Financial Management Case Study Example | Topics and Well Written Essays - 2250 words

Financial Management - Case Study Example determine the best strategy for the company, there is the need to understand fully the external and internal environmental factors that affect the company1. The analysis of the company production and pricing for a certain period should be based on influences by the external and internal environmental factors. In order to come up with a good plan for the coming year, the Amalgamated Industries Limited (AIL) should reflect on the previous year’s activities on their production and pricing. Developing an improved strategy for production and pricing would help in maximizing the overall AIL profits in the upcoming year. The production speed should ensure quality of the materials. Quality materials would buy the customer trust and thus establish a long lasting relationship with the customers. The company should also ensure minimal expenditures on its production. Production process should take the cheapest means possible. This would allow for improve profits which would enable the company to cater for other internal and external expenses. The company should only adopt assets which give significant annual returns. The recommended changes may have some slight effect on the individual divisions. Elimination of some assets from the current organization would change the structure of the company’s portfolio. Dormant Investments from within the company should be eliminated while the company should adopt new assets which would keep records of the highest percentage of annual returns. Another recommendation is that the Compubase Inc. (CI) should offer a reduced price to $1.800 for all chips supplied to the PTL. However, these would affect the expected profits by the PTL Company. Production of quality materials would mean increasing the company’s investment on raw materials and of its services of production. This would win their trust by customers. However, this would affect the expected profits by the divisions in their short term plans. Ensuring minimized expenditures