FUNDAMENTAL ANALYSIS OF RELIANCE INDUSTRIES
INTRODUCTION
Reliance Industries Limited (RIL), for the past several years, is India's largest private sector company on all major financial parameters. Their group's activities span exploration & production of oil & gas, petroleum refining and marketing, petrochemicals (polyester, fibre intermediates, polymers and chemicals), textiles, retail and special economic zones (SEZs).
Their company is featured in the Fortune Global 500 list of ‘World’s Largest Corporations’ for the ftheirth consecutive year and is among the Top 25 climbers for two years in a row. They are ranked 182nd in the FT Global 500 (up from previous year’s 284th rank). Further, their company ranks amongst the ‘Worlds 25 Most Innovative
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RIL has undertaken the single largest expansion in the petrochemicals sector in the world– 65% overall volume expansion.
Reliance Innovation Council
The Reliance Innovation Council (RIC) sets an agenda to actively nurture innovation within Reliance in order to safeguard its standing as a unique corporate entity and one of the most innovative companies in the world. In other words, the council – which consists of global thought leaders, Nobel Laureates, and iconic personalities – provides vision to the innovation movement at Reliance. Reliance Technology Group (RTG), which houses a state-of-the-art R&D centre and leads technology development at Reliance, was born out of RIC's vision.
The Reliance Innovation Leadership Centre (RIL-C) was set up to serve the innovation vision of the council. This centre implements the innovation agenda by deploying the best and next transformational innovative practices that will impact not only Reliance, but the industry and country at large. The centre aims to impact every element of the innovation ecosystem at Reliance – be it people or processes, technologies or new businesses.
Selected Innovation
...s are doing well and over the many years have gone up. The company has not lawsuits currently pending which is good. The company as a whole seems to be growing even when the market is down.
The company had to be the second largest retailer shop in the US; it has many advantages that come along. The customers well acknowledge the company and its brand have been well established.
The company has a very good information systems support in being able to make strategic and routine decisions. They research and look into every available option prior to committing to purchasing or contracting with the companies in making sure that they are able to make the best quality product at the lowest costs.
Sharp’s business philosophy is to use its innovative technology “to contribute to the culture, benefits and welfare of people throughout the world” (Noda 25). Sharp is constantly trying to position itself as a leader in innovation as further supported by its business creed, which states to “constantly be aware of the need to innovate and improve” (Noda 25). However, this focus on innovation and creativity has not always been consistent with how the company has been operated. The history of the company is replete with periods of both innovation and imitation.
The company has established good relationships with most of its customers which has assisted it to create high level of brand and customer loyalty
...rs, setting a good trend for the corporation. They also have a very low debt-to-equity ratio, indicating that they have enough equity to easily pay off any funds acquired from creditors. As a creditor I would feel safe in lending them funds for any future projects or endeavors.
This financial ratio analysis will help to identify Rolls-Royce’s strength and weaknesses during three years period from 2011 until the end of 2013. While it is a helpful tool for investors to make investment decisions base on profitability of the company, managers can make strategic decisions of the company. However, there are some limitations in using financial ratio analysis alone when make decisions. Comparing ratios with the industry norm and with the company’s rivals, the user of the financial ratio analysis will be able to anticipate future prospects. Rolls-Royce’s nearest rivals are General Electric (GE) and Pratt & Whitney, owned by United Technologies Corporation (UTC). These world 's top three companies are investing massively in R&D to satisfy demand of a booming global market for environmentally cleaner, energy efficient power engines that result in a huge number of orders of commercial airliners. All top
However, RLK’s competitors are downsizing and outsourcing R&D and exploiting on the cost advantages. If RLK decides to invest more money into R&D and should the new product stall on launch, they face the danger of becoming bankrupt.
has grown into a $49.7 billion corporation by clearly focusing on the goal of enabling commerce around the globe.
One of the executive's greatest contributions to innovation is to shape the organization's culture in ways that make it more radical innovation a more natural, accepted and valued activity. Dick Drew, one of the most innovative researchers in 3M history, had that impact on 3M, and though many of the employees at 3M are too young to have any personal recollections from him, his influence on 3M's innovation culture remains profound and his principles are cited regularly in breakthroughs.
The CEO has also hired employees with good experience like CIO Dunst from Safeway, and for the supply chain management team, some technology experts from companies like PepsiCo, Dell and even Wal-Mart. This allows the company to be in line with the latest technologies available and demonstrates the future planning undertaken by the CEO.
innovative companies of the world due to the creation of differentiated products such as iPod,
They have always kept up with trends and just a step ahead of their competitors over the
Thirdly, the company is committed to delivering superior quality of products and services. It earned a reputation of a convenient and reliable brand that offers the lowest prices, one of the fastest and lowest shipping, widest selection of goods, and many additional features with its services.
For over a century, the United States has been seeing innovation after innovation. Assembly lines, cars, and many other commodities have all revolutionized the modern world, forever changing how we go about life. But these changes do come with consequences.