“D’ Roulhac Custom Baskets financial goal is to obtain a moderate percentage of the industry market share locally. Another goal is to branch out nationally and secure a larger percentage of the market share. To accomplish this, the company will need to institute low cost initiatives such as reducing the cost of capital in relation to that of competitors and industry. Additionally, “D’ Roulhac Custom Baskets will need to leverage its position; use alternate financial strategies such as sale and leaseback options on the building and equipment (Pearce & Robinson, 2004). “D’ Roulhac Custom Baskets expects to have a two to six percent increase in return on capital investments over the next three years.
This will show us how much customers like our product and if our performance and size fit their preferences. Another estimate that we could have is by multiplying the growth rate by the current unit demand of a segment and then multiply this answer by our current market share. This will give us an estimate according to the increase demand of the population who are interested in this market. Finally, our last strategy was the market share report in the Capstone courier, which we considered our best strategy since it is the most detailed and accurate one. This strategy is more accurate because it shows us in cases where a product stocked out, how much it would have sold since this affects all of the competitors sales for next year.
Following his clients investment requirements, Angus will advise Judy to purchase Allison Green and 900 Stony Walk because these two properties have the highest NPVs of the four investments, $734,290 and $699,520, respectively (see Exhibit 6: Financial Analysis). As seen in Exhibit 6, both Ivy Terrace and The Fowler Building have a slightly higher IRR; however, NPV is the best determinant of a projects projected value. By investing in two properties, as opposed to only one, Judy will be better diversified and may receive decreased management fees resulting from increased economies of scale. Also, these two particular properties, with one being a residential property and the other a commercial property, benefit from even greater diversification than if Judy had, for example, invested in Allison Green and Ivy Terrace. Since we are not provided any information regarding Judy’s risk tolerance, I assumed that she will be risk averse because this is her first time investing in real estate.
Patrick O’Leary Chapter 3-4 September 6, 2012 Page 84 Question 5 “Chapter 3” Having a strong financial strength for a company creates more opportunities for one’s company. This would give the company an advantage over their competitors. When getting started with a company it is required to take large amounts of capital. If a company wants to be ahead of its compactors the company wants a strong marketing approach, great production facilities, or advertising before the company makes its first sale. An example of this is the company Dick Sporting Goods.
Business Model and Strategic Plan Part III: Balanced Scorecard and Communication Plan NAME BUS/475 Integrated Business Topics DATE Dr. Steven Verrone The Balanced Scorecard As is highlighted by The Balanced Scorecard Institute (2015) “The balanced scorecard is a strategic planning and management system that is used extensively in business and industry, government, and nonprofit organizations worldwide to align business activities to the vision and strategy of the organization, improve internal and external communications, and monitor organization performance against strategic goals” (Balanced Scorecard Basics, pg). A balanced scorecard takes into account traditional financial measures while also providing guidance to steps necessary to create future value through investments in customers, suppliers, employees, processes, technology, and innovation (The Balanced Scorecard Institute, 2015). Balanced Scorecard for Regions Financial Corporation – All-In-One Mortgage Service | Strategy | | Objectives | Metrics for each objective | Targets for each metric | Initiatives for each target | Financial | * Increase market share * Increase profitability * Increase annual revenue | * Increase in number of clients * Increase the visibility of the branded content * Grow the company’s revenue | * Increase the number of clients by 4% in the next 2 years * Visibility to grow by 12% within the next year * 18% increase in the company’s revenue within the next year | * Increase advertising of the All-In-One Mortgage * Increase the online campaign of All-In-One Mortgage * Lower the fees involved in getting the All-In-One mortgage to increase the client base | Customer | * Satisfy customer needs * Increase customer value * Customer retention | * Engage the customers to understand their needs * Offer the All-In-One Mortgage
These strategies if used by Company G are the best mix to achieve their objectives because they allow Company G to maximize its profit while supporting the mission statement. The remote control features of the product combined with the variety of colors available and the convenience of not having to place the product near an outlet provide unique high-quality features that will best allow Company G to achieve its goal of increasing its revenue by 25% over the next three years. Using the previously stated price strategies will help Company G sell higher amounts of the product to big retailers at a competitive price, best equipping the company to reach a breakeven point by the second year. By using the place strategies stated earlier Company G will have a fast delivery cycle and get its new product out to more stores enabling them to have the product available in most major retail stores within a few months, and by using these promotion strategies of advertising on television as well as the internet they are best able to increase product awareness among the target audience by at least 30 percent in one
II. Case Problem / Opportunity: (Identify case objective and obstacle) a) The company’s objective is to increase sales revenue ($4 million) and broaden their position in the US National Market. The contract offered by the mass-merchandise department store would enable this objective to be met. b) The company’s problem is that by accepting the contract, replica production would be tripled and they may lose their reputation (brand image) as a reputable authentic supplier. a.
While this target is within reason, it also can be construed as aggressive considering the company’s liquidity concerns and target for a one year ROI. As such, I have illustrated a suite of options/recommendations below. Analysis Option 1 – Aggressive Growth Given the 11.4% requirement (above 10% anticipated figure from other statistical work), pursuing the expansion into all 5 new locations would yield a strong return, but requires a significant financial investment and has a greater likelihood of not achieving the 1 year ROI. However, the blitz marketing could result in first mover advantage and with the correct talent acquisition on the sales and management team achieving 11.4% is not unrealistic either. Pros | Cons | First mover advantage | Potential for longer than 1 year ROI | Blitz Marketing | Significant investment (finances and people) | Talent Acquisition & Growth Opportunity | Talent Sourcing Challenge | Greater Risk = Greater Reward | Greater Risk | Option 2 – Moderate Growth An option could also be to explore opening 3 or 4 locations rather than all 5.
The sustainability for Rolls Royces plans for expansion can be assesed by wether or not their expansion will be able to assist the companies economic standing in the long run and wether or not the businesses expensees in the expansion will result in a financial gain for the business as oposed to a loss. Several segments of the businesses accounts such as the balance sheet illustrate wether or not the business will be able to cope with its plans for expansion in the long term. One of the most prodominant factors influencing Rolls Royces decision to expand the business would be due to the increased demand and growth for their product range in international markets which is illustrated by their increase of sales growth in these regions with China increasing by 11% and with the Middle East increasing by 17% , as well as reaching an all time sales high of 3,630 cars in 2013. This indicates that their is a growing global market and want for cars produced by Rolls Royce and in the high end car market , therefore Rolls Royce will want to try and expand their business and their production in order to try and cater towards this market as this will further result in increased revenues and will also assist the competitivness of the business. The gearing of Rolls Royce can give us an insight into how well they well be able to financially cope with the expansion and wether or not it will be capable of doing so.
* A business should focus on increasing strategic advantages. Back then, the main goal of a business was to make a good profit, but today in addition to making a profit, companies pay more attention on ‘time to market’. Project management helps in shortening the product life cycle which makes it an important force of modern business. A product life cycle of 10 to 15 years those days has been compressed to a life cycle of 1 to 3 years. It is said that a delay of 6 months in a project can cause a loss of 33% in product revenue share.