Question

How would you set up a Corporate Ecosystems Review for oil/gas and waste management companies? Which financial metrics would you use to evaluate the proposed activities?

Answer 1

Corporate or business ecosyatem is the imporatnt for any country. It ensures smooth flow of operations. They are interdependent firms that combines together to forma whole industry. For example. there are manufacturers who supplies to distributors and the to retailers. So sets of all these forms a corporate or business ecosystem. Some of the financial ration can be used here also are profit margin, gross margin,etc. One of the metrices that is very important is the operatig efficiency as there may be lots of wastes incurred in this industry. The R&D (Research and development) cost is also important as in oil company lots of R&D incurrs to know the probability of finding oil sheds in the sea. That may subsequently become ineffective so all the cost incured is just the loss for the company. Apart from these, liquidity ratios also plays a part in this. Generally there should be heavy working capital needs in this industry. So, almost all financial metrices are important apart from some special one such as R&D costs.