The total amount of machines on-hand seemed appropriate for production, but the number designated to each product was altered since more units were being produced of C_Fad. Automation for Cake and C_Fad were left at 4.0 and 3.0, respectively. Under fiscal policies, since the cash was available, $2 of dividends was paid out and $3,000,000 of bonds was retired. Given that a new product was coming out this year, it seemed necessary to require 10 hours of training per employee per year to keep everyone up-to-date on the products. Lastly, as part of the company’s Total Quality Management strategy, $1,000,000 was put toward Channel Support, and an additional $1,000,000 was put toward CCE and Six Sigma
Dick’s Sporting Goods is rapidly growing and achieving things that many people thought would be impossible. This year alone, Dick's Sporting Goods has exceeded expectations with its third-quarter results and they have also pleased their shareholders with its plans to start paying dividends. Dick’s Sporting Goods now operates more than 450 shops across 42 states, along with 81 Golf Galaxy stores in 30 states and they do not plan to stop here. Dick's third-quarter net sales rose by 9.3% from the year-earlier, to almost $1.2 billion, with the help of additional sales from 19 newly opened stores. The company's gross margins went up by 126 basis points, to 29.7%, mainly because of better inventory management and a change in the product mix and selling and administration expenses range in at $274.4 million.
The asset turnover will increase when their profit margin increases, the high profit margin is because they are currently expanding . 2. To a certain extent, the high level of popularity was from their effective market analysis. In 2012 superstyles spent 20% of their profits on marketing. Compared to the industry average superstyles spends 50% more on marketing, however I think it is very useful as they are expanding and don’t have the brand image and reputation yet.
Belot Enterprises Case 1. Auditor David Robinson’s suggested compromise on the review of the Belot’s interim financial report (second quarter-from April1 through June 30) is appropriate. Because Belot Company has been struggled to survive in a mature and intensely competitive industry for several years, and the company has planned to implement an organizational Nail the Number campaign from April1 through June 30 to boost its quarterly operating income by 100 percent so that Belot Company will not be eliminated by its parent company, Helterbrand. During those three months, Belot Company has made many changes on its operation activities, such as products line, sales program, cost-cutting initiatives, and its accounting measurement, etc. Belot’s accounting general manager, Zachariah Crabtree decided to change the accounting method from “conservatism” to “precise point estimate” to record the company’s major discretionary accruals during its second quarter financial report; therefore, the company operating income dramatically has been increased 140 percent higher than the second quarter of prior year.
I increased Advertising for Allround+ at $20 Million and Allright at $19 Million to support their good sales improvement. Promotion budget was increased from $8.5 to $ 9.5 Million for Allroud, from $6.5 to $8.0 with launching of coupons $2.0 Million (matured product) and Allright from $5.7 to $6.25 Million with launching (period of coupons $2.0 Million to stabilize repurchase for matured products. By launching of coupons I started with cheaper coupons ($0.25) and continued with ($0.5) In the Period 10, I reached the highest Retail Sales volume $1,449.6 Million among competitors on the market, the highest Net Income $277.5 Million, the highest Stock Price $211.42 and Capacity Utilization 110.9 % The Allround product reached the highest awareness on the Cold, Cough market (95.1%) and Allright second highest (95.4%) on the allergy market. Allround has the highest (68.6%) satisfaction ratio on the Could, Cough market and Allright the highest (51.5%) on the Allergy
Harrington needs to determine whether or not these are the optimal prices that will achieve higher profits for the new Vigor line. Alternatives 1. Introduce Vigor active-wear at proposed prices 2. Introduce Vigor active-wear at 20% higher prices than proposed prices Criteria Quantitative Criteria: * High profit margins * Sales potential * Market share potential Qualitative Criteria: * Customer satisfaction * Brand perception Alternative 1: Introduce Vigor active-wear at proposed prices Because the number of women’s active-wear units is expected to double by 2009, Harrington could take advantage of this trend by introducing active-wear to the fifty stores carrying its Vigor line of clothing. Department stores have already begun to sell active- wear at double the turnover rate that Harrington collection has been turning over.
The eatery averaged about 30 customers per day, which brought in about $4200 per month in profit. Two years later the eatery was doing well and Angie hired more employees and opened another location in Sacramento. In addition to the new location, she increased the price to $8. She upgraded the eateries and added televisions, so that customers could enjoy sports throughout the year. This increased the customer base.
From 2002 to 2006, Whole Foods’ management team decided to drive growth by opening 10 to 15 large stores in metropolitan areas each year. Their stores range from 40,000 square feet to 70,000 square feet which were on the same scale as larger supermarket chains. Due to the economic conditions that hit in 2008, the company had to scale back their new store openings. In order to keep opening new stores in profitable areas, management will have to research and target each new opening into areas where Whole Foods can offer their products to willing buyers. Keeping these stores located in larger metropolitan areas will reach more potential customers who are willing to pay the price for organic
The overall growth of gross margin showed that McDonald’s was generating higher profit. For Pretax operating profit margin, EBITDA margin, net profit margin, ROA, ROE and ROCE, the numbers almost doubled from 2007 to 2008 and then stayed with slight changes. It showed that McDonald’s was able to keep its return steady during the period. 2. Liquidity The liquidity ratios also showed great improvement in 2008.
Mazda should proceed with the low-cost ME2001 under two reasons. First of all, there is a recently incorporated medical group was interested in installing 1 million electrocardiogram monitors over the next 5 years. So, that is an opportunity to the organization to obtain a higher profit and cost competitive advantages if the screens and frames could be supplied at an all-in-cost of $100 per unit. After discussed with R&D and Financial department, the calculated initial cost $85/unit is achievable to take the contract. $65 (Variable production cost) + $20 (Overhead) = $85 Meanwhile, there are many competitors are craving for this order.