Msc Finance And Financial Information Systems Marketing Essay

Info-Quest Holdings was founded with the brotherhood of five different companies. The Group is one of the biggest and more advanced companies in the IT subdivision and furthermore is one of the well established in the subdivisions of Green energy and messenger.

In this coursework we will cover with Info Quest Technologies which is the first company of the Group. It was established 30 old ages ago and it is the flagship of the Group in the IT subdivision. It occupies entirely more than 500 people. It has big industry constitutions, a good organized gross revenues web and one of the biggest distribution webs with retail stores in all the chief metropoliss of Greece. It has a great assortment of merchandises from Personal computer ‘s, screens, scanners, schemers and pressmans supplies & A ; accoutrements. It besides deals with a great assortment of many appliances and accoutrements from cell phones and smart phones until place film, TVs and barcode scanners. In the package subdivision provides chiefly retail solutions of other big IT companies. The usage made package solutions are produced from the other two companies of the Group.

In1991 Info Quest for the first clip launches the first computing machine assembly line in Greece and besides starts to fabricate its ain package applications. In 1992 the company is divided in two chief subdivisions, hardware production line and package line and besides for the first clip launches usage made package applications for specific demands. Its costumiers are chiefly domestic but in the same twelvemonth the company starts to construct its sale web abroad.

By 1993 the nomadic telephone foremost appears in Greece. Of class Info Quest is one of the first companies that create its ain radio telecom web. In 1993 the Q-PHONE Mobile telephone service supplier is established. By 1994 the company enters in the Internet subdivision. It establishes Hellas On Line with the co-operation of DEI, and establishes the first private Internet Network in Greece. The same twelvemonth Info-Quest acquires foremost ISO 9001 enfranchisement in the Grecian IT market.

In 1998 was the beginning of new electronic trading systems, designed and implemented by Info- Quest. on the Athens Exchange and Athens Derivatives Market. Info-Quest admitted to the Athens Exchange.

In 2000 Info Quest establishes Umfon ( amalgamation of Q-Phone & A ; Palmafone ) and creates the biggest Mobile telephone web in Greece. In 2001 is the liberalisation of telecommunications in Greece. Launch of Quest On Line, the first commercial Internet B2B service in the Grecian market.

In 2005 Info-Quest celebrates 25 old ages at the top of its field. Info-Quest acquires a 32.97 % equity interest in Unisystems, establishes Quest Energy S A. and manages the understanding with EDF Energies Nouvelles for the joint development of air current Parkss in Greece. By 2006 Info-Quest establishes iSquare and acquires Rainbow S A. In the same twelvemonth iSquare is appointed as Apple Authorized Distributor for Greece and Cyprus

4. Share Capital

Harmonizing to the Financial Report 2010, the Company ‘s portion capital for the financial twelvemonth 2010, was as follows:

Share capital

Number

portions

Park

portions

Reserve

premium

Entire

Thousands of Euros

,000

,000

a‚¬,000

a‚¬,000

December 31, 2006

40,128

34,093

2,290

76,511

December 31, 2007

40,128

34,093

10,656

84,877

December 31, 2008

40,128

34,093

10,056

84,277

December 31, 2009

40,128

34,093

12,017

86,238

December 31, 2010

40,128

34,093

12,017

86,238

Table 1: Share Capital ( Source: InfoQuest Annual Report 2011 )

Graphic 1: Share Capital ( Source: InfoQuest Annual Report 2011 )

5. General decisions and positions of the industry: the five forces of Porter

5.1 Entry of new Rivals in the industry

With respect to the supply of computing machines in the Grecian market, shriveling net income borders combined with high debt have led many concerns to economic deadlock. Representatives of companies in the industry point out that the market recovery in 2005 would organize satisfactory consequences in the absence of high debt service demands.

A major tendency that characterized the broader IT sector in Greece in recent old ages is the farther strengthening of big pudding stones through amalgamations, soaking up and partnerships with other companies. Furthermore, some groups have expanded computing machine and telecommunications ( fixed and / or nomadic telephone ) , a move favored by the convergence of engineerings and service between IT and telecommunications.

So harmonizing to the above information we can claim that the competition in the industry is instead high and there are high deals for the entry of new rivals in the market.

5.2. Hazards from replacement ‘s merchandises or services

The industry of information includes every twenty-four hours new advanced merchandises and the facet of what we though a Personal computer to be is being changed everyday. However, Info Quest is one of the companies that follows the planetary market and expands its assortment of its merchandises harmonizing to the planetary market. Furthermore, we could claim that the demand of the consumers for every new merchandise ( although similar with the old merchandises ) is the ground that gives the information industry the power to spread out and turn. So we could claim that the hazard that comes from replacement ‘s merchandises and services is instead low.

5.3. Dickering power of providers

The bargaining power of providers is high. Globally there are five to ten large industries that provide fixed electronic systems. Info Quest tries to supply the best merchandise in the lowest monetary value with the usage of electronic parts from many different suppliers chiefly from abroad. Although, with the usage of this scheme, Info Quest has managed to hold a rival advantage from the multy-national companies that merely provides specific fixed merchandises.

Furthermore, its domestic rivals have to cover with the same providers so the state of affairs for all the domestic companies that have manufacture merchandise line is the same. Finally, harmonizing to the CEO of Info Quest, they have managed due to the large sum of orders some of import price reductions from their providers that gives them the chance to hold a bigger gross net income border from their domestic rivals.

5.4. Dickering power of consumers

The demand for computing machines can be divided into two wide classs, this coming from families and little concerns, and demand from big companies and organisations, both public and private sector.

Harmonizing to grounds presented at sector survey made from ICAP for the information industry in Greece, both consumer “ groups ” which are dawdling behind in utilizing IT in Greece ( low incursion rates compared with the EU-15 ) is really little concern 1-5 individuals and families.

A cardinal factor impacting the market section for place computing machines and little concerns ( So-Ho: A«Small Office – Home OfficeA» ) , was the crisis that hit major media ironss particularly in 2002. The high outlooks environing the purchase of computing machine, which did non happen, taking many companies to spread out their gross revenues web by set uping new subdivisions in a short clip. This is charged to runing disbursals of the ironss taking to keep supply and recognition installations to consumers and the subsequent eroding of their gross revenues webs or the closing of some of them.

Given the “ lone manner ” for the positive development of demand for IT merchandises from families and little concerns, competition among retail ironss seem to be “ rekindled ” .

Contribute to this tendency and the entry of two major “ participants ” from Europe, chains Media Markt and Fnac. Simultaneously, the relevant market does non go forth indifferent the English company Dixons, which operates in our state through Kotsovolos SA, while a new dynamic presence in the retail computing machine merchandises is established, the E-Shop.gr SA

So harmonizing to the above information we can claim that the two classs of consumers this of families and little concern do non hold a great bargaining power. From the other manus the large organisations both private and public are the cardinal participants of the country, because they can shut trades for IT support with companies from abroad and to impact the domestic market, taking companies to fight with each other to pull off to shut a trade with an organisation of this degree.

5.5. Competition between domestic companies of the industry

The domestic market of information systems and PCs is characterized from instead high competition between the domestic companies. Furthermore, due to the crisis of 2002 – 2005 of the industry, the market had a batch of amalgamations and acquisitions of little companies from large IT Groups. As a consequence there is a large concentration in the market. Harmonizing to the information from the industry survey, made from ICAP, there are five companies that control the 72 % of the market of laptops and 65 % of the desktops ‘ market. Another of import hint is the bunch in the information industry, refering the package applications and the development of usage made information systems. At this minute there are merely 6 big companies that control the 83 % of the market. Furthermore, the high demands of engineering cognition and the high quality criterions of support that the companies provide, make this more hard and competitory in the industry. Finally, the drawn-out usage of e-shops that all the companies provide has led the companies to be even more competitory.

The consequence of all the above factors is that the industry has led to intense competition and to a instead high diminution of the gross net income border of the companies with the diminution in monetary values and the acceptance of schemes that include large price reductions.

6. S.W.O.T. Analysis

6.1. General information refering the Company

Info Quest Technologies, holding completed a successful 30 old ages as a taking company in the country, engaged in the selling of merchandises, solutions and services Information & A ; Communications, in cooperation with the largest Information technology companies worldwide.

The company has distinguished itself over the old ages since its initiation in 1981 for its many inventions introduced foremost in Greece, the concern theoretical account of representation and distribution of computing machine merchandises. It was a innovator in supplying design services, installing and support systems. Since 1991 manufactures the popular computing machines Quest known for their dependability and their technological degree.

Under the name U, the company operates the disposal of merchandises, solutions and services in the consumer market, and through the U Business is addressed to the concern market with the design, execution and support of incorporate systems and engineering solutions.

The work force of the company is about 300 people, most of whom are extremely trained and skilled. Gross saless in 2009 amounted to a‚¬ 211 million

6.2. Research and Development

The long March of Info Quest is followed by a stable, long-run strategic investing by bettering productiveness and establishing procedure mechanization and cost decrease. The entire investing realized by the company is critical, and back up the execution of the strategic options for developing new activities and services serve the modernisation of the operation for the benefit of the client, while beef uping its expertness in maintaining the top. The company has developed and operates one of the most advanced engineering environments, which can happen in modern endeavors.

Today, Info Quest Technologies:

It has one of the largest ERP installings in Greece, which supports all the maps and group companies based on the theoretical account ASP ( Application Service Provider ) . With uninterrupted enlargement the system is continuously spread outing in functionality and characteristics.

It has developed and operated successfully, an eCommerce platform for client service. Already in 2000, operates continuously in Quest On Line, one of the most successful Business to Business parangeleiolipsias applications of electronic and information on the spouse web, through which over 50 % of company gross revenues, while today it is besides a map of two on-line retail merchants ( www.you.gr & A ; www.istorm.gr ) , and an online shop entree control for big concerns and organisations the company ‘s clients ( www.youb2b.gr ) . It should be noted that the platform www.you.gr has become a extremely advanced development to back up a multi-channel gross revenues figure includes on-line shop and 75 independent natural shops with multiple pick method of payment, topographic point of bringing, pricing and take parting spouses.

Systematically invest in modern telecommunications substructure to suit the turning concern. An advanced web substructure voice and informations, and handiness of high velocity link all subdivisions and subordinates in Athens and Thessaloniki, functioning more than 1,200 users.

Utilizes modern applications, Gross saless Force Automation, CRM, Remote Access & A ; Knowledge Management, to better function its client base, and modern engineering, Call Center, for supplying service ( 24×7 ) .

It has invested in a to the full equipped proving research lab for the test operation and simulation solutions implements. At the same clip have the most modern and to the full equipped service workshops, with sophisticated monitoring processs.

6.3. Prospects for the hereafter

Continuously invest in upgrading the proficient capacity of the executive, with uninterrupted monitoring of preparation plans, taking to international enfranchisements.

It has developed a countrywide web of 120 centres and proficient support to better function its clients, which operate with high quality criterions, monitored by the Quality Assurance System Info Quest Technologies, certified ISO 9001:2008. At the same clip continually invests in developing its spouse web, offering modern-day theoretical accounts of organisation, engineering transportation, with uninterrupted preparation and full support.

It has developed an advanced system for logistics, accomplishing the quality service its client base, optimising productiveness and cut downing costs.

It has established and applies a comprehensive security policy for protecting information and all the operational resources.

Below, in table 2, is illustrated an analysis of the company ‘s Strengths, Weaknesses, Opportunities and Threats.

S- Strengths

It is the biggest company in the industry.

It adopts all the new direction methods

It activates in the information industry since 1991.

High liquidness due to effectual recognition control

Cash handiness for investing in new merchandises and industries

Good ratio hard currency flow due to the fact that it collects the money with the sale and pays the providers every 80 yearss

It has a really strong investing policy in the R & A ; D section, in the sectors of telecommunications and energy.

Being of a large gross revenues and distribution web

Strategic Alliances

O- Opportunities

The company will spread out its operations to the North Balcans and to Turkey

Addition in demand of new advanced merchandises, with a little life rhythm. This will take to the growing in gross revenues.

The company will utilize the new investing jurisprudence is Greece which will cover the 60 % of any new investings that it will do.

Many companies of the industry have terrible liquidness jobs and it is the best period to purchase off its rivals.

W- Failings

There is a great trade of rivals in the country.

New non domestic rivals have entered to the Grecian market

The fiscal crisis has affected the facet of the families in purchasing new merchandises similar to the older 1s, so the demand of its merchandises is expected to fall.

The company did non pull off to shut trade with a major organisation in Greece for the IT support of its sections and lost a great sum in gross revenues.

The market is affected in a high degree from the authorities and with the new ordinance for the lessening of the public subdivision disbursals the market has lost one of the key participants.

T- Menaces

Many new multy national companies will come in the Grecian market.

Fiscal crisis will arouse a bead in gross revenues but besides will convey jobs with the bank co-operations and support.

Due to the low life rhythm of merchandises the company has to be highly careful in the stock direction.

Due to the competitory environment the companies decrease their gross net income borders

Due to the planetary fiscal crisis the protagonists will demand their payments every 40 yearss and they will diminish the price reductions that the company had until today.

Table 2: Swot Matrix

Harmonizing to the above tabular array, the schemes that the company can follow for the future growing as a combination of the SWOT matrix analysis are the below:

SO Schemes

Remain Stable and seek to purchase off some of her rivals with liquidness jobs ( S4+S5+S6+O4 )

Expand its sale web to north Balcans to new markets

( S1+S2+S3+ O1 )

Expand its operations to new industries and markets ( S2+S4+S5+S7+O3 )

WO Schemes

1. Due to drawn-out competition in the market and the dissatisfactory prognosiss for the gross revenues, the company must seek and spread out to foreign states in the Balcan country. ( W1+W2+W3+O1 )

2. Due to drawn-out competition in the market and the dissatisfactory prognosiss for the gross revenues, the company must seek to spread out its operations to different industries ( W1+W2+W3+O3 )

ST Schemes

The company must take after consideration the effects of the fiscal crisis in the market and seek to supply the market with merchandises that best tantrums today ‘s fiscal state of affairs ( S2+S3+S7+S8+T1+T2 )

The company must happen ways to detect the costs that the new payment agreements of the providers will likely make. Therefore, it will be able to maintain its clients ( S2+S7+S8+T1+T5 )

The company must take advantage of the acquisition of Rainbow S.A and manage to be the first that will present the Apple merchandises to the Grecian market. ( S9+S8+S2+T1+T2 )

The company must do known to the populace that it is a Grecian company and that the militias of the company will remain in the Grecian economic system. Thus it can keep its clients from the multy national companies ( S1+S2+S3+S8+T1 )

The company must seek and cut off its operation disbursals ( S2+S9+T4 )

WT Schemes

1. The company must alter its stock list policies and calculate a bead in gross revenues ( W3+T2+T3 )

2. The company must alter its dividend policy and seek to pull strings its balance sheet. Therefore, it will be able to be attractive to the Bankss ( W4+W5+T2 )

3. The company must seek to detect clients from the new rivals and do the market non attractive for them. ( W1+W2+T1 )

Table 3: The SWOT Matrix – Schemes

These are some likely scenarios that the company should follow in the hereafter to guarantee its hereafter growing and good being. From all the above scenarios five of them should be moreover examined, because they are the most likely scenarios.

The profitable yesteryear of the company can demo that the company has made all the right moves that were needed. So one scheme is to stay stable and seek non to arouse any results, but seek to command all the alterations in the market environment with the tools she already has. On the other manus, as pointed in the SWOT Matrix – Schemes tabular array, the company can seek to spread out its operations to other markets and particularly to north Balcans. These markets are really attractive for the information and telecommunication industry, because they “ build ” those Fieldss now, and they need companies with the expertness and support that Info – Quest can supply. This scheme refers to Geographical and Market enlargement. One other really good scheme is to take advantage the liquidness jobs that many rivals of Info Quest have and try to purchase them off in really profitable monetary values. With this scheme the company will pull off to come out of the fiscal crisis stronger and bigger. This scheme can be described as Horizontal Integration.

Furthermore, the company can spread out her operations to different Fieldss from those that she includes. To be more specific, the company must take advantage of the good R & A ; D section that she has created in the field of renewable electrical beginnings. The company has already done some stairss in this field. After the creative activity of “ Green Quest Power ” , which is a company that expertises in those Fieldss, she has managed to shut a batch of building contracts with people that invested in green power, but besides she has constructed many solar and air current Parkss, entire power of 400 MW. This scheme refers to the creative activity of new merchandises in the Grecian market. Of class, this scheme can be combined with the Geographical and Market enlargement. With the combination of those two schemes the results will be more profitable for the company.

Furthermore, there is the possibility that the company will came to an understanding with one of the multy national companies that want to come in to the Grecian market. It was made known to the populace in the general assembly of the company in the December 2010, that a big company from abroad wanted to utilize the Info Quests ‘ shops to advance her merchandises. This scheme can be described as Joint Venture scheme.

Finally, the last scheme is the most pessimistic 1. The last scheme that the company could follow is to diminish all the disbursals ( gross revenues ‘ and disposal ‘s ) and seek to detect the effects of the fiscal crisis with these alterations. Of class this scheme can arouse a bigger diminution in gross revenues, because the first disbursals that will be decreased are the advertizement disbursals and likely the results will non be desirable for the company

7. Scenarios – Schemes

7.1. General Assumptions

Some general premises must be done for the creative activity of the theoretical account. First of all the financess that will be needed for the enlargement of the company either in different market or for the enlargement in different industries or for the acquisition of rival companies will be made with the usage of long term debt and with the payment agreements that the company has for the already taken loans. One more premise is that the Bankss will be able and willing to fund Info Quest.

Furthermore the Taxes that the company has to pay will be accumulated with the mean ratio of the three old financial old ages and the revenue enhancement rate in Greece will stay the same, about to 20 % . Furthermore, the history information has shown that the rate of the growing in gross revenues in the domestic market is bigger than the accrued WACC. Thus, the computation for the Free Cash Flows should be done with the usage of the division with the WACC.

The theoretical account besides uses the norms of the old three financial old ages for the ratios shown in the tabular array below.

Premise

Depreciation/Fixed assets

Interest Expenses/Debt

COGS/Sales

Deferred Income Taxes/S-ales

Non-current assets at cost/Sales

Table 4: Indexs of General Assumptions

7.2. Scenario 1 – Stability

Premises: Info Quest will complete her Network Installation for the cyberspace services in all the remain parts without any farther holds and jobs. The company, harmonizing to the Financial Report of 2010, has already invested a large portion of her capital to advance the services that she provides in the telecommunication industry. This fact with the combination of the fact that all the rival companies did non invested in that country 5 or 7 old ages ago, and now it is to late for them to come in to that industry, due to the restrain in financess from Bankss, gives Info Quest a chief advantage over the rivals.

When this investing will stop, Info Quest will be able to supply a full package in telecommunication services which will include fixed telephone, nomadic services, cyberspace and overseas telegram Television all in one. This merchandise is expected to gain a large portion of the market and besides it will gain a batch of clients from her rivals.

This scheme will hold at least a 7 % growing in gross revenues, but the COGS will stay the same. Furthermore the sale and disposal disbursals are accumulated to diminish 10 % , which is the norm of the last old financial old ages. The result of this scheme is shown to the tabular array below:

Year

2010

2011

Gross saless ( in entire Numberss )

331.463,00

354.665,41

Net Net incomes

-1.272,00

16.410.02

GOGS

80 %

Addition in Gross saless of the house

7 %

Decrease in Expenses

-10 %

Table5: Administrative, Selling and R & A ; D Expenses, COGS against addition in gross revenues and Net Earnings- Scenario 1 ( Beginning: InfoQuest ‘s Annual Report 2010 )

7.3. Scenario 2 – Market and Geographic Expansion

Premises: The company has targeted 4 states near Greece, which are: Bulgaria, Romania, Croatia and Turkey. The financess needed for this investing will be taken from Bankss of Greece. The Company believes that if this scheme will be followed the gross revenues ratio will turn at least to 15 % . The merchandises that the company is willing to advance to those markets are largely the merchandises that belong to the information industry. Furthermore, the IT services and support that the company can supply due to the experience that she has in this field will get the better of all the domestic rivals. Furthermore, those markets are really good for the publicity of the telecommunication services, with the limitation that major investings will must be made in those parts and that the financess needed will be founded.

Of class Info Quest will hold a major ally in this effort. The top direction of the company has come to an understanding with the directors of the biggest retail company of IT merchandises in Bulgaria, which has 43 retail shops in Bulgaria and 15 in Romania. The understanding is that the domestic company will advance Info Quests merchandises and that Info Quest will supply her proficient support and cognition at a really low cost.

As claimed before the gross revenues will increase at 20 % , but the GOGS ratio will besides increase at least 5 points and will make to 85 % . Furthermore, the disposal and merchandising disbursals will lift to -5 % from -10 % . The result of this scenario is shown in the tabular array below:

Year

2010

2011

Gross saless ( in entire Numberss )

331.463,00

397.755,60

Net Net incomes

-1.272,00

7.555,07

GOGS

85 %

Addition in Gross saless of the house

20 %

Decrease in Expenses

-5 %

Table6: Administrative, Selling and R & A ; D Expenses, COGS against addition in gross revenues and Net Earnings- Scenario 2 ( Beginning: InfoQuest ‘s Annual Report 2010 )

7.4. Scenario 3 – Market and Product Development

Premises: The last 5 old ages at that place has been a strong willingness in Greece from little investors to fund little energy solar or air current Parkss. Harmonizing to market analysis made from ICAP 2010 for the energy industry, this tendency will go on to be for the following 5 to 10 old ages to the same degrees. The financess that the company will necessitate, will be taken either from long term loans from Bankss and with the usage of the new investing jurisprudence in Greece, which provides up to 60 % of the entire budget of the investing undertaking.

The company will take advantage of the engineering cognition of her energy section and her sale web to advance the services that she provides in the energy section. To be more specific, the company is overseas telegram to back up the investors with all the aid needed to guarantee all the legal paperss for the acquisition of the licence to bring forth energy from solar or air current Parkss. Furthermore, the company has come to a scheme understanding with a major maker of solar panels in Germany and has ensured that she will be the sole agent of this company in Greece.

There had been some ideas, harmonizing to the Financial Report of 2010, that the top directors wanted to join forces with the major rival of Info Quest in that industry in Greece and make a Joint Venture for that undertaking. This is the most likely scenario, because the new company that they will make will be far stronger from all the domestic rivals, but besides she will be able to make barriers to the rivals from abroad that want to come in in Greece in that specific industry.

Furthermore, Info Quest has closed a major trade with DEI, which is the chief company that produces energy in Greece for the creative activity of 11 air current Parkss in Greece. This undertaking will be funded chiefly from DEI, but our company except for the sum of money that she will take for the building of the Parks, she will get a 25 % dividend of these Parkss. With this scenario the gross revenues will increase with a 25 % ratio, but the GOGS and the disbursals will lift as shown in the tabular array below:

Year

2010

2011

Gross saless ( in entire Numberss )

331.463,00

414.328,75

Net Net incomes

-1.272,00

7.361,29

GOGS

85 %

Addition in Gross saless of the house

25 %

Addition in Expenses

5 %

Table7: Administrative, Selling and R & A ; D Expenses, COGS against addition in gross revenues and Net Earnings- Scenario 3 ( Beginning: InfoQuest ‘s Annual Report 2010 )

7.5. Scenario 4 – Decline in size and lessening of disbursals

As stated before this is the most pessimistic scenario, but besides the least likely 1. The company has non shown any marks that she wants to follow this scenario to look the fiscal crisis. Furthermore, the company has all the necessary makings to spread out and non to increase. The most of import 1s are the good relation with the Bankss and the fact that she has an of import sum of hard currency militias that can be invested to new undertakings.

Premises: The company will worsen her employees get downing from the sale and administrative section. If this scenario will be followed the company will hold to pay a great sum of money for disposal reimbursements at the first twelvemonth, but the lessening that she will accomplish in the monthly paysheet will hold an mean 12 % lessening in the entire sale and administrative disbursals for the 5 following old ages. Furthermore, the company will give some parts of the production line to other companies with the usage of outsourcing. This will take to a lessening in the COGS averaged to 10 % for the following five old ages. Of class all these facts will take to the lessening of the growing rate in gross revenues which will be averaged to -5 % . Furthermore, the top direction of the company knows that the quality of the services and merchandises that she provides will be decreased, and they wont be able to meet the domestic and abroad rivals.

The consequences of that scenario is shown in the tabular array below:

Year

2010

2011

Gross saless ( in entire Numberss )

331.463,00

314.889,85

Net Net incomes

-1.272,00

11.229,08

GOGS

80 %

Addition in Gross saless of the house

-5 %

Addition in Expenses

-12 %

Table8: Administrative, Selling and R & A ; D Expenses, COGS against addition in gross revenues and Net Earnings- Scenario 4 ( Beginning: InfoQuest ‘s Annual Report 2010 )

This scenario seems to be the most profitable for the first twelvemonth of the company but as it will be shown subsequently with the ratio analysis, the entire results for the five old ages are non attractive.

8. Ratio and Sensitivity Analysis

The forecasted consequences refer to a five twelvemonth period from 2011 to 2015. The analysis will demo the same ratios for all the scenarios. The ratios analysis will be separated to three chief classs: The profitableness indexes, the liquidness ratios and the fiscal ratios. The ratios that will be shown are those of Gross Profit Margin, Operating Margin, Net Net income Margin, ROA and ROE.

Scenario 1 – Stability:

RATIO ANALYSIS

Old ages

2011

2012

2013

2014

2015

PROFITABILITY INDEXES

A

A

A

A

A

Gross Profit Margin

20,00 %

20,00 %

20,00 %

20,00 %

20,00 %

Operating Margin

6,56 %

8,02 %

9,27 %

10,36 %

11,31 %

Net Net income Margin

4,63 %

5,80 %

6,78 %

7,61 %

8,33 %

ROA

6,42 %

8,89 %

11,26 %

13,43 %

15,28 %

Roe

11,74 %

15,86 %

19,94 %

24,08 %

28,33 %

LIQUIDITY RATIOS

A

A

A

A

A

Current Liquid

2,49

2,58

2,64

2,69

2,74

Quick Liquidity

2,23

2,98

3,96

5,26

6,98

Cash Ratio

21,19 %

32,09 %

45,09 %

59,97 %

76,54 %

FINANCIAL RATIOS

A

A

A

A

A

Debt Ratio

27,44 %

28,48 %

30,46 %

33,54 %

37,62 %

Interest Coverage Ratio

-3,33

-3,33

-3,33

-3,33

-3,33

Table 9: First Scenario – Ratio Analysis

If this scenario will be adopted the company will hold a changeless COGS to 80 % and will win a stable profitable path with positive tendency. Furthermore, the hard currency and the debt ratio is traveling to be to instead satisfactory degrees.

Scenario 2 – Market and Geographic Expansion

RATIO ANALYSIS

Old ages

2011

2012

2013

2014

2015

PROFITABILITY INDEXES

A

A

A

A

A

Gross Profit Margin

15,00 %

15,00 %

15,00 %

15,00 %

15,00 %

Operating Margin

2,67 %

4,94 %

6,78 %

8,27 %

9,49 %

Net Net income Margin

1,90 %

3,61 %

4,95 %

6,02 %

6,87 %

ROA

2,89 %

6,73 %

11,01 %

15,57 %

20,13 %

Roe

5,41 %

12,42 %

20,55 %

30,13 %

41,43 %

LIQUIDITY RATIOS

A

A

A

A

A

Current Liquid

2,54

2,63

2,69

2,74

2,79

Quick Liquidity

2,26

3,11

4,35

6,14

8,73

Cash Ratio

15,34 %

21,79 %

31,52 %

44,15 %

59,40 %

FINANCIAL RATIOS

A

A

A

A

A

Debt Ratio

29,43 %

31,52 %

34,78 %

39,25 %

44,68 %

Interest Coverage Ratio

-3,33

-3,33

-3,33

-3,33

-3,33

Table 10: Second Scenario – Ratio Analysis

In this scenario the Gross Profit Margin in lower than the first scenario and besides the net net income Margin is besides lower as a ratio. But the result of ROA and ROE shows that the 2nd scenario is better than the first.

Scenario 3 – Market and Product Development

RATIO ANALYSIS

Old ages

2011

2012

2013

2014

2015

PROFITABILITY INDEXES

A

A

A

A

A

Gross Profit Margin

15,00 %

15,00 %

15,00 %

15,00 %

15,00 %

Operating Margin

2,49 %

4,66 %

6,44 %

7,91 %

9,13 %

Net Net income Margin

1,78 %

3,40 %

4,69 %

5,73 %

6,58 %

ROA

2,85 %

7,03 %

12,24 %

18,51 %

25,69 %

Roe

5,27 %

12,70 %

22,02 %

33,78 %

48,57 %

LIQUIDITY RATIOS

A

A

A

A

A

Current Liquid

2,52

2,61

2,67

2,72

2,77

Quick Liquidity

2,21

2,99

4,15

5,88

8,48

Cash Ratio

15,35 %

22,12 %

32,82 %

47,30 %

65,39 %

FINANCIAL RATIOS

A

A

A

A

A

Debt Ratio

28,37 %

29,59 %

31,74 %

34,93 %

39,04 %

Interest Coverage Ratio

-3,33

-3,33

-3,33

-3,33

-3,33

Table 11: Third Scenario – Ratio Analysis

In this scenario the Gross Profit Margin in lower than the first and besides the net net income Margin is besides lower as a ratio. But the result of ROA and ROE shows that the 2nd scenario is better than the 2nd and the first scenario. Furthermore, the hard currency ratio is traveling to be in high degrees.

Scenario 4 – Decline in size and lessening of disbursals

RATIO ANALYSIS

Old ages

2011

2012

2013

2014

2015

PROFITABILITY INDEXES

A

A

A

A

A

Gross Profit Margin

20,00 %

20,00 %

20,00 %

20,00 %

20,00 %

Operating Margin

5,03 %

5,13 %

5,14 %

5,06 %

4,92 %

Net Net income Margin

3,57 %

3,83 %

4,00 %

4,12 %

4,19 %

ROA

4,61 %

5,06 %

5,36 %

5,56 %

5,66 %

Roe

8,04 %

8,27 %

8,27 %

8,15 %

7,94 %

LIQUIDITY RATIOS

A

A

A

A

A

Current Liquid

2,41

2,50

2,56

2,61

2,65

Quick Liquidity

2,17

2,77

3,47

4,31

5,31

Cash Ratio

18,58 %

24,31 %

29,74 %

34,76 %

39,33 %

FINANCIAL RATIOS

A

A

A

A

A

Debt Ratio

22,49 %

19,85 %

17,24 %

14,91 %

13,01 %

Interest Coverage Ratio

-3,33

-3,33

-3,33

-3,33

-3,33

Table 12: Fourth Scenario – Ratio Analysis

In that scenario the Gross Profit Margin Ratio is higher from all the above scenarios, but all the other ratios show that this scenario is the worst for the company.

9. Sensitivity Analysis

Net Net income Analysis

Sensitivity Analysis

Net Net income

A

A

A

A

A

A

Old ages

2011

2012

2013

2014

2015

Entire

Scenarios

A

A

A

A

A

A

Scenario 1

16.410,87

22.018,05

27.517,11

33.065,76

38.722,32

137.734,11

Scenario 2

7.555,07

17.217,47

28.327,13

41.343,77

56.694,92

151.138,36

Scenario 3

7.361,29

17.612,99

30.355,58

46.389,58

66.586,43

168.305,87

Scenario 4

11.229,08

11.458,02

11.374,71

11.126,37

10.758,04

55.946,22

Table 13: Net Net income -Sensitivity Analysis

This analysis shows that the best scenario for the maximal addition in the Net Net income is Scenario 3, which is the enlargement of the company to new merchandise industries. However, the first scenario has the best consequences for the first twelvemonth and likely person would claim that stableness with the present crisis in the market is the best scenario. The factors that the top direction of the company should take under consideration for the determination of the best scenario, are the chances that the company has today to work ( as mentioned in the SWOT – MATRIX tabular array ) , which is non certain that in an one or two old ages period the status will be the same.

Earnings/ ( Losses ) per portion

Sensitivity Analysis

Net Net income

A

A

A

A

A

A

Old ages

2011

2012

2013

2014

2015

Entire

Scenarios

A

A

A

A

A

A

Scenario 1

0,39

0,519661

0,649448

0,780405

0,913909

3,25

Scenario 2

0,18

0,40636

0,668566

0,975779

1,338091

3,57

Scenario 3

0,17

0,415695

0,71644

1,094869

1,571547

3,97

Scenario 4

0,27

0,270428

0,268461

0,2626

0,253907

1,33

Table 14: Net incomes per Share -Sensitivity Analysis

This analysis shows that the best scenario for the maximal addition in the Earning per Share is Scenario 3, which is the enlargement of the company to new merchandise industries. This analysis is a major key for the well being of the hereafter of the company, because for investors this scenario is really attractive. So if the company wants to fund her operations from the stock exchange market, should follow the 3rd scenario.

This analysis has the same consequences with the one above. The combination of those two sensitiveness analysis show that the company should follow the tierce scenario which is the expand of the company to new merchandise industries.

Mentions

InfoQuest Annual Report 2011

www.infoquest.gr

www.naftemporiki.gr

www.ase.gr

www.capital.gr