Chronology of Events 2/22/00: CalPERS identifies 10 underperforming companies that will serve as their primary focus for corporate governance activism for the 2000 proxy season. The Focus List is made up of two retail companies, JC Penney being one of them, a bank, and 7 other corporations. CalPERS has investments in more than 1600 US companies. The 10 included in the Focus List were selected due to their long term stock performance, corporate governance practices, and economic value added evaluations. JC Penney was named on this list for its disappointing stock price relative to the retail industry.
FJR has discussed the research with management and highly recommends that they do not open any new locations until further research has been done in other areas. It is very expensive and time consuming opening new locations and Kudler does not have the financial means to do so just yet. What Kudler Fine Foods needs to focus their attention on is other competitor in the market. They can offer coupons or special promotions towards maybe the first of the month which will attract consumers into purchasing more products because most consumers get paid at that time. Kudler will also advertise to the Asian community by having advertisements in their language.
The Union is supposed to help the economy, not take away businesses that will help it. Efforts made by the Union to keep Hostess and get a better pay and benefits for the workers were too expensive and not very reasonable. I think they should have tried to work out a better plan instead of making it practically impossible for Hostess to agree. Because Hostess went out of business, it will affect not only the lives of more than 18,500 workers, but it will also hurt the economy of the United
However, this situation would make the company incur more loss next year, which is about negative $ 293,586. In the mean time, Barb Shepard, the company’s owner, wants to sell the company soon, and she knows a purchase price would be determined by three main factors: the absolute level of profits, the rate of growth in profits, and future potential growth in the market. Barb Shepard also wants to reduce bank debts as soon as possible. Therefore, the company needs new strategic initiatives very much to improve operating profitability and move forward next year. Each of three vice presidents has rendered a separate and distinct strategic initiative, and they are “Introduce a new product”, “Increase promotion”, and “Raise prices and cut costs” respectively.
Capital Budget Recommendation Guillermo Furniture, based in Sonora, Mexico, specializes in handcrafted quality products. In the late 1990s Guillermo’s profits started to shrink because of increased competition and rising costs. Guillermo does not consider merging with a larger competitor a viable option, as this would take away time spent with his family. Confronted with business options that affect the future of the company, Guillermo Furniture must choose between upgrading to a high-tech computer controlled laser lathe and becoming more of a distribution network than a manufacturing company for a competitor (University of Phoenix, 2013). Capital budget techniques assists in recommending a course of action for Guillermo Furniture based on the presented data.
"Working Capital Management" Please respond to the following: Examine the key reasons why a business may not want to hold too much or too little working capital. Provide two (2) examples that illustrate the consequences of either situation. The right level of working capital depends on the industry and the particular circumstances of the business. For example, businesses that only sell services, and do not need to pay cash for inventory need a lower level of working capital. Businesses that take a substantial amount of time to make of sell a product will need a higher level of working capital.
Currently Competition Bikes purchases inventory for production the month before it goes to the production line. To ensure that inventory is being used in a smart way, the company should negotiate terms with fewer manufacturers to purchase materials on consignment. This would allow the materials to be stored at the manufacturing facility to be available on demand without the necessity of carrying that inventory in the books. The inventory would then be purchased and paid for at the time of use. This reduces the carrying costs of the inventory that is ordered as well as insuring that unused items are not held from month to month.
Threats One threat for Kudler Fine Foods is in the process of inventory management. Excess inventory will always be a concern because it represents how much money is being tied up in merchandise that is not moving or generating further income. This can also lead to many write-downs of merchandise. The solution would be to maintain adequate levels of inventory so that stock-outs do not occur more than a couple of times a year. Adjustments to stock levels should be made if it is needed.
Tootsie Roll Industries Inc. Loan Package In the current corporate arena, the steady decline of business has been evident with company closures, loss of jobs, and foreclosures on properties. For a business to survive in such a harsh environment, a sound business plan is necessary along with knowledge of the marketplace and the needs of consumers (The U.S. Small Business Administration, 2012). A company also needs to review operations to ensure its processes are efficient and cost effective. As a business expands and ages, it requires updating equipment that integrates advanced technology. The proposed plan for financing new equipment and technology will reduce costs, increase product gross margins, and maximize opportunities for dividends.
The main cost, in fact, will be the increased likelihood that early production of the product will increase the chance that it is not sold before its sell-by date in the supermarket. Similarly, if it under produces by 10 per cent, what will be the financial penalties? Here the costs are likely to be a reduction in potential revenue because the company’s brand was not available in the supermarket when customers wanted to purchase it. Going through these calculations gives the company an approximate idea of the cost of being wrong by 10 per cent. Now compare this with the cost of buying a sophisticated weather forecast.