Hello! Thanks for being here. Please, this time I need your help to develop a co

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Hello! Thanks for being here. Please, this time I need your help to develop a conclusion of these analysis. The analysis is based on 5 risks the company will face and put recommendations that management can follow to overcome them. There is an overview of the company! So:
1- help me to develop a well-develop paragraph as the conclusion of the company, risks, and recommendation to management.
Thank you so much for your help and time! I really honor your knowledge. Financing and Management Analysis Overview School Corporation is the largest multi-categorized company in the field of Children's Book Publishing, Education, and National e International Distribution. It was founded in 1920 in order to increase the dedication to study and gain more knowledge. This company has been doing very well in the United States where counts with more than 6,000 employees and internally with around 2,600 employees. Although It is a well-developed company in the educative industry reports show that it is not in a progressive statue due to its decreases and increases. Operating risk is defined as the risk of loss resulting from inadequate or failed internal processes people and systems or from external events. The company has seen a reduced growth in sales in all the 3 major segments of the business, which can be initial signs of operating inefficiencies Which could, in turn, result in Operating loss to the company. From the data collected, we can tell that the company is operating at a very low operating margin. Below is a table with an overview of the operating margin: In Billions $| 2018 | 2017 |Change $|Change %| Revenue $1.63 $1.74 1.48 $0.11 1.62 7% 110% EPS 014 1 Hence for a change in 7% of revenue, the earning per share has dropped by-110% Companies have constant risks that can either help the company to grow or can take it to the ruin. For that reason, this research is to identify the key risks and challenges the School Corporation company faces going forward and find ways to overcome them and succeed. 1- If we fail to adapt to new purchasing patterns or trends, our business and financial results could be adversely affected As the operating margins are very low for the company there are certain things that management should consider. First of all, the company can either raise the per unit price of the products or to reduce the inefficient cost and adopt new policies such as purchasing from a different cost- effective source, etc. As the operating margins are low, the management should consider discontinuing those operations which require more efforts to be undertaken but generate lesser revenues. This would particularly result in increasing the operating margins, and consequently the EPS. Further, performance improvement analysis must be undertaken to identify potentially inefficient operations and accordingly, measures such as automatization must be taken to improvise the same.

Explanation / Answer

Conclusion:

School Corporation is the largest multi-categorized company in the field of Education. Based on the Revenue and EPS figures given for 2017 and 2018 we can infer that the company has a fixed cost structure which implies that even the small fall in revenues can result in steep fall in EPS because of the huge fixed costs that the company might be incurring irrespective of revenue scale. This structure exposes the company to multiple risks. 1) Failing to adopt to new purchasing patterns or trends, business and financial results could be adversely affected. Therefore, the first thing the management can focus on is its procurement policy. It should try and change the suppliers for cost effective purchases. Alternatively, it should try to pass on the increased cost to customers by increasing per unit cost. This can reduce revenues but increased operating margins can lead to better profitability and increased EPS. Management can also shut down inefficient operations which do not generate revenues but have heavy fixed costs. 2) Changes in the mix of major customers in trade distribution channel may affect profitability and restrict growth. Changing distribution business may result into volume reductions. A better customer mix would provide better profitability and that can be achieved through pareto analysis and by charging more to customers which take more efforts to serve or to discontinue them. 3) Failing to implement corporate strategies can hamper company’s ability to maintain historical growth. Corporate level strategies and divisional level strategies should be aligned to achieve desired results. Mid-level management should ensure that these strategies are implemented on the ground level. Challenges and possible remedies or alternative strategies should be suggested and top-level management should be dynamic enough to consider them. 4) Increase in certain operating costs which are beyond control can significantly affect profitability. Financial control should be strictly followed according to set policy. Costs and expenses which are beyond control should be identified early and measures like hedging and insurance should be in place to mitigate them. These measures will again reduce the fixed cost burden on the company resulting in better operating profitability. 5) Failure to meet demands of the regulators and associated costs with compliance could negatively impact. All regulatory requirements at regional as well as international level should be identified and a compliance policy should be in place to meet all the deadlines or requirements arising from the regulatory standpoint. Analysing the needs of the stakeholders and acting according to the set policies may lead to better business prospects and increased profitability.

Important risks and recommendations are highlighted in the above paragraph. Do let me know if there is any confusion regarding tis or need for modification.

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