Another option for Bessemer is to change their dividend strategy entirely. Instead, they could favor a low regular dividend plus extras. This strategy has the most varied affect on the firm, ultimately depending on performance. In periods of low income, shareholders are still placated with the fixed payment, but the firm does not have to forgo investments to pay the special dividend. In those periods, shareholders
After reviewing all the five competitive forces, my analysis showed that the weakest of the fives forces is the threat of new entry’s despite the possibilities of selling of a good with a high contribution margin, it is very challenging and expensive to develop a new competitor that could go head to head with Blue Nile and make a profit, let alone survive the competition. Supplier power is a modest force due to the fact that Blue Nile depends on one of the thousands of diamond suppliers for the diamonds they use since they do not pay for a diamond unless it is ordered first by the customer. The reason why they are not too big of a force is because there are plenty of other suppliers to turn to. The top three suppliers accounted for only 24 percent of the company’s purchases in 2009. Another modest force is competition from rivals.
Should Mr. Jones convert Smithon to an S corporation and change the fiscal year end to a calendar year end? A: Converting Smithon to an S corporation has merit if the goal is for Smithon to remain controlled by a small number of shareholders. However, the equipment deductions for the corporation may be more valuable than it would be to Johnson personally. Either way, Smithon's value to Johnson will be the same, if he purchases Smithon outright. Changing to a calendar year end has little useful effect, and it requires that Smithon produce a short-year tax return from Dec to Jan, which is a relatively unnecessary administrative expense.
A monopoly is where you can set prices almost everywhere you want, and there is no other competition. This is referred to as predatory pricing, where companies charge a price lower than production costs. These companies believe their competitors can’t afford the loses. Cable companies don’t worry about competition due to the protection they enjoy from the government. The cable companies get away with this by claiming they do not have competition, cities award them the contract by providing coverage, even though they may not have the lowest price.
They would not be able to provide that exclusivity niche businesses can because they sell an array of niches instead of just one. Businesses like Urban Outfitters are niche businesses that sell a broad selection of unique products but only supply each store with a limited quantity to assure customers with being able to have that feeling of owning a one-of-a-kind piece. This increases their products demand and guarantees customers to have a differentiation. Businesses like Wal-Mart and Sears cannot project a counterculture image because producing merchandise in high volumes eliminates the exclusivity and uniqueness of the merchandise, which is what allures customers to the items Urban Outfitters, produces in the first place. Without that alluring feature of being “special” and everyone not having the item, the item may not even be successful.
If the company has low skilled employees than they will not be making the most out of their assets because there will be more wastage in production, this can result in an increase in the amount being able to provide to the public. If production levels fall then the company will make less money because they will not be able to see as much to the public as they could if they did have highly skilled workers. Therefore it is important to review the workforce plan constantly to understand when more highly skilled workers will be needed. External The fact that the current market has a global shortage of mining professionals does cause a problem to the company’s long term projects. This is because the company will need highly skilled workers to maximise production without a large range to choose from.
They normally have a strict 7-day return policy and you cannot return it once the deadline is passed or without the receipt. Most of those stores are self-service, where as no or limited sales associates will offer help due to limited resources. One factor that makes Nordstrom different than the other stores is they are willing to spend more on their clients, rather than making profits. I am not saying that Nordstrom does not care about their profit, but just not as much as they care about customer’s satisfaction. They believe customer is a valuable asset to their company and they are willing to make less money from products in order to build a relationship with clients, so they will come back to the store again in the future.
The SOX also calls for additional audits which increase business costs. If a business has increased costs and expenses due to the abidance of the SOX, it will most likely take money from other aspects of the business which can negatively impact the investors. The effectiveness of the SOX is debated by the advantages versus the disadvantages that companies and investors face. De Vay (2006) stated that, “The majority of the survey respondents feel that the benefits of
MLBAM buyer power is low since there are only a few sites that offer this type of service and MLBAM is the first to market. MLBAM supplier power is high since the players are unionized and frequently go on strike if they do not get their demands met. MLBAM could implement switching costs and loyalty programs to reduce buyer power. They could also created entry barriers thereby reducing the threat of new entrants and increased efficiencies while seeking a competitive advantage through cost leadership. One of the
Big corporations do not have to absorb the cost of minimum wage increases because most minimum-wage jobs are offered by small businesses b. The minimum wage directly affects small businesses because a large amount of their earnings go directly to pay for operating expenses, such as equipment, supplies, lease or mortgage, credit lines, inventory and employee wages and benefits 2. Serves as a deterrent for new entrepreneurial ventures a. The costs are too high for new businesses to risk starting a new venture b. Does not create a favorable labor market for new businesses II.