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I have never seen the payback method used in practice, having worked for trained financial professionals during my time working in government. I can, however, imagine some small businesses using this method. A good example I have seen in my travels might be a shopkeeper in the developing world. Such businesses usually do not have access to credit, so payback period is more relevant to their needs, as they must carefully manage their cash flow. For businesses that have access to credit facilities or equity financing, there is little need to manage cash flow so tightly that payback period would be the optimal method of making capital spending decisions.
Similarly, the internal rate of return method is seldom-used by serious financial professionals. This method focuses on the rate of return that the project generates. In some situations, there is an incentive to utilize this method in a company…
Al-Raisi, A. & Al-Khouri, A. (2008). Public value and ROI in the government sector. Advances in Management. Vol. 3 (2) February 2010.
Green, T. & Brainard, M. (2005). Calculating the return on investment (ROI) for Organizational Development (OD) and Human Resources (HR) initiatives. Brainard Strategy. In possession of the author.
The focus specifically in the build-to-order strategy is in the quote-to-order workflow process that spans both direct and indirect channels of distribution as order capture points, followed by managing orders from a distributed standpoint, measuring the effectiveness of specific advertising and promotion programs on order rates and profits per order. The quote-to-order process also has significant implications for managing inventories and increasing inventory turns specifically. With an optimized inquiry-to-order process it is common to see a factor of 5 or more increase in inventory turns per year, a reduction of 30% or more in Days Sales Outstanding, and an increase in average order size by over 40-60% based on the use of more effective quoting and demand sensing and execution strategies throughout a company. The entire value chain for many companies is dependent on their ability to quickly sense and responds to customized product and service requests. At the intersection…
Askegar and Columbus (2002) - Channel Management Best Practices: It's All About Orders. AMR Research Report. Monday September 9, 2002. Retrieved from the Internet on September 7, 2007:
AMR Research (2003) - Configuration is the Heart of Customer Fulfillment for Complex Product Manufacturers. AMR Research Report. Monday March 31, 2003. Retreived from the Internet on September 3rd, 2007 at http://lwcresearch.com/filesfordownloads/ConfigurationIstheHeartofCustomerFulfillmentforComplexProductManufacturers.pdf
Columbus (2003) - Re-evaluate How Your Measure Your Channels' Performance. AMR Research. Boston, MA December 2, 2003 http://www.lwcresearch.com/filesfordownloads/ReevaluateHowYouMeasureYourChannelDec2003.pdf
All of these factors are taken into account in the development of the research findings and validation or refuting of the hypotheses that form the basis of the methodology in the model.
Major Points of Analysis
The authors' ambitious research agenda looks to define how companies can attain greater share of wallet through more effective profitable lifetime duration strategies. Implicit in this analysis is the need to invest in customer relationships to nurture, defend and retain them over time and create reward programs that accelerate customer loyalty as well (einartz, Kumar, 2003). The authors also point to the issues of cost reduction of marketing expenses, divestment strategies and customer outsourcing as all being indicators of a company generating low share-of-wallet and low profits per customer over time (einartz, Kumar, 2003). As a result of these insights the article and its research puts forth a significantly different view of lifetime customer…
Bernoff, J., & Li, C.. (2008). Harnessing the Power of the Oh-So-Social Web. MIT Sloan Management Review, 49(3), 36-42.
Campbell, D., & Frei, F. (2010). Cost Structure, Customer Profitability, and Retention Implications of Self-Service Distribution Channels: Evidence from Customer Behavior in an Online Banking Channel. Management Science, 56(1), 4-24.
Reinartz, W.J., & Kumar, V. (2003, January). The impact of customer relationship characteristics on profitable lifetime duration, Journal of Marketing, 67(1), 77-99.
quality and profitability and dispels the myth that better quality costs more. Management of existing capital is a critical aspect of business financial management due to its direct role in acting profitability of businesses. When a business manages working capital, it denotes the management of existing assets as well as existing liabilities. esearchers in working capital management suggests interest must be paid on the impact of optimal or proper inventory management. While others propose, focus on management of accounts receivables. egardless of perspective, most agree that management of working capital has a major impact on a business's profitability.
The paper uses a simple survey asking several companies how they view quality and what aspects of quality measure do they apply to their own company. esults suggest that the companies adhere to these perceived measures and confirm quality leads to increased profitability. A study examined shows higher costs are not a…
Blair-Loy, M., Wharton, A., & Goodstein, J. (2011). Exploring the Relationship between Mission Statements and Work-Life Practices in Organizations. Organization Studies, 32(3), 427-450. Doi: 10.1177/0170840610397480
Cho, H., & Pucik, V. (2005). Relationship between innovativeness, quality, growth, profitability, and market value. Strat. Mgmt. J., 26(6), 555-575. doi:10.1002/smj.461
Gill, A., Biger, N., & Mathur, N. (2010). The Relationship between Working Capital Management and Profitability: Evidence from the United States. Business and Economics Journal, 2010(BEJ-10), 1-8.
Gross Profitability and Pharmaceutical &D Spending
Are the pharmaceutical companies - as they claim to be doing - re-investing their substantial profits into research and development for better, more patient-friendly and badly-needed medicines? Or, do the pharmaceutical firms just use that explanation to justify raking in huge profits at the expense of the already-financially-strapped consumer? Those are the questions asked - and answered, to a certain degree - in the Health Affairs Chevy Chase article, which this paper will focus on for a more full understanding of the issues presented. The article is written by F.M. Scherer, who is the Aetna Professor of Public Policy Emeritus at Harvard University's Kennedy School of Government; he is also a lecturer in the public affairs field at Princeton University.
The article claims that profit can indeed be "linked" to &D in three ways. One, by &D "leads, with long and variable lags, to…
Becher, Elise C.; & Chassin, Mark R. "Improving the quality of health care: Who Will lead?" Health Affairs Chevy Chase 20 (2001): 164-179.
Mullins, Daniel C.; Wang, Junling; Palumbo, Francis B.; & Stuart, Bruce. "The impact
Of pipeline drugs on drug spending growth." Health Affairs Chevy Chase 20 (2001):
Scherer, F.M. "The link between gross profitability and pharmaceutical R&D spending."
This is highlighted by an incident reported on by Enviromine (2010) in July of this year. Here, "more than 160 people, including at least 100 children, have died from lead poisoning from artisanal gold mining in Nigeria's northwest Zamfara State. The scale of the disaster has been labelled unprecedented by the U.S. Centre for Disease Control and Prevention (CDC), which was called in by the Nigerian health authorities to help stem the epidemic." (Enviromine, p. 1)
Such incidences are demonstrably connected to a mining industry which uses the frequently lax environmental standards of the developing countries in which it operates in order to exploit local resources. This is often done to the detriment of these local communities. And given the low level of global regulation in this area, gold mining firms are often left to their own devices when shaping CSR policies. This points to the most important element of…
Arthur, J.L. (2009). Role of Public Participation in Achieving Development Agenda of Developing Countries: The Case of Communities Affected by Surface Mining of Gold in the Asutifi District of the Brong Ahafo Region of Ghana. African Journal of History and Culture, 1(4), 60-66.
Babut, M.; Sekyl, R.; Rambaud, a.; Potin-Gautier, M.; Tellier, S. Bannerman, W. & Beinhoff, C. (2003). Improving the environmental management of small-scale gold mining in Ghana: a case study of Dumasi. Journal of Cleaner Production, 11(2), 215-221.
Bebbington, a.J. & Bury, J.T. (2009). Institutional challenges for mining and sustainability in Peru. Proceedings of the National Academic of Sciences, 106(41), 17296-17301.
Concordia University Texas. (2009). Green Leadership Initiative. University Services.
(New York Times) MinitClinic understands the need and the importance of having a designated Primary Care Physician. Patients are educated on the benefits associated with a personal PCP and are encouraged to find one they are comfortable with. Information is given to each patient regarding area PCP's that are willing to accept new patients. Minitclinic is capable of transferring all records, prescriptions (if needed) and diagnostic tests to the designated PCP of their choice.
3. There are several issues that could possibly arise from the electronic transfer of patients records from clinic to Physician, such as its related law declaration, and the security of the patient's confidential information. The Journal of Medical systems reported "the usage of electronic anamneses involves in some concerned issues such as its related law declaration, and the security of the patient's confidential information. ecause of these concerns, a secure medical networking scheme is taking into…
Busk, P.(2011) International Journal of Integrated Care[2011, 11(Suppl)] Retrieved from website: PUBMED http://ukpmc.ac.uk/abstract/PMC/PMC3184799
Journal of Medical Systems[2011, 35(4):735-42] Journal Article, Research Support, Non-U.S. Gov't. Retrieved from website: http://ukpmc.ac.uk/abstract/MED/20703516
New York Times. (30 April 2012).Health Guide. Choosing a Primary Care Provider
Jones vs. Smith
Return on assets
Return on equity
If I were a credit manage I would approve a short-term trade credit to Smith before I would to Jones since their current and quick ratios are both higher. However, given the fact that all of the liquidity ratios were higher than one, I would probably offer them both a short-term line of credit.
If I were an investor however, I would be more attracted to Jones' operation since he not only receives a greater profit margin, but also makes better use of his assets and his equity. Although Jones seems to have more of an aggressive growth strategy which would most likely offer a greater return to the investor in the future.
Gourmet Foods Inc.
Gourmet Foods is currently experiencing a tremendous growth rate in its total sales…
Fuel Hedging and Airline Profitability -- Literature eview
Airline operations are usually affected by several factors, especially the prices of oil and exchange rates since they have the capability of making things more complex. Fuel prices are some of the major risks that generate complexities in the operations of airlines and have considerable impacts on airline profitability. Consequently, airlines develop and adopt several measures for risk mitigation in order to enhance their profitability. Fuel hedging is one of the risk mitigation strategies adopted by airlines to help lessen operational risks and enhance profitability. The significance of fuel hedging as a risk mitigation strategy for airlines is evidenced in the volatility of fuel prices. As airlines constantly adopt this risk mitigation strategy, numerous studies have been carried out to examine its effectiveness. Existing literature examines the economic sense of fuel hedging with regards to the role and impact of this strategy…
Allayannis, G. & Weston, J.P. (2001). The Use of Foreign Currency Derivatives and Firm Market Value. The Review of Financial Studies, 14(1), 243-276.
Carter, D.A., Rogers, D.A. & Simkins, B.J. (2006). Does Hedging Affect Firm Value? Evidence from the U.S. Airline Industry. Financial Management, 53-86.
Carter, D., Rogers, D. & Simkins, B. (2006). Fuel Hedging in the Airline Industry: The Case of Southwest Airlines. Social Science Research Network, 1-32.
Cobbs, R. & Wolf, A. (2004). Jet Fuel Hedging Strategies: Options Available for Airlines and a Survey of Industry Practices. Retrieved from Kellogg School of Management at Northwestern University website: https://www.kellogg.northwestern.edu/research/fimrc/papers/jet_fuel.pdf
S. Air Force. During the heyday of defense contracting in the 1950s and 1960s, it became apparent to the Defense Department that as projects get larger and more complex, it becomes increasingly difficult to track what is happening on them. This problem is compounded by the fact that these large projects are being carried out in multiple contractor organizations, each of which employs its own peculiar planning and control system (Frame, 2002).
y the early 1960s, it became increasingly apparent that the Defense Department was no longer able to track the efforts of its contractors with accuracy. It decided that contractors on large, complex projects should be required to report their project efforts in a consistent fashion. It worked to develop rules for reporting project progress and in 1967 issued Department of Defense Instruction (DODI) 7000.2, known also as the Cost/Schedule Control System Criteria (C/SCSC). In 1972, the Defense Department…
Dennis, C., & Harris, L. (2002). Marketing the e-business. London: Routledge.
Dinsmore, P.C. & Cabanis-Brewin, J. (2006). The AMA handbook of project management. New York: AMACOM.
Fleming, Q., & Koppelman, J. (2000). Earned value project management, 2nd ed.
Pennsylvania: Project Management Institute.
From a supply chain standpoint, pricing departments must also create a high level of communication and collaboration across a business as well. Their role is to be the orchestrators of internal effort to manage suppliers to pricing and margin levels, ensuring consistency and focus on share goals. This is one of the primary reasons pricing has now become a strategic initiative within many businesses. For change to occur in how companies do their pricing strategies, it often takes a senior executive to manage the change in processes and systems to ensure pricing becomes strategy and shifts away from being tactical in focus (Marn, oegner, Zawada, 26).
From the sell-side or the distribution and selling channels standpoint, pricing has never been more critically important to a company's profitability. The continued consolidation of industries and commoditization of products making tracking pricing elasticity by product category critical, especially when they are sold through…
Manu Carricano, Jean-Francois Trinquecoste, and Juan-Antonio Mondejar. "The rise of the pricing function: origins and perspectives. " the Journal of Product and Brand Management 19.7 (2010): 468.
Thomas H. Davenport. "Make Better Decisions. " Harvard Business Review 1 Nov. 2009
Vrinda Kadiyali, Pradeep Chintagunta, and Naufel Vilcassim. "Manufacturer-retailer channel interactions and implications for channel power: An empirical investigation of pricing in a local market. " Marketing Science 19.2 (2000): 127.
Krishna, a., F. Feinberg, and Z. Zhang. "Should Price Increases Be Targeted?-Pricing Power and Selective vs. Across-the-Board Price Increases. " Management Science 53.9 (2007): 1407-1422.
revenue and decreasing costs and expenses for a business are two totally separate but interactive components. All entities that are in business; both for profit and non-profit, should be concerned with increasing the revenues as well as decreasing the expenses; it makes smart business sense and those entities that do not do so often find themselves becoming irrelevant or even worse, no longer viable. As an example, even the public hospitals in China show concern as evidenced in a recent paper. The research found that "ith market-oriented economic and health-care reform, public hospitals in China have received unprecedented pressures from governmental regulations, public opinions, and financial demands. To adapt the changing environment and keep pace of modernizing healthcare delivery system, public hospitals in China are expanding clinical services and improving delivery efficiency, while controlling costs" (Zhao, Yu, Liu, Ma, ang, Kong, Li, Ma, Cui, Xu, Yu, Bao, Guo, ang, Zhang,…
Hicken, A. & Stoll, H.; (2008) Electoral rules and the size of the prize: How political institutions shape presidential party systems, Journal of Politics, Vol. 70, Issue 4, pp. 1109 -- 1127
Petronas promises cuts and LNG spending; (2009) TCE: The Chemical Engineer, Issue 817/818, pg. 10
Pozin, I.; (2012) Need a revenue boost? Try this simple formula, accessed on September 14, 2014 at http://www.inc.com/ilya-pozin/how-to-increase-revenue-small-business.html
Zhao, L-P.; Yu, G-P.; Liu, H.; Ma, X-M.; Wang, J.; Kong, G-L.; Li, Y.; Ma, W.; Cui, Y.; Xu, B.; Yu, N.; Bao, X-Y.; Guo, Y.; Wang, F.; Zhang, J.; Li, Y.; Xie, X-Q.; Jiang, B.G.; Ke, Y.; (2013) Control costs, enhance quality, and increase revenue in three top general public hospitals in Beijing, China, PLoS ONE, Vol. 8, Issue 8, pp 1 -- 7
In order to estimate the profitability of companies, several measures have been worked out which can lead investors to right decisions. Liquidity analysis ratios include current ratio, quick ratio and net working capital ratio and they reflect the current or short-term situation within company finances. Profitability analysis ratios include return on assets, return on equity and return on common equity, profit margin and earnings per share and are more mid-term ratios reflecting pricing company strategy and ability to generate earnings. Asset turnover ratio, accounts receivable turnover ratio, inventory turnover ratio are measures of activity analysis for companies. Capital structure analysis ratios include debt to equity ratio and interest coverage ratio. There are also capital market measures. We shall incorporate some of each segment of financial performance measures to compare operations of two companies and draw our conclusions as for possible investment opportunities.
The story of one of the greatest…
The Pickens Mining company has to make a decision with respect to whether or not it wants to develop a strip mine. Doing this is to fulfill a contract that it does not currently have. The decision needs to be based on careful analysis of the different cash flows, ensuring that only those incremental to this decision are included.
In a capital budgeting situation, only the incremental cash flows are taken into account in the calculation (Investopedia, 2016). One of the key issues that arises is with respect to opportunity cost. In this case, the company already owns the land, so going ahead with the project would mean that the land cannot be used for any other purpose. This is an interesting issue because the sunk cost associated with buying the land in the first place is excluded outright as not incremental. Selling the land, however, is just…
Investopedia (2016) Incremental cash flows. Investopedia. Retrieved September 30, 2016 from http://www.investopedia.com /walkthrough/corporate-finance/4/capital-investment-decisions/incremental-cash-flows.aspx
IRS.gov (2016). 7-year MACRS. Internal Revenue Service Retrieved September 30, 2016 from https://www.irs.gov/publications/p946/ar02.html
Rather than deal with multiple banking agents, the customer communicates their specific need to one individual who then arranges the requisite action for the client. Account Manager Jamie Reich is a perfect example of this type of individual client relationship. "Account managers know their customers and know what their needs are" (Narayanan, V.G. 2002. 7).
What should RBC do about customers who are unprofitable and Why?
he unprofitable customer must be analyzed in the context of current profitability as opposed to the future value of their business. he unprofitable customer is likely in the Key group and has relatively few RBC product offerings. he advantage of the CRM system is that Bank managers can gauge prospective future profitability. he lifetime value calculation involved "calculating the present value" (Narayanan, V.G. 2002. 8) of a future stream of profits, along with a "factoring of other variables such as: age, tenure with the…
The unprofitable customer must be analyzed in the context of current profitability as opposed to the future value of their business. The unprofitable customer is likely in the Key group and has relatively few RBC product offerings. The advantage of the CRM system is that Bank managers can gauge prospective future profitability. The lifetime value calculation involved "calculating the present value" (Narayanan, V.G. 2002. 8) of a future stream of profits, along with a "factoring of other variables such as: age, tenure with the Bank, number of products held, probability of acquisition, and attrition of products" (Narayanan, V.G. 2002. 8). If a currently unprofitable customer is deemed to have future value to the Bank the relationship should be cultivated and expanded to greater product offerings. If on the obverse the customer is not a future profitable actor then the Bank should sever the relationship particularly if current losses are occurring. Because lifetime value "can be aggregated up to segment level" (Narayanan, V.G. 2002 6); a group of unprofitable customers, perhaps utilizing free checking, can be phased out with a new fee structure which will prompt customer exit. The Bank's own analysis revealed the unprofitability of a segment of customers; "20% of its customers accounted for 100% of its profits" (Narayanan, V.G. 2002. 7).
Specifically, what can RBC do about negative profitability customers that use retail branches and ABM machines for their bill payments and Why?
This specific group of unprofitable customers must be targeted using the same lifetime value philosophy as described previously. The cost of ABM placement for a financial institution is considerably grater than its return. ABM's are a customer convenience which can engender a potential long-term relationship with greater product acquisitions. So too does the brick and mortar facility create both fixed and variable costs which the Bank must then mitigate with higher revenues. The unprofitable customer who uses ABM's or visits branches for bill pay must be viewed in the context of their current but also future holdings. Assuming the lifetime profitability calculation has been made; those marked as long-term unprofitable from a group perspective must be
J.C. Penney Company, Inc. is a holding firm with the main operating subsidiary known as J.C Corporation, Inc. The company sells accessories, family apparel and footwear, beauty products, home furnishings, and fine and fashion jewelry in its department stores in America and Puerto ico. Since its inception, this company has grown to become a major retailer that operates approximately 1,106 department stores by the beginning of 2011. The business of this firm basically consists of selling their products and services through the numerous stores and its online business strategies. This growth has resulted in the company to be ranked as America's largest department-store retailer and catalog business.
Mission, Vision, and Primary Stakeholders of J.C. Penney:
The vision of J.C. Penney Company, Inc. is to become America's shopping destination for inventing great styles at reasonable and attractive prices. This vision is centered on the company's long-range growth initiatives that…
Bartholomew et. al. (2007, June 1). J.C. Penny Company, Inc. Equity Valuation and Analysis.
Retrieved December 17, 2011, from http://mmoore.ba.ttu.edu/ValuationReports/Summer2007/JC-Penney.pdf
"J.C. Penney Company, Inc." (2010). Commission File Number 001-15274. Retrieved from United States Securities and Exchange Commission website: http://www.sec.gov/Archives/edgar/data/1166126/000119312511081412/d10k.htm#toc142811_12
"J.C. Penney Company, Inc. Summary Annual Report" (2010). Annual Reports.com. Retrieved December 17, 2011, from http://www.annualreports.com/HostedData/AnnualReports/PDF/jcp2010.pdf
Currently, 100 workers, working 20 days are producing 6000 units. That means that each worker is producing 6,000 / (100*20) = 3 units per day.
Given only those financial figures that have been provided, it is impossible to do a complete financial calculation. A huge part of the decision making for this scenario depends upon the marginal cost of additional production. Marginal cost refers to the cost of producing one more unit of a product (Sullivan & Sheffrin, 2003). In economies of scale, the greater the production, the lower the marginal cost, so that increasing production increases profit. However, there is not enough information to determine if this is true for Tinker's Toys, and, if so, to what number it would be true.
Without knowing the fixed costs and worker capability, it is impossible to determine some critical financial numbers. Can workers reasonably increase production or is a…
Byrnes, J. (2011 August 8). Improving profitability from a granular level. Business Finance
Magazine. Retrieved November 12, 2012 from Business Finance Magazine website: http://businessfinancemag.com/article/improving-profitability-granular-level-0808
Choo, C.W. (1999). The art of scanning the environment. Bulletin of the American Society for Information Science, 25(3), 13-19.
Sullivan, a., & Sheffrin, S. (2003). Economics: Principles in action. Upper Saddle River:
AT&T is in basic terms a telecommunications services provider with operations not only in the U.S. But also in other parts of the world. In this text, I conduct an analysis of the company. In so doing, I will amongst other things explore its accounting systems and internal controls. Further, I will also conduct a brief review of its financial statements.
In so many ways, AT&T can be regarded an industry leader in the provision of wireless voice communications. The company gives its mission as "to connect people with their world, everywhere they live and work, and do it better than anyone else" (AT&T, 2013). Some of the main competitors of AT&T in the Telecom Services industry include but they are not limited to Verizon Communications Inc. And Sprint Nextel Corp. Currently, the company is headquartered in Dallas, Texas.
Accounting systems include but they are not…
Albrecht, W.E., Stice, E.K. & Stice, J.D. (2010). Financial Accounting: Concepts and Applications (11th ed.). Mason, OH: Cengage Learning.
AT&T. (2013). AT&T Company Information. Retrieved April 24, 2013, from AT&T website: http://www.att.com/gen/investor-relations?pid=5711
Booton, J. (2011, January 13). AT&T to Take $2.7 Billion Charge in 4Q to Revamp Accounting System. Retrieved April 25, 2013, from FOXBusiness website: http://www.foxbusiness.com/markets/2011/01/13/att-billion-charge-q/
Lasher, W.R. (2010). Practical Financial Management (6th ed.). Mason, OH: Cengage Learning.
If the daily paper were more expensive, the elasticity would increase.
In terms of profit, the daily paper is a strong proposition. Clearly priced well above the variable cost, the daily paper takes advantage of the low price elasticity of demand to generate a strong contribution margin.
The $1.99 Sunday newspaper functions similarly to the daily. This paper, however, is packed with far more features. Thus, it is sought out by consumers rather than purchased on impulse. As a result, the price elasticity of demand for the Sunday paper is lower than for the daily editions. The significantly higher price reflects that.
In terms of profit, the Sunday paper is the key driver of contribution margin. The high price, combined with high circulation and strong ad yields, makes the Sunday paper the big earner for the Sun-Times. Low price elasticity of demand contributes to this contribution.
The monthly subscription has…
estaurant business is one of the most flourishing industries in the United States. The industry is characterized by significant development, subsequent decline and recovery. The industry boasts of nearly one-third of all employees in retail trade with annual sales standing at approximately $222 billion. Griddle cafe for breakfast and brunch is located at 7916 West Sunset Boulevard, Los Angeles in the West Hollywood neighborhood (The Griddle Cafe, 2012). The cafe is open from Monday through Saturday and Sundays closing at 4pm daily.
This cafe rated 4-stars is committed to dynamic growth and service excellence built upon Los Angeles' heritage of traditional hospitality (Yelp Inc., 2012). In addition, the cafe strives to consistently meet and surpass guests, employees and others stakeholders expectations. The restaurant has been extremely successful throughout the years due to strong focus on specific market segments. The company utilizes successful strategies, which have aided in their…
Coyne, K.P., & Subramaniam, S. (1996). Bringing Discipline to Strategy. The McKinsey Quarterly, 14-25.
Porter, M.E. (1980). Competitive Strategy. New York: The Free Press.
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The Griddle Cafe . (2012). Our Menu. Retrieved September 20, 2012, from www.thegriddlecafe.com: http://thegriddlecafe.com/menu.html
Similarly, this could influence the international airline community. Then, a stable economy is highly dependent upon a stable oil price, which once again is not the case. "The environment will continue to become more competitive as the LCC's continue to become more convenient. Business fares will continue to drop. Leisure fares won't raise much until capacity is generally in line with demand, which won't occur until much of the capacity overhand has been employed either by surviving legacy carriers or LCC."
To the customer, the continuing of this trend will generate no benefits. "In other words, we're stuck with the current system, because it isn't really in any airline's interest to try to change it. As long as no airline makes a dedicated effort to distinguish itself from the pack, all the airlines can stay lean, even at the expense of quality."
Surowiecki, J., the Unfriendly Skies, the New…
Surowiecki, J., the Unfriendly Skies, the New Yorker, 2007
Jankins, D., Overview of the Domestic Airline Industry, the George Washington University Aviation Institute, www.speea.org/news/files/layoffs/pcfinancials.pptRetrieved on February 13, 2008
Airlines face fiscal problems due to war, the Daily Michigan, September 1, 2003
Quick MBA, Porter's Five Forces - a Model for Industry Analysis, 1999-2007, http://www.quickmba.com/strategy/porter.shtml . Retrieved on February 13, 2008
Foremost, unlike the previous alternative solution, the profitability of the sports equipment manufacturer would not be negatively affected by problems in the vendor-supplier relationship.
A b) Supplier-vendor relationship
Unlike changes in the priority of payments, the contracting of a bank loan would not affect the relationship between Lawrence Sports Inc. And its purveyors. The suppliers would still receive their payments at regular dates and would therefore continue delivering high quality commodities in a timely and efficient manner. If something, the relationship would improve as more orders would be made and the company would have a better possibility of honouring its obligations to the suppliers.
A c) Ability to resolve the problem now and in the future
The immediate future could pose some threats as the company would also have to pay the bank loan. However, the additional financial resources would allow the company to further invest in their human resource…
Cameron, E., Green, M., April 2004, Making Sense of Change Management: A Complete Guide to Methods, Tools and Techniques of Organizational Change, Kogan Page Limited
Mathis, R.L., Jackson, J.H., January 2005, Human Resource Management, 11th Edition, South-Western
Primary Data Collection
Secondary Data Collection
Performance evaluation of the optimized supply chains
Carrefour Ooshop e-grocery
Structural decisions items of operations strategy in logistics
Hardware of the firm
Infrastructure decision areas
Software of the organization
Planning and control
Comparison of structural and infrastructural logistical operations management decisions
Globalization and Logistics Optimization
Logistical optimization models
Challenges in e-grocery Logistics
E-grocery logistical solution
Store-based order picking model
Figure: Store-based order picking model
Store-based order picking for attended goods reception
Store-based order picking for unattended goods reception
Dedicated order picking model
Figure: Dedicated order picking model
Delivery from dedicated centers for attended goods reception
Delivery from dedicated centers for unattended goods reception
E-basic needs frameworks so that organizations can get beneficial
Distinctive logistical results
ecognize e-basic framework
Anand, G., Ward, P.T., Tatikonda, M.V., & Schilling, D.A. (2009). Dynamic capabilities through continuous improvement infrastructure. Journal of Operations Management, 27(6), 444-461.
Barnes, D. (2008). Operations management: An international perspective. United Kingdom: Thomson.
Griffin, R.W., & Pustay, M.W. (2009). International Business: A Managerial
Perspective. (6th ed.). New Jersey: Pearson Prentice Hall.
market values" UK Listed Companies evaluate companies Investor atios Profitability atios. With reference statement: require critically appraise importance market balance sheet UK listed companies critical assess a relevant range investor profitability ratios measuring performance.
Market value and balance sheet value
A British firm listed on the market is generally traded at its market value, regardless of its balance sheet value. At a simplistic level, the balance sheet value represents the value of the firm as it is computed within the organization and in terms of the company's resources, revenues and other internal values. The market value on the other hand is the value of the company as it is assigned by the multitude of players in the market, and which is often computed based on elements intrinsic to the market, such as profitability of the company, risks and so on.
At a more specific level, the two concepts…
2010, Investor ratios, Bized, http://www.bized.co.uk/compfact/ratios/investor2.htm last accessed on December 15, 2010
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Investment tips: what are key investment ratios? Essortment, http://www.essortment.com/career/keyinvestmentr_sape.htm last accessed on December 15, 2010
oyal Dutch Shell PLC
A Brief ecent History of oyal Dutch Shell PLC
eason Behind Choosing
Information Gathering and Accounting Business techniques
esult, Analysis, Conclusion & ecommendations
SWOT Analysis of DSP
Porter's Five Forces Analysis of the Chosen Company
Financial Analysis of DSP
Finance is the name of allocating the funds at a place from where the likelihood of receiving a good return is bright (Bragg, S2006). Organization is basically referred to a place wherein hundreds of people work together just to achieve a specific goal (Cinnamon, & Larsen, B.2006). The goal may be of two fold, like the goal can be economical or can be non-economical. According to the organizational officials and analysts, investment decisions are always tough to take as far as an organization is concerned (Cinnamon, & Larsen, B.2006). The economic decisions include ad hoc research, analysis and lots of study as well. The essence of risk…
Bragg, S (2006), Financial Analysis: A Control Guide, New York McGraw Hill Publications
Cinnamon, R & Larsen, B.H (2006), How to understand Business Finance, New York McGraw Hill Publications
Christian, G (2007), Econometrics & Financial Analysis, California John Wiley & Sons Professional Publications
Danial, L (2009), Financial & Business Analysis Techniques, New York McGraw Hill Publications
Understanding how a company operates within any industry is dependent upon comprehension of many financial properties. Assessing the financial stability of a company is essential in determining the company's strengths and weaknesses as well as ultimately assessing its profitability. Financial ratios should be considered a useful tool when examining the profitability and efficiency of any company. Some companies are certainly more successful and profitable than others, and pharmaceutical companies in particular seem to have a distinct advantage when measuring financial ratios.
When assessing any organization, for terms of this paper are as follows: Johnson & Johnson, Pfizer and Merck it is important to consider the profitability and efficiency of the company. This is among the first information investors will explore before "investing" in a company. atio analysis is a critical analysis of the financial structure of an organization. There are four categories of ratios that need to be…
Calculating and Interpreting Financial Ratios. http://aolsearch.aol.com/redir.adp?appname=MS&query=Pfizer%20efficiency%20and%20profitability%20ratios&url=http%3a%2f%2fwww%2efool%2ecom%2fportfolios%2frulemaker%2f2001%2frulemaker010531%2ehtm&datasource=Google&partner=Google&clickedItemRank=2&requestId=cns92890&component=websearch.google.http.tcl&searchType=MS
MBA 681, Fall 2002. "Financial Analysis." http://aolsearch.aol.com/redir.adp?appname=MS&query=Merck%20profitability%20and%20efficiency%20ratios&url=http%3a%2f%2fwww%2emgmtguru%2ecom%2fmgt499%2fTN4%5f3%2ehtm&datasource=Google&partner=Google&clickedItemRank=5&requestId=cns41327&component=websearch.google.http.tcl&searchType=MS
As Sir Anthony O'eilly, Chairman of Waterford Wedgwood, noted in a recent speech that they are operating against a "backdrop of unprecedented broad-based economic uncertainty."
This economic uncertainty has had a global impact. From the high rates of business bankruptcies in the United States, to the financial collapse of one of the previously richest countries in the world -- Iceland, to the 11.2 million percent inflation rate of Zimbabwe, no corner of the globe is untouched by the massive liquidation cycle in which the global economy appears to be.
Consumer confidence has declined. Banks have lost faith in one another. Currencies around the world, such as the American dollar, weakened considerably.
And, despite Waterford Wedgwood's more than two hundred years of setting industry standards, the organization must now operate in an economic environment that appears to work directly against their primary products -- luxury lifestyle items.
Yet, despite these trying…
About the company. (2009). Retrieved June 9, 2009, from http://www.royaldoulton.com/U.S./_Help_Information/CompanyInformation/AbouttheCompany .
Corporate profile. (2009). Retrieved June 9, 2009, from http://www.waterfordwedgewood.com/investor_corpProfile1.asp .
Goldhorn, M. (Jan/Feb 2009). Market turmoil require new ways to build capital. The Value Examiner. pp. 23-30.
History of Wedgwood. (2009). Retrieved June 9, 2009, from http://www.wedgwoodusa.com/about/history.asp .
The Industry Dominant Economic Features
Market Size and Rivals:
Pace of Process and Product Technology Change
Economies of Scale in Purchasing
PORTER'S FIVE FORCES
Threat of New Entrants
THE DRIVERS OF CHANGE IN THE INDUSTRY AND THEIR IMPACT
The Economy and Interest Rates
KEY SUCCESS FACTORS FOR COMPETITIVE SUCCESS
Understanding the Markets
Understanding Local Regulations
INDUSTRY'S ATTRACTIVENESS, LONG-TERM PROFITABILITY AND CONCLUSION
The homebuilding industry plays a major role in the United States economy, as a significant employer and cash generator. Each year the industry hires more than 3.5 million workers and the housing investment and consumption accounts for one-fifth of the United States' gross domestic product (GDP). Recent figures support the role of homebuilders as vital to the American way of life (AzPath). In 2001, the homebuilders were responsible for building 1,602,700…
AzPATH Research Series Report No. 03. Del E. Webb School of Construction. "Supply Chains in Residential Construction." 2.2. "Integrating the Supply Chain." December 2001. Retrieved June 5, 2003 at http://construction.asu.edu/azpath/Documents/Reports/Report03.pdf .
Grey, Joseph. "Construction and Building Materials." Hoover's Online. 2001. Retrieved June 5, 2003 at http://www.hoovers.com/industry/snapshot/profile/0,3519,14,00.html.
Handley, John. "Boomers Shun 'R' Word" May 18, 2003. Baltimore Sun www.sunspot.net.Retrieved June 5, 2003 at http://www.nbnnews.com/NBN/issues/2003-05-26/bnc2c.html#5.
Hoover's Online. "Centex Corporation." 2003. Retrieved June 6, 2003 at http://www.hoovers.com/co/capsule/8/0,2163,10308,00.html.
Competitive Forces Analysis for Gilt Groupe
Five Forces Analysis of Gilt Groupe company
Many managers look at competition too narrowly. According to Michael Porter, there are different forces of competition that should be looked at by any business. A business will not gain a return on investment of the forces are too intense in the industry. When the competitive forces are favorable, many of the companies in the industry are profitable. When formulating a strategy, the manager needs to understand that some forces are stronger than other forces. These strong forces will determine the industry's profitability. Focusing on the strong forces more than the weak forces, allows a manager to develop a strategy that will ensure the business remains profitable. An industry's structure will set the industry's profitability in the end and will provide a model for influencing and anticipating competition and profitability. The five competitive forces identified by Porter…
Afuah, Allan N, and James M. Utterback. "Responding to Structural Industry Changes: A Technological Evolution Perspective." Industrial and corporate change 6.1 (1997): 183-202. Print.
Cox, Andrew. "Understanding Buyer and Supplier Power: A Framework for Procurement and Supply Competence." Journal of Supply Chain Management 37.2 (2001): 8-15. Print.
Matthew Carrol. "The Rise of Gilt Groupe: The Great Recession Fuels the Perfect Storm." New York, NY: Forbes, 2012. Print.
Michael E. Porter. How Competitive Forces Shape Strategy. Boston, MA: Harvard Business Review, 1979. Print.
5 times the actual value of equity.
The return on investment is calculated by dividing the total net profits by the total assets value and shows the "overall effectiveness to generate profits from total investment in assets." At the Colorado Group, the return on investment amounted to 20.4% in 2006 and 21.5% in 2005. The small decrease from 2005 to 2006 can be explained by the fact that that the net profits decreased significantly during this period of time and that the decrease of the total assets value was by no means similar in value.
The gross profit margin is calculated by dividing the net sales minus the cost of goods sold by the net sales value and shows the "profitability of a company's sales after the cost of sales has been deducted." In this case, in 2006 this ratio was equal to 54.4%, as compared to 55.9% in 2005.…
1. Financial Ratios. Cardinal Stritch University Library. On the Internet at http://library.stritch.edu/guides/financialratio.htm
2. The company's 2006 Annual Report
Financial Ratios. Cardinal Stritch University Library. On the Internet at
Moreover, even with these changes Verve will remain subject to government's heavy hand -- will this limit their profit potential no matter what other changes are made?
Response to Nash. The conclusion about subsidy being necessary is one element of insight that I liked, and that wasn't really outlined in the other posts. Verve has an ongoing lack of sustainability in its budget. I fail to see, however, how "cost analysis" would achieve anything. Granted, the company's hands are somewhat tied with regards to other solutions, but must of the firm's inefficiency is tied more to its burdensome regulatory environment than managerial incompetence. Old, inefficient plants cannot be made efficient without a serious infusion of capital. Cutting costs through other means is also difficult. Layoffs involved short-term spending on severance, for example. The author is right about the goal conflict being a major contributor to Verve's problems. It is the…
I vs. MI Valuation Methods
The process of capital budgeting in corporations involves selecting projects that add value to the organization. Capital budgeting can involve nearly everything like buying a new truck, replacing old machinery, and acquiring some land. In most cases, businesses, especially corporations, are required to conduct these projects in order to improve profitability and enhance the wealth of shareholders. The process of undertaking a capital budgeting decision requires the company to first determine whether the project will be profitable. The determination of the profitability of a project is accomplished through the use of several valuation methods like the Internal ate of eturn, Net Value Present, and Modified Internal ate of eturn. These approaches usually produce different results though the ideal capital budgeting solution should result in the indication of the same decision by the three metrics. Organizations tend to place more emphasis on one valuation method than…
Abraham, A. (n.d.). Modified Internal Rate of Return MIRR. Retrieved June 30, 2012, from http://finance.thinkanddone.com/mirr.html
"Financial Valuation Concepts -- The Internal Rate of Return (IRR)." (n.d.). Financial Modeling
Guide. Retrieved June 30, 2012, from http://www.financialmodelingguide.com/valuation-concepts/financial-valuation-concepts-the-internal-rate-of-return-irr/
Pinkasovitch, A. (2011, July 8). An Introduction to Corporate Valuation Methods. Retrieved June 30, 2012, from http://www.investopedia.com /articles/financial-theory/11/corporate-project-valuation-methods.asp#axzz1zDx96PU0
Overall, at&T is the more profitable of the two companies. That Verizon has the stronger gross margins and at&T the stronger net margins indicates that at&T does a better job of controlling its cost structure than does Verizon.
The telecommunications industry is highly competitive in both the landline and wireless segments. By 2006, wireless spending had match wireline spending. hile this presents significant opportunities for telecommunications, much of that spending comes in the form of cannibalizing, as wireline revenues have been decreasing steady over the past decade, matching the steady increases in wireless spending.
There are four major wireless operators in the U.S. And over 170 regional players (Megna, 2009). Competition is based on coverage area (capital investment), price and customer service. Both firms can be considered industry leaders. As of 2007, at&T had a subscriber base of 65.7 million and wireless revenues of $10.9 billion. Verizon had…
MSN Moneycentral Verizon. Retrieved October 24, 2009 from http://moneycentral.msn.com/investor/invsub/results/statemnt.aspx?Symbol=VZ&lstStatement=Balance&stmtView=Ann
MSN Moneycentral at&T. Retrieved October 24, 2009 from http://moneycentral.msn.com/investor/invsub/results/statemnt.aspx?Symbol=T&lstStatement=Balance&stmtView=Ann
Loth, R. (2009). Financial Ratios Tutorial. Investopedia. Retrieved October 24, 2009 from http://www.investopedia.com /university/ratios/
Chen, B. (2009). Verizon iPhone? Don't hold your breath. Wired. Retrieved October 24, 2009 from http://www.wired.com/gadgetlab/2009/10/verizon-iPhone/
However, EVA is neither as perfect as claimed by its advocates, nor is it the only performance measure that suggests a path to a superior stock return" (emphasis added) (p. 319).
More importantly, though, while the economic value added measurement approach to financial performance may not be without its detractors, the scholarly literature is consistent in emphasizing the need for such initiatives for companies to remain competitive in an increasingly globalized marketplace today. For instance, in his recent essay, "Profit-Increasing Strategies," Tracy (2006) reports that there are a number of ways for most companies to add value to their product or service. "There are many strategies for generating sales, profitability and wealth in every industry," he advises. "Your ability as an entrepreneur to create a profitable business where no business existed before is the key to your success. In every market, it's usually true that 20% of the businesses earn…
Brewer, P.C., Chandra, G., & Hock, C.A. (1999). Economic value added (EVA): Its uses and limitations. SAM Advanced Management Journal, 64(2), 4.
Chen, S., & Dodd, J.L. (1997). Economic value added (EVA Super TM): An empirical examination of a new corporate performance measure. Journal of Managerial Issues, 9(3), 318.
Fletcher, H.D., & Smith, D.B. (2004). Managing for value: Developing a performance measurement system integrating economic value added and the balanced scorecard in trategic planning. Journal of Business Strategies, 21(1), 1.
Mcmenamin, J. (1999). Management: An introduction. London: Routledge.
"Social messages sent by clothing, accessories and decorations can invoke social status, occupation, ethnic and religious affiliation, marital status and sexual availability etc."
4.2 Product innovation and technological changes
The rapid rate of technological development set the course of development in numerous other domains, including apparel. In this order of ides, the technology adherent to the apparel production process is on its path from computer made designs to technologically improved materials' quality. For example, future directions in the apparel industry involve "more types of fiber developed using nanotechnology or smart clothes that incorporate electronics."
4.3 Marketing innovation
The main characteristic of current trade and production is that the items tend to focus more and more on the customers' needs and desires. Apparel producers are today faced with the difficult task of combining the publics' needs with a high quality of work and material as well as with the latest fashion…
October 2001, Contracts and Modifications by North American Industry Classification System (NAICS) Codes, Manufacturing NAICS Codes,
Fratto, M.G., Jones, M.R., Cassill, N.L., 2006, Journal of Fashion Marketing and Management, Volume 10, Emerald Group Publishing Limited
Wikipedia, The Free Encyclopedia, October 2006, Apparel, article was last modified on October 26, 2006, http://en.wikipedia.org/wiki/Apparel , last accessed on October 31, 2006
October 2006, Apparel Resources, Exim News, Sri Lanka: Apparel Exports to U.S. Show 9.5% Increase, http://www.apparelresources.com , last accessed on October 31, 2006
Conduct a benchmarking analysis
As explained by Prasnikar, Debeljak and Ahcan (2005) benchmarking depends on comparing between two activities of an organization and another. In our case, we shall compare McDonald's activities and those of its competitors, Burger King and Wendy's.
• Best practices
McDonald's as a main player in the fast food industry is concerned with best practices with the industry. To this end, the corporation has adopted some best practices that include sustainability, nutrition and well-being, employee experience ad environmental responsibility. Accordingly, McDonald's protects the environment by going green and using methods that protect and conserve the environment. McDonald's also encourages its suppliers to uphold effective environmental. The company treats it employees well and offers them good working conditions as a way retaining them. Employees are offered training and promoted accordingly. McDonald's also adheres to ethical conduct its operations and food items are produced ethical. Similarly, the company…
management are strengths within the program?
Liverpool has several different factors that are helping the program to thrive these include: the ability to locate critical talent and increase the club's profitability. What makes Liverpool such a unique team is their ability to identify and recruit new players. This is accomplished through: the homegrown and transfer talent programs. Homegrown talent is when the club will have up and coming players working with some of their minor league organizations. This gives young players the ability to develop and it is providing the team with individuals (who could have an impact on the squad). The transfer talent program is when the team is actively recruiting individuals, who could have a positive effect for Liverpool (from the moment they arrive). These two programs are strengths that management is using to ensure that the team has the best players possible. This is taking place by…
Liverpool Football Club. (n.d.).
Manchester United for Sale. (2005). Independent. Retrieved from: http://www.independent.co.uk/sport/football/news-and-comment/manchester-united-for-sale-one-careless-owner-8027095.html
Gratton, G. (2010). Research Methods for Sports Studies. New York, NY: Rutledge.
Kimmel, P. (2009). Accounting Principles. Hoboken, NJ: Wiley
Net Assets / Total Assets
For these calculations, it is assumed that net assets is defined as total nets, net of liabilities (aka shareholder's equity). The asset management at this firm has changed little over the course of the past year. The only ratio in which a change is noted is the asset turnover, and that is more related to the fact that operating revenue saw an increase of 27.7% last year.
$1,243,522 / $2,280,086
$1,201,590 / $2,213,837
Total Asset Turnover
$799,554 / $2,280,086
$625,787 / $2,213,837
Net Assets / Total Assets
$779,841 / $2,280,086
$756,174 / $2,213,837
verall, the financial health of Hopeful Happy Health Care Systems (HHHCS) is adequate. The biggest area of concern is with respect to profitability, as the company has very low operating margins. In 2000, the company barely turned a profit, and…
Overall, the financial health of Hopeful Happy Health Care Systems (HHHCS) is adequate. The biggest area of concern is with respect to profitability, as the company has very low operating margins. In 2000, the company barely turned a profit, and although 2001 represented an improvement, that improvement was somewhat limited, and the ROA was still below 1%. It is expected that a firm with health profits is able to generate a much higher ROA.
The most alarming of other figures is the accounts receivable turnover. At 176 days, this turnover is far too slow. The combination of narrow margins and high A/R turnover in day means that the company could find itself subject to cash crunches from time to time. It should be noted, however, that 176 days is a substantial improvement over the previous year.
Most of the other ratios held more or less flat. This indicates that the company's operations are fairly static, so limited changes can be expected in the future. HHHCS has made improvements in the areas where it needed to, which is encouraging. In future, the company should focus on improving its operating margins, as this would have a positive impact on a number of other key ratios as well. The firm has a healthy level of debt, but should hold the line on taking on new debt until there is evidence of significant revenue expansion.
Joint costing systems should bear in mind the legal constraints on the use of such systems, and should provide accurate information to managers in order to be most useful in the managerial accounting context.
Firms need to remain competitive, which indicates that the market will set prices to some degree. This implies that firms can make better decisions with respect to what projects/products they wish to pursue by understanding the cost structure of the product. If the product is not viable at the cost at which it can be produced, then the firm can improve profitability by dumping the product.
Banham, R. (2000). Off target? CFO Magazine. Retrieved April 5, 2011 from http://www.cfo.com/article.cfm/2990860/c_3046531?f=magazine_alsoinside
Frederick, S. (2011).
The persuasive power of opportunity costs. Harvard Business Review. Retrieved April 5, 2011 from http://hbr.org/2011/01/column-the-persuasive-power-of-opportunity-costs/ar/1
Katz, D. (2002). Activity-based costing (ABC). CFO Magazine. Retrieved April 5, 2011 from http://www.cfo.com/article.cfm/3007694
McKinsey & Co.…
Banham, R. (2000). Off target? CFO Magazine. Retrieved April 5, 2011 from http://www.cfo.com/article.cfm/2990860/c_3046531?f=magazine_alsoinside
Frederick, S. (2011).
The persuasive power of opportunity costs. Harvard Business Review. Retrieved April 5, 2011 from http://hbr.org/2011/01/column-the-persuasive-power-of-opportunity-costs/ar/1
Katz, D. (2002). Activity-based costing (ABC). CFO Magazine. Retrieved April 5, 2011 from http://www.cfo.com/article.cfm/3007694
79 in 2003 to 7.27% in 2009. In addition, evenue Per Employee increased from $176,089 in 2003 to $192,618 in 2009. Wal-Mart has defined a series of internal strategies that allow them to capitalize on asset efficiencies and coordinate them to increase profits over the long-term. An example of this type of strategy is the reliance on continual supplier relationship management significantly improving the company's asset turnover from 10.38 in 2003 to 11.61 in 2009. Wal-Mart also relies on an intensive knowledge and information sharing network that includes pricing and sales uploads every night from each of their stores via satellite link. This data is then analyzed in the Bentonville, Arkansas headquarters and used for managing inventories, pricing, and suppliers more effectively than their competitors. This is also the factor leading to the company's higher inventory turns and more efficient use of assets as well.
Assessing the Price/Earnings atio
Chiou, L. "Empirical Analysis of Competition between Wal-Mart and Other Retail Channels." Journal of Economics & Management Strategy 18.2 (2009): 285.
Mya Frazier. "Marketing in Bentonville: Now it's serious. " Advertising Age 13 Feb. 2006: 34
Mottner, S., and S. Smith. "Wal-Mart: Supplier performance and market power " Journal of Business Research 62.5 (2009): 535.
Sodhi, M., and B. Son. "Supply-chain partnership performance. " Transportation Research. Part E, Logistics & Transportation Review 45.6 (2009): 937.
This is especially unusual given that the FedEx appears to be weathering the current economic crisis much better than UPS is. They have better control over their cost structure and have been able to reduce their debt. UPS, on the other hand, has more volatile earning and cost figures and has seen a dramatic increase in leverage in recent years. The most likely factor is that UPS pays a much higher dividend. This gives the impression of greater cash flow stability. Yet FedEx has enjoyed a steady rate of dividend increase (2 cents per year). That they do not pay as much as UPS reflects their youth but it is a fallacy to assume that FedEx's future cash flows are less certain. Indeed, their dividend rates going in to the future are entirely predictable.
Despite this, the market appears to prefer UPS' business model to that of FedEx. The latter…
FedEx financials and ratios from MSN Moneycentral. Retrieved May 2, 2009 from http://moneycentral.msn.com/investor/invsub/results/hilite.asp?Symbol=FDX
UPS financials and ratios fro MSN Moneycentral. Retrieved May 2, 2009 from http://moneycentral.msn.com/investor/invsub/results/hilite.asp?Symbol=UPS
Company profiles from MSN Moneycentral. Retrieved May 2, 2009 from http://moneycentral.msn.com/companyreport?Symbol=U.S.%3aFDX and http://moneycentral.msn.com/companyreport?Symbol=U.S.%3aUPS
S. In sales and innovation and quantity will likely continue to dominate sales as consumers seek cheaper alternatives, either in fuel economy or sticker price, especially in the wake of a downturn of the U.S. economy. It is clear that in the wake of change, and especially growth of competitive systems profitably tends to decrease in all traditional markets. ("Japan's Car Giants Escape" NA)
4.hich companies are likely to be most successful over the next 5 years?
Emerging markets, i.e. foreign competitors are likely to be most profitable over the next five years and in second any existing corporation who has foreseen the massive changes in auto manufacturing and implemented effective and economical models. hen discussing emerging markets one must also consider the fact that the traditional auto industry (mainly in the U.S.) has been historically resistant to the development of ecofriendly autos, short of developing a scrap/recycling industry that…
Bidwai, Praful. INDIA: "World's Cheapest Car Environmentally Costly," Jan 16, 2008 http://www.ipsnews.net/news.asp?idnews=40805.
Brown, Lester R. "Planning for the Eco-Economy." USA Today (Society for the Advancement of Education) Mar. 2002: 31.
Ealey, Lance a., and Luis Troyano-Bermudez. "The Automotive Industry: A 30,000-Mile Checkup." The McKinsey Quarterly (2000): 72.
Japan's Car Giants Escape Domestic Woes with New Assault on U.S. Market." Sunday Business (London, England) 12 Jan. 2003: NA.
This was able to guarantee the company a steady and sustainable growth, encouraging a constant profitability over this period of time.
Further more, the company is well-known for its principles of improving its performances and attempting to be more efficient in everything it does. Throughout its existence, the American retailer has focused on implementing information technology techniques in almost all its activities as the common belief was that automatization drives lower costs, lower prices, lower inventory, shorter delivery time and so on. Following these principles religiously, Wal-Mart has become one of the most efficient players in the entire American market, not just in its industry. Efficiency then was logically driving higher productivity rates and increased profitability for the shareholders.
Part D Company Report
The American retail market is dominated by 3 major players: Wal-Mart, Target and Kmart (see table 2). In 2005, the WalMart's market share was 8.82% increasing 0.2%…
WalMart 2006 Annual Report. On the company's website, last retrieved on September 2, 2007
Fortune 500 (2007), http://money.cnn.com/magazines/fortune/fortune500/2007/
Hale, T. (2004), "Understanding the Wal-Mart Shopper," Consumer Insight Magazine, http://www2.acnielsen.com/
Lehman Brothers (2002), "Wal-Mart Stores - it's All About the Lil' Smokies!," Global Equity Research, www.lehman.com
Dell was setting a very rapid pace of new product introductions during the period analyzed by the author and afterwards as well. The focus on just the direct channel and thoughts of disintermediating the indirect channels through their highly successful direct build-to-order model blinded Dell from the much larger and more diverse profit pool all channels could provide. Ignoring these market dynamics and believing the direct model was by far going to win the battle of channel models in the PC industry, Dell experienced exceptional declines immediately following this rapid run-up of growth. In the end, Dell chose to use the profit pool concept to gain an even greater insights into their customer base and was able to generate profits 3 times higher than industry average (Gadiesh, Gilbert, 1998). Dell recovered form a potentially disastrous situation by using the profit pool concept effectively.
There is also the example of how…
Gadiesh, O., & Gilbert, J.L. (1998, Profit pools: A fresh look at strategy. Harvard Business Review, 76(3), 139-142+.
financial statements Hawaiian Airlines 3 years. Access information contained Hawaiian Airlines balance sheet income statement calculate: • Liquidity ratios o Current ratio o Acid-test, quick, ratio o eceivables turnover o Inventory turnover • Profitability ratios o Asset turnover o Profit margin o eturn assets o eturn common stockholders' equity • Solvency ratios o Debt total assets o Times interest earned Show calculations ratio
Hawaiian Airlines Financial Analysis
Hawaiian Airlines is a relatively small airline operator at a global level, being the 11th by size in its own country. Still, the notable element about the company is that it is the flag carrier, which virtually means that the company receives governmental support in order to conduct its operations (Bennett, 2006). Hawaiian Airlines is an integrant party of the larger company Hawaiian Holdings, which has placed itself within the market as the company ensuring a quick access to a good time in…
Bennett, S. (2006). A sociology of commercial flight crew. Ashgate Publishing
Cento, A. (2008). The airline industry: challenges in the 21st century. Springer (2012). Investopedia. http://www.investopedia.com accessed on October 4, 2012
Website of Hawaiian Airlines, http://www.hawaiianairlines.com / accessed on October 4, 2012
Black & Decker
Since the merger with Stanley, Black and Decker has seen a steady increase in its revenues, gross profit and net income. The different elements of the new company are still being integrated, underperforming divisions are being shed, and synergies between the different components are still being developed. As the company continues to make internal improvements, it can expect that it will continue to grow both its top and bottom lines. It is reasonable to expect that over the next 2-3 years, ongoing internal improvements will help to improve margins, all other factors being equal. The post-merger improvements in the percentage of SGA expenses to revenue should continue in the short-run, albeit at a slower pace. Likewise, internal factors are likely to be responsible for at least a modest growth in income, as marketing synergies in particular emerge.
External factors are also critical to the forecast. The…
Schurr, L. (2013) Home prices see best yearly gain since 2006. Reuters. Retrieved January 29, 2013 from http://www.reuters.com/article/2013/01/29/us-usa-economy-homes-index-idUSBRE90S0JZ20130129
Financial Analysis of Bestwish Limited
Bestwish Limited produces extensive range of quality products such as gift dressing, greetings cards, and plush merchandise of more than 50,000 stocks. The production of different categories of products involve between 2 and 15 processes. The company produces standardized products and custom designed products ordered from customers on contract basis. However, Bestwish Limited is facing challenges to control the costs because of varying production process, reliance on indirect costs and large number of stock keeping units.
Bestwish Limited has just closed the 2010 fiscal year account and the company is finalizing the 2011 budget. Bestwish intends to analyze the 2010 financial statement to present the accurate picture of the company financial performances.
Objective of this report is to analyze 2010 financial statements to assess the viability of Bestwish Limited.
Audit Committee of the Board
Subject: Financial statement Analysis
Drury, C. (2009). Management Accounting for Business, 4th Edition (Cengage Learning EMEA, ) ISBN 1408017717.
Harris, R. And Sollis, R. (2003).Applied Time Series Modelling and Forecasting (John Wiley and Sons) ISBN 0470844434
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The Times 100, (2012). Financial statements and reporting A Cadbury Schweppes case study. The Times 100 Business Case Studies.
Holistic elationship Marketing
elationship marketing is one of the fastest growing research topics in business and marketing today. The premise of relationship marketing is very broad and includes or should include external and internal relationship building as a reciprocal factor for firm success. Successful relationship marketing, according to the literature, results in high productivity, high employee and customer satisfaction, low employee and customer attrition and ultimately high profitability and success. According to businessdictionary.com relationship marketing is defined as: Marketing activities that are aimed at developing and managing trusting and long-term relationships with larger customers. In relationship marketing, customer profile, buying patterns, and history of contacts are maintained in a sales database, and an account executive is assigned to one or more major customers to fulfill their needs and maintain the relationship (n.d.) Yet, fundamentally, this definition of relationship marketing (M) demonstrates only one aspect of its purpose, which…
Ballantyne, D. (1997) Internal networks for internal marketing. Journal of Marketing Management, 13, 343-366.
Ballantyne, D (2000) Internal relationship marketing: a strategy for knowledge renewal. The International Journal of Bank Marketing 18 (6) 274-286.
Barry, J., Weinstein, A. (2009) Business psychographics revisited: from segmentation theory to successful marketing practice. Journal of Marketing Management. 25(3-4) 315-340. doi:10.1362/026725709X429773
Durkin, M. Bennett, H. (1999) Employee commitment in retail banking: identifying and exploring hidden dangers. The International Journal of Bank Marketing 17(3)124-137.
New Car Rental Property Proposal
Despite the proliferation of ride-sharing services such as Lyft and Uber, the rental car industry continues to thrive, with average fleet sizes and revenues experiencing significant increases since 2015 (2016 U.S. car rental market, 2017). One market location that is well positioned for a new non-franchise car rental enterprise is Oklahoma City, Oklahoma (OKC) which hosts a world-class international airport, the Will Rogers World Airport, located just 6 miles from the city's downtown. This paper provides an overview of the U.S. car rental market and a description of the basic business model that will be used by the new car rental enterprise which will be known as Stardust Car Rentals. In addition, a description of four performance measures, data collection methods and how the data will be used is followed by an outline and analysis of two cost-benefit decisions that will have to be considered.…
Based upon the fact the baby boomers are all approaching retirement age, it would be a good idea for the organization to pursue programs that are geared towards seniors. Programs that are geared towards seniors are a great way to produce quality comprehensive health care for those in the community that need it. The organization might pursue the idea of opening a PACE program. " The Program of All-Inclusive Care for the Elderly (PACE) is a capitated benefit authorized by the Balanced Budget Act of 1997 (BBA) that features a comprehensive service delivery system and integrated Medicare and Medicaid financing" (Program of All Inclusive Care for the Elderly (PACE), 2009). The PACE program features complete medical and social services that rely on an interdisciplinary team approach in an adult day health center that includes in-home and referral services depending on the person's needs (Program of All Inclusive Care for the…
Baker, J. Judith & Baker, R.W. (2006). Healthcare Finance, Basic Tools for Nonfinancial
Managers. Maryland: Aspen Publications, Inc.
Bury, Elizabeth, Carter, Kara S., Feigelman, Masha and Grant, Jennifer M. (n.d.). Retrieved June
2, 2009, from Web site:
And many have got successful too in earning the market share. The emerging competition by new companies is a growing threat for the company and it should be tackled properly to avoid any future disturbances.
In order to further describe the competition Southwest Airlines is facing a Competitive Profile Matrix is designed. The following Competitive Profile Matrix tells about the tough competitors which are in a good position to have an edge over Southwest Airlines. It tells about the strengths and weaknesses of other competitors in contrast with Southwest Airlines.
Factors Weight Southwest Airlines United Airlines Delta Airlines Ratings Score
Score 1. Low fares.15 4.60 3.50 4.60 2. Customer Service.15 2.30 4.60 3.50 3. Employee Relations.15 4.60 3.50 3.50 4. Rate of Expansion.10 2.20. 4.50 4.50 5. Marketing.15 4.60 4.50 4.50 6. Finance Structure.15 4.40 4.40 4.40 7. Management Policies.15 4.60 4.60 2.20
EXTERNAL FACTOR EVALUATION MATRIX
Gittell, Jody Hoffer. The Southwest Airlines Way Using the Power of Relationships to Achieve High Performance. New York: McGraw-Hill, 2003.
More City Pairs Await Southwest - Kelleher Says Opportunities Remain Using Airline's Formula." Aviation Week & Space Technology. 143. 6 (1995): 40.
A www.marketingmix.com.au / www.mcdonalds.com / www.bbc.co.uk
financial analysis we need to consider. First of all, an overview of the main financial ratio, with their meaning and a keen evaluation of their score. Second of all, a progressive analysis, which would refer to the way these financial ratios have evolved in the four-year period we are looking at. The latter will allows us to draw relevant conclusions as to the performance of the management team.
The profitability ratios are best to show how well the company is actually performing. If we look at St. Mary's profitability indicators, all three of them have shown remarkable progress in the last four years and all of them have positive figures in the present. The return on equity indicator, for example, estimates the return rate for the stockholders. While ROE was - 69.92% in 1990, which meant that the stockholders were retrieving much less than they had invested, in 1993, ROE…
1. Halpern, Paul. Weston, Fred. Brigham, Eugene. Canadian Managerial Finance. Harcourt Brace & Company. Fourth Edition. 1994.
The combination of these four tools can also serve as the foundation for frameworks to define the future direction of product strategies as well. Once the extent of causality is established between products, price and interpolated for markets using the State Gap and Trend Analysis, more effective pricing models can be created that provide more granular feedback on pricing elasticity (Bryan, osen, Marland, 1980). Using these techniques a company can then define product lifecycle-based strategies for managing pricing over the long-term, optimizing profitability in the process (McCue, 1993).
Combining these four analytical tools together can also quantify the overall size of market windows with much greater accuracy and precision than any of them acting in isolation can. Companies in very high churn business models including disk drives and other commodity-driven components can only partially be effective in the strategies without using these four tools in conjunction with each other. Using…
Bryan, N.S., Rosen, J.J., & Marland, N.T. (1980). A new life-cycle cost model: Flexible, interactive, and conversational. Defense Management Journal, 16(3), 2-2.
Griffin, M. (2002). Extreme programming: An alternative life cycle model part 2. Information Executive, 6(6), 8-8.
Meade, N., & Islam, T. (1998). Technological forecasting -- model selection, model stability, and combining models. Management Science, 44(8), 1115-1130.
Metcalfe, D. (2000). Rethinking pareto-efficiency and joint feasibility. Negotiation Journal, 16(1), 29-33.
The four financial statements are the balance sheet, income statement, statement of cash flow, and statement of owner's equity. Briefly, the balance sheet is comparison of assets to liabilities and equity. This statement is indicative of a company's position at a specific time. The income statement is a record of a company's operations over a given period of time. It shows a company's expenses, losses and revenues and is indicative of the company's net income during that period of time. The statement of cash flows is intended to provide information about a company's cash receipts and cash payments for operations, investments and financing during an accounting period. Finally, the statement of owner's equity is intended to show changes in owner's or shareholder's equity from one fiscal year to the next. Owner contributions and any additional capitol, such as the sale of new shares, are added to the equity,…
Kurtz, D.L. (2010). Contemporary Business, 13th ed. Hoboken, NJ: John Wiley & Sons Inc.
U.S. Security and Exchange Commission. (2007, February 5). Beginner's guide to financial statements. U.S. security and exchange commission. Retrieved August 24, 2012, from http://www.sec.gov/investor/pubs/begfinstmtguide.htm
"Uses of the income statement in financial accounting." (2010). Financial-accounting.us, Retrieved August 24, 2012, from http://www.albany.edu/news/pdf_files/impact_of_aging_excerpt.pdf
Orange Strategic Marketing Plan
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Based on the successful merger of Orange and T-Mobile, the company is one of the world's largest mobile operators and the second leading operator throughout Western Europe. The company has over 30M subscribers worldwide, with 10M on the more profitable and long-term post-paid plans and leads Europe with over 1.5M users subscribing to the GSM 3G speed class of performance (Orange Investor elations, 2012). As of January, 2012 the company and its subsidiaries operate in 25 nations worldwide and has an aggregator market share of 40.4% and one of the highest consistent Average evenue Per User (APU) levels of…
Andlauer, S. & Pouillot, D. 2011, "The Future of Telecoms - Strategies for 2020 (*)," Communications & Strategies,, no. 82, pp. 161-166,179,181.
Bacchiocchi, E., Florio, M. & Gambaro, M. 2011, "Telecom reforms in the EU: Prices and consumers satisfaction," Telecommunications Policy, vol. 35, no. 4, pp. 382-396.
Becerra, E.P. & Korgaonkar, P.K. 2011, "Effects of trust beliefs on consumers online intentions," European Journal of Marketing, vol. 45, no. 6, pp. 936-962.
Benzoni, L., Deffains, B., Nguyen, A.T. & Saleese, O. 2011, "Competitive Dynamics Between MNOs in the Mobile Telecommunications Single Market: Lessons from the U.S. Experience," Communications & Strategies,, no. 82, pp. 127-145,179-180,182.
Johnson & Johnson - a Quality Catastrophe
After 50?plus product recalls in 15 months, the $60 billion company is fighting to clear its once-trusted name
In the modern business world, management is often faced with a difficult challenge to find the right balance between short-term profitability and long-term sustainability. Given the intense pressure they face to increase profits and reduce costs, it is often the case that managers will sacrifice sustainability for profitability. This often results in a decrease in quality which can have long-term implications. In the case of Johnson & Johnson, it does not seem like a few managers have made errors on the side of short-term profitability. Rather this position has seemed to permeate much of the organizational culture. Not only does this deviate from the values that the company was founded on, but it also is having a significant detrimental effect on consumer perceptions…
Competitive Forces that Shape Strategy by Michael Porter
Michael Porter first published his article about his ideas regarding competitive forces in the Harvard Business Review in 1979. Since that time his ideas have become mainstream and a component of nearly every business curriculum available today. Porter rewrites his article on competitive forces every few years for the Harvard Business Review and provides updated content and new examples of how his model still applies to the modern business environment. The five forces that he includes in his model are (1) the barriers to entry in the industry; (2) the bargaining power of the suppliers; (3) the threat of any substitute products; (4) the bargaining power of buyers; and (5) the level of rivalry among companies within any given industry. When these forces are intense, it is argued that there is generally less room for profitability and the structure of the industry…
Firms may be successful by satisfying customer needs, but their ultimate accountability for financial performance is to the owners of the firm. Actions undertaken by quoted firm will usually have the direct, or indirect, aim of generating revenues and profits for the firm, and therefore the owners (Tarraf, 2012). When investors assess a potential investment they will look at the financial performance of a firm, assessing the past performance, with consideration of the way current and expected strategies will impact on the organizations performance, in the context of the expected macro-environmental conditions (Bodie, Kane, & Marcus, 2014). The investors will assess the share price of the firm, being more likely to make a purchase if they believe the value of the share is likely to increase with a significant amount of the assessment based on assessments of past performance (Hens & Rieger, 2016; Nellis & Parker, 2006). This…
It is worth noting that two economic consequences are likely to occur, particularly in the event of a V-shaped recovery. The first is that the Federal Reserve is going to wait to increase rates until the last possible moment, in the hopes of spurring greater investment and therefore job growth. This means that inflation is expected at some point this year. This inflation means that factor inputs will increase in cost. Larson can gain advantage over competitors if it can hold its wholesale cost stable in the face of an increase in the cost of factor inputs, since competitors may be forced to increase their prices. Careful control over its cost structure will allow Larson to do this while maintaining profitability.
Another potential economic consequence is a decline in the value of the Euro. Normally, Larson exporting products from America to Germany would be fairly easy given Germany's current account…
CNN. (2010). Battle for downtown Bangkok hits economy. CNN. Retrieved May 15, 2010 from http://edition.cnn.com/2010/Business/05/14/battle.bangkok.economy/index.html?hpt=T1
Kirschbaum, E. (2010). Euro in danger of becoming unstable. Reuters. Retrieved May 15, 2010 from http://www.reuters.com/article/idUSTRE6150N020100206
Federal Reserve Bank of New York. (2010). Federal funds data. Federal Reserve Bank of New York. Retrieved May 15, 2010 from http://www.newyorkfed.org/markets/omo/dmm/fedfundsdata.cfm
BEA (2010). Personal income and outlays, March 2010. Bureau of Economic Analysis. Retrieved May 15, 2010 from http://www.bea.gov/newsreleases/national/pi/pinewsrelease.htm
The industry average current ratio is 2.5 (MSN Moneycentral, 2009), so the Gap has less capacity to meet its current obligations than many of its peers. However, in the retail industry most firms have a large portion of their current assets tied up in inventory, which distorts the current ratio figures higher. The Gap's figure of 1.855 is strong and indicates that the company will have little difficulty in meeting its upcoming obligations.
Overall, the liquidity measures provide an indication of the company's short-term health. Low amounts of working capital or a poor current ratio can indicate that the firm is in short-term distress. The figures for the Gap in 2008 do not indicate a firm in financial distress. Rather, they indicate that the company will have little difficulty in meeting its upcoming financial obligations. The company has strong working capital figure and a high current ratio. The latter is…
The Gap Inc., 2008 Form 10-K. Retrieved August 17, 2009 from http://www.gapinc.com/public/Investors/inv_fin_sec_filings.htm
MSN Moneycentral: The Gap Inc. (2009). Retrieved August 20, 2009 from http://moneycentral.msn.com/investor/invsub/results/compare.asp?Page=ProfitMargins&Symbol=GPS