Profitability ratios are one of the most frequently used in the financial ration analysis. We will use profitability ratios to determine Berry‟s Bug Blasters‟ bottom line, efficiency, and performance. This is done through analyzing asset turnovers, profit margin, Return on Assets, and Return on common stockholders‟ equity. Asset Ratio: determined by dividing sales revenue by total assets. In 2008, for every dollar of assets owned by Berry‟s Bug Blasters, they sold $1.68 worth of goods and services.
Kirkland is Costco’s house brand. Kirkland products are “designed to be of equal or better quality than national brands…” (Costco, 2010). Costco offers a rotating variety of products and limits that amount of products that every warehouse offers at any given time. According an study of Information resources Inc, a Chicago based marketing research firm, nearly 80% of US shoppers exhibit positive attitudes toward private label products. Therefore, no wonder Costco has created nearly 15 years ago its private label brand: Kirkland Signature™ with the idea of creating a “signature’ line of products.
Case 4 Competition among the North American Warehouse Clubs: Costco Wholesale vs. Sam’s Clubs vs. BJ’s Wholesale Overview In 2010, the nearly $125 billion discount warehouse and wholesale club segment of the North American retailing industry consisted of three principal competitors: Costco Wholesale, Sam’s Club (a Walmart subsidiary), and BJ’s Wholesale Club. Warehouse clubs operated no-frills, self-service big-box facilities where customers could choose from a relatively narrow assortment of discount-priced merchandise across a wide range of product categories, including food and household supplies, electronics, office supplies, selected appliances and furniture items, apparel, books and DVDs, home furnishings, and tires. Items were typically sold in case lots (cleaning supplies, paper products, office supplies, soft drinks, bottled waters); packaged in large containers (laundry detergents); shrink-wrapped in quantities of 6, 8, or 12 (canned goods); bundled in cartons of 100 or more (trash bags, paper plates, disposable cups), or giant-sized bags (potato chips, pretzels). In order to achieve high sales volumes and rapid inventory turnover, warehouse clubs generally limited merchandise selections to brand-name items that were leaders in their categories and an assortment of private-label items. Warehouse clubs drew customers away from other wholesale and retail outlets such as supermarkets, department stores, drugstores, office supply stores, consumer electronics stores, and automotive stores chiefly because it was difficult for such sellers to match the low prices of a wholesale club.
Local firms typically have one or two offices, include only one CPA or a few CPAs as partners, and serve clients in a single city or area. These firms often emphasize income tax, consulting, and accounting services (Whittington, p 20). Many local firms have become regional firms by opening additional offices in neighboring cities or states and increasing the number of professional staff. Merging with other local firms is often a route to regional status. This growth is often accompanied by an increase in the amount of auditing as compared to other services (Whittington, p 20).
* Manufactures insulated and non-insulated steel doors. * 70% of sales comes from exclusive dealers * Therefore 30% of sales came from non-exclusive dealers Competition * Competitors include Clopay Corporation, Overhead Door Corporation, Wayne-Dalton Corporation, Amarr Garage Doors, and Roynor Garage Doors. * Home Depot, Menards, and Lowe’s Companies sell competitor brands in their stores * Palladium Door, Inc. is one of the smaller regional garage door manufacturers in the industry Assumptions: 1. Sales for Palladium will increase by 36% in 2004 2. Total sales for Palladium will equal $12.5 million in 2004 3.
Second only to Wal-Mart, Target has become the most profitable store in the Dayton Hudson Corporation that as of August 2000, Dayton Hudson was renamed Target Corporation. There are many internal and external factors that affect how Target implements the four functions of management. This paper is going to show and detail planning, organizing, leading and controlling and how such things as globalization, technology, innovation, diversity and ethics factors into Target Corporations business. When it comes to the globalization of Target Department stores, physically they have not gone global per say. Their stores are only located in the United States.
Walmart Stores Walmart operates various formats of discount department stores under 53 different banners in 15 countries, including Walmart, Sam’s Club, & Asda, and is the largest retailer in the world. As of Jul 31, 2011 the company operated 9,667 total stores including 3,822 Walmart U.S., 609 Sam’s Club, and 5.236 International locations. Demand Since the Price elasticity of demand for the type of walmart’s products is very high, Walmart always succeed to be an attractive substitute store by having the lower price. This allows it to have a shift of the demand to right. Annual Sales Data | | 2011 | 2010 | 2009 | 2008 | 2007 | Net Sales (1,000′s) | $ 418,952,000 | $ 405,132,000 | $ 401,087,000 | $ 373,321,000 | $ 344,759,000 | YoY % Chg | 3.4% | 1.0% | 7.4% | 8.3% | 11.6% | Same-Store Sales Chg | -0.6% | -0.8% | 3.5% | 1.6% | 2.0% | | Walmart reported net income of $3.80 billion ($1.09 Diluted EPS) for the second quarter ended Jul 31, a 6% increase from a year ago.
Merchandise has traveled from manufacturers to store who attempt to sell the items to customers (retailindustry.about.com, n.d.) Retailers are woven into the fabric of nations’ economy. They include department (Sears), discount (Walmart), specialty (GAP), and big box stores (Best Buy). The industry was the second largest employer in 2010 accounting for 12.1 % of all private sector jobs. There economic contribution including direct, indirect, and induced totaled 28.6 million jobs and $1.9 trillion of the gross domestic product (GDP) (rila.org,
S.W.O.T of PRIMARK Strengths • The company has over 161 stores around the country and of those 161 stores 125 are located in the UK. • It has an organised business structure providing its customers with what they want. • Primark offers job opportunities and employs over 27,000 people. • It offers high street quality clothes for cheap prices and quality services to attract its customers. • The company is part of the ETI (Ethical Trading Initiative) which focuses on worker’s rights, their production of goods and bringing businesses together to work on labour rights issues.
By 2009, L’Occitane had 1517 retail locations in more than 85 countries, of which 753 were self-owned. By 2015, it aimed to almost double its number of stores to 1,428, and needed €130 million for the same, €40 million for manufacturing facilities and €20 million for R&D. So to achieve its objectives, it needed to raise capital through IPOs like UC Rusal raised $21.5 billion in its IPO in 2010. Costs and disadvantages of doing IPO for L’Occitane: - Going public will lessen ownership share and thus, control of the owners. - L’Occitane will have to pay Underwriting fees for doing IPO. - It will have to incur legal, accounting, and marketing costs including costs associated with auditing, reporting and complying with exchange regulations.