ACCT11059 – My Listed Company

OBJ

After I observed and investigated the ‘Find your Company’ spreadsheet, I found out that my listed company was OBJ Limited. When I saw that my firm was OBJ Limited, I was confused as to what OBJ Limited was as I had never heard of that firm before and I was interested in learning about what goods or services that they marketed. After conducting a thorough research into OBJ Limited, I soon developed an understanding of OBJ Limited and therefore I was able to access their annual reports for the last three years.

Click here to access my firm’s (OBJ Limited) website:

http://www.obj.com.au/

OBJ Limited Annual Reports:

2015 Annual Report: http://www.obj.com.au/investor-centre/reports/reports-2015/item/76-annual-report-2015.html

2014 Annual Report: http://www.obj.com.au/investor-centre/reports/reports-2014/item/63-annual-report-2014.html

2013 Annual Report: http://obj.onlineannualreports.com.au/?iid=95388#folio=18

Background information on my company – OBJ Limited

The listed company that I have been given to complete this assignment with is OBJ Limited. OBJ Limited is an Australian based technology company that was founded by Jeffrey Edwards in 2004 (Welcome to OBJ Limited, 2016). OBJ Limited focuses on the development and commercialisation of drug delivery and product performance enhancement technologies for its consumers (Welcome to OBJ Limited, 2016). OBJ Limited operates one of the world’s most advanced skin labs and partners with both small and large companies to produce performance enhancement solutions (Welcome to OBJ Limited, 2016).

The first commercial product to be launched which contained OBJ’s magnetic-enhanced delivery technology was the SK-II ‘eye wand’ product which was launched in Seoul, South Korea in October 2014 (Welcome to OBJ Limited, 2016). Below is an image of the SK-II product that was produced by OBJ Limited and its other supporting networks.

950a118f-e9f8-4e32-b8f3-c8033d4d0c5f2-Intro2-600x300

 

Reference List:

SK-II . (2016, March 2016). Retrieved from Google Images: http://gdetail.image-gmkt.com/177/716795151/2015/9/950a118f-e9f8-4e32-b8f3-c8033d4d0c5f.jpg

SK-II. (2016, March 15). Retrieved from Google Images: http://blog.she.com/little_daisy/wp-content/uploads/sites/8972/2015/01/2-Intro2-600×300.jpg

Welcome to OBJ Limited. (2016, March 15). Retrieved from OBJ Limited: http://www.obj.com.au/

 

Read your firm’s annual report

My initial thoughts of my listed company was what does it actually do, what type of people work for this firm and how do they operate their business? Considering that I had no prior knowledge of OBJ Limited I was however curious into discovering why OBJ Limited was in deficit of $2,353,454 at the end of the 2015 financial year. My main concern at the moment would be that OBJ Limited may be expanding their business too fast or that they have set themselves high challenges that they aren’t able to meet at this stage?

KCQ’s and in particular areas of the annual report that I had difficulty understanding

  • How long does it take the OBJ team developers to progress a product from a concept to a commercialisation? According to OBJ’s 2015 annual report, the SK-II management team are committed to a 3-5 year program with OBJ to develop a range of new innovations incorporating OBJ’s technologies.
  • After OBJ Limited accounted for all their expenses and paid their taxes, how come OBJ Limited was in deficit of $2,353,454? That’s $148,000 more than 2014 financial bracket. This is why OBJ Limited couldn’t pay any of their shareholders dividends for the 2015 (30 June) financial period because the company was in deficit of $2,353,454.
  • How are all the funds managed within OBJ Limited?
  • In what perspective does OBJ’s networks contribute to the distribution of their products?
  • What is a deferred tax?

Critical and important areas of business to me

OBJ Limited is always looking for new opportunities to continually grow and expand their businesses products and their businesses reputation amongst its consumers and customers. To me this is a critical area of business and indicated to me that OBJ Limited is thinking not just about the present but also about the future of their business. OBJ Limited is partnering and maintaining a strong working relationship with other networks like Procter and Gamble (P&G) which is one of America’s largest health and beauty organisations. Partnering up with other similar forms of networks just like Procter and Gamble (P&G) will help OBJ Limited to continually grow their businesses products, to expand their business and the businesses reputation amongst its consumers and customers.

Other companies should be continually looking for opportunities like this to grow and expand their business and its products amongst consumers. This will enable the company to draw in new, existing and other potential customers to their products and also to get their brand and products promoted and recognised in the marketing world.

Another area of the business that had me interested in was OBJ’s financial position at the end of the 2015 financial year. At the end of the 2015 financial year, OBJ limited was in deficit of $2,353,454 after apportioning their costs accordingly. The question I’m posing is how could OBJ Limited be in deficit of $2,353,454 if the company is excelling like it says it is? To remain viable as a company OBJ Limited needs to turn this financial position around by either increasing their profitability margins, decreasing costs, or by increasing their turnover, or a combination of all three.

Key challenges the firm is facing and how successful the firm is at meeting the challenges

Challenge: One key challenge that OBJ Limited has encountered over the years is being able to develop their products to a reasonable commercial price for its consumers. Strategy: OBJ Limited ensured that they developed and maintained strong working relationships with other networks to help them produce their products at a reasonable commercial price.

Strategy: OBJ Limited wanted to grow and expand their business by licensing their products to other well-known health and beauty companies for distribution into new markets, in particular into the Asian markets. Challenge: During this OBJ Limited would have experienced the challenges of being able to continually maintain a strong working relationship and partnership to other well-known health and beauty companies.

Challenge: OBJ Limited found it difficult to find effective and economical processes for the future commercialisation of their products. Strategy: OBJ Limited used the partnerships networks and their distribution systems to help deliver and distribute their products.

Challenge: Defending legal action as this could affect the firm’s customer reputation. As a repercussion OBJ Limited would feel the loss in their revenue. Also it could result in a loss of partnership with other networks that were working with OBJ Limited to help develop, grow, and sell their product brand to the demographic. Strategy: OBJ Limited would need to ensure that all their processes were legally conducted and that they met all the requirements accordingly.

Similarities or differences

The supreme similarities that I can see across other people’s firms is they all portray companies who are adopting and growing in an obvious attempt to attract other potential investors; in the perspective that firms are always continuously looking and searching for opportunities to grow and develop their business and to make their brand well-known in the marketing sector. All the firms that I looked into were looking for new ways and opportunities to connect with other similar networks to help grow and expand their businesses reputation and products, in the sense of making their company and product more recognised in the marketing sector.

I’ve noticed several differences in the way that other firms are raising their revenue. Take for example Tahlia Evan’s firm (Aurizon) who for the last financial year paid dividends to its shareholders of 24 cents, compared to my firm (OBJ Limited) who for the last financial year failed to pay its shareholders dividends based on its loss of taxable income for that particular financial period.

Feedback about my given firm (OBJ Limited)

Overall, I was happy with the firm that I was given to complete this assignment with however, I would have preferred to been given a listed company that I knew more information about and therefore I would have felt more comfortable about completing this assignment. I believe that if I was given a listed company that I knew more information about I would have been able to engage more with the firm’s annual reports and therefore I would have been able to connect more with the firm’s financial statements.

My main concerns at the moment involves how little I still know about my firm and their primary job profession. Most of my time was taken up with continuous research into my firm to try and gather a better understanding into my firm’s job profession. While I have gathered a sound knowledge into my firm’s job profession, I would have alternatively preferred to have gained an extensive knowledge into my firm’s profession which would have enabled me to engage and interact more with my firm’s annual reports and financial statements.

Know your firm

I found this link to a YouTube clip that clearly explains how OBJ Limited launched their SK-II ‘eye wand’ product in 2014. This Video is of particular interest because it gives an introduction into the foundation of OBJ Limited. This clip clearly explains how OBJ Limited manufactures their products and in particular it talks about its latest product launch of the SK-II ‘eye wand’.

YouTube Video Link: https://www.youtube.com/watch?v=hZRY7TZLMUk

Viewed on March 15th 2016

 

I found this news article that explains some of the opportunities that OBJ Limited has faced over the years. It specifically talks about how OBJ Limited is taking the opportunity to partner with similar networks that can assist OBJ Limited promote their products, promote their business and its reputation and assist them in the production of their products.

Link to the news article: http://www.proactiveinvestors.com.au/companies/news/62428/obj-limited-starting-clinical-trial-of-knee-functionality-device-62428.html

Viewed on March 16th 2016

 

I found this link to a YouTube clip that talks about how OBJ Limited released a notice of allowance for the delivery of fabric products. This video also talks about the world’s first commercial product to be released containing OBJ’s micro-array technology; the SK-II ‘eye wand’. To conclude, it briefly mentioned on OBJ’s net loss of 2.5 million in the 2015 financial year.

YouTube Video Link: https://www.youtube.com/watch?v=6B7KxDSfQ3A

Viewed/accessed: March 16th, 2016

 

 

 

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