A merger would best be used in this situation since it will help lower his taxable income and he can improve his operations and competitiveness. If he feels that the investment in new manufacturing equipment will help increase profits and can take on the extra liability, then he should buy Smithon. His debt –to-equity ratio will rise and may cause him to have a hard time getting money to finance his company. But with a two year loss he is keeping his taxable income down and may be able to show investors that things are going to turn around when all operations are working together and
These overall improvements have been a step in the right direction for Lowes’ future. These improvements however do cost money but like every good business man or woman knows to make money you sometimes have to spend it. So this can affect Lowes financial planning in the present and future, currently sales and profits have grown because of the new mobile devices therefore the risk factors are minimized due to the knowledge that these improvements are working but Lowes must continue to analyze the cost for these new improvements every year make sure these things do not become a financial burden. Therefore cost analysis is one factor that can affect the financial planning of the company also minimizing the use of these devices to only the stores is another factor that needs to be considered in the financial planning process. Spending money on training of these devices are also factors that must be considered this takes employees time and cost the company man hours and thus money that could be spent on other things.
A number of approaches were considered to help Lowe’s lower expenses and increase profits. One approach was to grow Lowe’s brand recognition through new advertising approaches, such as social media, which will get the most out of the strengths. To overcome some key flaws, Lowe’s has a duty to provide cross training to all employees in all sections and jobs of the store prior to working alone. In addition, the execution of a quality assurance program to standardize the Total Quality Management (TQM) of products would help Lowe’s address various weaknesses and threats. Some of Lowe’s strengths include having the second largest market share in the industry, their creative ideas classes and videos, and their corporate social responsibility.
Using more effective manufacturing systems and double shifts has been implemented to achieve this. This is a small increase in comparison to the sales of competitors, showing that the global market could provide a number of new opportunities for the company as it grows. However, the opinion of the managing director, Butler-Adams,the company believes is that a significantly higher number of sales in a short time period could undermine the brand’s image which may decrease the desirability of the
New laws and regulations come about because of social and political changes. Organizations abiding by state and federal laws and regulations may result in the organization spending more money on additional taxes, new technology development, and legal fees. Competition may consist of the startup of a new organization offering similar services and products in the same marketplace, which presents a new challenge. The customers are the most critical in the environment. As the end-users, they will usually improve the organization’s image in the community because of satisfaction with the product or service, or ruin the image of the organization in the community because of dissatisfaction with the product or service.
A growth company tends to have very profitable reinvestment opportunities for its own retained earnings. Economic growth will affect Etisalat as it would increase their profits due to more people wanting more products and wanting to spend their money. As people have more money to spend on luxuries instead of the essentials it means that the higher value products will be brought. For example the Andrex toilet rolls will be brought instead of Etisalat value, because of this it means more money is being spent in the store which is an advantage for Etisalat. Recession occurs when people involved in business become more cautious and: * Customers cut back on spending, and start to save more * Manufactures and sellers cut back on their orders, produce fewer goods and start to cut back costs in general, including by laying off workers.
Markstrat Final Report Andrew Auces Justin Barker Christine Chang Ashley Cohen Julia Economy December 1st, 2010 I. Markstrat Summary In our Markstrat simulation, our goal was to maximize shareholders wealth by increasing market share by targeting specific segments with specific brands. We started out by targeting multiple segments for each brand, unfortunately we had to change our focus to just one or two segments per brand because our products we underperforming. We chose our targeted segments based on consumer preferences, perceptual, maps and the ideal characteristics. All teams started out on an even playing field, unfortunately the decisions our team made in the first two periods started to decline our company’s wealth. Which eventually lead to a decline in our stock price.
Foreign market shares are something else that can benefit Walgreens in the long run because global expansion can yield for a better competitive edge in the long run also given that the nature of Walgreens according to the Space Matrix is that they are aggressive a hard push into other countries would be an ideal situation. Another way for the company to be more competitive is to incorporate a better employee hiring structure and pay scale to encourage the limited number of Pharmacists to want to join and be a part of the company this would then increase the competition to hire new pharmacists because the working conditions would be better at Walgreens and
Forces that are represented from “vertical” completion are: * Bargaining powers of suppliers. * Bargaining powers of customers. Threat of new entrants Within the I.T industry the profitable markets that yield high returns will attract new firms, this is evident in the cell phone market where the latest innovation yield high returns and in turn forces companies such as Samsung, Apple and Blackberry to constantly keep up to date with market needs and trends. New entrants mean that profitability will decrease as more competitors enter the market. To avoid this, certain strategies must be introduced by organisations such as Great Guitar.
There are different approaches to explain this phenomenon, as originally it was seen that the incumbent firms had much more resources and capabilities to succeed in innovation (Schumpeter 1934). Underinvestment of the new technologies by the big firms is introduced as one of the reasons (Henderson, 1992). The existing market players pursue the goal to receive the return on their investments in the technology, which made them prosper and put significant efforts into its further improvement. Such behavior results in the incremental innovation of the existing product. In