assigment

INANCIAL MANAGEMENT DECISION MAKING—PART 2

Note: In Week 1, you submitted Part 1 of the Company Profile for your Module 1 Assignment. You will complete and submit Part 2 this week. Next week, you will complete and submit Part 3 of the Company Profile, as well as your recommendations to the managers of the mutual fund.

As a reminder of the scenario, you have been hired by a mutual fund as a management consultant to evaluate a publicly held company that the fund is considering adding to its holdings. Specifically, you will appraise the company’s work environment/organizational culture, financial stability, domestic and international financial growth opportunities, ethical practices, diversity/composition of its board of directors, corporate social responsibility practices, and evidence-based decision-making practices. Based on your evaluation, you will develop an 8- to 10-page report (in total throughout Weeks 1–3) for the managers of the mutual fund that will include your recommendations as to whether this company aligns with the mutual fund’s investment philosophy, which emphasizes companies that are recognized for their practices related to ethics, social responsibility, and global expansion.

In your report, be sure to include relevant citations from the Learning Resources, the Walden Library, and/or other appropriate academic sources to support your work.

RESOURCESBe sure to review the Learning Resources before completing this activity.

Click the weekly resources link to access the resources.

WEEKLY RESOURCES

To prepare for this Assignment:

Return to your Module 1 Assignment Template to complete Part 2 of your Company Profile. Note: Be sure to keep a copy of your completed Assignment this week, as you will be adding to the same file for your Week 3 Assignment.

BY DAY 7

Module 1 Assignment:
Financial Management Decision Making
Report prepared by: Replace this text with your name.
Date: Replace this text with the submission date.
Walden University
WMBA 6070: Managerial Finance
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Company Profile, Part 1
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Company Profile, Part 2
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Company Profile, Part 3
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Recommendations to Mutual Fund Managers
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References
[Please delete this note before submitting your Assignment. For more information about
formatting your reference list, please visit the following site:
https://academicguides.waldenu.edu/writingcenter/apa/references.]
Include appropriately formatted references to support your Assignment. Refer to the
Assignment guidelines for further information on the requirements.
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1
Company Profile
Annet Castillo
Walden University
Managerial Finance
05/12/2024
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Part 1: Company Description
Over the past decade, Salesforce has continuously been recognized for its ethical
practices. During this time, the organization has received top acknowledgement for its ethical
compliance, innovation, and influential social impact. In addition, according to Ozsevim (2023),
in alignment with the 2030 goals in the past year, Salesforce has aimed to reduce its carbon
emissions across its value chains and improve social responsibility by improving equality. In its
description, however, Salesforce is a cloud-based software company that offers customer
management software solutions across fields like sales or e-commerce. Therefore, organizations
specializing in cloud software and CRM belong to the technology industry. Under the US:
NYSE, Salesforce possesses the stock symbol of ‘CRM’. As an organization, Salesforce has its
main operations headquarters in San Fransisco, California. However, the business operates and
runs globally and remotely, offering services to mainly Europe and North America. The
organization provides services and cloud-based technology to help and aid customer relationship
management (CRM) between businesses and their markets. This includes creating applications
aimed at e-commerce, marketing automation or customer service. In addition, it also offers
platforms as a service (PaaS) where businesses can build their applications specifically tailored
for their customers (Salesforce, nd).
Part 2: Mission and Vision of the Company
Built on the fundamental principles of trust, equality, and customer success, the
organization’s mission is to transform and foster the success of businesses and companies by
enabling a closer daily relationship between businesses and their customers through efficient
cloud-based solutions. In the long run, Salesforce’s vision emphasizes being the world’s leader in
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the industry, providing companies and businesses with the power to ‘know’ while maintaining
and driving positive social and environmental impact. In the long term, the business particularly
envisions an industry leadership that helps connect customers and businesses while ensuring
sustainability and minimal or zero ecological footprints.
Part 3: Company Value to Shareholders
Work environment/organizational culture
Over the years, Salesforce has gained immense value for its shareholders. In the work
environment or organizational culture field, Salesforce has continuously proven to have a
positive work environment that has consistently translated to increased profitability. For
example, according to Fortune (2020), for the previous 14 consecutive years, Salesforce has been
among the top-listed employees in the American population. In addition, according to research
by Comparably (2024), employee satisfaction in the organization was recorded to be over 80 per
cent, implying positive employee engagement and satisfaction. In addition, over fifty per cent of
these employees mentioned that the mission and the company’s values significantly improved
employee satisfaction. In addition, Salesforce offers educational platforms such as Trailhead,
which allow employees to learn and advance in their careers. This creates positivity and
motivation in the work. Moreover, the company is also built on core principles that include trust
and equality, fostering a positive work environment and culture that is diverse and equal, which
promotes productivity for the stakeholders. For instance, in 2023, Salesforce reported over 50%
of their US employees as members of marginalized groups (women, black and people with
disabilities), with added incentives and initiatives such as Equality Groups, which promotes
diversity, inclusion and belonging in the work environment (Martinez, 2023). Lastly, the
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company also provides, invests and regularly audits its annual pay analysis, which mainly
focuses on addressing inequality in its global operations, promoting transparency and satisfaction
(Martinez, 2023). These practices encourage and attract top talent into the company, improving
productivity and thus translating into stakeholder value.
Financial stability
The immediate focus of analyzing financial stability is evaluating Salesforce revenue
growth. The company has steadily recorded a significant increase in revenue. For instance, in the
financial year of 2024, Salesforce recorded an increase of over 11 per cent in revenue compared
to the previous 2023 year (Vailshery, 2024). This increase has been steady since 2010, with 2024
recording the highest record since its inception. In analysis, his record shows increased
profitability over the years, which shows value in the company operations and decision-making.
In addition, Salesforce also implements cost control initiatives to ensure cost and expenses are
regulated, despite its growth and development initiatives, which shows efficient financial
management. Moreover, Salesforce, in July 2023, the company recorded a debt of 9.4 billion
dollars. However, in the same year, the company also recorded a market capitalization of over
190 billion dollars, which creates a steady balance sheet, thus allowing for leverage during
downturns (Hari, 2023). In addition, Salesforce stock prices have continuously kept growing
over the previous years. For instance, in 2023, the company’s stock prices on the NYSE
increased 24 per cent in the EPS, allowing for the stakeholder’s return of over 72 per cent. This
reflects significant value and confidence for the stakeholders (Forbes, 2024).
Opportunities for further domestic and international growth
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Based on the product portfolio provided by Salesforce, the company has significant
opportunities to foster its growth and development domestically and internationally. For
instance, with the growth of AI and machine learning, the company can expand the financial
services cloud through AI. For example, over 80 per cent of customers seeking customer service
in financial services complain of a lack of efficiency (Weber, 2023). With AI and machine
learning, the sales force can expand its services to domestic and international customers. In
addition, one of the company’s growth initiatives is to increase its customer base. By increasing
teams and employees in more areas than its customer base, the company will effectively find and
source more customers and, in turn, increase its value. Lastly, the company can also implement
and invest in partnerships. For example, in 2020, Salesforce partnered with Slack Technologies,
which significantly expanded its communication in the market (Slack, 2022). For further growth,
the company can partner with or implement Einstein AI, which offers the capabilities to
effectively monitor clients’ risk management and marketing, fostering the services and
capabilities of Salesforce.
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References.
Comparably. (2024). Salesforce Employee Alignment. Retrieved from.
https://www.comparably.com/companies/salesforce/mission
Forbes. (2024). Up 69% In The Last 12 Months, Here’s What To Expect From Salesforce Stock.
Forbes. https://www.forbes.com/sites/greatspeculations/2024/03/06/up-69-in-the-lasttwelve-months-what-to-expect-from-salesforce-stock/
Fortune. (2020). Fortune 100 Best Companies to Work For. https://fortune.com/ranking/bestcompanies/2020/
Hari, G. (2024). Salesforce’s financial stability showcased by reduced debt and increased cash
reserves. Investing. https://www.investing.com/news/stock-market-news/salesforcesfinancial-stability-showcased-by-reduced-debt-and-increased-cash-reserves-3213951
Martinez, C. (2023). Our 2023 Annual Equality Update: Where We Are and Where We’re Going.
Salesforce. https://www.salesforce.com/news/stories/annual-equality-update-2023/#hracial-equality-and-justice-commitments
Ozsevim, I. (2023). Top 10 Ethical companies in procurement.
https://procurementmag.com/articles/top-10-ethical-companies-in-procurement
Slack. (2022, September). Slack and Salesforce consulting partners launch industry-specific
solutions. Retrieved from https://slack.com/blog/news/slack-and-salesforce-consultingpartners-launch-industry-solutions
Vailshery, L.S. (2024). Salesforce.com’s revenue from 2010 to 2024. Statista.
https://www.statista.com/statistics/211587/total-revenue-of-salesforce-since-2009/
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Weber, E. (2023). Elevate, Engage, Retain: Transforming customer experience in financial
services. https://maze.co/blog/customer-experience-financial-services/
Salesforce (n.d). Salesforce: The Number 1 CRM Software. https://www.salesforce.com/eu/