Nine Dragons Paper Essay
Nine Dragons Paper
1.How does MRs. Cheung Think?What does she believein when it comes to building her business? Mrs. Cheung is a very innovative person. Her thinking is extremely positive, creative, advance and quite original. She possess perseverance, determination with a business and marketing mentality and with her know-how business approaches, constructed a corporation that was a leading force in the industry. Her creativeness and originality is evident as she was the first to use waste paper to create packaging paper. When it comes to building her company, she believes in expansion, premeditated and tactical planning .
2 .How would you summarize the company’s financial status? How does it reflect the business development goals and strategies employed by Mrs. Cheung? NDP has been investing at an incredible pace – best demonstrated by comparing the company’s cash flows from operating activities in 2007 and 2008 with the cash flows from investing activities. –NDP has clearly been profitable in recent years, and demonstrates a high rate of profitability one would not ordinarily see in this type of semi-commodity based business –NDP’s rate of profitability, however, has been sliding, reflecting rising input prices and greater competitive markets for its products –The company’s growing debt burden is large and getting larger .
3. Is NDP in trouble? How would your answer differ if you were an existing shareholder, a potential investor, or an analyst? The company still appears to be marginally profitable in this difficult business environment,but profitability is a concept which focuses more on the corporate income statement, not cash flows. The result is that it appears the company will need to borrow even more to survive the year. • Existing shareholders are clearly down, and would like to see the company executive management take measures to improve share price sooner rather than later. They are, however, minority shareholders, Mrs. Cheung and family holding more than 70% of the firm. • Potential investors might see the company has a ‘good bet’, given the current share price low and the prospects for long-term competitiveness .