Assignment #3: Foreign Market Entry and Diversification NAME Professor BUS 499, (5/13/2012) 1. Identify and discuss the trends in the global beer markets. In markets where beer consumption is often tied to disposable income, there has been significant growth in the global beer market that is comparable to the overall economic recovery in that region. “The international beer market staged something of a recovery in 2010 with global beer consumption increasing by 2.4%. This marks a dramatic improvement on the 0.5% growth seen in 2009, but is still well below the 5%+ growth rates seen earlier in the decade” ("Global Beer Trends Report 2011", 2011).
In 1993, the company had a19.92% on return on total capital and by 1994 it had increased to 21.36%. After that, it increase on ROTC it has been steady. Overall Tire City has proven with a solid sales growth throughout the years its success, the company sales improved from $16,230,000 in 1993 to $20,355,000 in 1994 with a favorable change of $4,125,000 or 25.24% in sales in 1994 and 15.5% sales in 1995. I found this percentage by using the four-figure standard protocol in sales. With the profitability ratios of the company we can see that the company’s performance is doing well during the last few years.
Though they turned the corner with meaningful net income and EBITDA in 2010 its obvious during 2011 first quarter results that they are pouring significant dollar into sales, marketing expenses, and product development. Product development annualized in Q1 is almost 100 compared to 65 million in 2010, similarly sales and marketing are on a track to almost double from 2010 of 59 million to the first quarter annualized to 117 million. One of the concerns will be if these significant costs will drive revenues enough to deliver profits and EBIDTA. Net income for March 31, 2011 was only 2 million or annualized amount of 8.3 million compared to 15.4 million for the year-end in 2010. Registered member have increased 64% from 2009 to 2010 adding 35 million members.
As the economy bounced back, so did Costco and its bottom line. The charts below show Costco’s consistent increase in all ratios and revenues over the past four years. Selected Income Statement Data(In Millions) | 2011 | 2010 | 2009 | 2008 | Total Revenue | 88,915 | 77,946 | 71,422 | 72,483 | Operating Income | 2,439 | 2,077 | 1,777 | 1,969 | Net Income | 1,462 | 1,303 | 1,086 | 1,283 | Diluted Net Income per Share | 3.30 | 2.92 | 2.47 | 2.89 | First thing I want to point out is the Diluted EPS (Net income per share), as you can see, the Diluted EPS follows suit of the other 3 ratios. I included Diluted EPS because it is a better indication than EPS because it shows what their EPS would be if all employee’s turned in their stock
For the full-year 2010, Timberland reported revenue of $1.4bn, an increase of 11.2% over the prior year and up 11.7% on a constant dollar basis. Moreover, Timberland can reach their global growth potential, take big brands and make them bigger while maintaining each brand's unique rugged outdoor positioning. It will perfectly complement the premium, technical positioning of The North Face brand. Lastly, VF provides Timberland a major opportunity of sales in China for expanding. Timberland is expected to begin adding to VF’s earnings by 45 cents a share this year and 90 cents next year, excluding
The remaining sales derive from consumers visiting Frog’s Leap’s winery (Gilinsky, 150). During the 2009 to 2010 recession, Frog’s Leap faired out well in accordance to historical financial ratios (See Exhibit 3) and similar sized wineries during the FY 2009 to 2010 as illustrated in Exhibit 6 (Gilinsky, 163). Since 1999, premium wineries in the North Coast have increased from 329 to 1250 (Gilinsky 145 – 146). In the past decade, 25 to 44 year olds have emerged as the largest segment of wine consumers, replacing Baby-Boomers who led most of the industry’s growth in the past 30 years (Gilinsky 147). The industry is in a stage of market saturation, causing financial difficulties as wineries are facing downward pressure on prices and margins.
April 28, 2011 (Bloomberg) -- PepsiCo Inc., the world’s largest snack-food maker, reported a 27 percent gain in first-quarter sales, bolstered by purchases in international markets. PepsiCo’s sales rose to $11.9 billion, compared with the $11.8 billion average of estimates compiled by Bloomberg. Excluding items such as integration costs and hedges, profit was 74 cents, compared with the 73-cent analyst average. PepsiCo, led by Chief Executive Officer Indra Nooyi, has developed new flavors to appeal to markets internationally, relying on chip sales overseas to make up for slower beverage sales volumes in North America. Volume in the South American foods business climbed 2 percent.
Wal-Mart - Strategic Audit I. Current Situation A. Current Performance In the past year Wal-Mart’s performances in market share, profitability, and return on investment have had significant changes compared to past years performance. * Return on investment now compared to previous years: they are paying out $63.079 billion to their shareholders compared to last years $58.763 billion and an average of $3.09 earnings per share of the 4.068 billion shares out. * Market share today: Out of 2,000 big companies Wal-Mart is at 17 with 201.36 billion in market value and in its industry of retail, Wal-Mart is ranked #1 with Home Depot and Target behind.
More than that, KFT has been making good progress in capturing the synergies from the Cadbury acquisition. 2- Revenues in this quarter raised 11.1% to $12.5 billion, at the same time organic growth was 4.6% directed by a solid top line growth in all regions. Pricing accounted for 3.7 percentage points of growth and volume and mix contributed 0.9 percentage points. However, Easter-related shipments partially offset the growth by 1.5 percentage points. Revenue grew with the developing markets leading the race in each of the geographies with an increase in revenue of 24%.