GLOBAL ECONOMIC DOWNTURN

Firm performance and the global economic downturn



Table of Content

TABLE O FIGUREIII

INTRODUCTION1

DISCUSSION1

OVERVIEW OF AAMAL COMPANY1

Division of Company1

Business Strategies2

Financial Highlights of the Company3

ECONOMIC CRISES3

World economic Crisis3

Economic crisis and Arab Countries4

Groups of Arab Countries5

Arab Countries and Their GDP6

FINANCIAL ANALYSIS OF AAMAL COMPANY7

Profitability Ratios7

Analysis of profitability and Economic Crisis8

Liquidity Ratio10

SOURCE: OWN ILLUSTRATION FROM ANNUAL REPORT OF AAMAL COMPANY11

Analysis of Liquidity and Economic Crisis11

CONCLUSION13

REFERENCES14

APPENDIX19

Table o Figure

FIGURE 1:8

FIGURE 2:11

FIGURE 3:12

Firm performance and the global economic downturn - Aamal Company

Introduction

Last few years, companies have been adversely affected by the global economic crisis. These crises were termed as Sub-Prime Mortgage Crisis which was experienced by financial sector of United States. Reduction in the share markets and industrial growth has overall place the entire economy of the countries to be negative. The theme of this paper is to evaluate Firm Performance during Global Economic Downturn along with the changes that were experienced company relation to the global economic downturn. For this purpose, the company which has been chosen is Aamal Company.

Discussion

Overview of Aamal Company

Aamal is Qatar based company which was established in 2001 as a private shareholding company Limited Liability Company (LLC). The company has diversified their operations in 22 different units and few of them are already operating in Qatar since 40 years (Aamal Company website).

Division of Company

There are four divisions in which Aamal has been involved. These are:

Industrial Manufacturing: Manufacturing of products that are needed for infrastructure development.

Trading and distribution: Trading and distribution of different such as pharmaceuticals, lubricants, home appliance, etc

Property: Management and development of retail, residential and commercial properties

Managing Services: Offering Services to corporate sector.

Beside this, Amal has been acquire market leading position in Industrial Manufacturing, retail, property, Managing Services, medical equips and pharmaceutical products (Aamal Company annual report, 2011).

Business Strategies

The business Strategies that has been adopted by Amal focused on three pillars so that they can sustain and produce profitable growth. These are:

The focus on industrial manufacturing sector and sectors that have opportunities of high growth in future should be considered more.

In order to enhance the market position and optimize performance of the company, they focus on continuous growth, diversification and most importantly innovation in the entire existing business.

Continuous clearance and control in Operational and Financial principles for further strategic growth

Due to above stated business Strategies, Amal has been able to recognised the key growth opportunities. Diversification is the main thing which makes them unique and has been turn out to be their strength. It is Aamal's goal to create, invest and develop a wealth of countless opportunities for its stakeholders, always striving to exceed expectations and achieve the optimal results. This has been linked with their mission and vision in which they want to deliver the maximum growth with less risk and more diversification and quality exposure and they want to be identified as leader and innovator in sectors they operate meeting the expectation of stakeholder respectively (Aamal Company annual report, 2011, pp. ...