Belot Enterprises Case 1. Auditor David Robinson’s suggested compromise on the review of the Belot’s interim financial report (second quarter-from April1 through June 30) is appropriate. Because Belot Company has been struggled to survive in a mature and intensely competitive industry for several years, and the company has planned to implement an organizational Nail the Number campaign from April1 through June 30 to boost its quarterly operating income by 100 percent so that Belot Company will not be eliminated by its parent company, Helterbrand. During those three months, Belot Company has made many changes on its operation activities, such as products line, sales program, cost-cutting initiatives, and its accounting measurement, etc. Belot’s accounting general manager, Zachariah Crabtree decided to change the accounting method from “conservatism” to “precise point estimate” to record the company’s major discretionary accruals during its second quarter financial report; therefore, the company operating income dramatically has been increased 140 percent higher than the second quarter of prior year.
The company was launching a new business plan to expand its market share. J.C Penney used this transformation to reach its long-run shareholder values. Ron Johnson and Michael Francis, president of J.C Penney, tried to open a new image of the company. J.C Penney started to launch its new price strategy this year. The company is “slashing prices up to 40% with to keep them that way year round” (Heller).
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. 3. The six components of retailing mix are product, place, promotion, price, presentation, and personnel. They
Case 1.5 The Leslie Fay Companies February 10, 2014 1. After reviewing Leslie Fay’s financial statements, BDO Seidman should have taken a particular interest in several of the company’s financial statement items and associated ratios. Specific items of interest likely would have included net sales and other income statement accounts with large increases over the five-year period. Net sales displayed a dramatic 44 percent increase over the five-year period, even as Leslie Fay’s industry competitors were experiencing a declining sales trend during the late 1980’s and early 1990’s. In addition to the industry’s struggles, these changes should have been of significant interest to the auditors given Donald Kenia’s tendency to “pre-record” orders from customers.
* Diverse products Diverse products and revenue should help shield the business from shocks in any one part of their business. Different products have different characteristics. Those characteristics do not always match; therefore, a company can lower their risk by investing in a business with low correlations with other products. This lowers risk and increases the value of the business over the long-term. WEAKNESS: * Company size "Company Size" will have a long-term negative impact on this entity, which subtracts from the entity's value.
No need to ship the goods across the border, therefore no tariffs on the delivery. o Risk diversification- CEMEX could well spread their risks. If one market is not performing well, it could depend on the other ones. So, assuming there isn’t a world-wide recession, the revenues of its will be more stable because of diversification. o Talent across markets- Ability to identify new emerging markets and having advantage of an already set up network system o Proximity to raw materials gives benefits on distribution channel.
Besides, the company’s market share among mass-merchandisers was inferior compared to other sale channels of the industry. In the next fiscal year (1998), Drypers Corporation management cogitated whether to invest an additional $10 million in advertising in order to increase their brand awareness, create value, and increase market share. Critical Issues and Causes One critical issue in the company is the success of the national TV advertisement that Drypers plans to execute for 1998.
However they would have notify customers of the use of the technology in their stores, as underage people may wish to avoid the stores which could lead to a decrease in sales from the stores who use the system. The storage of customer details may also provide opportunity for the company to benefit, as it may allow them to send customer advertisements or flyers, promoting their business and special offers analysis. The convenience of the technology is vast, but the initially costs as well as maintenance may be large, and to justify the use of the technology it would have to be ensured that it is worthwhile, depending on the size and revenue of the store. Also if the technology was not reliable it could lead to further large costs for the company and would be very inconvenient to employees and possibly customers, possibly leading to a decrease in sales
IKEA 1. What are the core competencies and end products of IKEA? How are they linked with each other? IKEA’s core competencies include: - Flat packaging and the “assemble-it-yourself” furniture. These allow IKEA to reduce space requirements in logistic operations such as trucks and warehouses and they also lowered costs, creating a core competency for IKEA.
1. With PortionPac being family owned company, compared to larger companies they might not be able to have social responsibility. Larger companies can provide items to the community when needed and be able to lose that money where as PortionPac might not be able to help the community. However, following the model PortionPac is already helping the community with the products they sale and even though they might not be able to give out millions of dollars the community will look to see what they are able to help with. Even though PortionPac lacks in the ability to contribute in large amounts I think that they are still able to follow the Socioeconomic Model.