Report Critique Assignment Example | Topics and Well Written Essays - 1000 words

Report Critique - Assignment ExampleThe Turnaround group of analysts considered the six best execute companies in the industry, which is indeed a reasonable number to regard in compiling the report. This piece of writing analyses the way out given by the invoice compiled by the team. The Turnaround research teams idea of rating Lions entry Entertainments company as the depression performing unfaltering is dreadfully precise considering the corporations portfolio diversification, leverage level, profitability and market allocation. Nevertheless, the firm performs highly in video production compared to other competitors. The Turnaround team therefore considered the overall industry performance, which is exceptionally plausible. The first six companies in the Motion Picture and Video production industry occupy the market focus. The conk six companies comprises of 91.2% market absorption and experiences a fierce competition amongst themselves abandoning Lions Gate Entertainment Comp any with only 4.3% of the market allocation (Davidson et al 1) . High profitability in this established companies are caused by various factors ranging from the barriers imposed by the existing firms, buyers bargaining power, medium supplier power and the economies of dental plate enjoyed by the firms. The financial capabilities of the top six Motion Picture and Videos production companies have enabled them to acquire highly developed technologies and burly promotional networks thus covering a wider market. The monetary competence boosts the medium supplier power by using celebrities and creative artists in their Video production thus attracting larger crowd. Investors self-belief is in like manner elevated on these companies due to a first-rate standing enjoyed by the enormous companies thus encouraging investments. The need to focus on the taste and fulfilment of the population is additionally important in attracting a huge customer show as explained by the team (Davidson et a l 2-3). Lions Gate Entertainment potbelly should embark on having a large risk tolerance portfolio, which eventually increases investors confidence, and widening customer base. However, the increase of portfolio does not directly raise customer base as claimed by the report. The Lions Gate Entertainment Corporation should increase its investment in production in order to increase their profit margin as explained by the team. The larger firms seem to be investing much in video production thus increasing their income. This can also apply in the Lions Gate Entertainment Corporation for higher profitability. The fact that Lions Gate Entertainment Company has lower cost of production is not adequate since the team advertise explains the higher debt to equity ratio, which directly affects the net profit of the firm. The shareholders do not enjoy the dividends because a larger amount of profit is used to pay the debtors. The Lions Gate Entertainment firm cannot therefore use diversificati on strategy properly due to its fiscal incapacity. Furthermore, the financial inability makes the corporation have a low cost budget, which cannot be interpreted as efficiency due to diseconomies of scale. Although, Lions Gate has expanded its portfolios, it experiences an overall net loss due to its unprofitable subsidiaries thus trim down its dividends. The team suggestion that the