ArticlesBase.com - Free Articles Directory
Free Online Articles Directory
24.07.2008 Sign In Register Hello Guest
Email:
Password:
Remember Me 
forgot your password?


How effective can Financial Performance Analysis be?

Author: Verena Veneeva Author Ranking Bronze | Posted: 10-07-2006 | Comments: 0 | Views: 235 | Rating:  (50) Article Popularity - Green (?) Got a Question? Ask.
Sign Up Now!

With heightened competition, market concentration and regulation, British Telecom (BT) has employed a number of tactics to maintain profitability, market share and overall financial performance. As leaders of info-communications and worldwide ventures, BT have been contracting part of their operations, services and transferring responsibility to specialist branches, thereby achieving economic efficiency.
Manoj Kumar, a supply chain consultant claimed, "Most of the outsourcing that's happening has been triggered by cost, and if you want to minimize cost, it's mainly going offshore" (www.industryweek.com). For example, in India the IT workforce is estimated to rise to 2.2 million worker by 2008 from a mere 280,000 today (McKinsey Report, Ethicalcorp Magazine, www.ethicalcorp.com). BT have been fortunate to benefit from economies of scale in terms of purchasing, financial, marketing, technical and managerial improvements. Reducing costs simultaneously reduce risks helping to free financial resources. Instead of tying up resources in non-core areas they can be contracted at operational expenses. Contracting part of BTs services has been a viable choice rather than building functions from scratch. In doing so, BT have increased their customer base and re-attracted customers who left in the first place due to inherent inefficiencies. BT have benefited from 25% increase in its most recent financial quarter (www.cbronline.com/article_news). Likewise, many banking services from Barclays to HSBC as well as I.T. companies including Microsoft have followed the same suit indicating a rising market trend. In 2005, BT derived 91% of its revenue in the UK by providing communication solutions for homes and business helped by rising demand for broadband internet services. Financial statistics reveal: profits up by 32% in 2005 - a clear indication of improved market performance. In the Global market BT have experienced immense growth and promises to continue ‘develop[ing) our acquisition strategy, invest in our people, our skills and our global capabilities and unlock the value of our acquisitions and partnerships'. BT remains one of the market leaders in telecommunications. It started its journey as a state-owned enterprise. Following its privatisation in the 1990s shows a gradual shift in restructuring operations and management in achieving economic efficiency thereby improving financial profitability and performance with an entrepreneurial flair. It seems that BT have found their ground transforming its unstable performance to an innovative and booming market performer.

References:

http://www.btplc.com/...sandperformance/Annualreportandreview/Annualreports/Annualreportsarchive.htm

BT's quarterly newsletter for industry analysts, Issue 4, June 2006
https://www.btplc.com/Thegroup/Industryanalysts/Newsletter/ANALYST4_5.pdf

McKinsey Report Ethicalcorp Magazine, www.ethicalcorp.com

Papers For You (2006) " P/F/461. Operating and Financial Review", Available from http://www.coursework4you.co.uk/sprtfina45.htm [22/06/2006]

Papers For You (2006) "P/F/455. Report on business and financial performance of BT", Available from Papers4you.com [21/06/2006]

www.cbronline.com/article_new

www.industryweek.com/ReadArticle

Rate this Article: Current: 0 / 5 stars - 0 vote(s).

Article Source: http://www.articlesbase.com/finance-articles/how-effective-can-financial-performance-analysis-be-40449.html

Print this Article Print article   Email to a Friend Send to friend   Publish this Article on your Website Publish this Article   Send Author Feedback Author feedback  
About the Author:

Copyright © 2006 Verena Veneeva. Professional Writer working for http://www.coursework4you.co.uk

Submitting articles has become one of the most popular means of generating quality backlinks and targeted traffic to your website. Join us today - It's Free!

Article Comments

Comment on this article Comment on this article
Your Name
Your Email:
Comment Body
Enter Validation Code: Captcha


Related Articles

Getting a Loan for Starting your Business Regardless of your Credit
By: Melissa Kellett | 12/12/2007 | Loans
Getting a loan to start a business or finance a current one is not an easy task. There are many requirements you will need to meet and you need to be prepared to submit all the information you will be requested. Within this article you will find all the information on what your options are and how to get approved.

Sales Accounting for Profit With Accounting Software
By: Terry Cartwright | 11/06/2008 | Finance
Many small businesses concentrate on the job in hand and treat bookkeeping as an administrative burden. By adopting suitable accounting software as an essential tool of the business the financial performance can be improved by taking positive management action on the sales and profit generated.

Performance Measurement, Operational and Financial Performance
By: Dr. Rami Schayek | 26/06/2008 | Management
Empirically, most strategy research studies employ the construct of business performance to examine a variety of strategy content and process issues. This second article in the series concerns the use of financial and operational performance.

Got a Question? Ask.

Ask the community a question about this article:

Q&A Powered by:
Powered by Yedda 

Latest Finance Articles

Investment Advice, UK
By: Sean Horton | 24/07/2008
Investment is about risk. While the extent of financial risk any one of us is prepared to take is very much a personal issue, we are fortunate in the UK of having a network of Independent Financial Advisers to consult and to help us consider whether or not to invest...

Could Keyman Insurance Save Your Business?
By: Sean Horton | 24/07/2008
There is a well-worn saying that no one is indispensable. Perhaps not indispensable, but it is equally true that the role of a key player in many a small business can spell make or break in its fortunes. The loss of that "keyman" is therefore something to which every business...

Corporate Financial Advice For Your Business Too
By: Sean Horton | 24/07/2008
There is probably a tendency to think of the Independent Financial Adviser offering help and advice only in the area of personal finances. But the role is not restricted just to the individual. Increasingly, the adviser is being called in for corporate financial advice to assist small and medium-sized businesses...

Company Pensions in a Nutshell
By: Sean Horton | 24/07/2008
Company pensions are an invaluable part of employees' remuneration packages. They are a central incentive and motivation to staff and an important part, therefore, for successful retention and recruitment. This importance is recognised by the Independent Financial Advisers who help and advise employees and companies alike on the benefits of...

Managed Funds or Shares?
By: Richard Greenwood | 24/07/2008
The stock market provides unlimited investment opportunities. But what is the best way to manage your investments - trading direct buying your own stocks and shares or investing into a managed fund which is looked after by a funds manager. This article looks at the pro's and con's of each.

More Safety Tips About Online Money Transfer
By: Sivakorn Siricharoensataporn | 24/07/2008
As geographical boundaries are becoming blurred by each passing day, there is need for online money transfer around the world.

The Advantages Of Secured Loans Over Unsecured Loans
By: James Copper | 24/07/2008
An article giving good information on different types of finance

Steps To Financial Freedom: Paying For A Financial Planner
By: Michael Laleye | 24/07/2008
Finally the truth is that you're better off spending 15 minutes going over your taxes to make sure they're done right, and...

More from Verena Veneeva

Controlling and Getting Rid of Student Debt
By: Verena Veneeva | 04/11/2006 | Loans
This article outlines the ways in which students can control, manage and eliminate their student debts.

The essence of kaizen and its role in operations
By: Verena Veneeva | 10/07/2006 | Marketing
The present article discusses the notion of kaizen and its role as the integral part of TQM philosophy. The major points of interests are the core of the kaizen philosophy and what can be learnt from it, implementation requirements and the importance of corporate culture as one of the most important determinant of successful integration of kaizen

E-tailing and opportunities it opens to businesses
By: Verena Veneeva | 10/07/2006 | Online Business
With the fast development of various e-business solutions companies seek for new opportunities to get in touch with customers and build new type relationships. If in planning everything looks pretty simple and straightforward, in reality there are a lot of issues that shall be considered prior to launching full scale implementation. E-tailing is exactly this kind of beast. It brings a lot of operational and financial benefits, but it needs to be tamed.

Sustainable Tourism- A Prerequisite of Sustainable Development
By: Verena Veneeva | 10/07/2006 | Travel
This article will provide a brief overview about the historical background, importance, concepts, principles and general debates about sustainable tourism.

Social Responsibility- A Definite Aspect of Corporate Image
By: Verena Veneeva | 10/07/2006 | Corporate
This article will provide brief overview about definition, conceptual views as well as possible environmental actions related to the notion of business's social responsibility. Example will be cited to highlight successful facilitation of a socially responsible business.

Ensuring Effective Leadership Choice in Organization
By: Verena Veneeva | 10/07/2006 | Leadership
This article will provide brief overview about the concept and definition of leadership, set of competencies required and choices of power available for leaders through which they can work for organizational benefits.

Hospitality Marketing: A Remedy to Problems of Hospitality Industry
By: Verena Veneeva | 10/07/2006 | Marketing
This article will provide a brief overview about the concept of hospitality industry, the problems faced by this industry and importance of hospitality marketing to ensure customer satisfaction and business growth.

Project Management: Effectiveness and Assessment
By: Verena Veneeva | 10/07/2006 | Project Management
The principles of effective project management are potentially applicable to any project type across different industries. It has been established that the basis of these principles have been designed so as to accommodate variety of tasks and industries but still fine tuning is required during the course of certain projects.

Article Categories






Give Feedback

Sign up for our email newsletter

Receive updates, enter your email below