Report on Apple Macintosh and Innovation

Executive Summary Respondents have ranked Apple and Google as the two most innovative companies for the fourth straight year. Apple has held the post of top winner according to a survey since 2005 (MÃ ¼ller, 2011). The company has shown strong results since 2000, with an increase in revenue of more than 450% in eight years and net profit increase of more than 1700%. According to Steve Jobs, the company achieves these growth armed with the strongest product line, talented employees, and best customers in the industry. Apple leverages a combination of top-down and bottom-up innovations strategy to create innovations. Apple has built an innovative factory, one that harnesses outstanding innovations from its people, stimulating enterprising new ideas, and launching successful and profitable ideas continuously. Additionally, the company leverages its diverse pool of employees, suppliers, customers, partners, proven innovation process, and a winning culture that does not accept the second position, thereby seizing new opportunities in the global market place and achieve exponential business growth. This paper attempts to study the organizational behavior at Apple and by focusing on the theory of innovation and creativity. Introduction In a cut and dry definition, organizational behavior is the study and the application of knowledge about how people, individuals and groups act within organizations. What this means is if an outside organization were to review a company to see what makes them successful, they would be able to find specific actions and aspects of the company culture that attributes to their position of success or failure. That information could then be hypothetically applied to other companies to help improve their overall performance. For this report, the company at hand for the study is Apple; one of the most important organizations of the last one to two decades. For a number of reasons, Apple has played a major part in the development of technology and its influence on our culture. Apple and Innovation When consumers think of Apple, many will immediately think of some of the most innovative technological advances that have had a direct effect on our society. iPhones, iPods and Macintosh computers are the three staple products that have helped push Apple, Inc., towards the top of their industry. Under the leadership of the recently deceased founder and former CEO, Steve Jobs, Apple built itself into an organization that became well known for innovative ideas and listening to what their customers wanted. Jobs went above and beyond embracing both of those ideals Steve Jobs is considered one of the most influential business leaders of our time for the way he developed Apple, Inc. into the technological powerhouse it has become today. He played a central part in the birth of Apple in 1977, up until his death in 2011. During that time, his belief and leadership methods helped shape the organizational behavior in Apple that would help them become the industry standard that they are today. It is very easy to look throughout the Internet and find quotes that were left behind by Jobs that are used as influential quips for those involved in the business world. Since his death many experts and reports have chronicled the struggles that the new leadership have had to face and few believe that the company will face tougher struggles in the future. It is very clear to see that Steve Jobs played a very vital role in not only innovation within Apple, but also how it is used throughout the business world. Organizational Behavior of Apple When looking at Apple Inc. as a whole one must work to gain an understanding of the organizational behavior that has led too much of its success. As stated, one of the biggest factors towards that success was the fact that the company was staunch in their belief of innovation from the highest executive all the way down to the entry-level employees. Steve was all about being innovative in marketing, product features, design, packaging, purpose-he knew that thinking differently was the key to differentiating Apple from the crowd of MeTo companies (Canton, 2011). This belief in the importance of being different is vital in todays marketplace and is a key lesson point for organizations that are looking to build their own legacy, no matter what industry they operate (Richard, 2005). If you look across every industry you will see how companies are continually trying to defeat each other by developing new ideas. It does not matter if it is the clothing, car or television industries: each tries to come up with new products and ideas that will attract customers to spend their money within their markets. One prominent example is the video game industry. With every knew game that comes out developers are continually developing new game play factors, characters and anything else that hasnt been seen before. Even beyond that, new game systems are released on a two to three year cycle as technology continues to improve. The goal is to consistently develop new products that will keep the customers attention and potentially cause them to spend more money on the companys products. How Innovation Helps Deal With Challenges Innovation and an embracing of it is a strong tool to help managers and CEOs overcome many of the challenges that can come up in the business world. In times such as these, when customers are least likely to be willing to part with their money, companies have to be creative in how they entice these individuals to use their products and services. Coming up with new technological advances, different products and other ways to garner attention is one of the most successful ways to do so (Johnson, et al., 2009). At the same time, innovation can also be a great tool in solving the different problems that can arise when dealing with employees or public relations situations. Over time, Apple has built a seasoned management team that is optimized to support bold new product initiatives and recover from the occasional flop (Morrison, 2009). For example, in 2011 FedEx was faced with a brief crisis when video surveillance footage of a delivery man in a very bad light. While delivering a package that was marked as fragile, the employee threw the package over the gate at the home of the customer. Of course, the outcome was that said package contents were destroyed. Instead of trying to cover over the situation, FedEx took to social media to reach out to their customers to inform them that this situation was a rarity and they will take all the precautions that it will never happen again (Dietrich, 2012). In todays society, negative news can hit the Internet and spread like wildfire. Not containing said fire could have serious negative consequences on the ability of the organization to function. FedEx helped set an interesting example of using the same medium in which the bad news was revealed, to release their public relations response and hopefully contain the situation before it became worse. This is an example of how bein g innovative with the technology at hand assisted FedEx in being able to release a quick and impactful response to a situation that could have become a public relations nightmare. Companies need to continually stay ahead of the curve when trying to figure out new ways to deal with the challenges that come up every day. As social media platforms continue to grow and take more prominent positions in our daily lives, these venues give customers more options on how to complain about the services or product mistakes they may have experienced. Organizations such as Apple and FedEx have thrived by using these same venues to product their organization as a whole and recant these problems as they arise. How Innovation Helps Main Customer Satisfaction Apples embracing of innovation can also be seen with how they handle controversy surrounding their products. Even recently, the organization has had to step up and take the public lashing that came along with the release of the Apple iPhone 5. Many customers were complaining about the Maps application that came with the phone. Instead of ignoring the problem, Apples current CEO outright apologized for the faulty program and ensured customers that the issue will be corrected. While dealing with upset customers may not be considered an innovative way to solve a problem, the fact that Apple consistently does so in a quick manner is an action that more organizations should cover. Innovation is also a solid recourse to creating a strategy to maintain customers in a very competitive marketplace. Apples organizational culture of providing their customers with the products and services it desires has created many different industry standards that now are customary in the technology world. In developing these innovative standards, much of the industry has begun to recommend Apples products as top of the line when compared to their competitors. For example, lets look at the applications and capabilities that come with many of Apples computers today. Video cameras have become an important part of online interactions. Now many users have an expectation of being able to video chat with others across the world for business and personal reasons without the need to attach additional items to their laptop or computer. Now, majority of Apple computers come with the ability to video chat built in. This feature goes hand in hand with many of the creative programs that are used with Apples programming system such as Final Cut Pro. These innovative conveniences make many Apple computers the go to products of choice, especially by those individuals who are looking to develop their creative background. Customer satisfaction should always be one of the first objectives for any organization that is a part of the consumer marketplace. Without these customers your organization will not be able to function and will falter from the start. Continually developing new ways to keep your customers satisfied with products and services is one important attribute that maintaining an innovative thought process will bring to your company. Creativity impact at apple employees Apple leverages a combination of top-down and bottom-up innovation strategy to create innovations. The company is organization and management driven, process oriented and highly structured. In order to achieve its strategies, Apple has an innovative culture closely coupled with that of its leadership. As leading innovative company in the world, Apple’s employment brand makes employees feel they that they are cool when they work with Apple. In addition, employees feel as part of a team that helps in changing the world through technology. The success of the company depends on its ability to stay ahead in introducing innovative products into the market ahead of competitors. However, if it fails in doing so, then the company’s brand would fade. The commitment of employees to Apple comes from other factors far outside of the control of employees. Failure on the part of these factors could adversely affect employee engagement and commitment. If Apple reports a bad quarter, the adrenalin rush could end soon. Apple has been able to diversify its portfolio for drivers of employee engagement in order to mitigate risks. By offering benefits that talent competitors have, Apple addresses some of the reasons to leave. Conclusion As with both of these examples provided, it is clear to see that practicing innovation and creative thinking such as Apple does on a daily basis can help solve many issues that some organizations run into during operation. Organizations should consistently look for new ways to improve their processes, develop new products and create new services that their customers can enjoy. Even beyond the maintaining customers and dealing with complaints; innovative thinking can be used to help cultivate and develop the talent that is a part of your staff or help you come up with new products that your competitors have missed out on. If your organization can continually beat out the competition when it comes to these important points; then you can expect to maintain a prominent position in your industry of choice. Innovative thinking as an organizational behavior is a great way to spark the activity within an organization and help employees reach some of the goals that are in place. References Canton, James. Steve Jobss Innovation Leadership At Apple: My Lessons Learned. Global Futurist. Retrieved from http://www.globalfuturist.com/blog/2011/08/25/steve-jobss-innovation-leadership-at-apple-my-lessons-learned/ Dietrich, Gini. FedEx Customer Video Turned Good Pr. SpinSucks. Retrieved from http://spinsucks.com/communication/fedex-customer-video-turned-good-pr/ Henson, Ramon. Organizational Behavior And Global Management. Henson Consulting International. Retrieved from http://hensonconsultinginternational.blogspot.com/2011/10/leadership-of-steve-jobs.html Johnson, G., Scholes, K. and Whittington, R. (2009). Exploring Corporate Strategy text cases (8th ed.). One Southwark Bridge, London, UK: Financial Times Print, Int. Morrison, C.. (2009, Aug. 8) How To Innovate Like Apple. CBS News. Retrieved from http://www.cbsnews.com/8301-505125_162-51330240/how-to-innovate-like-apple/ MÃ ¼ller, C. (2011). Apples approach towards innovation and creativity: how apple, the most innovative company in the world, manages innovation and creativity. GRIN Verlag. Richard L.D. (2005).Organization theory and design (8th ed.). Thomson: South-Western.

My Family Permanent Resident Status - 1471 Words

I am going to America; I kept retrospection in my mind. My Parents and elder sister have already traveled to the United States a couple of months back. I was living with my father s cousin for the mean time and my two younger sisters were staying with my mom s friend. The news is now out in our little town, on the outskirts of Lagos. Are you going to America? That was the question most people kept asking me. I do not know was usually my reply, trying to be coy about it. In Nigeria, going to the United States is perceived as winning the lottery, which is ironic because my father won the visa lottery that guaranteed my whole family permanent resident status in the United States. The town my family and I lived in Nigeria is called Ifo. It†¦show more content†¦The only downside is that everyone cannot afford to go to school. Even though there is free education for the public schools. Private schools are often better. My dad worked for the Electoral commission of Nigeria and m y mom was a math teacher in a high school so they were able to send me to a really good school. Unfortunately for one of my colleagues, he had to drop out of middle school because he could not afford the tuition and he had to hawk bread so that his parents can pay the rent. He was a very brilliant student but unfortunately could not get an education. Till this day, I am sad he did not complete his education. He would always talk about how he wanted to be a doctor and I think he had the potential to be one. Who knows if he could have been the one to find a cure for cancer? There are other unfortunate students like him who cannot complete school for various reasons. The education system is good but not everyone is given a chance to learn. We also were not allowed to speak our local languages in school and the teachers referred to them as vernaculars. I have been afraid of teachers my whole life because I was conditioned to fear them. Teachers in school for any mistake I made often bea t me flogged me and that fear has been instilled in me. The African culture is still there but it is gradually diminishing and most people are adopting the Western culture. Which takes me to the movie industry and music. Nigeria has the third largest movie

Business Analysis and Ratio Project †Get Complete Solution

Question: Diacuss about the Business Analysis and Ratio Project. Answer: Introduction Purpose In this given assignment, analysis of the financial standing of a organization will be done and comparison will be made on the basis and comparison will be done taking two other organization as a benchmark. Financial ratios analysis as well as strategic analysis like balance scorecard and porters theory and limitation of financial models and conventional analysis will be discussed. Case context of analysis Three Malaysian based bank had be taken for the financial comparison taking one as focus company and other two companies are taken as a bench mark. In addition, strategic analysis is made based on balance scorecard and modified porters forces (Jansen, Ramnath and Yohn 2012). After that, limitation of various financial models and conventional analysis is also discussed. Company background In this assignment, three banks have been selected for financial analysis, which are Hong Leong Bank Berhad(Focus bank), Public Bank Berhad(Benchmark Company 1) and Malayan Banking Berhad(Benchmark Company 2). Hong Leong Bank is Malaysia based listed bank performing its banking activities since 100 years. In 2011, it has merged with EON Bank Group, which to which has effectively turned it into a banking group of more than RM140 billion asset and expanded to almost 330 branches. Public bank is a Hong Kong based commercial bank established in 1934 under the authority of Hong Kong Monetary. Its share is listed in Malaysian stock exchange. Malayan bank mainly operates in Singapore, Indonesia and Philippines providing financial services. It mainly focuses on Islamic banking through its subsidiary. Key issues The main issues which has been given importance is that whether Hong Leon stands a better position in the industry as compared to other two banks and what are the measures is should take to improve its position. The affect on profitable due to various factors identified in Porters and customers satisfaction level, innovation and internal perspective of these bank on the balance scorecard is identified and evaluated. Rationale In todays world the importance of banking sectors is increasing drastically as it has became the basic need of individuals and companies. It provides funding to the companies as well as manages the savings of individuals. All the three banks are captures are performing its financial activities in Malaysian so comparison can be made easily. Financial analysis In this section various ratio will and revenue and earning capacity of Hong Leon Bank will be analyzed over five year and compared with other two banks taken as benchmark. Revenue analysis and forecast Under this section, revenue of the three banks will be analyzed, compared and discussed in depth based on which future forecast will be done. Revenue forecast (Million) Year 2011 2012 2013 2014 2015 Hong Leon Bank 2542 3894 3924 3935 4171 Malayan Bank 7102 15318 16929 21661 17542 Public Bank 7409 7747 7456 8155 9253 Percentage Change Year 2012 2013 2014 2015 Hong Leon Bank 53% 1% 0% 6% Malayan Bank 116% 11% 28% -19% Public Bank 5% -4% 9% 13% The findings from the revenue forecast clearly shows the Malayan bank is having the highest rise in compare to the Hong Leon Bank and public bank. The graphical presentation of the revenue date of further shows the Hong Leon Bank is in a declining stage than the other two banks. As per the revenue forecast the lowest trend in the revenue was observed to be in the year 2012 and expected to grow after 2015 (Maybank | Annual Report 2014. 2016). After that during the year 2013-2015, the revenue growth of Hong Leon has been much lower as compared to the other two banks whereas they have maintained a steady growth rate during the 5 years period. Although, the highest revenue has been observed to be of the Malayan bank with a revenue generation of RM 17542 million still the graph clearly shows the declining trend of the revenues. (Financials.morningstar.com. 2016). Hence, from the revenue forecast analysis it can be said that the revenue of Public bank is expected to grow at highest rate. Market Share growth In this section, the growth rate of market share of Hong Leon over five years will be discussed and compared with the other two banks. Market share growth (%) Year 2011 2012 2013 2014 2015 Hong Leon Bank 8.52 9.67 10.11 9.87 10.23 Malayan Bank 7.93 8.65 9.56 9.23 9.85 Public Bank 9.65 10.25 10.11 11.02 11.69 From the above analysis, it can be said that all the three banks have shown a moderate growth in the market share over the past five years however the growth rate of Public Bank is more than Hong Leon bank (Hlb.com.my. 2016). Therefore, it needs to improve it to become one of the leading banks in the Malaysian market. Profit margins Under this section, analysis of profit margin of three banks will be done: Profit margin 2011 2012 2013 2014 2015 Hong Leon Bank Net Profit (Million) 1135 1648 1856 2102 2233 Net Profit margin 45% 42% 47% 53% 54% Malayan Bank Net Profit (Million) 2676 5745 6552 6716 6836 Net Profit margin 38% 38% 39% 31% 39% Public Bank Net Profit (Million) 3524 3869 4065 4519 5062 Net Profit margin 48% 50% 55% 55% 55% Percentage Change Year 2012 2013 2014 2015 Hong Leon Bank -2% 5% 6% 0% Malayan Bank 0% 1% -8% 8% Public Bank 2% 5% 1% -1% Profit margin is derived as a percentage of revenue. Profit margin of Hong Leon has decreased during the year 2012 by 2 % which is much higher as compared to Public bank which has increased by 2%, whereas for Malayan bank it has not decreased at all (Vpr.hkma.gov.hk. 2016). After that during the year 2013 and 2014 profit margin of Hong Leon has increased by 6% every year, which is a good sign as compared to other two banks whose profit margin has fluctuated during these two years. Again, in 2015, the profit margin of Hong Leon has not changed and Public bank has not increased at all whereas for Malayan bank it has increased by 8%. Therefore, from the overall analysis of the past 5 years it can be said that Malayan bank is in a better position as compared to the other two companies (Financials.morningstar.com. 2016). Price Earnings Ratio Price earnings ratio Year 2011 2012 2013 2014 2015 Hong Leon Bank 10.26 11.85 11.23 11.93 12.29 Malayan Bank 9.62 10.56 11.01 11.53 11.94 Public Bank 12.38 13.07 12.96 13.58 14.6 From the analysis of the above data is can be understood that price earnings ratio of Hong Leon Bank is higher than Malayan Bank for the last five years whereas it is lower than Public Bank. Therefore, it implies that Hong Leon Bank should try to improve its price earning capacity in order to improve its market share (Maybank.com. 2016). However, Hong Leon Bank has been able to improve its price earnings ratio over the past five years, which is a very good sign. Debt level (gearing ratio) In this section, the capital structure of the three banks will be discussed and who stand a better position in debt equity mix will be analyzed. Debt Equity ratio Year 2011 2012 2013 2014 2015 Debt Hong Leon Bank 18690 18704 21566 19985 19635 Malayan Bank 65204 65855 81676 103744 12104 Public Bank 27230 23358 27072 34156 23647 Equity Hong Leon Bank 7465 11419 13037 14530 16790 Malayan Bank 34676 43815 47473 54741 63513 Public Bank 16420 18718 21197 28875 32308 Debt Equity ratio Hong Leon Bank 2.50 1.64 1.65 1.38 1.17 Malayan Bank 1.88 1.50 1.72 1.90 0.19 Public Bank 1.66 1.25 1.28 1.18 0.73 Change in debt equity ratio Year 2012 2013 2014 2015 Hong Leon Bank -0.87 0.02 -0.28 -0.21 Malayan Bank -0.38 0.22 0.17 -1.70 Public Bank -0.41 0.03 -0.09 -0.45 Debt equity ratio of all three banks has decreased during the span of 5 years, which is a very good sign as it implies that equity funding has increased as compared to debt funding during this 5 years (Hlfg.com.my. 2016). However, the debt equity ratio of Hong Leon is higher than the other two banks. Standard debt equity ratio for banking sector is less than 1 so Hong Leon should take measures to decrease it below 1 in future since other two banks debt equity ratio is already below (Palley 2013). Other ratio that are specific to industry In this section, some important ratio, which is relevant to banking sector, is to be discussed: Asset turnover ratio Year 2011 2012 2013 2014 2015 Total asset Hong Leon Bank 145498 157787 163586 170351 184020 Malayan Bank 451289 494911 560319 640300 708345 Public Bank 364870 369970 37608 38970 40234 Total Asset Turnover ratio Hong Leon Bank 0.0175 0.0247 0.0240 0.0231 0.0227 Malayan Bank 0.0157 0.0310 0.0302 0.0338 0.0248 Public Bank 0.0203 0.0209 0.1983 0.2093 0.2300 Asset turnover ratio implies that how an organization is efficiently using its asset for generating sales. It has been much below one for all the three banks however Hong Leon has been able to increase it from 0.017 to 0.024 in 2012 and remained at that level during the year 2013 to 2015 (Heikal, Khaddafi and Ummah 2014). All the three banks had maintained asset turnover ratio with the range of 0.01 0.03 which is very low and needs to be improved in the near future to survive in this competitive market (Hlb.com.my. 2016). Return on equity Year 2011 2012 2013 2014 2015 Hong Leon Bank 15.20% 14.43% 14.24% 14.47% 13.30% Malayan Bank 14.90% 13.11% 13.80% 12.27% 10.76% Public Bank 22.44% 20.45% 19.18% 15.65% 15.67% Percentage Change Year 2012 2013 2014 2015 Hong Leon Bank -0.77% -0.20% 0.23% -1.17% Malayan Bank -1.78% 0.69% -1.53% -1.51% Public Bank -1.99% -1.27% -3.53% 0.02% Return on equity implies the earning capacity of the company on the shareholders funds so that they can understand how company is utilizing their invested funds. For all the three banks it has decreased during the span of five years (Bell 2015). So they need to buck up to keep alive the faith of shareholders on them. From the above table it can be said that ROE of Hong Leon is better than Malayan Bank however, it is lower than Public bank during 2011 to 2015. Strategic Analysis Under this head evaluation of performance is based on the Porters forces and Balance scorecard as strategic analysis. Modified Porters five forces It is model to analyze the assessment of a given industry and understand the drivers that measure the competition and profitability of the organization. It the extension of porters five forces which was introduced by Michael Porter in the year 1979. The six forces were introduced in the mid 90s (E. Dobbs 2014). This model describes the six forces, which are considered while determining the corporate strategy to evaluate the overall efficiency of an industry. The six forces in terms of the three mentioned banks are discussed as follows: Competition: The banks have been observed to have several rivals in the industry. The existing rivals present in the industry faces it. All the three banks may exercise this by giving discount to the customers, new innovative product at cheaper cost (Dey 2016). If competition level between the rivals in the industry is higher than it can stifle the profitability of the whole industry. New entrants: Both the Hong Leon Bank and Public should be open to new entry of an organization which can give threat to the existing banks in order to gain market share. This puts pressure on all the three banks in relation to price, rate of investment and cost (Guggenheim 2016). The threat becomes intense when they diversify from another market as it can leverage existing cash flow, expertise and brand identity, which can put strain on the profitability of existing organization. Buyers / End User: Powerful customers tend to play a very important role in cutting down the prices and demand best quality products. Bargaining power of the loyal customer in terms of the credit finances rates becomes higher when small number of buyers avails for smaller loan products. Suppliers: The supplier effect is not present in case of the financial products hence this parameter is not applicable. Substitutes: Substitute banking products in terms the various types of the investment options available with banking institutions is major threat to the present banking services offered by the three banks. For example, the investment in the stock option can be exercised in form of both mutual fund and SIPs. Both are substitute investment option with their pros and cons. (Nguyen 2015). If the threat of substitute is very high then the profitability of the organization suffers. Complementary: This is the sixth force. It means the various types of the banking services that are offered should be compatible in nature, (Barua and Parveen 2014). If they are not compatible with each other then the impact will be negative. (Source: Yunna and Yisheng 2014) Balanced scorecard It provides the users with set of information to analyze the performance of relevant areas of an organization so that it can attain its objectives. It differs from organization to organization and includes four perspective which are financial, internal, learning and innovation and customer perspective (Humphreys, Gary and Trotman 2015). It helps the management to evaluate the performance of the managers on certain areas and decide whether they need to improve in that section or not. Balance scored Industry specific KPI Hong Leon Malayan bank Public bank Learning and internal growth Number of new products Employee Satisfaction Employee Turnover Number of trained employees or training programs New divisions Promotions The employees satisfaction can be improved in this bank an d bank needs to improve the internal factors for reducing the employee turnover This bank has showed immense potential in setting up of trained employees offering several type of the promotions among the existing employees (Ratnasingam 2014) Public bank is the best in this parameter and is successful on the formation of the several type of the divisional offers for the employees. Process or operations Innovations Technology Hong Leon have a team who are responsible to bringing new products in the market as compared to the other two banks which is a very good sign Need to identify and employ higher scope of expansion in the business activities The process needs to improved with the important Customer perspective Debit card service Credit card service Home loan and car loan service Customers of Hong Leon are satisfied with the facilities provided by the bank (Nrreklit and Mitchell 2014) Malayan bank needs to be improve in this aspect Public bank also needs to improve in this aspect Financial perspective Better Leverage Ratio Asset turnover ratio Debt/Equity Ratio Price Earnings Ratio Better Revenue Generation Hong Leon has low financial ratio. Hong Leon should take steps to improve its financial standing in near future Malayan Bank is observed to be having then best financial ratio Public Bank has moderate scope for improvement Limitations In this section various limitation of financial and conventional analysis will be discussed Limitation of financial models in analyzing performance Financial model is used to analyze performance of an organization from the data available from the financial statement i.e. income statement and balance sheet which shows various expenses, income and asset and liabilities. However, these statements never reflect how the organization is performing in the market or the exact net worth of the organization. The various difficulties and limitation of financial models are as follows: Financial Standings: Financial models never reflect the real worth of an organization i.e. the users of financial models will never understand whether the organization is worth investing in or not (Healy and Palepu 2012). Cash flow statement and income statement only shows how much the organization is earning and spending in various sections. Market trend: All the financial models are inefficient in showing the actual performance of an organization when it comes to analysis. Although the turnover of a organization increases in the year it may said to be performing well when compared to the other companies in the industry as it never reflects the market trend. Accurate liability and asset value: Financial models analyze the performance of a organization on the basis of values obtained in balance sheet (Damodaran 2016). However, balance sheet never reflects the actual value of items as they are valued at the carrying amount or book value which may differ from the market value. Past data: All the financial models is based on the past data available from financial statement. Therefore, it is impossible for it to determine the future prospects of an organization on the basis of these financial models. Limitations of Conventional Analysis Conventional analysis is the most traditional approach of measuring the financial performance of an organization. However there is various limitation of conventional analysis which is as follows: Conventional Analysis is not actionable: It describes only what has happened during the year but fails to describe why it has happened. Also it is done at the end of regular intervals like monthly, quarterly or yearly and business cant wait for so long. Conventional analysis gives emphasis to only one viewpoint of performance: Management of an organization requires determining the future performance of an organization where strategy plays an important role (Yu, Duan and Cao 2013). They need to implement the strategy to achieve the long-term goals of an organization. Managers also require a performance measure to evaluate their own performance on a daily basis. Limited guidance to future actions: conventional analysis doesnt allow the managers to evaluate the areas which is required to be developed in future for successful running of the business achievement of long term goals. Encourage actions, which may decrease both customer and shareholders value: Conventional analysis force managers to achieve short-term objectives in place of long-term objectives where the basis of remuneration is dependent on short term success of the organization, which have a negative impact on the customers as well as shareholders value (Vogel 2014). Conclusion From the above analysis it can be concluded that revenue had shown a steady growth for all the three banks whereas net profit margin of Hong Leon showed a steady growth as compared to the other two banks, which is a good sign. While Malayan bank has highest scope for growth. Debt equity ratio has decreased for the five years span which is a good sign for all the three companies whereas return on equity have decreased during this time period which not a good sign for all the three banks. Asset turnover ratio for all the three banks is very low which shows they are not properly using their asset to generate revenue. Recommendation Hong Leon should try to maintain its growth rate in future in relation to revenue and net profit and try to improve it future. It should also try to decrease its debt equity ratio further below one as it is standard for banking sectors. Debt funding should be less than equity funding in order to have a good capital structure. Hong Leon should also try to increase its asset turnover ratio as it is very so low to efficiently utilize its asset for earning revenue. It should also try to increase its Return on earning as it shows a decreasing trend in the past five years. It Hong Leon is able to improve then it then its shareholders will lose faith on the management. References Barua, A. and Parveen, S., 2014. Assessment Of Competitiveness And Country Conditions For Lpg Market Of Bangladesh: By Porters (1998) Five Forces And National Diamond Model .Proceedings of the 15th Annual Paper Meet,7, p.08. Bell, C., 2015.Generic organizational strategy integration impacts on profit margin ratio and inventory turnover in publically traded Oklahoma manufacturing organizations(Doctoral dissertation, INDIANA STATE UNIVERSITY). Damodaran, A., 2016.Damodaran on valuation: security analysis for investment and corporate finance(Vol. 324). John Wiley Sons. Dey, K., 2016. The fast food industry in the UK. 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