The Hero Group Company Analysis – 365 Words

Introduction

The Hero Group is a Swizz-based company that engages in manufacture of fruit products such s fruit jams. The company has worked hard to strengthen its operations through joint ventures and relationships with partners. The company has also invested in technological advancement. For example, over the 20^th century, the group was able to establish a number of subsidiaries especially in Europe (Netherlands, Spain and Italy). The company has made alliances in almost every sector of the economy. The key alliances are those in the technology, information technology and product engineering. In technology, the group has alliances with companies such as Honda motor, Showa Corporation, Fein tools and many more. In the IT sector, the group has alliances with Microsoft, DynEd international and ACS. In the product engineering, the company has alliances with Porsche design, target design, universal cycles and EralMetall.

Financial analysis

The company’s total investment in other brands for the year 2009 was 206.9 million CHF, and the brands registered eternal growth of between 1.5% and 2.3%. The projected growth rate for the brands for the period 2010-2015 is between 0.1% and 216.1%. Since the group operates in segments based on their geographical locations, the reporting of financial information covers all the segments. The financial returns for the various segments was as follows for the year 2009

Table 1. Revenues for the period ending 31 December 2009

From the above financial report, it is clear that the group performance is exemplary. However, it can be seen that the company two of the companies segments registered losses from their operations. This is a major setback on behalf of the company. Most of the subsidiaries and alliances such as Honda have done very well over the years in terms of financial performance. The group’s international strategic alliances have therefore been very successful. Out of these alliances and subsidiaries, the company has increased its profit with huge margins.

Reference List

Hero Group. Annual report 2009. 2009.