SciTronics had a total of $ 102,000 (75,000 + 27,000) of capital at year-end 2008 and earned before interest but after taxes (EBIAT) $ 16,120 (avg. tax rate = 38%) during 2008. Its return on capital was 15.8% in 2008 which represented an increase from the 8.7% earned in 2005. 4. SciTronics had $ 75,000 of owners’ equity and earned $ 14,000 after taxes in 2008.
As the largest company in the world, Wal-Mart is obviously the largest customer for all of their producers. This gives them the power to demand the prices they want to pay for the products they are buying. If Wal-Mart purchases 65% of all of the goods sold buy a producer, the producer can not afford to lose Wal-Mart as a client. So when Wal-Mart demands that the producers sell them their products for 20% less than what they would normally be sold for, the producer can choose to either lose 65% of their bottom line or sell their product to Wal-Mart at the lower price.
As a firm grows the average cost of advertising per unit will fall, leading to lower average costs. e.g., small firms are unable to afford large scale advertising campaigns, while their larger competitors are able to finance television and radio campaigns. b) Explain two reasons why McDonald’s will be able to achieve more marketing economies of scale than GBK. McDonald’s is the market leader in the UK; the company is a much bigger firm than GBK with 1,225 UK outlets. A large firm can spread its advertising and marketing budget over a large output and it can purchase its inputs in bulk at negotiated discounted prices if it has sufficient
Discounting the Marlboro Man 1. Major Facts/ Major Problems: a. Phillip Morris is the largest tobacco company (1) Marlboro is the largest selling brand in the US (2) Started discounted or house brand later than competitors a. Has smaller market share (3) Conducted research in Oregon utilizing a price decrease b. Price cut increased market share (4) Spends significant amounts marketing the Marlboro Man b. Introduction of generics in 1981 by Liggett (1) Generics have increased in market share a. due to recession most significant increase was 1991-1992 c. RJR, Morris’s major competitor, began making house brand generics (1) Sold for up to a dollar cheaper than name brands a.
Actual costs were $31.50 / lb., which may indicate unanticipated price increases (for example an increase in commodity prices since steel is a commodity), or higher costs for additional orders of steel required to meet the increased production demand. Although steel price variance was unfavorable, we see a positive impact from efficiency variance, as only 3% more steel (113,400 vs. 100,000 lbs.) was required to produce 8% more output (10,800 vs. 10,000 bikes). Paint has a total unfavorable variance of $1,187. Paint caused an unfavorable variance from both a price and efficiency standpoint.
Also, Frito-Lays has eight of the top ten selling snack chips. However, the industry is extremely competitive with over 650 new snack chip products introduced each year. Less than one percent of new products generate more than $25 million in sales in the first year. 2. What specific challenges and risks does Frito-Lay face in marketing Sun Chips and what are their implications?
Observe: the millers lite took the sales of Coors light. Speciality beers only hold 12% of the total market. Specialty beers sold the most: in 2012 central with 39 million least east Labbat Ice has been increasing in sales by 8.8 million in the 4 years. Not available in the east. Top brand is microbreweries 39 million out of the 86 million Signature cream ale has been selling one million or less.
Through this entity, Armco was recognized as the leading supplier of grinding media products in the United States. The carbon wire rod was not a profitable product. The labour cost of Kansas City were higher than most of their competitors; however, their plant was not efficient, because it should have accommodate five times as many as current employees. Because of this disadvantage, the managers increase the value of their products to increase the profit and sales. All salaried employees in the Works were eligible for cash incentive awards based on performance evaluation made by their immediate superior and Rob Cushman with a range 5-30% of annual salary.
Unit 3 Assignment 2 Task 1a Carrying out a swot analysis for Tesco Strengths • The strengths for would be: • It is a powerful brand • It has a reputation for value for money and a wide range of products all in one store. • It is the UK’s largest supermarket with over 26% Market share • They are able to increase there market share • Cheaper then most supermarkets Weaknesses would be: • Tesco is not be able to provide a better service in books then Whsmith as they are more specialist in this region • Tesco controls its own massive empire which could lead to some weaknesses as due to the huge span of control from bureaucracy • They do not specialise and focus on one particular market like other companies, which can have a negative affect • They have competitors such as Morrison’s Opportunities would be: • They could expand more • Provide cheaper prices then Asda • Having special offers • Having lots of variety • Merging or forming a strategic alliance with another organisation would be a great way to improve their services Threats would be: • Other supermarkets would provide similar products • Some company’s would sell cheaper products then Tesco • They have competitors such as Asda • They have a growing public concern and annoyance that Tesco is threatening the smaller retailer Political • The price of petrol changing • There is growing concern that Tesco is getting too big • The organisation is driving out the competition • An increase in unemployment due to a downward turn in the world economic • Trading policies • Employment Law Economical • Impact on sales of the credit crunch • Exchange rates • Inflation • Interest Rates Social • An increase in immigration from Eastern Europe resulting in a demand for new goods • Changes in fashion • Lifestyle changes • Branding • Health and welfare
The commercial production of PP began in 1957 in the United States of America and in 1958 in Europe (Karger-Kocsis, 1995). Based on statistics, according to Meran, Ozturk, and Yuksel (2008), they clearly show the quick increase in the consumption of plastics. In the year 1930 the world produced 100,000 tons of plastics, not including rubber and fiber. By 1976, the amount reached 25 million tons. With the advances in technology, the manufacture of the plastics went up to 90 million tons in 1990.