Williams Company Essay Example | Topics and Well Written Essays - 750 words

Williams Company - Essay Example New business direction promised opportunities for the Williams Company and resulted in high revenue growth during 1998-and 2001. An examination how strategy is formed gives useful insights into the nature of financial strategy itself. In 1999 Williams decided to list WCG (Williams Conunumcatiort Group) in initial public offering. It was made to have a major source of finance from shares came in the form of IPO that raised approximately $650 million and 5725 million raised through placements to private investors. The main problem was that Williams did not take into account rapidly changing environment of the telecommunication industry, long-term predictions as for its financial activity, and economic peculiarities of the industry. There were two main problems led into collapse: the industry suffered from over production and it could not fared well in the economic downturn. Williams took pains to improve the situation by newly issues shares of WCG equity. Again, Williams faced with the problem of indirect "credit support" WCG's debt" provided for WCG. In accordance with the legislation it was treated as "pff balance sheet," and did not appear as a liability on the firm's balance sheet. An addition to this in April, 2002 the state security started investigation process as for WCG's financial activity. Accept WCG financial problems Williams faced problems with Energy Marketing and Trading Divisions caused by the unstable market situation. Credit ratings and rising yields on the trade worsen the situation and created another problem for Williams traders which needed a credit but were unable to get it from counterparts After these nuisances, Williams developed new financial strategy based on "aggressive program of asset sales" and capital expenditure. The plan to cut investment was developed in previous years and was the promising one to help Williams to overcome financial crisis. The investment made by warren Buffin in Williams allowed Williams to achieve financial flexibility and economic stability at the middle of 2002, but did not sole the main problems. In addition, Berkshire Hathaway and Lehman Brothers offered a 900 million dollar loan to Williams, but on the strict terms. Williams financial reporting involves the collection and presentation of data for use of financial management and accounting. According to the Exhibit 2 and 3, the main financial figures of the Williams companies main positions are high in comparison with Domination Recourses, Murphy Oil, except Dynegy company. The net income of William applicable to common shares figure has the highest rate between 1999-2001. According to the financial data Williams Company has the market value on equity which increased between 1999 and 2000, but failed in 2001; only Dominion resources has the highest rate. The figures of the total assets of Williams Company show the stable growth in 1999 and 2000. Because of the crisis affected the company the level of total assets decreased 1,5% in 2001 but remains the highest in comparison with its competitors. The cash flow investment activity was $1,970M (1999), 2,337M (2000) and 3, 543M (2001). Only Dominion Resources has the high figures in 2001. It is known that EBITDA is used to analyze the profitability between companies and industries, because it eliminates the effects of financing and accounting

This is an individual assignment. You are to research an actual Essay

This is an individual assignment. You are to research an actual example of IT leveraging business advantage at an operational level - Essay Example The presence of fierce competition and cost restraints in the present world economic scenario make a proactive approach to envision the future results beforehand and implement appropriate measures to achieve desired results and targets is absolutely necessary. In this report the role played by the IBM Corporation in developing such strategies to enhance multifarious businesses with hardware and software solutions has been studied. The latest innovative ideas implemented by this leader in automation and IT have been incorporated in the report. Practical implementation of an IT strategy by a leader in an online gaming industry has been studied and researched up to some extent from the results obtained by it after choosing a particular IBM product. Information Technology (IT) has grown at a tremendous pace in the last decade and has left no aspect of business or human life untouched. Banking, Healthcare, Education, The Stock Market, etc. are on the verge of being exclusively run using IT. The growth in the IT industry however has not been uniform, as advances in hardware and software development have been influenced by the exclusive needs and requirements of large corporation and governments. This has produced a haphazard pattern of growth in the IT sector and the experts in the field have initiated efforts only very recently to restructure it to be uniform, efficient as well as cost effective. Almost all businesses in the developed and the developing countries are being run using latest and the most modern aspects of IT. Institutions like banks, the hotel industry, fast food chains, fast moving consumer goods industry and others have surpassed their competitors by miles using IT to leverage their businesses. One such organization is the IBM Corporation which was the pioneering organization in ushering the computer age in this century.