Internal Analysis of Paramount Corporation Berhad DOCX

Title	Internal Analysis of Paramount Corporation Berhad
Author	Abdul Hussain
Pages	5
File Size	18.3 KB
File Type	DOCX
Total Downloads	325
Total Views	430

Summary

Internal Analysis of Paramount Corporation Berhad (PCB) An internal analysis is an exploration of your organization’s competency, cost position and competitive viability in the marketplace. Conducting an internal analysis often incorporates measures that provide useful information about your organiz...

Description

Internal Analysis of Paramount Corporation Berhad (PCB) An internal analysis is an exploration of your organization's competency, cost position and competitive viability in the marketplace. Conducting an internal analysis often incorporates measures that provide useful information about your organization's strengths, weakness, opportunities and threats -- a SWOT analysis. The data generated by an internal analysis is important because you can use it to develop strategic planning objectives to sustain and grow your business. The first thing to examine is the company's competitive approach. What moves has the company made recently to attract customers and improve its market share position - for instance, has it cut prices, improved the design of its product, added new features, stepped up advertising and the like. To add to its portfolio, Paramount Corp intensifies its competitive approach by entering into a new joint venture (JV) with Lasseters International Holdings Ltd. The Joint venture agreement with paramount corporation berhad has estimated total project cost of approximately rm55 million. The JV is for the purpose of jointly developing and/or acquiring, owning and operating a hotel located in glenmarie, shah alam, Malaysia. Lasseters Properties sdn. Bhd (LPSB) and Lasseters management Sdn Bhd (LMSB)entered into a joint venture agreement with paramount corporation berhad. The Joint venture parties will collaborate with an international hotel operator for the operations of the proposed hotel. The JV is however not expected to have any material impact on the EPS of the group for the current financial year. The group's equity participation in the joint venture will be funded through internal resources and/or borrowings. LPSB and LMSB will collectively hold 55% equity interest in a special purpose vehicle set up for the JV while PCB will hold 45%. Financial Ratio Analysis for the year 2015 (RM'000) 1. Liquidity Ratio - Current Ratio and Working Capital Current Ratio = Current Asset/Current Liabilities 450,304/377,484 = 1.2. With a liquidity ratio of 1.2, which is higher than 1 shows that PCB is relatively safe and it has the ability to pay up its short term debt with assets that can quickly be converted to cash....