...Compliance Even though there are federal rules and regulations governing work place behavior, what if there were no boundaries for ethics and compliance, would Amazon continue to follow the same procedures set by the federal laws to ensure ethical behavior within the work place. How does Amazon differ from other organizations when it comes to ethical behavior? One way is because Amazon adheres to a strict conflict of interest policy regarding customers, employees, and Amazon follows strict policies on record keeping and financial integrity. Team C will depict Amazon’s policy and procedures for ethical and SEC compliance, explain the function of monetary markets in the United States, and assess Amazon’s monetary performance for the previous two years by means of financial ratios. Team C will explain Amazon’s financial health in reference to the debt, return of equity, and daily receivable ratios. As part of their code of business conduct and ethics policies, Amazon established basic guiding principles to help steer their employees to do what is ethically and morally right to reassure their investors that they are doing what is right for the investors and the public. Of course Amazon must be in compliance with the governing (a) laws, (b) rules and (c) regulations set forth by local and federal governments. Amazon also adheres to a strict conflict of interest policy that outlines what employees can and cannot do concerning conducting business with (a) customers, (b) competitors...
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...Writing Assignment: Financial Analysis Amazon.com by Angelo Fresco Strayer University FIN 534: Financial Management Dr. James Glenn March 11, 2013 Company Overview The company, its operations, locations, markets, and lines of business Amazon.com, Inc. (AMZN) is a leading global Internet company and one of the most visited Internet retail destinations worldwide. Amazon is one of the first companies to sell products at steep discounts by housing them in numerous warehouses and distributing products from many partner companies. Amazon directly sells or acts as a platform for the sale of a broad range of products. These lines of business include: an online bookstore, DVDs, CDs, MP3 downloads, software, video games, electronics, apparel, furniture, food, toys, and jewelry. The company also produces consumer electronics—notably the Amazon Kindle e-book reader and the Kindle Fire tablet computer—and is a major provider of cloud computing services. The majority of Amazon’s sales are products sold by Amazon, although many are from third-party retail sellers and consumers that sell their products from the comfort of their own home using Amazon.com as a platform. Amazon was founded in 1994 and is headquartered in Seattle, Washington. It has direct international operations in the United States, Canada, France, Germany, Japan, and the United Kingdom. Last year Fortune ranked CEO Jeff Bezos as its Businessperson of the Year on the back of the company's stellar growth, especially...
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...A Financial Ratio Quarterly Trend Analysis of AMAZON, Inc. Stock symbol: AMZN Listed on the New York Stock Exchange 1.0 Introduction 2.0 Financial Ratio Calculation and Analysis 2.1 Methodology Our team obtained income statements, balance sheets, cash flow statements and trading information for AMZN for the four most recent quarters (XXX>>>>>) 2.2 Ratio Computations The following table summarizes the results of the ratio computations for AMZ: KEY FINANCIAL RATIOS Amazon Liquidity Ratios | Q1 | Q2 | Q3 | Q4 | ANNUAL | Current Ratio | 1.32 | 1.40 | 1.46 | 1.32 | 1.32 | Quick Ratio | 1.02 | 1.09 | 1.00 | 0.91 | 0.64 | Net Working Capital Ratio | 2.56 | 1.76 | 1.49 | 1.52 | 1.52 | Current Liabilities to Inventory Ratio | 3.24 | 2.68 | 2.49 | 2.38 | 2.38 | Cash Ratio | 0.36 | 0.34 | 0.25 | 0.31 | 0.31 | Asset Ratios | Q1 | Q2 | Q3 | Q4 | ANNUAL | Inventory Turnover Ratio | 3.17 | 2.56 | 2.25 | 2.13 | 2.13 | Fixed Assets Turnover Ratio | 3.98 | 3.40 | 2.86 | 2.72 | 2.72 | Total Assets Ratio | 0.69 | 0.58 | 0.55 | 0.57 | 0.57 | Asset to Equity Ratio | 2.00 | 1.54 | 1.45 | 1.53 | 1.53 | Profitability Ratios | Q1 | Q2 | Q3 | Q4 | ANNUAL | Return on Assets Ratio | 22.13 | 11.91 | 10.65 | 3.31 | 6.12 | Return on Equity Ratio | 60.64 | 27.35 | 24.6 | 8.11 | 16.76 | Profit Margin Ratio | 3.21 | 2.04 | 1.9 | 5.7 | 3.36 | Basic Earnings Power Ratio | 2.72 | 1.79 | 1.42 | 0.77...
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...Patel Amazon.com: Global Strategic Initiatives Strategic planning initiatives play an integral role in the success of an organization. Strategic planning drives the goal of expansion and globalization in particular for most organizations. Whereas growth is important, it is also to maintain proper initiatives which are commensurate with the organization’s capacity and ability to grow accordingly. Amazon.com, one of the most successful online companies in the Internet’s relatively young history, is a beacon of strength and solid strategic planning in global industry. Through careful planning, Amazon’s management clearly understands the caveats of strategic and financial planning initiatives, and has a steady grasp on the impacts of these initiatives on costs, sales, and future growth. This understanding allows Amazon to plan accordingly and manage the associated risks that accompany its growth model. One strategic planning initiative in particular created a foothold for...
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...decided to start Amazon.com. He looked at factors such as, the annual growth in web usage and also looked at features of the book industry, and decided that Amazon would initially be an online bookstore. Bezos focused on growing his company quickly, and by doing this formulated a winning strategic plan that focused on customer service and creating a culture for the company that was filled with talented and unconventional employees. Starting with these factors in mind resulted in Amazon ultimately becoming the most recognizable Internet retailer in the world. Amazon.com has made many changes to its strategies in order to stay ahead of the curve due to the rapid growth of the Internet. Although it started off strictly selling books and the focus was on becoming the “Earth’s Biggest Bookstore”, overtime Amazon.com began to introduce other products to its site. One of the main objectives of the company was to become the best place to buy, find, and discover any product or service available online. Due to Amazon’s evolving strategy, they became the number one online music and video seller. They also acquired companies in the UK, Germany, Canada, France and many other countries. Overtime, instead of fighting for a place amongst big names such as Barnes & Nobles and Borders, these same companies attempted to follow the lead of Amazon and imitate some of their strategies. However, there was not much success from these other companies’ attempts. Profitability was once a concern for Amazon...
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...- 1. What is the purpose of the Management Discussion and Analysis (MD&A)? The Management Discussion and Analysis section of the company’s annual report is a report from management to shareholders that accompanies the firm’s financial statements. It explains the period’s financial results and enables management to discuss topics that may not be apparent in the financial statements in the annual report.[1] The MD&A section also emphasize on other parts of the company and explain what accounting methods they use. 2. Summarize the SEC requirements for the presentation of the MD&A. The SEC requires that the MD&A present the most important and relevant information to the investors or anyone who reads the MD&A. The SEC emphasizes that the MD&A shouldn’t be a recitation of financial statements in narrative form; it should come from management in terms that everyone can easily understand. The SEC emphasizes the following: overall presentation and focus of MD&A, an emphasis on analysis of financial information, known material trends and uncertainties, key performance indicators, including non-financial indicators, liquidity and capital resources, and critical accounting estimates. [2] Part II - 3. What types of investments does the company hold? According to the Annual Report, amazon invests in money market funds, corporate debt securities, U.S. government agency securities, asset backed securities, and foreign government and agency securities. Amazon generally...
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...Amazon vs. eBay Choice of Investment James Reitnour Strayer University ACC 557 Professor Frank Gorbey September 2, 2013 Amazon vs. eBay Choice of Investment Deciding between two stocks to invest in can be like attempting to predict what number will come up next on a roulette wheel; it is a gamble to say the least. However, by following the first major rule about investing in a company, namely doing your homework, it is possible to make an informed choice between two companies. The choice is down to two internet based behemoths, Amazon and EBay. A Comparison of the Companies The first company, Amazon, was founded in 1994 by a former Wall Street vice-president looking to capitalize on a report that at the time projected the growth of the web twenty-three fold annually (Funding Universe, 2013). After narrowing down a list of 20 products that could easily be sold online to the most promising five, the product to be sold first was books due to the sheer number in print and the proximity of a major distribution hub nearby. Within four months of the website launch in July 1995, Amazon had become a very popular site. The key to their success was the fact they only stocked a small number of items in their warehouses, while using outside sources to provide the remaining products. This model is still in use to this day. Amazon went public in May of 1997 with an offering of 3,000,000 shares. The money was used to expand the distribution network to a facility in Delaware;...
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...1. What is the business of Zappos and what are its critical success factors (CSF’s)? [lists] Business of Zappos: Zappos is an online shoe store, providing customers with a great number of sizes, styles and brands. What Zappos applies is the Loyalty business model, which reflected in two ways. a. The loyalty of Zappos employees: the firm proposed “the offer” as a bonus to employees if they quit, which is an incentive for employees to quit. However, the employees that stay will be very committed to Zappos. b. The loyalty of Zappos’ customers: the services that Zappos offers to its customers are very attractive and beneficial to customers. For example, free delivers, 4-day delivery window and a 365-day return guarantee. All these services help Zappos gain more loyal customers. Their revenues are mostly come from its repeat customers. Critical Success: a. Timeliness of shipment: because as the business of Zappos grew, Zappos was confronted with the issues that their customers’ orders can’t be shipped on time. So Zappos opened its own warehouse and fulfillment centers, and of course hiring more employees to satisfy this high demand. Therefore, by implementing this set of actions, Zappos can offer the best selection of shoes available everywhere online. b. Training of employees: new employees must complete an intensive four-week training program, which let them better understand the company’s culture, business strategy and process. By training them, employees...
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...Financial Analysis Project Throughout the last decade, Amazon has become one of the most sustainable companies within its industry. One of the major reasons that Amazon has been able to achieve a long term competitive advantage is by offering superior pricing power, capitalizing on a large market share and creating a well-known brand name. Through these achievements Amazon has been able to produce long term advantages that have made it difficult for other companies to duplicate. Amazon has an elite status within itself, throughout out the past decade it has both surpassed bench marks and created new ones. Amazon has set the bar so high that it would be extremely difficult for a company to reproduce their success. Amazon was first developed when e-commerce was in an infancy stage. This gave Amazon the opportunity to create and expand on the platform that we know today. It would prove to be very difficult if a similar firm were to try and duplicate the same success as Amazon. A similar firm would need to develop the credibility and reputation that Amazon has taken years to develop. Then it would need to establish a large client base that can bring together both buyers and sellers. One of the second major tools that a new firm would need to be competitive with Amazon is large amounts of capital. If a firm was to borrow capital the result would cause the company to become highly leveraged, which would mean that the margin of error would...
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...Introduction Amazon is a powerhouse business that has grown to an outrageous size very quickly. In just twenty years, Amazon.com has revolutionized the Internet world by banishing geography, and allowing everyone with an Internet connection and a computer to browse a limitless universe of goods all in the comfort of their homes. Our team has evaluated and analyzed this company, and in doing so, have gone through theoretical fluctuations in its financial statements. For example, what would happen if Amazon experienced an increase in long-term debt of ten percent? Well, long-term debt consists of loans and financial obligations lasting more than one year. While a portion of long-term liabilities must be paid within the year, it would stand to reason that there is much more going on inside the company than an increase in long-term debt. Where did this increase come from? How has it benefited the company and its shareholders? Bonds are one of the most common types of long-term debt, and they are used to accomplish numerous objectives. The most common reason being is to bring in immediate income. This capital can go to any financial need such as; research expenses, advertising, license and permit fees, and to the purchasing of supplies and equipment. There are many good reasons why a company would incur long-term debt, but too much debt could obviously cause problems. One area of long-term debts that we observed is the analysis of the debt to equity ratio. The following includes...
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...Crafting & Executing Strategy the Quest for Competitive Advantage The Amazon Company Table of Contents * Introduction……………………………………………P.3 * Background Information………………………………P.3 * Senior Management……………………………………P.8 * Competitors……………………………………………P.8 * Marketing Strategy……………………………………P.9 * Problems and Issues confronting the Company………P.10 * Recommendation……………………………………..P.10 * SWOT Analysis……………………………………….P.10 * Financial Ratios and Analysis………………………..P.11 Introduction Surviving the dot com boom was a significant accomplishment for Amazon, which helped them claim the title of being the one stop shopping retailer for all. Amazon was introduced to the public in 1995 from Seattle Washington. Some people may remember Amazon as an online bookstore. Over the years, they evolved into the most popular internet retailer in the world and Amazon quickly became the growing trend among consumers, because they are convenient, have a speedy service, low prices and quality. Using third party sources, Amazon has diversified their portfolios and continues to offer consumers new products (LexisNexis, Academic). Reinventing their strategy to adapt to consumers’ growing needs and the source of must have items; Amazon will continue to survive the world of internet retail. Background Information Amazon is the pioneer of online retailing. It started out as an online bookstore, offering a limited amount of selections. They expanded...
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...Both Amazon and eBay are two most important competitors in the industry of online shopping. A short foreword and the background history of both companies will offer a base for the better understanding of how both the companies stand where they are today and in what manner they manage their respective companies. The financial synopsis will also be provided to provide an understanding of the better investing options in either of the two companies. Introduction When Amazon.com opened for business on July 16, 1995, it was nothing more than a few people packing and shipping boxes of books from a two-car garage in Bellevue, Wash. Jeff Bezos, Amazon founder and CEO, had left New York City for the Pacific Northwest, using some of his time on the road to write the company's business plan. Books were packed on a table made out of an extra door they found lying in the new home — a practice the company continues today in spirit by making many of the office's desks out of doors. Now, on its 15th anniversary, Amazon can raise a toast to being one of the largest online retailers in the world, selling everything from tubas and golf carts to dishwashers and diapers. On the other hand in September, 1995, 28-year-old software developer Pierre Omidyar, who had previously worked with Claris developing software for Apple computers, sat down to write the code that would eventually evolve into what we know as eBay today. Originally called AuctionWeb and hosted on the same server as Pierre's page...
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...and CEO, John Donahue. After the CEO transition, Donahue faced several significant challenges, including much slower growth in eBay's core online auction business, what to do to make the recent acquisition of Skype profitable, declining numbers of auction customers (chiefly due to increasing competition from Amazon's then new and popular auction site), and weaknesses in key economies across the globe. Competitive advantage is important role in developing sustain strategies. Using porter’s five forces, this paper analyses the five factors which affect eBay strategies. These factors are major in helping the company to identify the key issues and ways of coping with complexity and change. To determine how profitable and the position of eBay in the current market, a strategic group map, weighted competitive strength assessment and financial ratios analysis were conducted. The three analyses reveal that the company is still in good standing even though there is immerse competition which results in profit margin declines. Finally this analysis looks into problems that top management of eBay is facing. With acquisition of other companies that support the company’s core business and adjusting the current strategy to encompass the company’s globalization efforts in good time the company will have good returns. What does a five-force analysis reveal about the nature and strength of the various competitive pressures eBay faces? Are the competitive pressures facing eBay and other...
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...The purpose of this report is to conduct a comprehensive business performance analysis using financial historical information/analysis of Costco. While Costco may not seem to have the revenue, assets and market share like similar and larger companies such as Wal-Mart and Target they are without a doubt a very profitable and successful company. What Costco lacks in high margins, they make up for in being a highly efficient company boasting high asset and equity turnover while maintaining optimum liabilities and debt to equity ratios. Costco is a great company that is seeing profitable success due to their business model that prioritizes quality for both its customers and employees. However, emerging with the 21st century are new ways of doing business. Online companies like Amazon.com are quickly taking market share not just from Costco but also their biggest competitors: Wal-Mart and Target. In order to stay relevant, Costco will need to maintain their business growth in the coming years and also find ways to compete against online retail giants like Amazon.com. 1. Company Background Costco is a multi-billion dollar warehouse company that operates on a global scale. Consumers can frequent Costco to find merchandise including but not limited to groceries, electronics, furniture and home goods, pharmaceuticals and gasoline. Costco specializes in purchasing its merchandise wholesale and re-selling to consumers. Consumers who frequent the warehouse club are required to pay...
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...Amazon: Strategic Planning FIN/370 January 13, 2014 Christopher Hernandez Strategic Planning Initiative Amazon.com’s strategy is to service consumers, sellers, enterprises, and content creators through a website that provides conveniences, competitive pricing, and product selections (Amazon, 2013). This strategy has help to build Amazon into an online provider that services a domestic and international market. This paper will discuss the strategic planning initiative of Amazon.com, risks associated with the initiative, and how it affects the organization’s financial planning. Consumers and Sellers Amazon’s website allows consumers to purchase products from dozens of categories from Amazon.com and third party sellers. The consumer can make price comparisons from one location (online) instead of searching different big box and other department stores. Amazon strives to offer customers the lowest possible prices for products and low shipping costs through memberships with Amazon Prime. The company continues to improve operating efficiencies so prices can remain low for consumers. “The purchasing experience is easy-to-use, functional, fast and reliable fulfillment, and timely customer service” (Amazon, 2013). Sellers are able to sell products on the Amazon’s website along with their own branded websites while fulfilling the orders through Amazon. Amazon does not keep a record of the transactions, though the seller pays a fixed fee, revenue share fee, per-unit activity...
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