But in the meanwhile smaller competitors started to quickly erode market share with prices cut. In 1997, instead of cutting prices, UST reacted to the growth of this value players with the introduction of premiumRed Seal but it was late considering that other brands were already successful in this segment. Moreover, UST is over dependent on smokeless tobacco business that contributed in 1998 for about 97% of
2. Question : (TCO 6) In the 1980s, Caterpillar was negatively affected by a strong dollar and lost significant market share to Japanese competitor Komatsu. The situation prompted Caterpillar to revise its global strategy and by the 2000s, the company was in a much better position to deal with volatile currency values. More recently, a strong dollar has actually helped boost Caterpillar’s bottom line. In the 1980s, a stronger dollar hurt Caterpillar’s competitive position, but in 2008 a stronger dollar did not seem to have the same effect.
P&G's stock has lagged behind key competitors', including Colgate-Palmolive Co. and Unilever, which have beaten P&G 4 to 1 and 3 to 1, respectively, in the stock market. The recession buffeted Gillette's core business -- pricey razors and blades -- and efforts to expand the Gillette and Venus brands into adjacent categories have had mixed results, at best. But P&G executives and some former Gillette managers say much of the deal's value is like an iceberg -- it's there, just obscured under water. Gillette, they say, has transformed
For many life improved and there were jobs available in many new industries, like car manufacturing, electric goods etc. These factories were much more modern then old Victorian factories and the conditions were improving too. The Wall Street Crash of 1929 triggered a deep and lasting decline in the world economy. The British economy was badly affected by the Great depression as there was already high unemployment and stagnation in traditional staple industries such as ship building and textiles. However, with there being such regional differences between the north and south in Britain, the social and economic impact of the Great Depression on Britain as a whole was extremely uneven.
The utility of gasoline is that it is a needed factor in obtaining and maintaining a job but yet, without a job, the consumer is not purchasing the gasoline for the needed transportation. “Americans used 2.8 percent less gasoline last year compared with 2010 – a combination of the weak economy, and aging US population taking shorter trips, and greater fuel efficiency, the US Energy Information Administration (EIA) reported on Feb. 8 (Clayton, 2012, p.1). Equilibrium is defined as “a concept in which opposing dynamic forces cancel each other out” (book, p. 95) Equilibrum prices can be defined as “the price toward which the invisible hand drives the market, quanity demanded equals quantity supplied” (book, p. 95). In relation to gas trends, the trend of the hybrid cars have not changed the equilibrium as once through. The trend of decreasing consumption and
1. BOOK VALUE AND MARKET VALUE PER SHARE StarHub’s book value per share fell by nearly 60%, from 3.15 cents in 2010 to 1.32 cents in 2011. While this may make StarHub appear less attractive to investors, the fall in book value is mainly attributed to the large fall of $31.4 million in shareholder’s equity, which resulted from lower retained proﬁts after distribution of dividends. StarHub’s market value per share as at 31 December 2011 was $2.91. Over the last year, its share price has risen from $2.63 to $2.91 and there are no signs of slowing down in its growth.
iii)There is very little increase in SG&A as not much was spend in terms of sales effort. iv)AR increased significantly with some of the promissory notes are payable in June 1994 (6 months after sale) v)Probably increase marketing, promotional and expenses related to discounts in the subsequent year due to “Premier Vision” plan. This impact is significant. From the statements, B&L reported a 13% YoY increase in sales revenue. However, exhibit 6 showed that there was a decline in market demand for conventional lenses, but an increase in both planned replacement and disposal lenses.
We see this again from 2004 all the way to 2010 with unemployment increasing to 10%. We can see that the economy hits a recession after roughly 10 years of gradual expansion. Okun’s Law states that for every 1% rises in Unemployment, GDP decreases by roughly 3%. The above Scatter Plot chart shows data from 1981 to 2010 and we can see that for every 1% rise in Unemployment over this period, GDP dropped by 0.4%. This shows a negative slop and that the relationship is relatively weak due to the fact the GDP has decreased by less than 1%.
Audi's global sales rose 8.3% to 1.58 million vehicles in 2013 however despite the increase in revenue, the net profit fell 7.7% ($5.57billion) and the operating profit margin fell to 10.1% from 11% the previous year. Based on this one could assume Audi is experiencing diseconomy of scale. But when you dig deeper into their situation the reasons for a lower net profit is not because of a “per-unit” cost of production which would truly mean they are operating as a diseconomies of scale. The true reasons appear to be because of their expansion investments. As per the article Audi “warned that profit would be hit by investment in new models and tougher climate regulation”.
Since 1980 the volatility of business operating margins, largely static since the 1950s, has more than doubled, as has the size of the gap between winners (companies with high operating margins) and losers (those with low ones). Market leadership is even more precarious. The percentage of companies falling out of the top three rankings in their industry increased from 2% in 1960 to 14% in 2008. What’s more, market leadership is proving to be an increasingly dubious prize: The once strong correlation between profitability and industry share is now almost nonexistent in some sectors. According to our calculation, the probability that the market share leader is also the profitability leader declined from 34% in 1950 to just 7% in 2007.