fixed the pepar

Running Head: Colombia’s Strategy and Performance.

Colombia’s Strategy and Performance 7

Colombia’s Strategy and Performance

Student’s Name

Institution

Colombia’s Strategy and Performance

Colombia is a country with an upper middle income. It’s Latin American fourth largest economy power. Petrol and its products is the country’s main export contributing to 45% of Colombia’s export. Manufacturing makes 12% of the export. The countries growth rate is over 10% each tear. Colombia’s information system is the fastest growing in the world with the country owns the longest fiber optic network in Latin America (Efe B, 2012). The country further has the largest ship building industry in the world. By 2015, Colombia became the fourth largest economy in Latin America. It’s ranked 31 worldwide.

Since 1810, peso is the country’s currency. Its ISO4217 code is COP informally abbreviated as COL$. The official peso symbol is $. The exchange rate of peso to American dollar is 1:0.00040

In 2013, Colombians GDP was worth 378.15 billion US dollars. This represents 0.16 percent of the world’s economy. This according to statistics is the highest recorded value ever made in its history. Colombia GDP has continually increased with time as represented in Fig 1 below.

Industry and agriculture in Colombia have greatly contributed to the gradual increase of GDP value:

Manufacturing : Colombia has been manufacturing domestic appliances since 1903.however exportation of the appliances started in 1990’s.one of Colombia’s largest producers, HACEB, has been producing fridges since 1950 (Bushnell & Rex A,2010). Colombia also manufacture products for other companies E.g. whirlpool. This has placed Colombia as the third largest producer of electronic appliances in Latin America

.

Electronic manufacturing has also contributed to the new GDP value. Colombia is a major producer of electronics in the whole of Latin america.it is ranked as the second largest producer and exporter of electronic goods. In 2014; the government launched a national campaign to introduce and promote IT and electronics.

Colombia has heavily invested in its infrastructure industry to promote trade within the country. The infrastructure sector has readily increased at a rate of 20% annually. The country has developed the “Fourth Generation Network” to enable them achieve their infrastructure target. The country aims at building a 7000 km road for the 2016-2020 periods. Further plans are being made to build national high speed train network.

The agriculture sector has experienced some major drawbacks but it is steadily picking up. Its adverse climate and topography allows the cultivation of various crops. The hot regions readily support beef cattle rearing, cocoa growing among a few (Aguilera, 2011). The high temperature region, between 1000-2000m, allows coffee and maize farming among a selected few. Cooler regions, between2000-3000m, allow wheat and potatoes farming. The cold climate, allows dairy farming, growth of flower among a few.

Annual Financials Cash Flow Statement for Colombia

Fiscal year is January-December. All values CAD millions.	2010	2011	2012	2013	2014	5-year trend
Net Income before Extraordinariness	(17.42M)	(36.65M)	(36.16M)	(170.18M)	(4.03M)
Net Income Growth	-	-110.45%	1.35%	-370.63%	97.63%
Depreciation, Depletion & Amortization	3.55M	18.08M	16.85M	17.12M	18.76M
Depreciation and Depletion	3.55M	18.08M	16.85M	17.12M	18.76M
Amortization of Intangible Assets	0	0	0	-	-
Deferred Taxes & Investment Tax Credit	0	1.47M	(6.35M)	(14.49M)	12.36M
Deferred Taxes	0	1.47M	(6.35M)	(14.49M)	12.36M
Investment Tax Credit	0	0	0	0	-
Other Funds	9.44M	18.12M	19.5M	148.24M	(33.65M)
Funds from Operations	(4.43M)	1.01M	(6.15M)	(19.3M)	(6.56M)
Extraordinariness	0	0	0	0	-
Changes in Working Capital	(2.13M)	(15.31M)	10.38M	12.87M	3.55M
Receivables	(1.48M)	(8.57M)	(10.6M)	13.86M	(6.79M)
Accounts Payable	2.92M	4.76M	13.93M	(1.49M)	9.62M
Other Assets/Liabilities	(3.43M)	(1.13M)	(872,695)	(1.46M)	973,025
Net Operating Cash Flow	(6.56M)	(14.3M)	4.23M	(6.43M)	(3.01M)
Net Operating Cash Flow Growth	-	-118.01%	129.57%	-251.96%	53.14%
Net Operating Cash Flow / Sales	-31.57%	-10.50%	2.51%	-4.20%	-2.22%

Investing Activities

	2010	2011	2012	2013	2014	5-year trend
Capital Expenditures	(21.84M)	(60.49M)	(50.43M)	(43.8M)	(34.38M)
Capital Expenditures (Fixed Assets)	(19.21M)	(60.49M)	(50.43M)	(43.8M)	(34.38M)
Capital Expenditures (Other Assets)	(2.63M)	0	0	0	-
Capital Expenditures Growth	-	-177.01%	16.64%	13.14%	21.51%
Capital Expenditures / Sales	-105.12%	-44.40%	-29.98%	-28.62%	-25.30%
Net Assets from Acquisitions	(219.77M)	0	0	0	0
Sale of Fixed Assets & Businesses	0	1.49M	0	0	339,068
Purchase/Sale of Investments	0	0	480,832	0	0
Purchase of Investments	0	0	0	0	0
Sale/Maturity of Investments	0	0	480,832	0	0
Other Uses	(2.53M)	(2.42M)	(1.14M)	(1.14M)	0
Other Sources	0	0	1.46M	1.69M	1.39M
Net Investing Cash Flow	(244.15M)	(61.43M)	(49.63M)	(43.26M)	(32.66M)
Net Investing Cash Flow Growth	-	74.84%	19.20%	12.84%	24.51%
Net Investing Cash Flow / Sales	-1,175.16%	-45.09%	-29.51%	-28.27%	-24.03%

Financing Activities

	2010	2011	2012	2013	2014	5-year trend
Cash Dividends Paid - Total	0	0	0	0	0
Common Dividends	0	0	0	0	0
Preferred Dividends	0	0	0	0	0
Change in Capital Stock	274.87M	(3.01M)	0	0	14.72M
Repurchase of Common & Preferred Stk.	0	(4.92M)	0	0	0
Sale of Common & Preferred Stock	274.87M	1.9M	0	0	14.72M
Proceeds from Stock Options	(20.25M)	0	0	0	14.72M
Other Proceeds from Sale of Stock	295.12M	1.9M	0	0	0
Issuance/Reduction of Debt, Net	484,112	79.35M	107.36M	50.26M	20.56M
Change in Current Debt	484,112	(840,978)	6.85M	269,962	(8.85M)
Change in Long-Term Debt	0	80.2M	100.51M	49.99M	29.41M
Issuance of Long-Term Debt	0	81.55M	104.48M	56.03M	34.08M
Reduction in Long-Term Debt	0	(1.35M)	(3.96M)	(6.04M)	(4.67M)
Other Funds	0	(2.48M)	(82.76M)	(145,285)	(437,364)
Other Uses	0	(2.48M)	(82.76M)	(145,285)	(437,364)
Other Sources	0	0	0	0	0
Net Financing Cash Flow	275.35M	73.86M	24.6M	50.12M	34.85M
Net Financing Cash Flow Growth	-	-73.18%	-66.69%	103.69%	-30.47%
Net Financing Cash Flow / Sales	1,325.36%	54.21%	14.63%	32.75%	25.64%
Exchange Rate Effect	(145,233)	(1.55M)	1.77M	(111,282)	(107,132)
Miscellaneous Funds	0	0	0	0	0
Net Change in Cash	24.5M	(3.42M)	(19.03M)	320,451	(929,951)
Free Cash Flow	(25.77M)	(74.79M)	(46.2M)	(50.23M)	(37.39M)
Free Cash Flow Growth	-	-190.21%	38.23%	-8.72%	25.55%
Free Cash Flow Yield	-	-	-	-	-362.86%	NA

Copyright 2015 Fact Set Research Systems Inc. All rights reserved. Source Fact Set Fundamentals.

The Colombian government has majored in innovation in education and human resource policies. Innovation is believed to be the countries backbone towards attaining economic growth and social independence in the coming years (Francis, 2012). The government has increased the number of qualified human resource in prioritized areas for example hospital, schools, homes for the aged among a few. This will enable quality, efficient and effective service delivery.

The government has further provided finance and capital for investments in entrepreneurship skills. These innovations generate new ideas that create job opportunities for citizens. An entrepreneurial economy will greatly generate income for the country. The Colombian leaders work closely with their citizens to boost the country’s economy. At this rate of growth, theColombian government will readily achieve its intended future goals

Reference

Bushnell, D & Rex A. H (2010) "The Society and Its Environment"; Colombia: a

country study: 87. Washington D.C

Francis, J (2012). Invading Colombia: Spanish accounts of the Gonzalo Jiménez de Quesada expedition of conquest Vol. 1 . Penn State

Aguilera, M (2011). La Legislacion y el derecho en Colombia. Historia extensa de

Colombia 14. Bogota

Efe B (2012). "Colombia supera el millón de barriles de petróleo diarios" . ABC.

Spain

GDP of Colombia.

GDP 2006 2008 2010 2012 2014 146.52000000000001 162.76999999999998 207.52 244.06 233.82000000000008 287.02 335.41999999999985 370.33 378.15000000000015