Developing Good Business Sense Bus/210 09/18/2011 Marianne Bowen Developing Good Business Sense Regis Hair Salon, Red Lobster and Subway are three businesses that have seen success through the years. How have they achieved success? Their success has been achieved by controlling their operations and materials management activities (OMM). What is OMM? An operating system is the value creating activities that convert a company’s input into finished goods and services.
Our selection process is based on the fact that the combined companies of InterClean and EnviroTech are a mature entity. Mature organizations emphasize the maintenance of market share, cost reductions through economies of scale, more rigid management controls over workers' actions, and the generation of cash to develop new product lines (Cascio, 2005). Overall, our goal over the next several years is to capture the all inclusive government cleaning services and solutions market to expand our business and increase our sales. We will do this by maintaining a well trained diverse sales team, educating our customers, and offering the best and most streamlined customized cleaning
Running head: COSTING METHODS PAPER Costing Methods Paper Jane Doe University of Phoenix Accounting ACC/561 Barbara Kantor November 27, 2012 Costing Methods Paper Super Bakery, Inc. was founded by Franco Harris, formerly of the Pittsburgh Steelers, in 1990. The corporation supplies healthy, vitamin enriched doughnuts and other baked goods, out of an initial desire to make a difference in the institutional food market by targeting school systems nationwide (Kimmel, 2009). While, the company experiences positive growth since its inception, Super Bakery is at the point where it needs to explore a costing system that can establish a more accurate product costing method that can, at minimum, improve control of overhead costs. What strategies did the management of Super Bakery, Inc. use? Formed as a virtual corporation, Super Bakery designed a business model that performs key strategic planning and business functions in-house while outsourcing all manufacturing components as a cost reductions strategy.
Income Statement 1. Net Sales a. Net sales increased from year 6 to year 7 by a total of $1,495,000. This translates to net sales being 33.3% higher in year 7 than year 8. The change in net sales indicates a growing company with major successes.
The net sales also increased from year 14 to year 17 ending at $7,115,112. This showed to be very profitable with trend percentages at 103.7%. A2) There are certain risks a banker might be concerned with. Over the years the advertising expenses have increased from $243,000 to $255,600. The increase in advertising can be helping with increase in net sales which has also increased from 46,520,500 in year 12 to $6,858,600 in year 14.
In the event that the sales increase, the organization will create additional working capital, and can undoubtedly accomplish its yearly objectives. As stated by the organization's profit and loss statement, the organization must control its overhead costs and lessen its selling expenditures. After forecasting the five years sales there is an increase in sales from 15%, 10%, 25% and 50%. The gross profit will also increase every year from $697,428 to
The company's gross margins went up by 126 basis points, to 29.7%, mainly because of better inventory management and a change in the product mix and selling and administration expenses range in at $274.4 million. Earnings before interest and taxes were up by 89%, to $71.6 million, and EBIT margins were up by a significant 340 basis points, to 6.1%. The company's net income also followed suit and soared by an amazing 146%, to $41.5 million, although it was slightly offset by higher
Looking at the data net sales increased over the five period from $2,097,000.00 to $5,218,007.04 increase $3,121.007. Totaling gross profit went from 816,000.00 to $2,030,469.12 increase of $1,214,469.10. In the above pro forma balance sheet, it has been established that one has assumed that current gross profit has increased in the ratio of gross profits. A reduction in any of the following selling expenses or administration expense will allow the company to retain more of its earnings and profit margin, and therefore will increase its need for external funding. The dividend disbursement rate is 25 percent of earnings, and the balance in retained earnings at the end of 2012 was $1,436,833.09.
3) Make sure you build upon your successes. The company noticed such great success after top executives met customers in person that they added travel funds this year to send salespeople into the field on a regular
FINANCIAL ANALYSIS Financial accounting I Kovalenko Katerina WIUU, MBA, # 869 KieV 2012 Macy’s, Inc. Macy’s, established in 1858, is the Great American Department Store with fiscal 2011 sales of $26.4 billion— an iconic retailing brand with more than 800 stores operating coast-to-coast and online at macys.com. Macy’s offers powerful assortments and the best brands, tailored to each and every customer with obvious value, engaging service and unforgettable moments. Fiscal 2011 was the third consecutive year of significantly improved financial performance at Macy’s, Inc., and it is very proud of the sustained positive momentum in the company. What we are seeing emerge at Macy’s, Inc. is the result of the culture of growth