According to the company’s latest annual report, the audit for the company is conducted by US Customs and Border Protection. The report is an example of a unqualified report. Specifically, the auditor makes a conclusion that most matters were handled adequately. The report does not state that Steve Madden is in a good economic health, yet it shows that the company has complied with the generally accepted accounting principles. A report like this is also often called the ‘clean report’. Also, according to the report, the company establishes strong internal control over financial reporting. The report states the following way that the company controls financial reporting:
Maintenance of reports that reflect the transactions.
Taking control over reports being adequately in accordance with the US law.
‘Provides reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of assets that could have a material effect on the financial statements’ (Steve Madden).
The fiscal year of the company ends on December, 31. The last financial statement was issued in the beginning of January, 2018.
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As to the company’s key financial results, Steve Madden discloses a lot of information about its business as a part of the financial statement. In addition, the report demonstrates growth in comparison to previous years. Although it does provide a lot of empirical data, some of the data is incomplete. For instance, the company does not provide information of the market price of its stock, which is an important omission. In its financial statement, Steve Madden emphasizes the role that the company plays in terms of providing people with comfortable and beautiful shoes. In addition, the company focuses on its leading role in the provision of the respective services to its customers. The annual report is well-developed and detailed. Due to the fact that Steve Madden is one of the world’s largest shoe selling companies, it is in the bigger need of the respective international marketing strategies application.
The financial ratios of Steve Madden vividly demonstrate that the company pursues real goals, making stake on a continuous process of improvement. The company singles out “strategic fields” that is the direction of activity, and its work is planned in detail. Correction of goals and their achievements are based on the financial reports of various divisions. The mission of the company provides a detailed analysis of the conditions of the organization, concerning both its environment and internal structures. The company explicitly outlines its competitive advantage, its objectives, difficulties and risks.
According to the report, in Steve Madden company ‘revenue is generated predominantly through the sale of the Company’s brand name and private label merchandise and certain licensed products’ (Steve Madden). Steve Madden provides reserves against trade accounts receivables. However, the company seems to have a problem with uncontrollable debts country because of extension of credit to customers. The company states its inventories as ‘lower-of-cost or market, on a first-in, first-out basis’ (Steve Madden). The company admits its inability to effectively manage it due to the company’s reliance on ocean freight transportation. These company’s policies seem to remain unchanged since the last year. Steve Madden also records the estimated amount of for litigation claims in its Consolidates Financial Statement (Steve Madden). In case there is a new piece of information, the management will revise accordingly. These company’s policies seem to remain unchanged since the previous year.
In the Management’s Discussion and Analysis section of the financial report, the company argues that its sales have decreased slightly. The company attributes this decrease in sales to the larger financial crisis and the decreased financial opportunities of customers. In addition, the company stresses the fact that the decrease has been insignificant (0,4%). The second message that the company tries to deliver in the Management’s Discussion and Analysis section is that inflation and price changes did not affect the price policy of the company. The company, however, notes that this tendency might be kept in the future. Finally, the company vividly emphasizes that companies that provide similar services have experienced a decrease in sales by 4%. By doing this, the company seems to demonstrate its competitive advantage. It is important to note, however, that these messages echo with the actual financial information.
In conclusion, Steve Madden is a multinational company, and the competition in the foreign market is more severe, and the customer is more demanding (Samiee et al 2). The process of studying the external market is characterized by greater laboriousness, determined by the study of a significant amount of information and the scale of potential markets, the requirements of legislation on exports and imports, differences in the regulation of tax regimes, labor relations, exchange rates, transportation difficulties, financing, and other factors. The format of the company’s financial statement reminds more of an interactive news article than a financial report, which also echoes with how business is handled in this particular culture. When studying the national characteristics of American business culture, it is important to note that its distinctive features are communication, mobility, and flexibility. Representatives of this culture are not aimed at the implementation of a preliminary plan, instead, their actions are guided by the degree of significance of a particular event at the moment (Zhang & Lopez 588). This to a big extent explains both the financial success of the company and its advantaged place on the market.
