The Business and Financial Analysis of Maldives Industrial Fisheries Company Limited
OXFORD BROOKES UNIVERSITY
RESEARCH AND ANALYSIS PROJECT
The Business and Financial Analysis of Maldives Industrial Fisheries Company Limited
From 1st January 2006 to 31st December 2008
Prepared by:
Word count: 6486 words
TABLE OF CONTENTS
EXECUTIVE SUMMARY 5
PART 1
PROJECT OBJECTIVES AND 6
OVERALL RESEARCH APPROACH 6
1.1Intoduction 6
1.2 Selecting the Topic 6
1.3 Reason for Choosing “Mifco” 6
1.4 Principal Activities (Mifco) 7
1.5 Project Aims and Objectives 7
1.6 Research Questions 8
1.7 Overall Research Approach 8
1.8 Conclusion 9
PART 2
INFORMATION GATHERING AND 10
ACCOUNTING/BUSINESS TECHNIQUES 10
2.1 Introduction 10
2.2 Sample Design and Data Collection 10
2.2.1 Primary Data 10
2.2.2 Secondary Data 10
2.3 Difficulties Encountered 11
2.4 Accounting Techniques and Business Models 11
2.4.1 Accounting Ratio Analysis 12
Limitations of Ratio Analysis 12
SWOT Analysis 13
Limitation of SWOT Analysis 13
PEST Analysis 14
PEST Analysis 15
Limitations of PEST analysis 15
2.5 Conclusion 15
PART 3(a)
RESULTS AND ANALYSIS 16
3(a).1 Financial View 16
3(a).1.1 Profitability 16
3(a).1.2 Capital Structure 21
3(a).4 Liquidity and cash flow 23
3(a).5 Asset Utilization 25
3(a).2 Business View 26
3(a).2.1 Bargaining Power of Suppliers 26
3(a).2.2 Bargaining Power of Customers 27
3(a).2.3 Threat of New Entrants 28
3(a).2.4 Substitute Products 28
3(a).2.5 Competitive Rivalry 29
3(a).3 Industry Analysis using PEST 29
3(a).3.1 Socio-Cultural 29
3(a).3.2 Pole and Line Fishing (Technological Aspects) 29
3(a).3.3 Protecting Environment (Political and Socio-Economic) 30
3(a).3.4 Investing Human Capital (Political and Economic) 30
3(a).3.5 Privatization Policy (Political) 30
PART 3(b)
CONCLUSION AND RECOMMENDATIONS 32
3(b).1 Conclusion 32
RESEARCH AND ANALYSIS PROJECT
The Business and Financial Analysis of Maldives Industrial Fisheries Company Limited
From 1st January 2006 to 31st December 2008
Prepared by:
Word count: 6486 words
TABLE OF CONTENTS
EXECUTIVE SUMMARY 5
PART 1
PROJECT OBJECTIVES AND 6
OVERALL RESEARCH APPROACH 6
1.1Intoduction 6
1.2 Selecting the Topic 6
1.3 Reason for Choosing “Mifco” 6
1.4 Principal Activities (Mifco) 7
1.5 Project Aims and Objectives 7
1.6 Research Questions 8
1.7 Overall Research Approach 8
1.8 Conclusion 9
PART 2
INFORMATION GATHERING AND 10
ACCOUNTING/BUSINESS TECHNIQUES 10
2.1 Introduction 10
2.2 Sample Design and Data Collection 10
2.2.1 Primary Data 10
2.2.2 Secondary Data 10
2.3 Difficulties Encountered 11
2.4 Accounting Techniques and Business Models 11
2.4.1 Accounting Ratio Analysis 12
Limitations of Ratio Analysis 12
SWOT Analysis 13
Limitation of SWOT Analysis 13
PEST Analysis 14
PEST Analysis 15
Limitations of PEST analysis 15
2.5 Conclusion 15
PART 3(a)
RESULTS AND ANALYSIS 16
3(a).1 Financial View 16
3(a).1.1 Profitability 16
3(a).1.2 Capital Structure 21
3(a).4 Liquidity and cash flow 23
3(a).5 Asset Utilization 25
3(a).2 Business View 26
3(a).2.1 Bargaining Power of Suppliers 26
3(a).2.2 Bargaining Power of Customers 27
3(a).2.3 Threat of New Entrants 28
3(a).2.4 Substitute Products 28
3(a).2.5 Competitive Rivalry 29
3(a).3 Industry Analysis using PEST 29
3(a).3.1 Socio-Cultural 29
3(a).3.2 Pole and Line Fishing (Technological Aspects) 29
3(a).3.3 Protecting Environment (Political and Socio-Economic) 30
3(a).3.4 Investing Human Capital (Political and Economic) 30
3(a).3.5 Privatization Policy (Political) 30
PART 3(b)
CONCLUSION AND RECOMMENDATIONS 32
3(b).1 Conclusion 32
References: Anon, (2009). Quick MBA. Availbale at: http://www.quickmba.com/strategy/pest/ (Accessed on 4 January 2011). Anon, (2006). Maldives Industrial Fisheries Company Private Limited. Available at: http://www.mifco.com.mv/v2/statistics.php?id=3 (Accessed on 1 December, 2008). Anon, (2008). Department of National Planning. Available at: http://www.planning.gov.mv/en/ (Accessed on 1 June 2008). Anon, (2010). Management Study Guide. Available at http://www.managementstudyguide.com/swot-analysis.htm (Accessed on 1 January 2011). Collis, J. And Hussey, R. (2009) Business Research, 3rd edition, Basingstoke: Palgrave Macmillan. Haughey, D. (2008) PEST Analysis. Available at: http://www.projectsmart.co.uk/pest-analysis.html (Accessed on 30 December 2010). Johnson, S. (2005) The pyramids and pitfalls of performance measurement. Student Accountant, ACCA, Available at : http://www.accaglobal.com/students/acca/exams/p5/technical_articles/2950514 (Accessed on 12 December 2010). Johnson, G,. Scholes K,. and Whittington R. (2005) Exploring Corporate Strategy, FT Prentice Hall, seventh edition. MacKinlay, A.C. (1997) “Event studies in economics and finance”. Journal of Economic Literature, 35 (1), pp. 13-39. Porter, M. E. (1980) Competitive Strategy, Free Press Saunders, M., Lewis, P., and Thornhill, A