The asset turnover will increase when their profit margin increases, the high profit margin is because they are currently expanding . 2. To a certain extent, the high level of popularity was from their effective market analysis. In 2012 superstyles spent 20% of their profits on marketing. Compared to the industry average superstyles spends 50% more on marketing, however I think it is very useful as they are expanding and don’t have the brand image and reputation yet.
Executive Summary As the biggest chain of company-owned and -operated budget motels in the United States, Motel 6 has a number of advantages that will provide continued success into its future in motel industry. Services is the biggest strength of the motel and is evidenced by the loyal customers. Motel 6’s profits have been fluctuating up and down between 3 to 4 percent of annual revenue per room since 1995, and the company expects that will be gradually increasing by entering the extended-stay market. The study of traditional budget motels were losing customers to extended-stay properties, and the growing acceptance of the extended-stay concept could make it easier for Motel 6 to enter the market. However, Motel 6 has some disadvantages.
Although Coach has seen their profit margins and market share grow exponentially, there are a few issues that should be addressed in order to sustain profitability in the long term. 1) Reliance on U.S. Sales In 2007, 76% percent of Coach Inc.’s sales came from the United States. Louis Vuitton, one of Coach’s main competitors, has a better distribution of their revenues geographically with only 26% coming from the U.S. market, 37% from Europe and 30% from Asia. With most of company sales concentrated in the U.S., Coach will have to depend on the domestic economy to remain stable, as a downturn could lead to American consumers
The second would be to hire a marketing expert to help increase the publicity of the bar. And lastly, the lounge could start to have weekly live entertainment from big name artists. Hiring a marketing expert to increase publicity and popularity is the recommendation. The best possible scenario is that the Chapters lounge would regain its popularity and the amount of guests will increase exponentially causing the amount of monthly revenue to go up by 88% in the first year. The worst scenario is that the publicity doesn’t help and people continue to go to the other bars and this would cause the revenue to keep dropping.
In the cruise industry, travellers can be divided into 7 segments according to their psychographic characteristics. 5 of them are desirable and we rank them as follows Priority | Customer Segment | Size(%) | Profitable | Growthpotential | Users Characteristics | 1 | Explorers | 20 | High | High | * Platinum customers (most profitable) * Not Time/money constrained * Have disposable income * Take longer/exotic and cultural learning cruises * High customer lifetime value (discount). Repeat customers in the future * Respond to marketing stimuli | 2 | Escapers | 30 | Medium/Low | Medium | * Gold customers – desirable and profitable * Core of the cruise market * Time constrained and price-sensitive | 3 | Marines | 10 | High/Medium | High | * Gold customers - young professionals * Always auditioning better ships, like outdoor activities (shore excursion) * Active ship design strategies and internet marketing target, media-involved | 3 | Admirals | 10 | Medium | Low | * Gold customers * Traditional, less risk taking, older and loyal * Not very likely to respond to marketing | 3 | Little Mermaids | 10 | High/Medium | Medium | * Gold customers (profitable) Upper-middle-class families * Time constrained * Family orientated and like leisure activities | 2. Segment selecting The strength of Royal Caribbean’s cruise business lies in contemporary/premium. Over 70 percent of its cruise
The overall fair value of the cruise and operating performance has being affected directly by the sudden presence of pirate’s in the area which the ship cruises. This increase of pirates has created a significant decline of the cruise value. This situations has concurred that Smooth Sailings annual operating cash flow have declined 30% to $1.0 million, and its annual operation cash flows are expected to continue this tendency to decline in the near future. Therefore Smooth Sailings management will evaluate different possibilities that could mold a better future for this cruise in 2011 and beyond. According to the information provided about this case; Smooth Sailings has to test their assets groups for recoverability and potential impairment as of the end of the current fiscal year.
FBN has made significant investments (property, plant and equipment) on account, thereby getting into financial trouble by owing their creditors quite a bit of money. FBN made too many investments (on account) and their cost of services increased faster than their sales. Yet another indicator of financial woes is the Profitability Analysis. By observing the Return on Assets, we can see that in two years, the ROA declined from 7.5% to 0%. Such a decline (and such a low percentage) indicates that management is not efficient in employing the company’s assets to make a profit.
However problems could quickly occur if the budget is not controlled and monitored effectively. Poor cash flow is extremely likely to bring the outcome in Debenhams not been able to shelter costs which may lead to bankruptcy; in a circumstance where a business has a poor cash flow produced by more outflows than inflows. In a case of poor cash flow due to poor budgeting, the business would have to lease the products and gather unresolved payments in order for the cash flow to recover. I would suggest for Debenhams to make better use of its premises. For example other stores have restaurants or cafes maybe they could add one to theirs to attract more customers and make more money.
Florida’s Palm Coast has nation’s biggest unemployment jump by Jeff Harrington for the St. Petersburg Times on January 5, 2010, reviews the statistics of Palm Coast. “Palm Coast, with an unemployment rate of 16.8 percent, is the largest city in Flagler County, which has the highest unemployment rate among any Florida county.” Palm Coast was once seen as the largest growing city in the nation because of the cheap homes and jobs that seemed enticing to Northerners. Too many people moving in at the same time meant a high demand for jobs that just weren’t
To expand alcohol consumption, lowering the drinking age would provide a huge economic boost in multiple ways. Since the economy is not doing very well, business profits are also suffering. Once the law changes, business incomes will increase significantly because more people in this country will be legally able to purchase alcohol. For instance, it will be helpful to the music industry. There will be more individuals attending bars, concerts, and shows that are required to be the legal age.