The Power of Investors Over Decision Making at Unilever

The main purpose of this research is to study the power of investors investment in decision making by examining the annual reports of companies that invested.

Investment in a company is very important long term decision. The global economic forum the responsible investment defined in a method to take into account the crash of benefit going on superior culture and the normal background, equally at present and in the upcoming. The investor must be fully control of their investment decision. The investors would know the characteristics of the other investors and they can straight away switch the important information to a better investment decision.

In most companies dividend can be claim as high level payment. The dividend is form of investment income and taxable. When issuing share, there will be high competition between companies. Investment decision mostly reduces the risk and maximizes the growth of a company.

Introduction

Unilever is a world wide company. Unilever was found in 1929 after two major company merges. That is Margarine Unie and Lever sunlight. The investors in unilever are improving a deep thoughtful of growth and profitability and change to meet the goals. The reason of choosing Unilever Company is the presentation of pathway of growth, it all along it strong cash flow is positives for the upcoming projection of Unilever. The basic management structure will improved the operational decision.

Statement of problem

In this modern world, the investors facing many problems in decision making. The problems of investor in investment decision are some investors misplace capital easily through downturn in share market or because of inconvenient investments. But at the same time, other investors mislay money, or fail to realize their correct gains, because of events or inactions by their stockbroker or investment advisor. The Stockbrokers have an obligation to deal logically with their customers. The other problem the investor facing is the investors always alert of their relative ignorance, it will be reason that a decision making not to problem shares signals as good news. The news convey by a problem is bad or at least less good. These problems will affects the prices of investors are willing to give for the problem, which is in turn, affects the problem of investment decision. For this reason I was choose Unilever Company as a solution for problem to investors.

Methodology

The literature review on the investment decision of investor’s to appraisal the technique of investment. The researcher collected the annual reports and other related financial data’s’ from secondary sources through internet. Financial performance of the company is to be analyzing by using both qualitative and quantitative methods. The quantitative method includes ratio, trend and comparative balance sheet analysis. The qualitative analysis performed through SWOT analysis of the Unilever Company.

Limitations

The limitations of ratio analysis and SWOT analysis are also applied in this report as well. In this report the analysis has performed for Unilever Company. The data collected through secondary sources, so the information may be biased. Due to the time limitation the information collected in this report is restricted to 5 years.

History of Unilever Company

Unilever Company is the main example than other company. It is a big company in the world. Unilever PLC in United Kingdom and Unilever N.V in Netherlands are the two parent companies of the food and consumer giant products. Those two companies is function nearly as a single business. It’s run by one group of directors and is connected by a number of agreements. Unilever Company produces more brand name of product. For example foods, personal care items and cleaning products. This company get revenues around 52 percentage in food sectors. In the personal care areas get one-quarter of sales. Unilever’s cleaning products is third major sector of that is 22 percentages of company sales. This cleaning product comprises the company institutional cleaning products. The 88 countries keep making facilities of Unilever Company and additional 70 countries sell the products. In Europe the revenue make around 47 percent, 14 percent make by in Asia-pacific area, in North America make about 21 percent, 6 percent in Africa and Middle East and also in Latin America make 12 percent.

Financial statement analysis

Investment ratio

Earning per share is division of a company profits owed to each outstanding share of ordinary stock. Earning per share will serve as a pointer of productivity. Earning per share is mostly regarded as the important variable in formative the share price. This is also the main component used to calculate the ratio of price-to-earning valuation.

Profitability ratio

Return on Equity, is means calculate of companies productivity, specified by the return of all the capital investment. The Return is due to be profit. For example, minority interests preference dividends, and profit after tax.

Return on Assets, is means calculated the total return of all company assets. The return is deemed to profit. For example profit after tax, minority interests and preference dividends.

Net Profit Margin, is shows profit the latest reporting period as a percentage of sales for and Net Profit Margin will calculate as:

Efficiency ratio

Asset turnover is defined as the total asset turnover of the company. Asset turnover is competence of a company by using assets to produce sales.