Analysis of Zircon Cars Company Essay Example | Topics and Well Written Essays - 3000 words

Analysis of Zircon Cars Company - Essay Example The essay "Analysis of Zircon Cars Company" analyzes if it is profitable to acquire the Korean Composites Company as Zircon Cars is contemplating on reducing its production costs. The diversification finance concept dictates it is advantageous to invest in several market segments, including investing in the new Korean fibre body shell market segment. On market’s profitability will reduce the risk of losses in another market. The above table 6 shows the combined financial report for two segments. The combined report is based on the 2016 accounting period. The United Kingdom is one of the chosen Zircon Cars market segments. The United Kingdom Zircon Cars market segment sales is  £113,100,000 and the Korean Composites global fibre body shell market segment generated 48,140,000,000 Korean Won Currency amount. The conversion or translation of the Korean currency to the United Kingdom currency, British Pound. The sales amount of the Korean Composites Company for 2016 is  £28,407,548.59. Combining the 2016 accounting period sales of both the Zircon Cars’ United Kingdom market segment and the Korean company’s sales, the total sales figure is  £141,507,548.59. Also the United Kingdom Zircon Cars market segment income before tax deduction is  £ 22,857,510 and the Korean Composites global fibre body shell market segment produced 9,621,706,787.40 Korean Won Currency amount income before tax deduction amount. There is the same conversion of the Korean currency to the United Kingdom currency, British Pound.