their substantial orientation and failure to realize its full potential. The lack of investment in research and development presents an indispensable shortcoming on potential excelling and performance at the level best limit. Opportunities Running head: SWOT ANALYSIS 7 Opportunities provide fruitful avenues for the business to exploit and as a result grow in performance as well improve its market share. The opportunities in the energy sector encompass a hoard of advantages that would ideally bear fruits in the form of revenues and market share. Cloud Peak energy review of opportunities involves the availability of undeveloped coal mines which would facilitate the expansion of operations (Cloud Peak Energy — Energy to Power the Country. 2018). The undeveloped coal mines present s the firm with extra resources to exploit and extends its operations beyond the current activities. Furthermore, coal being an extinct fuel, Cloud peak would pursue new minefield in a push to complement its production. Secondly, the adoption of the most sustainable approach in the mining of coal positions the company at a better place to realize long-term goals conveniently. Sustainability approach encompasses a stable balance between present conversation for prolonged benefits into the future hence the firm would be in the coal mining and supply business for long. Besides, the sustainable approach ensures that the company enjoys the benefit of excellent market relations and less cost incurred in conservation schemes or adhering to a strict requirement for responsible disposal of waste. Cloud Peak Energy stands to creep into prosperity in the present and future business operation by adopting sustainable mechanisms. Thirdly, Cloud Peak Energy is set to benefit from technological advancement in the line of coal mining which could further streamline the mechanism of mining and supply to the market. The investment in high technical endowment by the firm presents an opportunity for continuous improvement in the exploration of more coal fields as well as convenient mining approaches (Amer, & Daim, 2010). Technological advancement would be ideal for the company to enhance on its primary mining and further exploration activities thus a promising future. Running head: SWOT ANALYSIS 8 Cloud Peak energy would incorporate the utilization of technical approaches to ensure efficiency and cost saving as a convenient approach to optimal business performance. Threats The propensity to risk or threat exposure involves a possibility of loss causing occurrence whereby the company and other industry players fall victim. The exposure to a threat necessitates that the company maintains a close watch at such likely threat and act in accordance with the levels of the threat (Helms, & Nixon, 2010). The main threat facing Cloud Peak Energy is the uncertainties and looming crisis in the global energy sector. Notably, the global energy crisis entails an ongoing embroilment over the most suitable and sustainable form of energy for the world. There is no guarantee that the present coal reserves can sustain the world energy needs going into the future. The possibility of scrapping and abandoning of coal energy is a significant concern for Cloud Peak Energy’s business plans. In conclusion, the assessment of the strength, weakness, opportunities and threat factors presents a considerable internal environment profile which the firm can rely on to improve its operations. The SWOT analysis tool is useful in evaluating the effectiveness of the business operations of a firm and in this case, Cloud Peak Energy Inc. can devise an appropriate mechanism to prosper and stand out amid stiff competition. Running head: SWOT ANALYSIS 9 References Abraham, S. (2012). Strategic management for organizations [Electronic version]. Retrieved from https://content.ashford.edu/ Amer, M., & Daim, T. U. (2010). Application of technology roadmaps for renewable energy sector. Technological Forecasting and Social Change, 77(8), 1355-1370. Cloud Peak Energy — Energy to Power the Country. (2018). Cloudpeakenergy.com. Retrieved 19 February 2018, from https://cloudpeakenergy.com/\ Financial Statements - Cloud Peak Energy Inc. - Wall Street Journal. (2018). Quotes.wsj.com. Retrieved 19 February 2018, from http://quotes.wsj.com/CLD/financials Helms, M. M., & Nixon, J. (2010). Exploring SWOT analysis–where are we now? A review of academic research from the last decade. Journal of strategy and management, 3(3), 215251. Running head: SWOT ANALYSIS 10 Week 2, Interactive Assignment Environmental Scanning Michael Wetzel BUS402 Strategic Management and Business Policy Instructor: Anthony DiGaetano February 15, 2018 Environmental Scanning The environment scanning (Lesca, 2013) is an important exercise in any organization. It helps the organization to understand the surrounding of the business. In many cases, rather than doing the forecasting internally, a firm can find estimated or projected data on trends to fit its future time frame (Abraham, 2012). The information retrieved from the survey of the environment of a given company enables it to identify the opportunities and the threats that are at disposal of the business. As a matter of fact, many companies choose not to operate publicly. The reasons vary from one company to another based on the environmental challenges they face. However, to avoid the challenges that face the private companies like lack of sufficient resources gives some of the company remains publicly trading. This paper gives details of a public trading company that is operating in a challenging business environment. Cloud Peak Energy Inc. is one of the public owned largest producers of coal. Cloud Peak Energy, mines low sulfur, coal and offers logistics distribution services. The company was having been existed over ten years in the market. Its product is old both local and international markets. The number of the workers are correctly working in the company are over 12000. The company has a reputation for unique performance in its offering safety and preserving the environment. The company suppliers fuel of about three percent of the nation’s electricity. The company shares are recorded to drastically fall over the year making it hard for the company (Dividend, 2014). The regulatory environment is one of the challenges that face the company (Lesca, 2013). The awareness of the people of the effect of the coal on the environment, made by the environmentalist is viewed as a great enemy of the green movements. The climate change policies that are put in place to ensure the reduced to its lowest level is drastically affecting the company operate in the market. The company is poorly performing in the market, though their slight improvement, the reaching of the forecast target seems difficult to realize (Dividend, 2014). The company faces the challenge of being poor performance since the reputation is negatively affected by the rules and regulation that present the company as an enemy of the environment. In conclusion, the importance of the environment scanning should not be assumed by any company. The benefits are enormous to the present and the future of the company since the company can understand the environment that affects it from without. The knowledge of such environment prepares it to focus on its strengths and work prepares to handle the challenges that are currently and future anticipated. References Abraham, S. (2012). Strategic management for organizations [Electronic version]. Retrieved from https://content.ashford.edu/ Dividend Channel (Jan 9, 2014). Cloud Peak Energy (CLD) Shares Cross Below 200 DMA. Retrieved https://www.forbes.com/sites/dividendchannel/2014/01/09/cloud-peak-energycld-shares-cross-below-200-dma/#1b6149702d68 Lesca, N. (2013). Environmental Scanning and Sustainable Development. London: Wiley.
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Running head: OPERATIONAL BUDGETING

Operational Budget
Student’s Name
Institution Affiliation

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OPERATIONAL BUDGETING

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Financial Analysis: Operational Budgeting
The provision of an articulate financial plan is a necessity to realize optimal financial
performance. It is imperative to critically the information on the financial reports to ascertain the
progress of a firm with regard to its set of goals for a fiscal period. An annualized budget
constitutes an integral tool for forecasting of income and expense items enabling a firm to make
convenient plans for a specific period. An annual budget being a master plan for an entire fiscal
year is crucial in the evaluation of partial progress, especially on a quarterly basis. The partial
evaluation dict...


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