Introduction
Founded and incorporated as a company in 1992, Denel (Pty) Ltd is South Africa’s largest producer of defence equipment and operates in the military aerospace and landward defence environment. Denel is the main supplier of equipment to the South African National Defence Force (SANDF) as well as being a major supplier to international clients. It operates as both an original equipment manufacturer and for the maintenance, repair and upgrade to the SANDF’s armoury. Denel’s company structure is divided into many different branches operating under the Denel name but involved in different sectors of the defence manufacturing market. Their core business entities include Denel Aviation, Denal SAAB Aerostructures, Denel Land Systems, Overberg Test Range (OTB), Denel Dynamics, Mechem (Pty) LTD, Integrated System Solutions, and Denel PMP. Each entity produces various different defence weaponry or offers services related to the defence industry.
In order to effectively discuss Denel as a state owned enterprise, the criteria used to measure Denel against are its financial position, technological advances which can be used in other fields, and community welfare.
Financial Position
Upon reviewing the company’s published financial statements from 2007 until present, one notices a trend of constant losses posted, with the severity of these loses varying over the course of the years studied. In 2006 – 2007, losses decreased from a rather staggering R1 310.7 million to just over R549 million, then to R347 million in 2008, R543.9 million in 2009, and finally to R246 million in 2010. 2011 financial statements have not yet been released. These are very disconcerting figures which do not bode well for Denel’s financial position. In a recent audit of the company conducted in 2009, auditing firm Ernst & Young Inc. were quoted as saying that due to the losses incurred in the business as well as other information noted in the director’s statements for the year, there is significant doubt as to the ability of the company to continue as a going concern. This company is not managing its finances correctly at all, and after posting such severe constant losses over the past 5 years, it cannot be said that the company is operating effectively from a financial standpoint. Serious re-evaluation needs to be done in terms of this company’s financial dealings.
The Essay on Coca-Cola Company Financial Results Analysis
This paper will attempt to discuss the North American market for The Coca-Cola Company in the impact to volume growth or declines for the period, discuss the drivers of profitability during the quarter at The Coca-Cola Company and the likely long-term impact of these drives on profits, discuss the EPS results for the quarter in comparison to historic results and long-term growth targets, and ...
Technological Advances
As a state owned enterprise, Denel’s technological advances can be implemented in other fields of manufacture in order to benefit the economy as a whole. In the most recent Ministry of Public Enterprises report of the state owned enterprises that fall into the Ministry’s portfolio (Denel being of such company), future plans to enable Denel’s strategic economic role in promoting advanced manufacturing shows that in the next 3 years, Denel is to enter into much more design-to-build contracts, which involve the production of completely new products from designing to final manufacture. In doing this, Denel is being used as the proverbial guinea pig to develop new strategies in the designing and manufacturing of goods. The Ministry of Public Enterprises is using the companies under its portfolio to implement strategies to improve the economy as a whole, and the work done by Denel in the furthering of the manufacturing sector of the economy in terms of technological advances and new production techniques is invaluable to our economy.
Community Welfare
One of Denel’s other business entities is Mechem, a division of Denel which specialises in the removal of landmines and other related types of weapons. They are internationally renowned for their work in removing landmines in countries with a war history. With current projects in countries including Sudan and Afghanistan and the Democratic Republic of Congo, they are a world leader in demining and contraband detection. In terms of community welfare though, it is clear that the company does have the welfare of communities in mind. During their recent 50th year anniversary celebration, Mechem supported the SPCA substantially by donating a large amount of dog food and paying for staff of dog kennels around the country to be trained in proper cleaning and sterilisation of dog kennels as well as basic handling techniques for dogs. Because dogs play such an important role in Mechem’s success as a demining business, they decided to reciprocate by offering support to the SPCA. They also donated prosthetic legs to struggling Mozambiquens who had lost their legs to landmines. Mechem, as a part of the Denel group, definitely does have the interests of the community close to heart, whether it be in a local or international environment. Their work in removing deadly mines in war-torn countries stands as testament to their concerns of the community and of other people.
The Essay on Origins Of Enterprise: Business Leadership In The Industrial Revolution
Katrina Honeyman's book is an impressive source of information about the rise of the entrepreneur in England at the beginning of the Industrial Revolution. Her main objective is to test the commonly-held view that was fueled by Samuel Smiles in his popular book, Self-Help, published in 1859, which held that men of humble means had “unprecedented opportunities. . . to attain the role of ...
Conclusion
As a business entity, Denel’s poor financial results are a major concern. After posting such severe losses consistently over the past 5 years, one cannot say that the business is financially stable. There is a serious and urgent need for re-evaluation of the financial side of the business which needs to be handled by the Ministry of Public Enterprise as the “oversee-er” of state owned enterprises. However, the Ministry must be commended on its plan to use Denel as a forerunner in development of new manufacturing methods to be used as models for businesses around South Africa. State owned enterprises offer the State the chance to test new methods and ideas in a more controlled environment before implementing strategies on a national level, and in the case of Denel, the State is using them very effectively. Furthermore, there can be no doubt that Denel does enrich the community and gives back a lot to the people of South Africa and the world. However, the stark reality is Denel is a business, and a business cannot run effectively with such poor financial results such as theirs. It is with this that I conclude that Denel is not a successful business and although it meets most of its effectives, the most important effective of being financially viable is not met in a resounding way.
Business Plan Interior Enterprises
Executive Summary The name of the business is Interior Enterprises located in Brookfield, Illinois at 17201 West 55 th Street. The business is a partnership between James Faitz and Michael Rohan, both from the Chicagoland area with extensive background in interior restoring, remodeling, and refinishing. Interior Enterprises will undertake jobs in the five to twenty thousand dollar ranges to make ...
Word Count : 1007
Bibliography
Fourie, DJ. Unknown date. The restructuring of State-Owned Enterprises: South African Initiatives. South Africa
Ministry of Public Enterprises, 2010, Portfolio Report 2010. South Africa
http://www.denel.co.za
Hogan, Barbara. 30 September 2010, Address by the Minister of Public Enterprises, Barbara Hogan to the SACCI, at the launch of the South Africa First campaign, http://www.info.gov.za/speech/dynamicaction?pageid=461&sid=13348&tid=20739
