Tootsie Roll Business Plan ACC/561 March 11, 2013 Tootsie Roll Business Plan Tootsie Roll Industries Inc. is one of the top candy producers in the world and has been producing candy since 1896. The company is working to qualify for additional financial funding to increase their liabilities by 10%. The appropriate research and financial reporting will need to be completed to ensure Tootsie Roll provides all the proper information to the loan officer. The loan package that is provided to the bank will include a ratio analysis of financial statements, justification of the reason for the loan, and an explanation of how the company plans to use the proceeds from the loan will be outlined in the following business plan. Without accurate information and a detailed business plan, the loan could be considered incomplete and will delay the approval process or possibly cause them to not qualify at all.
1. How would you characterize the snack chip category and Frito-Lays competitive position in the category? * The United States snack food industry recorded retail sales of $37 billion in 1990, a 5 percent increase from the year before. A large source of growth results from increased per capita consumption. Consumers are buying more snack chips per person, an increase of 2 pounds over four years.
Balanced Scorecard Organizations and upper-management often use a Strengths, Weaknesses, Opportunities, Threats, and Trends (SWOTT) analysis model to concentrate on the company’s competitive advantages, their possibilities, evaluate how to improve susceptibilities, and avoid coercion. Organizations depend on SWOTT analysis to remain successful in their industries. For a business to be successful and sustain their performance, the entity is obligated by their external environment to generate strategic objectives and constantly evaluate its vision and mission. Organizations must reflect on their mission and vision frequently to assess each for validity, consistency, and making sure the objectives are components useful to the desired vision. Businesses require a tool to measure the execution of objectives.
In order to achieve her marketing objective, she has to allocate communication budget in such a way that it would result in 10% increase in profit over 2007 estimates. Marketing Mix Strategies: RBS had high distribution penetration. Maximum distribution was of 1 lb box. There was a 150 person sales team to manage retail and wholesale accounts. Sales-force was incentivized by a quota system with quarterly volume quotas.
Describe the competitive environment in which the firm operates, the distribution of market power, and the strategic behavior of the firm and its competitors. Apply your knowledge of the theory of this company’s market structure. How does the company make pricing and production decisions? Is your observation supported by the theoretical models? Refer to the financial reports for illustration.
Moreover, the discount rates for cash-flow, or WACC, of store and credit card are 9% and 4%, respectively. As a result, the WACC for the whole corporation is calculated base on the weight of each revenue segment. WACC (Total) = WACC (store) × Ws + WACC (credit) × Wc = 9% × 84.1% + 4% × 14.9% = 8.17% The WACC for Target Corporation is 8.17%. This rate serves as a benchmark for IRR to evaluate the profitability of each project. If IRR is larger than WACC, the project is considered to be profitable.
Abstract A great leadership style includes a number of phases. It involves effectiveness, changes, dependability and adaptation along with other conditions. Great leadership capacity takes into consideration the significance of organizational partnership in the direction of the awareness of purpose and goals. Organizations have to have suitable leadership styles for them to function effectively. In this paper will be discussed the flexible theory of leadership and its function to the procedure in Costco Company.
Porters five force model is “a framework for industry analysis and business strategy development.” (Porter, 2008, p68-104) The loss of the patent broke the barrier of entry into the market hence there was a high threat of new entrants. Buyer power was low because of the high premium price for a cup of Dippin Dots ice cream, the most common buyers were people who grew up on it. The threat of substitutes was high as there were many alternatives customers could opt for in the frozen food section. Competition in Dippin Dots industry was stiff, there were two large companies that dominated the industry, 500 small businesses and other family owned businesses that all produced ice cream. Question 2 A value chain is “a chain of activities for a firm operating in a specific industry.” ( Porter 1996, p61-78) Dipping Dots ice cream was produced from super freezing of chemicals and liquid cream by process called flash freezing
As of 2011, the top 10 countries consist of 58.5% of the world population (Appendix A). Expanding to larger countries should increase revenues as well as brand awareness. Other criterias and questions include: * Looking at the countries customer's demographic characteristics, including age group, gender, income, educations and interests. * Looking at the countries general economic and business conditions. * How easy is it in overcoming the countries cultural and/or language barriers * Is Krispy Kreme able to expand into a particular country and still remain profitable?
swot analysis Internal Strengths • Mars is one of the Top Products in the Mind of Consumers • Milky Way is a Top 10 selling candy bar • Mars products outsells chocolate candy market internationally • Mars is a High Brand Preference in consumers • There is an established image and advertising presence for Mars products • There is a large variety of Milky Way products : Milky Way Original, Milky Way Lite, Milky Way Midnight all available in regular, king and fun size. There is also an ice cream product. Internal Weaknesses • Mars has many different products in which it has to promote • M&M’s is the number one selling candy in the chocolate market; however this product steals most of the promotion and advertising money • Milky Way has a low sales percentage of Mars domestic market share • Because of constantly changing campaigns, people are not aware of Milky Way’s positioning in the market External Opportunities • 81% of households consume chocolate candy • Women are reluctant to eat fat grams through chocolate consumption • There is a growing interest in dark chocolate • The market is still maturing in America as well as internationally • Ex. Switzerland has 22.4 pounds consumption per person per year. America only consumes ½ of this.