Abc-Case Study-Part 2 1

ABC-CASE STUDY-PART 2 1
Individual Case Study- Part 2: ABC Corporation
Valorie Patrick
Liberty University
October 4, 2020
ABC Corporation
Existing mission, objectives, and strategies
Existing Mission
ABC is a leading company of various sizes and kind of steels each for pipeline
transportation and refineries. It is committed to being the most effective within the
business. From your initial enquiry, through the stages of ordering process, manufacture,
delivery, and when sales service, all out staffs are determined to exceed client
expectations (ABC, 2020).
Objective
ABC is to supply a verity of different H2S scavenger and mentoring counters
further as different form of lubricants. ABC Gas Treating owns a fleet of alkenes series
and processing plants so they will assist their customers in meeting pipeline
specifications for content such greenhouse emission and H2 S.
As to process needs, a broad spectrum of mentoring plants may be given upon
request, to suit any processing application.
Strategies
The strategic coming up with process was tailored upon discussion with the senior
management team and was to make on the accomplishments of the past 40 years and on
the continued strength of the corporation. ABC plans to become additional culturally
relevant and fascinating whole so as to grow and improve loyalty from their consumers.
ABC Corporation hopes to still grow the corporation by investment its strengths of
provide quality industrial gas plants to factories, plants, mills, laboratories, and industrial
facilities in several countries. As a part of their decision to foster growth, they are
modernizing dispensary of gas refineries its structure by consolidating its personnel in

four completely different locations.
New Mission
Potential Mission statements are written to declare and communicate the aim of a
company (Alegre, Berbegal-Mirabent, Guerrero, & Mas-Machuca, 2018). For them to be
effective they have to address a large number of aspects. This includes however are not
restricted to: customers, products, technology, public image, and concern for survival.
The new mission statement for ABC Corporation: “Provides clients with the most
effective source energy sector by providing technology and repair solutions that are
supported a commitment to quality and innovation.”
Customers
Being a prestige’s company provides factories, mills, plants, laboratories, and
industrial facilities in many countries. The expertise with many purchasers and plenty of
process strategies builds on itself and that we are usually able to convert an answer for
one business into a replacement solution for another.
Industrial gases are in use everywhere the world, each hour of the day for
freezing, welding, heating, powering, industrial cleaning, providing metabolic process
testing or
relief. Industrial gases and ABC, perform specific tasks in many industrial applications.
These gases will enhance the standard of life by improving their environment, health, and
safety. Gases can even improve a company’s results by creating production quality
higher and additional cost-effective.
Products
This corporation has been terribly thriving in differentiating itself and building a
base of loyal customers due in a massive part of the gas work business. Achieve high
quality, sustainable supply gas refinery. This company ought to promote dominant air
emission and treating contaminated groundwater and method waste water. Provide hands
of environmental engineering and consulting services together with lowland style and
closure, biodegradable pollution treatment lake closures, land surveying, and construction
management.
Markets
The corporation should also still expand the idea internationally. The growth
within the United States has been tremendous; however the rates of growth eventually
slow while taking advantage of the untapped markets round the globe. The gas air
business ought to resonate around the world when the corporate may have to adjust the
advertisement to regulate for native needs.
Technology
ABC Corporation has chosen to not advertise via ancient media campaigns, but
rather through word of mouth and the way folk’s expertise the brand. Examples would be
advertised commercials and major community events. ABC website incorporates a well-
functioning and interactive website that pull a large number of internet traffic and sales.
ABC incorporates a well-established IT system that ensures potency in its internal and
external operations.
Concern for survival, growth, & profitability
Cost analysis are outlined in Appendices which a cost management perspective, the ABC
model obtained a result that helped to correct the problem of product-cost subsidization
of low-volume products by high-volume products were undercoated by the volume-based

approach, whereas the high-volume product was overcastted. The gas appeared to be
more costly and priced under cost because of the use of the inappropriate unit-based cost
assignment method.
They are also able to contain increase in an average gas refinery development
costs, which could result from inflation, an increase in the proportion of higher cost
locations, project mismanagement or other reasons, the new locations could also result in
lower returns on their investment in such air gas refineries. Many of these site types may
involve additional costs that they did not incurred. The risk related to building a
customer base and managing development and operating costs in some or all of these
installation, start-up supervision and operator training, and full-service operations.
types of trade areas may also be more significant than in the traditional sites, which could
result in unexpected negative impacts on their new gas refineries operating results.
Corporation may experience widespread difficulty renewing existing consumer bases,
revenue or occupancy costs could be adversely affected. This situation could have been
exacerbated by the COVID-19 pandemic.
Philosophy
ABC provides industrial gas for uses all over the world, every hour of the day for
freezing, powering, heating, industrial cleaning, welding, and respiratory testing. These
gases will enhance the quality of life by improving our environment, their health, and
their health. Gases also improve the company’s results by making production quality
higher and more cost-effective.
Self-Concept
ABC is a brand that has been in the market for years, and people are aware of it.
This makes its brand awareness high. Its products have maintained quality over the years
and are still valued by customers, who find it as good value for the amount of money that
they pay. ABC has a large product portfolio where it provides products in a large range
of categories. It has a number of unique product offerings that are not provided by
competitors.
Concern for public image
ABC has a strong presence on social media with more than millions of followers
on the three most famous social media platforms: Twitter, Facebook, and Instagram. I
have high levels of customer engagement on these platforms with low customer response
time. Strategic partnerships are established by ABC with its suppliers, retailers, dealers,
and other stakeholders. This allows it to leverage them if need be in the future.
ABC provides compliance determination, assessments of tank leakage potential,
tank removals, abandonment in place, site assessments for both soil and ground water,
site remediation and obtaining of regulatory case closure approvals. In addition to our
specialized capabilities, ABC provides a full complement of environmental engineering
and consulting services including landfill design and closure, sewage treatment lagoon
closures, land surveying and construction management.
Concern for employees
ABC has invested extensively in the training of its employees that has resulted in
it employing a large number of skilled and motivated employees. A diversified
workforce, with people of many geographical, racial, cultural, and educational
backgrounds that help the company by bringing in diverse ideas and methodologies of
doing things showing that the employees are a valuable asset. They also have qualified
and accredited professionals working under in its team.
Analysis of Existing Business Model
ABC is heavily involved in the refinery/chemical sector. Customers of our
construct/engineer/maintain/fabricate activities produce industrial gases and petroleum
products of all grades, from kerosene to jet fuel, and supply water systems vital to a wide
variety of manufacturing processes. ABC has done construction, engineering,
maintenance, and fabrication work for companies that emphasize ecologically innovative
systems and new green technologies, such as waste water recycling, ethanol production,
and development of other biofuels. Part of their work includes equipment setting,
rigging, and critical lifts.
ABC Gas Treating owns a diverse fleet of amine treating and processing plants to
help customers meet pipeline specifications for content such as CO2 and H2S. ABC’s
goal is to have treating equipment available to quickly and efficiently meet their
customers’ treating needs. With regard to processing needs, a broad spectrum of
processing plants can be provided upon request to fit any processing application.
Services include initial process engineering and design, equipment lease, turn key (Peric,
Durkin, & Vitezic, 2017).
Strength, Weaknesses, Opportunities, and Threats (SWOT) Analysis
SWOT Analysis
ABC Corporation has a great marketing strategy that helped with the success of
the business. ABC constructs multi-product cryogenic Air Separation Units producing
nitrogen, high-purity oxygen, and argon. ABC is also a supplier of single-product
cryogenic oxygen plants and cryogenic nitrogen plants. The air separation plant, nitrogen
gas plant, and oxygen gas plant modules can be supplied with stand-alone or fully
integrated liquefier units to produce large quantities of liquid nitrogen and liquid oxygen
for bulk liquid distribution and in-house use. ABC Corporation growth is expressed in
Appendix A-Table 1A.
Strengths
Performance
They are also really strong in their performance in new markets because they have
developed an enterprise that is built upon entering new markets and diversifying the cycle
risk in the market that it operates within, the network is reliable, and they have a strong
culture built around their distributors and where their gas comes from. The strong brand
portfolio comes because of an investment that the brand has built on becoming
recognizable and brand recognition has allowed them to expand into more product
categories. The next strength is very highly skilled workforce. Thank to investing in
huge resources in successful training and learning programs, ABC Corporation has
created a workforce that is highly skilled and motivated.
Weaknesses
Performance
Opportunities for ABC Corporation focus on the elements that they can build
upon but do not have internal control over. These would be an economic uptake and
increase in customer spending, a lower inflation rate, new technology, and new
environmental policies. Due to an increase in spending and an economic uptake, ABC
Corporation has an opportunity to capture new customers and increase its market share.
Due to a lower inflation rate in the economy, there is more stability in the market which
means there is credit at lower interested rates for the customers of ABC Corporation.
New opportunities in the environmental sectors, creates a level playing field for all of the
players of the trade and allows them to drive home its advantage in new technology and
gain market share in the new product. Also their new technology provides an opportunity
to differentiate pricing. It enables them to maintain their customer’s loyalty because of
great service.
Due to the limited number of gas providers owns outside the United States they
could leverage the opportunity to expand into more global markets boosting their sales
and likely their profits. Although often seen as a threat, the competition in the casual
dining arena does provide an opportunity for ABC Corporation to improve its ambiance
brand reputation and location options into areas that need gas producers. The high turn
over in the industry as a whole there is an opportunity for the company to take steps to
retain its employees through better training and competitive salaries. This retention of
talent will keep the quality of the company’s gas production at a steady growth.
Threats
Products
Threats for the business is that there is a shortage of skilled workforce in global
markets, lack of regular supply for innovative products, intense competition, and
changing customer behavior. In order for ABC Corporation to be able to expand into a
global market, they will need a skilled workforce which is essential to their structure, but
some markets do not have that ability. The lack of regular supply for innovative products
is seen in the fact that these developments are in response to other payers and the supply
in not regular who there is a lot of high and low swings in the sales over periods of time.
Stable profitability has increased within the market that ABC Corporation operates within
with has put a downward pressure in on profitability but also sales. The more and more
customers are focusing on online changes; this could affect the physical infrastructure
that drives their supply chain model.
Among the treats to the company are a string of periods where the overall sales
growth has been slowing down. This puts a strain on the operations activities of the
company to slow this decrease or turn it around. The intense competition of the casual
dining industry is a double-edged sword. As a treat it means that hiring skilled and
qualified workers and managers is becoming harder and harder for the company.
Internal Factor Evaluation (IFE) Matrix
The Internal Factor Evaluation matrix along with the EFE matrix is a strategy tool
that can be utilized to evaluate how a corporation is performing in regards to identified
internal strengths and weaknesses of a company. IFE matrix method conceptually relates
to the Balanced Scorecard method in some aspects (Sridharan, 2018). See appendix A-
2A.
External Factor Evaluation (EFE) Matrix
External Factor Evaluation matrix method is a strategy management method used
for assessment of current business conditions. The EFE matrix is a good tool to visualize
and prioritize the opportunities and threats that a business is facing. The EFE matrix is
very similar to the IFE matrix deals with internal factors, the EFE matrix is concerned
solely with external factors. External factors assessed in the EFE matrix are the ones that
are subjected to the will of economic, social, legal, political and other external factors
(Sridharan, 2018). See appendix A-Table 3A.

SWOT Bivariate Strategy Matrix
ABC SWOT analysis lists down the strengths, weaknesses, opportunities, and
threats to any organization, but does not tell management what can be done by these. To
overcome this limitation and help develop strategies that are appropriate, an advanced
SWOT analysis or TOWS matrix is used (Humphrey, 2017). This lists the Strengths-
Opportunities (SO) strategies that involve using strengths to take advantage of
opportunities. It lists the Strength-Threats involves the Weaknesses-Opportunities
strategies that involve converting weaknesses to strengths by using opportunities.
Weaknesses-Threats strategies involve overcoming weaknesses to avoid threats. The full
SWOT Bivariate strategy matrix in Appendix
BCG Matrix
Historical Financial Statements
Income Statement
Over the most current 3 years we see growing revenue by approximately 15,000
per year. Operating cost also increase from year to year which is too expected in growing
a business? The net income has remained steady for 2017 to 2019. See Appendix B-
Table1B.
Operating Margin
ABC Corporation operating margins increased by 6.62% from 2017 to 2018 and
then decreases 3.04% from 2018 to 2019. This increase in operating margin is a risk
indicator.
Net Margin
ABC Corporation net margin increase more than doubled 4.82% in 2017 and from
9.92% in 2018 to 4.85% in 2019. The increase in net margin indicates that revenue is
increasing at the same the costs are being constrained. The factors are a very good
indication of good financial growth.
Balance Sheet
Year to year an increase in current assets while the total assets remain relatively
the same at around $150,000 from 2017 to 2019. When it comes to shareholder equity,
we see a decrease from 2018 to 2019. See Appendix B-Table 1B.
Total Liabilities
ABC Corporation total liabilities saw an increase of 105.15% in 2017 to 2018. In
comparison to 2018, ABC Corporation saw an increase of 18.98% in 2018 from 2017.
The large increase was related to the non-current liabilities, which saw 254.25%, increase
from 154,582 in 2019 to 184,652 in 2019. This increase is related to ABC Corporation of
164,852 of long-term debt for product promotion.
Shareholder Equity
ABC Corporation’s shareholder equity saw an increase of 12.52% in 2017 from
2018 and a 3.75% decrease in 2019. This change is related to an increase in retained
earnings of 9.62% from 2017 to 2018. This increase of retained earnings means that
either the shareholders will receive increased dividends or that the business will utilize
the monies for further growth. An increase in shareholder equity is a positive financial
health indicator to shareholders.
Cash flow Statement
Year after year an increase is seen t the cash provided by operating activities.
Investing activities in 2018 show a significant jump in the amount of cash used in
investing activities. Financing activities show a sharp decrease in the cash used in
financing activities from 2017 to 2018 with a less steep decline form 2018 to 2019. See
Appendix B-Table 1B.
Cash Flow from Operating Activities
ABC Corporation‘s cash flow from operation activities increased by 28.17% in
2017 to 2018. And increase of 8.17% in 2018 to 2019. Simultaneous increase form 2017
to 2018 than 2018 to 2019, the increase shows that ABC Corporation core corporate
activities are showing a profit successfully.
Cash Flow for Investing Activities
ABC Corporation for investing activities has been negative over the past three
years. Its negative amount increased from 2018 to 2019 by 247.75% by 17.66%. The
bulk of the negative cash flow from investing activities is the plant, equipment, and
property. This debt is a large investment factor that is for the growth and prosperity of
the firm.
Net Cash Flow
ABC Corporation’s net cash flow decreased by 17.56% in 2018 from 2017;
however, it increased by 145.05% in 2019 from 2018. The net cash flow was down in
2018 related to an increase in cash flow from investing activities, which was a negative
18,857 in 2017 and increased to a negative 157,458 in 2018. The increase in the
operating activities simultaneously as the decrease in the negative total for investing
activities assisted the new cash flow in 2019. The decrease in 2018 followed by the
increase in to cash flow in 2019 reveals the ABC Corporation is in good financial
standing with good growth potential.
Ratio Analysis
This section includes ABC Corporation’s valuation, capital structure, and liquidity
ratios. See Appendix B-Table 4B.
Liquidity Ratios
ABC Corporation’s liquidity ratios analysis will target the current ratio and the
quick ratio to measure and analyze ABC Corporation’s ability to pay debt without the
need to acquire additional external capital.
Current Ratio
ABC corporation‘s current ration ranges from 0.98% at the end of 2017 to 1.87 at
the end of 2019. Simultaneously the ratio from 2017 to 2019, which signifies that
its ability to cover its debt decreased, its current ratio is still above the trade average of
0.69 in 2019 and 0.32 in 2017. This shows that ABC Corporation is in good financial
position to cover its debt and they have a better financial status the average gas company
in this industry.
Quick Ratio
ABC corporation ratio ranges from 1.17 at the end of 2017 to 1.54 at the end of
2019. This is a more conservative measure that the current ratio, it also shows that ABC
corporation is in a good financial position to pay off its debt without having to liquidate
external capital. The industry average, ranges from 0.12 at the end of 2017 to 0.25 at the
end of 2019, which shows that ABC Corporation is more liquid that other companies in
the compressed gas industry.
Valuation Ratios
This analysis focuses on the price to free cash flow ratio and price-earnings ratio.
PE Ratio
ABC Corporation’s PE ratio is 9.87% at the end of 2017 and greatly increased to
12.89% at the end of 2019. This high PE ratio implies that the stock is over-valued or
that the investors are expecting high growth rates in the future. While the expectation of
high growth rate is possible, the PE ration 12.89% is too high just too explained by that
expectation, especially considering the normal PE ratio range for this industry is 10.89-
25.88%.
Price to FCF Ratio
ABC Corporation’s price to free cash flow ratio was 9.01% at the end 2017 and
increased to 18.65 at the end 2019. Compared to the normal range for the industry, the
average is 5.47 for the end 2017 and 8.58 for the end 2019. ABC Corporation’s price to
FCF ratio is consistently higher indicating the ABC Corporation is overvalued as a
corporation.
Capital Structure
This is an analysis of the debt to equity ratio, return on assets, and return on
equity.
Debt-to-Equity Ratio
ABC Corporation’s debt-to equity ratio range was 0.25 at the end of 2017 to 2.01
at the end of 2019. This increase raises a red flag because high debt to equity ratios
indicates higher risk to shareholders. And it also means that ABC Corporation is taking
on debt to finance growth. The current economic recession related to the COVID-19
pandemic, an increase in debt might be unprofitable as revenue will be decreasing amid

this pandemic.
Return of Equity
ABC Corporation ranges from 9.65% at the end of 2017 to 22.775 at the end of
2019. The trade average in 10.11% in 2017 and 14.59% in 2019. The higher that average
return on equity shows that ABC Corporation has high levels of debt and is risky
investment.
Return on Assets
ABC Corporation at the end of 2019 is 3.25% which is down from the previous
years of being 7.25% at the end of 2018 and 6.14% at the end of 2017. A decrease in the
return of assets signifies the ABC Corporation is not using its assets as efficiently as in
the past 3 years.
Recommendations
ABC Corporation is a risky business and is overvalued. A good portion of debt
during this pandemic and economic recession, ABC corporation risk increases. One
recommendation is to close portion of the some branch locations that are costing more
than profits earned. This will assist ABC Corporation to cut costs and focus on the
locations that can compete effective and efficiently against other corporation in this
industry during this uncertain market of pandemic and economic recession. Other
recommends are enclosed in the SWOT Bivariate strategy matrix See Appendix
References
http://www.abccorp.biz/
https://www.wsj.com/market-data/quotes/ABC/financials/annual/income-statement
Dwivedi, R., & Chakraborty, S. (2017). Development of a strategic management tool in
a thermal power plan using ABC and BSC models. Serbian Journal of
Management, 11(1), 81-97. Doi: 10.5937/sjm11-8741.
Humphrey, A. (2017). SWOT analysis: Bringing internal and external factors together.
Strategic Planning. https://www.business-to-you.com/swot-analysis/.
Peric, M., Durkin, J., & Vitezic, V. (2017). The constructs of a business model
redefined: A half-century journey. Sage Open.
https://doi.org/10.1177/2158244017733516.
Sridharan, M. (2018). IFE analysis. Think Insights. https://thinkinsights.netstrategylife-
analysis/.
Sridharan, M. (2018). External factors evaluation for competitive analysis. Think
Insights. https://thinkinsights.net/strategy/efe-analysis/.
Appendix A-Table 1A
Strength-Opportunities Weaknesses-Opportunities
1. Brand recognition in US, Canada, & UK 1. Finance ownership of the property through low interest rate
to increase proportion of owned property to rented property

2. Use is presence on social media for marketing and attracts 2. Increase payrolls, provide incentive packages and benefits to
consumers to its website workers to reduce turnover and improve morale

3. Develop environmentally friendly products through 3. Major presence in US only
innovation, at a low cost so that they can be sold at a low price

4. Market products at low prices by offering discounts. This 4. Dependent on a limited number of suppliers
helps increase sales in volumes and is feasible due to low
inflation and cost
Strengths-Threats Weaknesses-Threats
1. Use a strong distribution network to reach out to customers 1. Increase spending on R & D to enable ABC to better compete
and fight off new entrants into the market with competition
2. Use its strong financial position to invest in intellectual 2. Provide incentives, increase engagement, or provide a better
property rights. This would help compete with increasing work environment to retain talent. This will ensure that workers
competition in the market do not leave and join competitors
3. Use its innovative teams to find cheaper alternatives to fuel 3. Impact of COVID-19 on the economy
so that these could be used, thereby reducing costs.
Appendix A-Table 2A. Internal Factor Evaluation (IFE) Matrix
Internal Factors of Strengths & Weaknesses
Strengths Weight Rating Weighted Score
1. Strong distribution network 0.22 4 0.88

2. Brand recognition 0.08 2 0.16
brand portfolio
3. Strong performance in new markets 0.09 2 0.18
4. Strong Free Cash Flow 0.07 2 0.14
5. Highly skilled workforce 0.18 2 0.36
6. High Levels of Customer Satisfaction 0.04 4 0.16

7. Positive returns on Capital Expenditure 0.07 3 0.21
8. Supplier Reliability 0.10 2 0.20
Weaknesses Weight Rating Weighted Score
1. Lack of Investments 0.03 1 0.03
2. Lack of Research & Development 0.03 2 0.06

3. Gaps in Product Range 0.09 2 0.18
4. Limited expansion opportunities outside of core business 0.12 3 0.36
5. High day’s inventory compared to competitors 0.11 2 0.22
6. High attrition rate in workforce 0.14 4 0.56
Total IFE Score 1.00 2.76
Appendix A-Table 3A. External Factor Evaluation (EFE) Matrix
External Factors of Opportunities & Threats
Opportunities Weight Rating Weighted Score
1. Core Competencies 0.09 3 0.27
2. Economic uptake & increase in customer spending 0.24 4 0.96
3. Increased Customer Spending 0.07 3 0.21

4. New Trends 0.07 2 0.14
5. New Customers 0.06 2 0.12
6. New Technologies 0.17 3 0.51
7. Lower inflation rates 0.14 3 0.42
Threats Weight Rating Weighted Score
1. Environmental regulations 0.15 3 0.45

2. Changing customer behavior 0.09 2 0.18
3. Intense competition 0.13 3 0.45
4. Increase Demand 0.15 3 0.45
5. Changes in Customer Behavior 0.19 2 0.38
6. Lack of regular supply for innovative products 0.15 1 0.15

7. Shortage of skilled workforce in global markets 0.11 4 0.44
Total 1.00 2.50

Appendix B-Table 1aB SWOT Bivariate Strategy Matrix
Weaknesses Strengths
Threats Increase revenue for research and development to compete Provide incentives to encourage
with competitors and decrease operating cost consumers to utilize online delivery and
ordering
Opportunities  Finance ownership of property  Utilize presence in foreign

 Add additional options of products markets to expand into other countries
 Utilize brand recognition to attract
new customers (internationally
Appendix B-Table 1B. Consolidated Balance Sheet (ABC, 2020)

Historical Financial Statements
5
-
y
e
ABC Corporation 2 a
Fiscal year is October- 20 0 r
2019 2018 2017
September. All values 16 1
USD Millions. 5 t
r
e
n
d
1
3
14 5
Sales/Revenue 179,589 167,940 153,144 6,8 ,
50 9
6
2
8.0
Sales Growth 6.94% 9.66% 4.29% -
1%
14 1
Cost of Goods Sold
175,059 163,828 148,997 3,0 3
(COGS) incl. D&A
76 2
,
7
4
7
1
3
14 2
COGS excluding D&A 174,571 163,329 148,574 2,6 ,
91 4
9
7
2
Depreciation & 38
489 500 423 5
Amortization Expense 5
0
1
23
Depreciation 321 318 262 9
3
3
Amortization of 15 5
167 181 161
Intangibles 2 6
7.7
COGS Growth 6.86% 9.95% 4.14% -
8%
3
,
3,7
Gross Income 4,530 4,111 4,147 2
74
1
5
17.
Gross Income Growth 10.19% -0.86% 9.88% 38 -
%
Gross Profit Margin 2.52% - - - -

1
,
2,0
SG&A Expense 2,664 2,460 2,129 9
91
0
8
Other SG&A 2,664 2,460 2,129
9.6
SGA Growth 8.26% 15.58% 1.79% -
1%
EBIT 1,867 1,651 2,018 - -
9
15
Unusual Expense 755 261 958 1
7
6
(
Non Operating 1
13 5 3 5
Income/Expense 4
)
Non-Operating Interest
38 15 4 4 3
Income
Equity in Affiliates
- (42) - - -
(Pretax)
1
14
Interest Expense 195 190 149 1
4
2
28.
Interest Expense
3.08% 27.24% 3.25% 86 -
Growth
%
1
14
Gross Interest Expense 195 190 149 1
4
2
2
1,3
Pretax Income 967 1,177 918 6
91
9
41
-
Pretax Income Growth 28.28% -34.01% 7.1 -
17.86%
4%
Pretax Margin 0.54% - - - -

4
(37
Income Tax 113 (438) 553 0
)
7
3
Income Tax - Current
2 287 177 39 5
Domestic
7
Income Tax - Current 2
82 70 57 55
Foreign 9
Income Tax - Deferred (13
31 (794) 320
Domestic 1)
(
Income Tax -
(2) (1) (1) 0 1
Deferred Foreign
)
Consolidated Net 854 1,616 364 1 (1

,
4 38
Income
2 )
8
Minority Interest
(1) (43) - - -
Expense
1
, (1
Net Income 855 1,658 364 4 38
2 )
8
1
1
3
3
Net Income Growth -48.42% 355.00% -74.47% -
.
5
0
%
Net Margin 0.48% - - - -

1
, (1
Net Income after
855 1,658 364 4 38
Extraordinaries
2 )
8
1
, (1
Net Income Available
855 1,658 364 4 38
to Common
2 )
8
6
(0.
.
EPS (Basic) 4.04 7.53 1.64 63
3
)
2
EPS (Basic) Growth -46.38% 359.15% -74.05% 1 -

1
0
3
.
1
7
%
2
Basic Shares 21
210 218 218 1
Outstanding 8
2
6
(0.
.
EPS (Diluted) 4.04 7.53 1.64 63
3
)
2
1
0
9
6
EPS (Diluted) Growth -46.35% 357.62% -73.97% -
.
1
1
%
2
Diluted Shares 21
212 220 222 2
Outstanding 8
6
2
,
1,5
EBITDA 2,355 2,151 2,441 0
57
6
8
3
2
.
EBITDA Growth 9.51% -11.90% 18.05% -
8
0
%
EBITDA Margin 1.31 % - -- -
EBIT 1,867 1,651 2,018 -

Appendix C-Table 1-Operating Margins

Total Revenue Operating Net Income
Income
12/31/2019 587,895 325,658 - 6.95%
12/31/2018 458,870 297,587 - 4.22%
12/31/2017 421,568 125,235 - 5.80%
Net Margin
12/31/2019 587,895 - 150,865 2.64%
12/31/2018 485,870 - 75,841 2.12%
12/31/2017 421,568 - 75,547 5, 58%
Appendix C-Table 2-Cash Flow Statement
Liquidity Ratios 12/31/2019 12/31/2018 12/31/2017

Current Ratio 1.51 1.65 1.72
Quick Ratio 1.23 1.45 1.58
Valuation Ratios
PE Ratio 32.67 31.48 15.78
Price to FCF Ration 12.48 9.24 11.23
Capital Structure Ratio
Debt to Equity Ratio 1.03 0.48 0.52
Return on Equity 15.27 10.38 9.14
Return on Assets 3.24 5.19 5.78
Appendix B-Table 4B Vertical Consolidated Statement of Cash Flows

Vertical Totals Percentage Totals Percentage Totals Percentage
Analysis
2019 2019 2018 2018 2017 2017
Cost of 179,589 6.94% 167,940 5.96% 153,144 4.29%

Revenue
Gross Profit 162,052 10.19% 153,415 -0.86% 142,167 9.88%

Selling General & 180,571 6.86% 163,329 9.95% 148,574 9.88%
Administrative
Others 100,560 3.08% 99,564 27.24% 98,547 3.28%

Total Operating 263,458 92.8% 253,689 92.6% 189,940 97.5%
Expenses
Operating 98,107 7.2% 92,138 7 63,485 2.5%

Income or Loss

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ABC-CASE STUDY-PART 2 1

Individual Case Study- Part 2: ABC Corporation

Existing mission, objectives, and strategies

expectations (ABC, 2020).

ABC is to supply a verity of different H2S scavenger and mentoring counters

specifications for content such greenhouse emission and H2 S.

As to process needs, a broad spectrum of mentoring plants may be given upon

request, to suit any processing application.

modernizing dispensary of gas refineries its structure by consolidating its personnel in

four completely different locations.

company (Alegre, Berbegal-Mirabent, Guerrero, & Mas-Machuca, 2018). For them to be

supported a commitment to quality and innovation.”

Being a prestige’s company provides factories, mills, plants, laboratories, and

one business into a replacement solution for another.

freezing, welding, heating, powering, industrial cleaning, providing metabolic process

higher and additional cost-effective.

advertisement to regulate for native needs.

Concern for survival, growth, & profitability

of low-volume products by high-volume products were undercoated by the volume-based

installation, start-up supervision and operator training, and full-service operations.

Corporation may experience widespread difficulty renewing existing consumer bases,

exacerbated by the COVID-19 pandemic.

higher and more cost-effective.

Concern for public image

ABC provides compliance determination, assessments of tank leakage potential,

specialized capabilities, ABC provides a full complement of environmental engineering

closures, land surveying and construction management.

Concern for employees

it employing a large number of skilled and motivated employees. A diversified

workforce, with people of many geographical, racial, cultural, and educational

and accredited professionals working under in its team.

Analysis of Existing Business Model

ABC is heavily involved in the refinery/chemical sector. Customers of our

construct/engineer/maintain/fabricate activities produce industrial gases and petroleum

variety of manufacturing processes. ABC has done construction, engineering,

rigging, and critical lifts.

customers’ treating needs. With regard to processing needs, a broad spectrum of

Durkin, & Vitezic, 2017).

Strength, Weaknesses, Opportunities, and Threats (SWOT) Analysis

nitrogen, high-purity oxygen, and argon. ABC is also a supplier of single-product

Appendix A-Table 1A.

created a workforce that is highly skilled and motivated.

environmental policies. Due to an increase in spending and an economic uptake, ABC

to differentiate pricing. It enables them to maintain their customer’s loyalty because of

that drives their supply chain model.

Internal Factor Evaluation (IFE) Matrix

that can be utilized to evaluate how a corporation is performing in regards to identified

External Factor Evaluation (EFE) Matrix

External Factor Evaluation matrix method is a strategy management method used

(Sridharan, 2018). See appendix A-Table 3A.

SWOT Bivariate Strategy Matrix

Opportunities (SO) strategies that involve using strengths to take advantage of

opportunities. It lists the Strength-Threats involves the Weaknesses-Opportunities

strategies that involve converting weaknesses to strengths by using opportunities.

Weaknesses-Threats strategies involve overcoming weaknesses to avoid threats. The full

SWOT Bivariate strategy matrix in Appendix

Historical Financial Statements

indication of good financial growth.

we see a decrease from 2018 to 2019. See Appendix B-Table 1B.

ABC Corporation total liabilities saw an increase of 105.15% in 2017 to 2018. In

164,852 of long-term debt for product promotion.

ABC Corporation’s shareholder equity saw an increase of 12.52% in 2017 from