Due to her concerns, Maggie has used all of the company’s cash to pay off the increased inventory immediately to receive the two percent discount offered by suppliers. (Horniman Horticulture: Chapter 9) Issues/Problems According to Exhibit 1, cash has significantly declined over the past four years for a number of reasons. Both inventory and accounts receivable have increased substantially. Inventory accounts for nearly half of the total assets value which hinders Horniman Horticulture from having more cash on hand because the inventory is not very liquid. Horniman Horticulture would have extreme difficulty creating cash from its inventory is an
Case Report: “WESCO Distribution, Inc.” < Case Facts> WESCO’s customers have made significant changes to their business processes ( how and why?) Why: bridge the quality gap with international competition / improve their overall competitive stance by building integrated system and integrated supply chain How: implementation of stringent supplier / distributor quality program * To examine procurement cost and supply chain / sign long-term contract with less suppliers Sales reps need to change their approaches depended on types of customer; need to shift from hunter, for contractors, to farmer, for industrial customer. But customer locals were reluctant to change conventional systems because of good relationship with local distributors. [Company] Third largest full-line wholesale EES distributor; $2.2 billion in sales globally of which US sales were $1.6 billion Target: $3 billion sales and EBIT of over 5% by the year 2000; 6-8% up in sales and 12-16% up in profit Sales reps: receive same commission and salary in each branch. Each 18 NAMs serve 10-15 industrial customers and 15-20 potential customers.
Many of their products are inspired by East Coast tradition which is a slowing trend in international markets because as more and more locations appear, the weaker the trend gets. ANF needs to immediately address this issue in order to prevent a further loss in sales, and maintain their strong brand image they’ve had in the past. 2. CEO’s remarks and brand position/strategy: The firm has an image of discrimination brand since 2006. CEO Mike Jefferies in a Salon article from 2006 reportedly said A&F markets to “the
The second issue associated with the micro level is still the 15% drop in profit margin. Jim West as enjoyed four years of positive growth and believes that if something isn’t done the company may continue to trend in loss. Should that continue, the long term profitability of The Dim Lighting Co. would be affected and Jim may be looking for a new job. Causes The cause concerning this change really focuses on a number of factors. The first and largest issue is based on the decline of profitability.
Frank Campbell, the director of United Thermostatic Controls’ Southern Division, was unsatisfied with the division did not meet the targeted budget for 2010. He investigated and found a way to increase the sales revenue by sending shipments out to his customer before the schedule delivery date which violated the FOB shipping point. Campbell had found a way to increase sales by sending out two shipments to his customers; these shipments were not supposed to deliver until 2011. The customers had specified when they wanted their merchandise to be ship. Campbell had sent the merchandise and reported the sales revenue in the financial report instead of offering a discount to the customer so that the merchandise can be recorded and shipped in 2010 instead of 2011.
When Daniel Rowe, Prestige Telephone President, become obligated to report to shareholders that their return on investment was the lowest it had been in seven years, he felt it was time to assess whether or not to continue operating Prestige Data Services. The original idea of selling unused computing time was sound. At its core, the profit potential for Prestige Data Services appears to outweigh the opportunity cost. Missteps experienced during the subsidiary launch such as inaccurate customer research, faulty budgeting for salaries / lack of discipline in sticking to budget, and equipment delay issues all point to a lack of attention to critical detail. If equipment delays resulted in lost business, were other alternatives considered such as rental equipment or outside hosting for a limited period of time?
29 Dana Wheeler, senior vice president of marketing for The Fashion Channel, has to reevaluate the company’s market positioning. Increased competition from CNN and Lifetime has caused The Fashion Channel’s market share to fall, along with their ad revenue. The Fashion Channel’s competition is strictly within their product category; it is also with the discretionary budget of time that their consumers have to spend to watch TV and well as other forms of generic competitors. Understanding how CNN and Lifetime are capitalizing amongst their market will help them better evaluate their positioning. It seems, however, that The Fashion Channel is only identifying product category as their main competition.
During the company’s history from 1987-2006 they experienced above industry growth compared with most of their competitors. However, 2006 was the beginning of troubling times for FoldRite Furniture Company. (Wheelwright and Bellisario, 2012) It was discovered by management that high turnover rates in the manufacturing department lead to slower production and delivery times. These mistakes opened the door for competitors to take business away from the company. In any industry reliability and consistency are key factors to attracting and maintaining repeat customers.
Issue Manzana’s commercial insurance is a product for which low price is important in order to compete, but serving customers (agents) is what produces loyalty. Agents want rapid request turnaround so that they, in turn, can impress their customers. The agents will also receive their commissions more quickly. Fruitvale’s performance has deteriorated, as has its competitive position. Average turnaround time (TAT) has grown from about three days in 1989 to more than five days in 1991 while its main competitor, Golden Gate, has achieved two-day TATs and is now promising one day.
Profit along with sales has continued to grow at a steady rate. SureCut Shears is looking to modernize it’s plant and is looking to take a loan from Hudson National Bank to do cover the costs of it. Analysis: SureCut Shears in theory should be able to pay off its loan to the bank on time. One reason the company is finding it can’t is because of its continual decline in sales during the period of time the loan was to be paid off. The retailing recession was what the company believed caused this decline in sales.