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Anthony's Orchard Case Analysis

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Anthony's Orchard Case Analysis
Section 1:
Financial Analysis
The financial statement of a business is important as it portraits the company's overall situation. The financial position of any business is important as information can be derived from these statements the information required to understand the position of the business, brand or company. When the situation arises to consider the financial position of a company; financial statements would be required to be analyzed in various detailed reports. In the case of Anthony’s Orchard, the provided financial statement will assist by assessing the financial situation of the Antony’s Orchard.
In this case and most commonly, the balance sheet of the company is considered as it grants a clear indication of the company’s …show more content…
The debt capital of the company is subject to the interest that the company has not yet started repaying and it was acquired 30 years ago as per the information found. Debt finance assists the company to decrease its tax liability because interest on tax is the allowable tax deduction. However, due to the company not being able to start repaying their loan, they will not be able to benefit from this allowance. It is vital for management to understand their financial position and the local tax and banking laws to ensure they are always on top of information for company benefit. The financial situation of Anthony’s Orchard is not stable as it holds a significant amount of stock in its’ inventory. They would be required to turn this inventory into cash quickly. Pricing and marketing strategies may be used to shift product faster through their sales …show more content…
The vision of the company is to provide customers with the best apple products and service (in turn; generating enough revenue to net profit for the shareholders). The company also intends to inform investors with accurate and current information for the b-/oard to make informed and factual decisions. This demonstrates that the company is open to making future investments as it seeks to expand beyond its current capacity. As per Emmanuel, Harris, and Komakech (2010), expanding product line is an essential growth strategy especially for small business organizations such as Antony’s Orchard. Antony’s Orchard is in the process of deciding whether it should it should buy apple press. Expanding this way will enable the company to take advantage of the different opportunities in the market. The new Apple press machine which Antony’s Orchard is in the process of buying will enable the company to include new product offerings in its’ product portfolio, and this will enable it to access a wider market base and in the process, earn more revenue from the
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