Winston has $10 billion in total assets. Its balance sheet shows $1 billion in current liabilities, $3 billion in long-term debt, and $6 billion in common equity. It has 800 million shares of common stock outstanding. What is Winston’s market/book ratio? M/B= Market price per share/ Book value per share Market price per share = $75/ share Book value per share= Common equity/ shares outstanding = $6 billion/ 800 million shares = $6 billion/ .8 billion shares= 7.5 M/B = $75/ 7.5 = 10 (3-4) Price/Earnings Ratio: A company has an EPS of $1.50, a cash flow per share of $3.00, and a price/cash flow ratio of 8.0.
Rivalry in the grocery industry is a strong competitive force for several reasons. First, companies are using competitive weapons such as sales specials, coupons, company card to save additional money, and high use of advertising. Second, customers switching cost is low. Last, competitors are becoming equal in size and therefore able to achieve similar results. In this case, Winn Dixie, Publix, and Wal-Mart are the main competing firms within the industry in my area.
Firms in the fast food industry and home meal replacements have to continuously innovate to maintain various product differentiations and high quality of food and service in order to stand out against competitors. Otherwise, their product is easily substituted. Bargaining power of buyers: The bargaining power of buyers is high since customers have low switching costs. Thus, each firm within the industry is susceptible to losing customers. To address this,
Its sales are $100 million and it has total assets of $50 million. What is its ROE? ROE = (profit margin) x (total assets turnover) x (equity multiplier) (3%) x ($100 million/$50 million) x (2.0) = .24 or 24% 3-6 Donaldson & Son has an ROA of 10%, a 2% profit margin, and a return on equity equal to 15%. What is the
Colgate vs Crest, it is one of those brand battles in the marketing industry, like Coke vs Pepsi or Big Mac vs Whopper. Colgate (sub-brand of Colgate-Palmolive) and Crest (sub-brand of Procter & Gamble) both, in international market around different countries in the world, an oral hygiene product line of toothpastes, toothbrushes, mouthwashes and dental floss; therefore these product of daily use represent high volume of sales in the market. However Colgate Palmolive and Procter & Gamble are the largest players in the oral care business globally. Colgate is the world leader in oral care with a 33% market share, followed by P&G’s Crest and Oral-B brands, which together command 20% of the market (TREFIS,2010). On the surface at least, the marketing strategies used by Colgate have been more effective than Crest.
Grocery stores are in competition with smaller markets like Kudlers and Whole Foods. If the brand name grocery stores like Ralphs and Vons did not offer organic and specialty items, the market structure of Kudler Fine Foods would differ. This market structure positively affected Kudler because there was no barrier to entrance within the quality foods market. What negatively affects the company with this market structure is that they are compared to big companies who are able to supply some of these rare items at a more competitive price. One of the marketing strategies that ensure the company of long-term profitability is the personal relationship built with the customer base.
To: Ellen Bright, CEO of Transworld Auto Parts (TAP) From: Guanghui Han Re: Assessment of TAP situation Date: Aug 5, 2012 Transworld Auto Parts (TAP) is a subsidiary of a U.S. diversified manufacturing company. The company is struggling lose money, uncertain if divest or close the TAP and also struggling with new markets primarily in Asia. Ellen Bright cannot decide how each of the two divisions are actually performing using these strategy map and balanced scorecard. In this memo, I would like to offer my opinion and improve the process. Situation Analysis Five Force: The force of Supplier is powerful, they sell raw materials at a high price to capture some of the industry's profits.
Walmart Stores Walmart operates various formats of discount department stores under 53 different banners in 15 countries, including Walmart, Sam’s Club, & Asda, and is the largest retailer in the world. As of Jul 31, 2011 the company operated 9,667 total stores including 3,822 Walmart U.S., 609 Sam’s Club, and 5.236 International locations. Demand Since the Price elasticity of demand for the type of walmart’s products is very high, Walmart always succeed to be an attractive substitute store by having the lower price. This allows it to have a shift of the demand to right. Annual Sales Data | | 2011 | 2010 | 2009 | 2008 | 2007 | Net Sales (1,000′s) | $ 418,952,000 | $ 405,132,000 | $ 401,087,000 | $ 373,321,000 | $ 344,759,000 | YoY % Chg | 3.4% | 1.0% | 7.4% | 8.3% | 11.6% | Same-Store Sales Chg | -0.6% | -0.8% | 3.5% | 1.6% | 2.0% | | Walmart reported net income of $3.80 billion ($1.09 Diluted EPS) for the second quarter ended Jul 31, a 6% increase from a year ago.
1, 2003). According to Buckholz (2005), the weight loss industry is also quite large at about $50 billion a year. And while some businesses are making money as consumers are trying to get rid of obesity, others are making money accommodating it. Buckholz noted that the company Big and Tall is now a substantial portion of the men’s clothing market, claiming about 10% of its total sales. The company is now worth about $6 billion (pg.
In the 70’s 47% of Americans were overweight. In 2002, more than 65% of Americans are overweight including 31% who were clinically obese. An article this year in the Journal of the American Medical Association said that about 112,000 premature deaths in 2000 attributed to obesity. The blame for obesity is mainly the fleet of fast food chains, whose Americans sales went from $6 million in 1970 to $134 million in 2005. (EBSCOhost) Eric Schlosser, author of Fast Food Nation says that “Americans spend more on fast food than they do on higher education, PCs or new cars.” Nearly 400,000 Americans die each year in the United States of poor diet and not exercising that is an increase of 33 percent since 1990.