One of our major goals this year is to avoid expenses. That is why there is a 10 percent reduction in personnel and administration cost. In order for us to be effective cost must be avoided. Advertising was not chosen due to the cap put onto the publications/public information expenses. We cannot afford and will not be approved for extra advertising without research that proves that this advertising will increase revenues more than the cost.
Since the 4.5 million is just an expected amount of fuel, J&L cannot achieve a perfect hedge in the future. They should estimate the accurate demand for fuel next year. 2. What are the pros and cons of using NYMEX contracts versus using the risk-management products offered by Continental Bank? Is the use of a monthly average price a net advantage or disadvantage to J & L?
Brief Case: Reliance Baking Soda Situation Analysis: Reliance Baking Soda is an established mature product that is common in households. The product is sold through several types of retailers and is often sold through promotions at both the consumer and trade level. As the year 2008 quickly approaches the domestic brand director is tasked to increase profits by 10% before SGA, overhead, and taxes in order to fund the launch of two new high priority products by 2008. Problem Definition: Baking soda is a boring product that has low turnover. Furthermore the brand has the current advertising campaign emphasizing on different ways to use baking soda can be assumed to not be very effective since advertising recollection is low.
Food and snacks are normally sround $5-10, for example a Subway costs about $10.20 for a footlong sub. My Country … This year, Julia Gillard introduced ‘Carbon Tax’ something that would affect us and our finanial stability, as well as resource stability in the future. I don’t understand it fully, but I should probably look into it. My suburb is Rose Bay North, and to be honest, there isn’t much going on locally here, but the Carbon Tax is a huge issue for many Australians. Prices of houses in my area are around $2-3,000,000 for a house, and approximately $300-600,000 for an apartment
MONFORTE DAIRY Critical Issues In order to reach $2 million in annual sales in fiscal 2010 and position Monforte Dairy (Monforte) to become a $10 million revenue company while staying true to its values, Ruth Klahsen must determine: * How to reduce the accumulated financial debt, so that Monforte can reduce its high leverage and position itself for future expansion. * How to efficiently utilize production capacity, so that Monforte can capitalize on the anticipated growth in the artisanal cheese industry by meeting consumer demand. * How to effectively balance work and personal life, so that the most feasible growth option for Monforte can be implemented. Situation Analysis Monforte’s debt to equity ratio of 11.49 signifies that its assets are mainly financed with debt (Exhibit 2). With cash mainly coming from external financing activities rather then internal operations (Exhibit 3), Monforte will be unable to obtain financing from a bank for possible expansion opportunities.
As stated in extract 1, it tells us that the goods we import are not made in the UK and so makes it impossible to replace the imports, therefore meaning that we still have to import goods, despite the high prices due to the low exchange rate of sterling. This is partnered with the fact that some suppliers (shown in extract 1) have agreed long term supply contract with cheaper overseas suppliers before the depreciation of the sterling and so they are now paying high prices. This may mean that these suppliers may have to increase the prices of these goods, therefore leading to cost push inflation due to trying to maintain a decent profit margin in the hope the demand for the good does not drop dramatically. However, it is stated that there still may be a large price differential with countries such as China and India, even after sterling's depreciation. On the other hand however, as stated in extract 1, line 8, volume of good imported has also increased by 16% and inflation has continued well above target.
If a new business opens and has one or both of these products in stock, we would likely lose potential customers. If they follow a similar marketing plan, we could lose our client referrals to a business with more diverse products. We’ve seen tremendous growth this year, going from taking a $4000 loss in the first year, to a $30,000 profit this year. These risks are most likely not detrimental to our business, but could prevent a profit decrease due to
Assignment for “The Super Project” Case Questions for Case Analysis: 1. What are the relevant cash flows for General Foods to use in evaluating the Super Project? In particular, how should management deal with the issues such as: * Test-market expense? * This expense is much more important than a mere number of 360k because this is what has indicated the potential of the Super that it would capture 10% of the entire product market out of which 80% is from growth and 20% from erosion. Since this market test indicates that the powder market is significantly increasing which cannot be ties to just super project as it also relates to Jell-o.
Bigelow appears to hold the key to the warehouse workforce’s productivity and few schemes to increase output will succeed without his blessings. Fosdick and Easter might also attempt to incorporate productivity measures into the distribution center’s next labor contract. 5. What longer range steps can Fosdick take to reduce the distribution center’s high rate of shrinkage? He needs to consult with Easter and a decision must be reaches as to how quickly and how forcefully the company is going to end the “free” lunch program, because that appears to be a main cause of the shrinkage.
Because Zespri’s is 100% grower-owned, its focus is on connecting the market with the growers ensuring the product is in the exact market at the exact time within each business exchange. Prior to Zespri, multiple exporters were competing to sell kiwifruit independently around the world. A large increase in crop volume meant that the overseas importers and retailers could put pressure on the industry to drive the prices right down, and in doing so, diminish the returns. As a result a decision was made to change from having a marketing board to having a corporate that would be responsible for the sales and marketing of the entire New Zealand crop. After the first exports to the UK in the 1950s, there was a focus on supplying to Europe and the United States (US).