FINANCIAL ANALYSIS OF ORANGE TELECOM Essay Example | Topics and Well Written Essays - 2000 words

FINANCIAL ANALYSIS OF ORANGE TELECOM - Essay Example Its brand Orange Business Services caters to the telecommunication needs of multinational companies and is very successful at that (Orange Telecom, n.d.). Orange grew tremendously over a short spell in the United Kingdom and the rest of the world. It started off as a mobile phone brand and moved on to become one of the leading providers of broadband, content and other related services worldwide. Orange competed with brands like Intel and L’Oreal for the title of World’s most powerful brands by Millward Brown Optimor in 2010 and reached the 50th rank after climbing 14 spots from 2007. Markets like those in Luxemburg and Tunisia have acceded to the kingdom of Orange and this accounts for the huge increase in the customer base of Orange. Orange Telecom’s presence in Africa and Middle East is quite noticeable and includes 19 countries with 60 million customers and 16,700 employees (Orange Telecom, n.d.). Orange France had 80,000 employees at the end of 2010. Orange has a strategic plan called Conquests 2015 under which it will develop a new organizational model in order to improve even more in areas involving well bei ng of employees, economic performance and satisfaction of customers. The prime reason behind this plan is to position Orange as the number one telecom operator in France in terms of customer care (European Network for Women in Leadership, 2011) Profitability Ratios: The gross profit margin for Orange Telecom is showing a rather fluctuating trend from 2006 to 2010. The profitability decreased as it was 59.49% in 2009 and fell to 58.68% in 2010. This fall can be attributed to the fall in revenue as well as the increase in cost of sales in 2010. As seen in the horizontal analysis (appendix), revenue percentage growth is negative in 2009 and 2010 as a result of which gross profit decreased in both the years and so did the gross profit margin. The overall trend for the operating profit margin has been