However this is primarily due to the reinvestment of profits into the purchasing of Property, Plant and Equipment and paying down long term debt. Dawson has a solid track record of increasing revenue, profitability and improving return on assets while at the same time improving control of operating expenses. Small companies like Dawson can compete against larger retail chains by providing specialty products and superior service. Dawson is also very efficient at collecting its receivables within the first 30 days (92%), resulting in strong cash generation. Analysis Assumptions: The case indicates that Dawson is a small retail chain that sells hard and soft goods.
Blue Nile, Inc. (Case Study) Submitted by A-Game 1. Five Forces Analysis Overall, the competitive forces on the industry are only moderately strong with rivalry competition having the biggest impact. The five forces are looked at individually below. Buyer Bargaining Power Buyer bargaining power is low, but growing in the online jewelry retail industry. The increasing power stems from the buyer’s switching costs to competing brands being extremely low.
Zara's efficient operating model results in a short product life cycle and is a key differentiator over other retailers. Zara performs the design process in house and produces a high variety of more than 10,000 designs, which allow Zara to mix and match items and sell products quickly to maintain higher gross margins than other retailers. Zara also conducts low pre-season inventory purchases, which allows them to be flexible and supply inventory based on current consumer demand rather than projected consumer trends. Furthermore, Zara automatically places orders in response to current fashion trends, and its tight controls over their distribution process are very accurate and effective for Zara to differentiate themselves from other competitors. To conclude, Zara's effective control and flexibility over most steps in the supply chain differentiates them in the marketplace.
The benefits of accrual basis accounting include equal distribution of expenses paid in advance and in arrears. Cash basis accounting is beneficial to smaller businesses especially when the company does not have to maintain an inventory, there are no customer accounts of returns, and when most of the sales are cash sales. This method of accounting is typically easier and cheaper to maintain. Although there are numerous benefits to both options the business must determine which method is best for them and that is usually based off the
By minimizing handling of goods through the use of direct shipments form the manufacturer to the store, as well as the use of cross-docking techniques where items are shipped to a cross-dock and then distributed to stores, Costco is able to minimize handling time. This minimized handling enables Costco to cut costs due to less labor involved. Costco also buys items from retailers on the grey market at deeply discounted prices that it can pass onto its customers. Often times, because Costco has such a rapid inventory turnover, Costco is able to buy products and sell them before the invoice is due, often taking advantage of early payment discounts, and in essence, the vendor finances purchase, and Costco is able to pass those savings onto its customers. I think that Cosco’s biggest weakness is that they are not overly forward-looking.
1. The strategy of DFA company was taking advantages of size effect (small companies outperform the market) and value effect (high book-to-market ratio companies outperform the market). So that they chose small-capital companies and high book value companies to create their portfolio. They primarily believed in efficient market as well as the sound academic researches and ability of skilled trader. They worked with the RIAs (registered investment advisors) to lower the cost.
Marketing Britvic Case Study – Assessment 1 1. Characteristics of the marketing concept. The Selling Concept – This concept doesn’t primarily focus on new consumer wants or desires but focuses on the selling and promotion of a particular already existing product in order to achieve the highest sales they possibly can. This technique is suited to companies who sell products which are in high demand and whose customers/consumers tastes are unlikely to change and lessen demand. The Production Concept – Companies focusing on this concept will primarily focus on achieving high production efficiency at low costs and mass distribution as they believe the consumers are primarily interested in widely available products at low prices.
This worked well enough in a slower time when supply chains were less complex and when products themselves were less complex. Those were times we now refer to as the "good old days." Increasing competition and demands from customers to deliver products faster and cheaper shapes the world we live in today. At the same time, the array and complexity of products in our economy has increased dramatically and that trend will clearly continue and even accelerate. In order to be competitive and also profitable, companies need to find ways to reduce or eliminate costs associated with routine and repetitive business transactions.
Yes, the company’s business model is appealing because the company’s increased inventory turnover and low operating costs allowed it to maintain a profit, despite their significantly lower gross margins compared to the industry (traditional wholesalers, mass merchandisers, supermarkets and supercenters). What are the chief elements of Costco’s strategy? How good is the strategy? The chief elements are pricing, product selection, maintaining low operating costs and expansion. Pricing/Product Selection-The company philosophy was to provide high end quality product and/or services to club members but maintain low prices.