4.

5 Mini Case Study

Abdullah, Fnu

Kandoi, Sidharth

Musab, Abdul Azeez

Shaik, Laeeq Ahmed

Indiana Wesleyan University

FINC 510: Financial Reporting and Analysis

Williams, Daneale

March 31, 2024

Financial Records Representation for Oracle Corporation

Particulars 2022 2021 2020

Sustainable Growth Rate 109.01% -9.11% -511.11%

Actual Growth Rate in Sales 13% 9% 11%

Profit Margin 8.11% 0.93% -3.90%

Retention Ratio 87.55% 91.01% 92.44%

Asset Turnover $77,143 $68,021 $70,173

Financial Leverage (Assets/Equity) -6.92 91.181 1.192

Challenges

The current business environment offers Oracle a host of potentialities and obstacles.

The multinational technology behemoth Oracle Corporation is its prime example. Being the

end-user, I believe one of the main problems for the cloud computing market, is the intense

competition amongst the companies. However, the competition and growing demand for

cloud services make Oracle-cloud solution providers vie with the market heavyweights such

as Amazon Web Services (AWS) and Microsoft Azure, as well as the emerging players

(Edward, 2019).

Moreover, for Oracle, the next growth challenge is to adapt to changing customers'

needs and demands. Technological development is progressing at a feverish pace, therefore,

clients need more new, advanced, and flexible solutions. Oracle must add the product

portfolio that might be acting in this dynamic customer needs and preferences. This situation

can lead to a loss of market share for a company that costs competitors to offer solutions that

will help them meet the ever-changing customer needs.

Consequently, being accepted as a market maker by other organizations is another

problem that the company encounters. Even though the organization possesses a powerful

foothold in the enterprise segment, efforts to broaden the market niche or locate in other
 Financial Reporting & Analysis 3

markets should be made. This demands a major share of competitive analysis, focused

marketing campaigns, and alliances with competitors or acquisitions to achieve the required

privileged position in unfamiliar markets or to cater to the needs of new customer groups

(Edward, 2019).

Besides data privacy and security issues among Oracle’s complications, these can be

the key problems in the area of enterprise software. Competing with the growing privacy

concern, customers are more wary to entrust their data to technology providers in the face of

more data leaks. Oracle must realize that security features should not be free of flaws and it

never hurts to promise high levels of data protection as essential to its brand integrity.

Another challenge for Oracle is artificial intelligence and talent acquisition, which is

also an issue of talent retention. The technological sector has become more competitive in the

race for talent, making it difficult for companies to maintain the most technical staff for

sustainable growth. Oracle should try to increase the skills of its personnel and build a high-

quality workplace to recruit and retain the most talented software professionals available in

the market (Edward, 2019).

Future Plans

There are many strategic moves that Oracle may apply to try and cope with the

expansion issues it is undergoing. Firstly, the IT company needs to build on its cloud

computing options, the research and development (R&D), to maintain its edge successfully in

the market. With Oracle taking the lead in innovating and upgrading its cloud offerings, it is,

therefore, bound to attract more customers and set itself miles ahead of the competition (Julie,

2020).

Next, Oracle has to please its customers, and their needs and preferences should be

taken into consideration. Hence, the media company is supposed to contact them and listen to

their evolving desires. With this feedback and information, the company can customize its
 Financial Reporting & Analysis 4

goods and services, to not only fulfil but even exceed the customers' expectations.

Conducting regular customer surveys, user forums, and advisory boards being key customer

engagement platforms is a value-adding approach to sourcing viable customer inputs (Julie,

2020).

Last but not least, Oracle shall put more effort into strategic alliances and

collaborations to make its market presence broader. Through alliances with other companies

in the technology sphere or solution provision targeted at specific industries, Oracle can

bridge into new customer markets where it was not before and where it has remained

unknown. Strategic acquisitions will also be reconsidered to get of product portfolio stronger

and keep a competitive edge.

Besides that, there is a need for Oracle to create and implement vigorous marketing

strategies and branding initiatives to increase its visibility and bring in new customers. This

involves digital advertising specifically directed at the incorrect clients, attending industry

events and conferences, and writing thought leaders' content; Social Media Platforms can

help you more attentively for the bigger audience (Julie, 2020).

To overcome data privacy and security concerns Oracle should first give priority to

the aggressive security implementation of the latest industry standards and regulations.

Oracle's ability to communicate its dedication to data protection and safeguard customers'

privacy is the critical key that might help earn customer's trust and build a competitive edge

over competitors.

Additionally, Oracle needs people with the right competence who will be working in a

convincingly friendly and inclusive environment. By providing competitive offerings on

compensations, skill development, and money growth career channels, and nurturing the

culture of innovation the element of pure talent is attracted to the team, whereas employee

turnover drastically falls off (Julie, 2020).

References

Annual report 2020-21. (2021, August 4). https://www.oracle.com/a/ocom/docs/annual-

report-2020-21.pdf

Annual report 2021-22. (2022, August 3).

https://www.oracle.com/a/ocom/docs/industries/financial-services/annual-report-

2021-22.pdf

Oracle - investor relations - financials. (n.d.).

https://investor.oracle.com/financials/default.aspx

Edward, S. (2019). Oracle Corporation: Growth Challenges the company is currently facing.

International Journal of Information Management, 35(2), 137–144.

https://www.sciencedirect.com/science/article/pii/S0268401214001066

Julie, M. (2020). Potential steps Oracle Corporation could take to address Growth Issues. The

Journal of Finance, 23(2), 389–416. https://doi.org/10.1111/j.1540-

6261.1968.tb00815.x