Currently, Nordstrom has 225 retail stores in the U.S. Their largest retail concentration is on the East and West Coasts. In 1993 Nordstrom entered the catalog market. Nordstrom’s chief competitors are Bloomingdales, Lord & Taylor, Von Maur, Neiman Marcus and Saks 5th Avenue. ANTICIPATED FUTURE GROWTH The recent downturn of the economy affected all segments of retail however the luxury segment, of which Nordstrom and its competitors are a part, was much more resilient. The worst year appeared to be 2009 with the luxury segment rebounding in 2010 and 2011.
Sara Lee retrenched seven of its business units in 2006 in order to focus itsresources on its more profitable industries. The company’s goal is to boost its saleslines by at least 2 percent and increase its profit margin to 12% by 2010. Bydeveloping three competitive capabilities in each of its remaining business units,Sara Lee looks to improve its net profits within the next few years. Divested Businesses Analysis Sara Lee divested seven of its units, including: direct sales, U.S. retail coffee,European apparel, European snacks, and U.S. and European meats. The companyfollowed a strategy which allowed it to increase its corporate profits, since most of its business units it retrenched were unprofitable.
In 2011 the Packaged Food industry ranked number one out of the sixteen industries annually measured by Standard & Poor’s. Population growth, increased consumer spending power, and expansion of modern retail formats is all contributing to this increase. This is a $360 billion dollar industry globally ("Euromonitor international"). For more information see Appendix B. B.
According to a report by Agriculture and Agri-Food Canada, 1.5 billion cans of Red Bull were sold in the United States in 2004, highlighting the enormity of this industry. Since Red Bull launched US market in 1997, Red Bull became in the market leader in dollar sales and unit volume. The market share of Red Bull decline from 82% in 2000 to 43% in 2006, because of the new aggressive products with lower prices. Monster was launched in 2002, and had the second largest market share which 14.4% quickly in 2006. Monster Energy sales have benefited from distribute the brand to retailers in different territories.
In measuring the company’s cash and cash equivalent, it was clearly seen that their entire assets decreased by 24% in 2003 and almost 20% in 2004. The total debt structure of Lucent Technologies significantly decreased between 2003 and 2004. Lucent Technologies current liability decreased from 25.6% in 2003 to 24.3% in 2004, but their debt could be thought to be more as long term because these debts rose from 23% of total liabilities to 26.4% a year later. When considering the equity section of Lucent Technologies, it was shown that they had a negative representation of their shareholder equity and total liabilities in 2003 when compared to the numbers in 2004; this makes their company look more like a deficit; although it is likely that improvements will happen and the company’s current situation can improve and become less of an issue as the years progress. After evaluating Lucent Technologies balance sheet, it’s more than likely that the creditors and investors would more than likely be concerned that even though the cash and cash equivalents are decreasing, the assets are accelerating steadily.
The Home Depot Company wants to expand their business in a global arrange. Actually, this situation is not able to happening every year; therefore, I considered it as a extraordinary item. 2. As we know from the fiscal 2007, the value of treasury stock was negative $16,383 million, but when it comes in the fiscal the value of treasury stock was negative $314 million, which means The Home Depot Company may sell their treasury stock for some money, the factor is that the sales of Home Depot Company decreased $13,488 million, therefore, they need money to run the company, so they sell some of the treasury stock for some money. This is the second extraordinary item.
Revenue grew with the developing markets leading the race in each of the geographies with an increase in revenue of 24%. This was followed by an increase of 11.3% in Europe and 4.4% in North America. As on December 31, 2010, Kraft Foods had $2.09 million of cash and cash equivalents compared with $2.48 million at the end of year 2010.
Case 4: Krispy Kreme Doughnuts, Inc. “Success is not forever and failure isn't fatal.” (Don Shula) The new millennium was a new era for Krispy Kreme Doughnuts. When it became public the shares were selling for 62 times earnings, and in 2003 fortune magazine call it “the hottest brand in America”. But in 2004 the company entered to a difficult phase when the share price decrease accompanied by several accounting reveals. The case six prepared by Sean Carr preset us with financial information about the company, and the point of this paper is to analyze it. Krispy Kreme Doughnuts, Inc., began as a family business in 1937 when Vernon Rudolph acquired a doughnut secret recipe from a French chef in New Orleans.
How are each of the 3 classifications of competitors doing in Sonoma County? a. Traditional Super Markets b. Low-Cost Operators c. Differentiated Sellers • Traditional supermarkets struggled to protect their market share ageist discount supercenters. • Non-traditional retail stores increased their share of consumers food-at-home from 1 7.7% to 30.8 in 2003.
Rationale In the United States, the deep-discount warehouse industry has seen 25 years of rapid growth. However, domestic sales growth finally peaked in 2008 and ensued on a downwards trend in 2009, suggesting that perhaps the American market has been exhausted. Domestic market fatigue has been particularly tasking for Costco, resulting in the greatest sales percentage decline among the big 3 warehouse retailers. Costco’s sales plummeted over 1.5% in 2009 from its pinnacle in 2008. If historic trends are any indication of future performance, Costco must react proactively and remedy this matter immediately.