A type A merger would increase market power which would increase market share. Increase in market share would increase profitability. A merger is also recommended because with Smithon’s positive income can offset with Johnson’s negative income and would result in reduced tax liabilities. A merger redefines the business world which allows for improve corporate business strategies and philosophies along with stronger alliances and less competition. There are many reasons for a merger but the most important is to maximize its profits.
In order to avoid making a further loss, if another recession was to occur again in the future, I would suggest that a reduction in employees would be beneficial for the business. By making this vital decision, they will be saving an immense amount of money as they will not be paying as much wages as they currently are. I would also recommend having more frequent special deals (such as ‘BOGOF’) as this will slowly but surely attract customers to spend their money in Tesco rather than another supermarket. However, these special deals should be genuine special deals as Tesco have been known to increase prices and then claim there is a special offer going on (See Appendix 34). Regarding political factors, I think the grants/loans which are borrowed by Tesco via the government would impact on the business negatively as they will have large sums of money to
In addition, there will be the opportunity cost of not having cash available for more useful requirements i.e. supplier discounts, interest income. Therefore, Willow Company needs to hold optimum levels of inventory and increase its sales in order to improve its inventory turnover and cash
Cost a) Cost of Production: Albatross Anchor should look at lowering production costs in order to realize greater profit margins. By increasing production, Albatross Anchor will be able to decrease fixed costs. They would be able to spread the costs across more units which would decrease the price per unit they need to pay. Production costs decrease with increases in production levels. This will help to recapture profit margins lost to inefficiency and make them better competitors in their chosen market, (Russell & Taylor, 2011).
It does this because it means that it’s not using retained profits to purchase property as this will reduce access to ready funds. It also allows the business to move on quickly if the new market proves to be unprofitable. In addition, Ikea leases some of its equipment such as cash registers because it provides the business with the latest technology and remedial action if the machines have a problem. Through the use of leasing as a funding option, Ikea is able to increase profits, grow into new markets, remain liquid and solvent and use its assets efficiently, thereby meeting its financial
A big drawback is that they have to modify the assembly line when the product to be manufactured changes (when changing the production of the two different anchor types). The first proposed long term strategy is to purchase new equipment that would easily fit both production lines. This will help in increasing the productivity. Another long-term objective is to analyze the current production process for both assembly lines and determine the time that it takes to get a line of production. The objective is to find areas that raise difficulties and eliminate them to speed up the process.
However, if the acquisition is managed properly the transaction can dramatically alter the competitive landscape giving them a competitive advantage over their rivals. Lastly, effective acquisitions can increase growth in ways that would not be able to be completed organically. [1] Slaoui needs to manage the integration by addressing all constituents and aligning corporate cultures. Prior to acquisitions talks GSK made significant changes to their business model that will allow them to deliver long-term growth. The Discovery Performance Units (DPU’s) hase moved the company in the right direction which has reenergized integrative thinking.
By listening to people’s feedback not only can you find better ways of working increasing your speed and efficiency but you can work with other people to build upon ideas. 1.3 Explain how learning and development can improve own work, benefit organisations and identify career options Learning and development can improve your own work by increasing speed and efficiency and persons own knowledge base. This can benefit the company because you are less likely to make mistakes which not only saves you time but other people that may be asked to help you rectify the mistake and also having to repeat work. This will bring down costs to the company and the quality of work you hand in will be better. For example the data quality department of the hospital’s motto is “GETTING IT RIGHT THE FIRST TIME” as getting something such as patients information can have large
Focus groups are also good to hold because if the group didn’t respond well to the product then Tesco can take that on board and change it before they release it. After the focus group give their personal and group feelings about what they thought about the product the organisation can think about improvements and how to change it, in order to gain sales for when they release it later on. However the focus group individual will be valid as all opinions are closely monitored. Lastly focus groups can save time and money compared to the individual interviews. * The limitations of focus groups on the other hand is there being disagreements and other discussion going
Therefore, the main challenge Innocent might face is to trying to increase the demand. To increase the demand they might have to lower the price of the goods. This means that they need to provide cheaper price so that customers can afford. Innocent also need to create or develop new products to add extra value. They might go to talk with customers to observe what products they buy and how much they pay for it.