Question

Use Google to do a web search for the website of the corporation of your choice that has not been researched by another student. Find that corporation's annual report to stock-holders on the website. Note that you can use other sites to find the following information but in either case include a link to your reference(s). Answer the following questions:

1. What does the report say about the corporation's view of future business challenges and the market in which it operates?

2. Does this corporation see long-run adjustments as described in the chapter? Explain what those adjustments are and include a link back to the annual report you used.

For full credit you must link your response to specific concepts in the chapter.

Note: The companies you choose will be in the various market structures, not pure competition. Also, long-run adjustments include entering new markets, mergers/acquisitions, implementing new technologies, innovative new products and so on.

Answer 1

Company - Xerox Corporation

Link - https://www.news.xerox.com/investors/reports

- https://www.news.xerox.com/internal_redirect/cms.ipressroom.com.s3.amazonaws.com/84/files/20203/2019-Xerox-Annual-Report.pdf

a) Future Challenges : Page 9 in Report

• One set of challenges relates to dynamic and accelerating market trends, such as the declines in installations and printed pages, fewer devices per location and an increase in electronic documentation.
• A second set of challenges relates to changes in the competitive landscape. Our primary competitors are exerting increased competitive pressure in targeted areas and are entering new markets; our emerging competitors are introducing new technologies and business models. These market and competitive trends make it difficult to reverse the current declines in revenue over the past several years.
• A third set of challenges relates to our continued efforts to reduce costs and increase productivity in light of declining revenues. In addition, we are vulnerable to increased risks associated with our efforts to address these challenges given the markets in which we compete, as well as, the broad range of geographic regions in which we and our customers and partners operate.

b) Long Run Adjustments :

1. Optimize Operations for Simplicity ( Page 2 )- Through Project Own It, we have delivered approximately $1 billion of savings during the 18 month-period ending December 31, 2019 (including $640 million of savings during fiscal year 2019), consistent with our expectations. We
expect to deliver approximately $450 million of cost savings in 2020, and a total of $1.5 billion for the full 3-year program
ending in 2021.

2. New Markets (Page 3 ) : Capitalize on the opportunity in the SMB market by increasing our investments in indirect market channels and in
our Xerox Business Solutions (XBS) and similar European sales channels.

3. Technology and Innovation ( Page 2 and 3 ) -

- Improve our core technology business by building on our leadership positions in the market. Within the workplace, our ConnectKey technology and productivity apps transform Xerox multi-function printers (MFPs) into workplace assistants that help users automate time-consuming processes.

- Expand our services and software business by building on our leadership in the Managed Print Services (MPS) market to deliver more intelligent workplace solutions and digital services targeted at specific industry needs, and by growing our software business with a focus on personalization and content management software solutions.

- Drive innovation and new growth businesses by increasing focus and investment in our four innovation programs: digital packaging and print, AI workflow assistants for knowledge workers, 3D printing and digital manufacturing, sensors and services for IoT, and cleantech.

4. Acquisitions ( Page 3 ) - Our current acquisition strategy has been focused on further penetrating the SMB market through acquisitions of local area resellers and partners (including multi-brand dealers).

During 2019, Xerox acquired Rabbit Office Automation and Heritage Business Systems, Inc., two multi-brand dealers that further our penetration of the SMB market.

  In November 2019, Xerox proposed a business combination transaction with HP Inc. (HP).