S
S
M
N
1
,DSM N.V
Financiële rapportage
Hogeschool Inholland Rotterdam
Opleiding: Accountancy/Business studies
Klas: 1D
Begeleidingsdocent: Dhr. B
Datum: 20 januari 2018
2
,Executive Summary
In this report there is a comprehensive analysis of the company holding Royal DSM
N.V. Their vision is: “Bright Science Brighter Living “. They want to be more
sustainable in the future, so man kind will still enjoy Earth and all that it has
to offer.
Using the Ashridge model, which has the four elements of; “goal, strategy, values and
the standard of the company”. The company Royal dsm will work towards that
goal by using their Research & Development department. For they are known as being
innovative on that sector.
The two major stakeholders are customers and stakeholders.
For they both want profit directly and indirectly. The customers of DSM are companies
that buy the components DSM creates. Such as making materials lighter and stronger,
improving nutrition on diary products, creating better medicines and supply food
for he animals.
Through the 7S model which stands for: “strategy, structure, system,
personnel, management and culture”. Has shown how the company stands for and
how it coops it. It also proves that Royal DSM pays attention to all of these
factors.
It is also analyzed with the Five forces of Porter. It shows how the competitors
compete against Royal DSM N.V. But through the uniquess the company delivers, it
shows that it is a stronghold against competitors. DSM is a market leader in nutrition
and one of the highest on the list of selling vitamines. Royal DSM also supplies most
of the products tot heir subsidiaries, which is how they make alot of profits.
On the fourth part we have the fundamental analysis of the company.
Here it shows the company’s health through the Altzman Z score. Which bases a
company score has to be above 2.600 to perform good. If the Altzman Z score,
scores lower than 1.800, it will most likely become bankrupt. The most investors
want a company that performs well, if the scores is above 2.600 near 3.000 it will
show that the company is in a good health so far. And DSM scores above the 2.600
mark.
The activity-indicators shows how the company performs in pay-outs, dividend to
investors, current and quick ratios. Also the intrinsic value and the cashflow is
performing well on the norm that it has.
In the next chapter the Five forces of Porter is used to show how the
competitors acts against DSM. Because DSM is a marketleader in vitamines, there
are alot of competitiors, mostly in Asia. The subsituut is produced cheap and sold
cheap. But the quality DSM provides in between costs and quality is greater.
Therefore most loyal customers stays.
There are also three international companies that compete with DSM. Unilever,
AkzoNobel and Dow Chemical. They are respectivily good in what they sell, which
makes it harder for DSM to compete. But the company’s name is known as making
good quality products.
3
, The chapter which has the SWOT-analysis, shows the strength, weakness, oppurtunities
and threats to a company. And how it competes against competitors. Because of the
research, it shows that the company is strong and keeps the weakness and threats
at bay. The innovative products that the company produces, is what DSM also
stands for. And the strategic approach it is using for he near future.
In the last chapter of this report, there is a forecast of the company’s future stock
market. Through research it is possible for DSM to increase their value of stock.
Most of these predictions are made from the past few years. The stock shares slowly
went down till the changes the company made in 2015. In 2015 the intrinsic value
was 31,68, and in 2016 it went up to 34,68. It is not too optimistic to say it will
go up in 2017 and 2018.
4
S
M
N
1
,DSM N.V
Financiële rapportage
Hogeschool Inholland Rotterdam
Opleiding: Accountancy/Business studies
Klas: 1D
Begeleidingsdocent: Dhr. B
Datum: 20 januari 2018
2
,Executive Summary
In this report there is a comprehensive analysis of the company holding Royal DSM
N.V. Their vision is: “Bright Science Brighter Living “. They want to be more
sustainable in the future, so man kind will still enjoy Earth and all that it has
to offer.
Using the Ashridge model, which has the four elements of; “goal, strategy, values and
the standard of the company”. The company Royal dsm will work towards that
goal by using their Research & Development department. For they are known as being
innovative on that sector.
The two major stakeholders are customers and stakeholders.
For they both want profit directly and indirectly. The customers of DSM are companies
that buy the components DSM creates. Such as making materials lighter and stronger,
improving nutrition on diary products, creating better medicines and supply food
for he animals.
Through the 7S model which stands for: “strategy, structure, system,
personnel, management and culture”. Has shown how the company stands for and
how it coops it. It also proves that Royal DSM pays attention to all of these
factors.
It is also analyzed with the Five forces of Porter. It shows how the competitors
compete against Royal DSM N.V. But through the uniquess the company delivers, it
shows that it is a stronghold against competitors. DSM is a market leader in nutrition
and one of the highest on the list of selling vitamines. Royal DSM also supplies most
of the products tot heir subsidiaries, which is how they make alot of profits.
On the fourth part we have the fundamental analysis of the company.
Here it shows the company’s health through the Altzman Z score. Which bases a
company score has to be above 2.600 to perform good. If the Altzman Z score,
scores lower than 1.800, it will most likely become bankrupt. The most investors
want a company that performs well, if the scores is above 2.600 near 3.000 it will
show that the company is in a good health so far. And DSM scores above the 2.600
mark.
The activity-indicators shows how the company performs in pay-outs, dividend to
investors, current and quick ratios. Also the intrinsic value and the cashflow is
performing well on the norm that it has.
In the next chapter the Five forces of Porter is used to show how the
competitors acts against DSM. Because DSM is a marketleader in vitamines, there
are alot of competitiors, mostly in Asia. The subsituut is produced cheap and sold
cheap. But the quality DSM provides in between costs and quality is greater.
Therefore most loyal customers stays.
There are also three international companies that compete with DSM. Unilever,
AkzoNobel and Dow Chemical. They are respectivily good in what they sell, which
makes it harder for DSM to compete. But the company’s name is known as making
good quality products.
3
, The chapter which has the SWOT-analysis, shows the strength, weakness, oppurtunities
and threats to a company. And how it competes against competitors. Because of the
research, it shows that the company is strong and keeps the weakness and threats
at bay. The innovative products that the company produces, is what DSM also
stands for. And the strategic approach it is using for he near future.
In the last chapter of this report, there is a forecast of the company’s future stock
market. Through research it is possible for DSM to increase their value of stock.
Most of these predictions are made from the past few years. The stock shares slowly
went down till the changes the company made in 2015. In 2015 the intrinsic value
was 31,68, and in 2016 it went up to 34,68. It is not too optimistic to say it will
go up in 2017 and 2018.
4
