Not only the ROCE has improved, the gearing ratio has decreased by 4%. This means the business is low geared, and it reduces the long term risk of superstyle. Nevertheless Superstyles asset turnover has decreased. This is not so good as they receive less money from every asset owned. However the reason for that is their high profit margin, which means that it will decrease when the profit margin will decrease as well.
International Trade ECO 372 University of Phoenix There are many contributing factors to the stabilization and prosperity of our global market. We, the United States, are living in a time of severe trade deficit, meaning that we are importing many more goods than we are exporting. While it is nice to be able to buy foreign products at a lower price, there is risk in doing so. When we purchase foreign goods over domestic at lower prices it forces our domestic companies to sell their goods at lower prices to remain competitive. These lower prices may lend to making enough profit to sustain the current workforce.
Under Ulrich, the strategy has been to differentiate their brand by providing high-quality, fashionable merchandise at low prices. However, with the economy in financial mayhem, consumers are spending a lot less than in the past. Target, like many other retailers, may be faced with several significant issues in the near future. Target Corporation
Such a decline (and such a low percentage) indicates that management is not efficient in employing the company’s assets to make a profit. Also, the Return on Capital Employed had an even more significant decline – from 15.6% in Year 12 to (29.9%) in Year 14. This indicates very poor performance for FBN. In order for FBN to become profitable (efficiently, that is) ROCE should be higher than the rate at which the company borrows. In FBN’s case, their long-term debt ratios alone are 55.7% and 81.5% in years 12 and 13, respectively (and they’ve incurred interest rate increases); and ROCE in the same two years is 15.6% and 6.4%.
If there is no minimum wage, then companies can pay ridiculously low wages to its employees 4. Companies could work together and take advantage of the workforce by forcing them to work for low prices B. Greater costs to society 1. Minimum wage leads to an increase in unemployment and those unemployed people are then a burden on society because the government has to pay for them through welfare
The benefits of our free-market capitalist system which, by the way, is the best economic system on the planet, by a mile are accruing disproportionately to owners, managers, and customers, at the expense of everyone else. If we actually want to put some effort into fixing our economy, we have to fix that. Specifically, we have to persuade companies and their owners to hire more employees and share more of their immense wealth and profits with them. Most importantly, companies don't need to do this just for altruistic reasons (though no one would object if they did). If enough companies do this, they will not just help their employees.
Also, when employees are laid off there is less income tax to be collected and to make things even worse, former employees can collect unemployment benefits from the government. These unemployment benefits cost the government money. Massive layoffs of employees are one of the worst setbacks an economy can
It may also contribute to greater productivity, resulting in a lower inflation rate that would help retirement savings go further. As the proportion of retirees in the U.S. grows, one of the challenges for a shrinking workforce is to produce enough goods and services for both themselves and the retired population. More investment capital in the private sector should result in the kind of productivity gains necessary to meet that challenge. An Impact on the Market Privatization would also have a significant impact on the financial markets, especially the stock market. Younger individuals are likely to invest most of their contributions in stocks, and the increased demand would propel stock prices higher.
A decrease in personal income creates a slump in consumer splurges, spending that drives two-thirds of the economy (mckinsey.com, 2009). The longer a recession lingers the more impact it has on companies. Retailers had been hit hard and several well known brands have gone out of business or downsizing. Retail Traffic an industry publication, reported 3,000 stores closing in 2011 was down from 5,000 closed in 2010. However, the battle is not over.
E) a small percentage of companies in the industry are currently earning above-average profits, entry barriers are high, and buyers are not brand loyal. 7 INCORRECT Which of the following conditions generally raise the barriers to entering an industry? A) Low levels of brand loyalty on the part of customers and the presence of more than 20 rivals in the industry B) Rapid market growth, low buyer switching costs, and weak brand preferences and customer loyalty C) Product offerings that are pretty much standardized from rival to rival D) High capital requirements, difficulties in building a network of distributors-retailers and securing adequate space on retailers' shelves, and the likelihood that industry incumbents will strongly contest the efforts of new entrants to gain a market foothold E) The industry is not characterized by scale economies and/or sizable learning/experience curve effects and few firms in the industry hold key patents and/or possess significant proprietary technology not readily available to a