Of course, this is not the case. These companies are for-profit companies with nothing but profit and the bottom line in mind. The amount of profit depends on how much the contract pays as opposed to how much of that money is spent on salaries, facilities, security, and training. The less output, the greater the profit. Governments have always justified such contracting as a means of saving taxpayer dollars and private prisons have historically been able to operate on less money thus saving taxpayer dollars.
They are trying to create a cost-based competitive advantage by having cheaper prices on their high-quality jewelry compared to traditional retailers. 3. What do you like and dislike about Blue Nile’s business model? I like Blue Nile carrying a low amount of inventory. By not buying a gem from a supplier until a customer purchases it, it strongly limits the amount of risk and cash tied up at any point.
Walmart sells many items at ridiculously low prices. They are able to offer low prices on their items due to an incredible mark-up on imported products. Especially in today's economy, the buck is the big winner. Everyone wants to save money, and they can do that by shopping at Walmart, where many items are the lowest price in town, even if it's only by a few pennies. But consumers aren't helping their fellow countryman earn his own living by buying these imported items.
PepsiCo has shown the best current ratio and is able to pay off their debts, which Coca-Cola does not have that and is struggling to pay off their debts. However, Coca-Cola has a higher retained earnings percentage, which means that it is able to have funds available for future growth of the company. The hope for both companies is to provide their financial statement with better information presented over their competitor giving the ability to earn more investors. PepsiCo and Coca-Cola do not need to be at war with each other as they have what it takes to get people to use both products, no matter what. Keep in mind, that it is the people’s choice whether or not to support a company and decide whether to invest in the company not competing against each
In the short run, Kudler was able to maximize its profits and minimized losses. They were making profits because they were producing quantity where marginal revenue was equal to marginal cost and charged prices based on their demand curve. The demand for their goods was very high at first because they had little competition. Another positive effect of a monopolistic competition is that it promotes product variety and improvement. When Kudler makes business improvements, it causes their competitors to either imitate them or get out of the business.
Bonds are not better than GIC(s). Bonds offer lower interest rate, so low that it is better to just invest our money in a TD Savings Account. Mostly investors do not even consider Bonds as there more much better investment opportunities. GIC(s) offer more interest rates, more options and so there is more demand for GIC(s). 7) What is the most popular age group for buying GICs?
A rising ROE suggests that a company is increasing its ability to generate profit without needing as much capital. It also indicates how well a company's management is deploying the shareholders' capital. In other words, the higher the ROE the better. Falling ROE is usually a problem. CAGR: Operating income, % Operating income (EBIT) measures a company's earning power from ongoing operations and it largely used by investor because it excludes the effects of different capital structures and tax rates used in different companies.
Another reason people like to defend Wal-Mart is because they have better prices than most everyone else which is easier on peoples wallets. Wal-Mart has become such a household name that most people will shop there without checking out other business when they realistically could be spending a little extra pocket change and helping their economy and help control this giant corporation. The savings people get are on account of cheap foreign goods that aren’t as good as American goods and people don’t realize it because they just remember the good deals. In my opinion there aren’t any other reasons to defend
The following five force analysis reveals the medium to low industry attractiveness. The Threat of Entry – There is no effective entry barrier in this industry, so the threat of new entry will be quite high. There is no technology proprietary and the learning curve as a barrier of entry also has minimal effect. It’s true that firms operate over long time can reduce the cost by increasing efficiency, but efficiency is not the only cost driver in this industry and will not significantly concern the new comers. The Threat of Rivalry – The threat of rivalry is very high.
Although BKI is a successful company, the CEO is being challenged with the decision to implement a new capital structure that would be best for the family company. Currently, they have no debt. Only twice in the past has the firm borrowed a substantial amount of money; both times, BKI paid off the debt as quickly as possible. The plan being proposed is to use $209 million of cash and $50 million in new interest-bearing debt at the rate of 6.75% to repurchase 14 million shares at a price of $18.50 per share. Under the proposed capital structure change, the value of the firm would increase, which would also increase shareholders’ value.