BUS401 Week 1 Assignment Introduction and Background on the Company

Student Name

BUS401: Principles of Finance (BAO2003B)

Prof. Thomas Biggers

Introduction and Background on the Company

Introduction

The company, A-Max Technology Ltd, was established with a view to compete favorably with other technology company’s world over. It was and still is founded on the mission of delivering high-quality, competitively priced audio/video decoding products. The company annual report of the year 2018 describes is a leader in the global market in flash-based players. As a contributor in the global portable player market, the growth of operations of the company has been facilitated by a considerable growth of the portable player market globally (A-Max Technology, 2018). A dramatic increase of demand for flash-based players has fueled the engagement of the company in activities that encourage growth of the company in terms of market. Since the company’s inception in 2000, the company has produced more than 280 models of portable players which have been sold in USA, Europe and Asia.

A-Max Competitors

A-Max Technology Company faces competition from such companies as Iron

Technologies, iXsystems, EmbedTek, Contec, Premio, Dell, GlobalSoft Solutions, and Emerging Technologies (A-Max Technology, 2018).  The competition is determined by the determination of new innovations. New innovations based on the needs of the market have been the greatest operational strength that A-max has rode on in a bid to attain the competitive position it has over the years.

Financial Position

The company faced several financial challenges between the year 2006 and 2010 but has improved its financial position within the decade that began in the year 2010. This has come through retention of most of its finances with a view to expand its financial position. The expansion was also experienced in the sector of operations. It has been responsible for the company to realize much in terms of financial returns. 

However, one of the major financial risks faced by the company has been fluctuations in the interest rates in the global market. Fluctuations of the interest rates tremendously affect the company debts. Moving forward, the company operates within a code of conduct that guides the financial behavior of all participants. This code enables the company stakeholders to review the behavior that may risk financial position of the company.

General Information

My interest in A-Max Company ltd is founded on the two major pillars. First, the uniqueness of the product that the company deals in fuels my interest in it (A-Max Technology, 2018). Flash-based players are a technology that has been in the rise in the previous decade. Nonetheless, information technology products are rendered obsolete swiftly. The swift changes occurring in the industry make it an interesting field to analyze.

Secondly, it is interesting to evaluate how an organization survives extinction of its products from the market. In such an industry as information technology where the aspect of storage keeps on changing, it is interesting to evaluate how companies regulate their strategies to remain competitive. Particularly, A-Max Tech Ltd has been faced by critical challenges especially on matters trying to catch up with the changes in the information and technology industry. The introduction of cloud computing and storage in the 2000s has been of an interesting value to any analyst who would wish to see how companies regulate to remain competitive. This has been an important aspect of the company that makes it an interesting specimen for analysis. As such, I find it interesting to analyze it in a bid to understand its organizational survival strategy in such changing business environments.

References

A-Max Technology. (2018). Amax Technology Ltd provided Financial Information Report for the year 2018. Amax Technology Ltd.

Harvard Extension School. (2019, November 8). 4 Financial Concepts Every Manager Should Know. Retrieved from https://www.extension.harvard.edu/professionaldevelopment/blog/4-financial-concepts-every-manager-should-know