Risk Factors of Bloomingdales Risk factors play a major role in today’s economy. Since we are stuck in the stagnation period and do not seem to be recovering for quite some time, businesses have to come up with a proper marketing plan that will help sell their products. All businesses suffer from the same risk factors. Some common risk factors include: product quality, price, brand loyalty, competition, managerial skills, etc. Many customers are shopping at lower priced stores because the economy is not allowing them to spend extra money.
Because the company must produce all financial information to the SEC many businesses find it to be very stressful and time consuming which takes time and money away from a company that is thriving like Kudler Fine Foods. Legal liability is important when conducting an IPO and those offering the shares can be personally sued. The expenses continue after the company goes public with the SEC reporting requirements. Kathy Kudler will not only lose control of some of the decision making for Kudler Fine Foods with an IPO, but she will also lose some of the profits, as a portion will go to the
Here are a few more reasons why its a bad idea. First of all, if they raised the taxes no one would be happy. Many people buy snacks and pop from stores, if taxes are raised they may stop buying them and the store would lose business. If they continue buying it they would lose money. Either way it goes, nothing good happens.
Archie Norman took the position of Chief Executive Officer at Asda during a critical time for the grocery chain. In its efforts to increase profits and diversify its business beyond grocery, Asda made two serious business mistakes and as a result Asda was nearly $2 billion in debt and at risk for defaulting on its loans. (Archie Norman at Asada) In addition to poor business decisions, Asda’s top management was misusing company funds resulting in the need to increase product pricing and a loss in market share. The company lost sight of its base customers and would likely fail if it did not make drastic changes. Norman’s story at Asda is about a leader focused on organizational change.
Consequences and solutions to cash flow problems Factor | Why It Causes a Cash Flow Problem | Low profits or (worse) losses | There is a direct link between low profits or losses and cash flow problems. Remember - most loss-making businesses eventually run out of cash | Over-investment in capacity | This happens when a business spends too much on production capacity. Factory equipment which is not being used does not generate revenues – so is often a waste of cash | Too much stock | Holding too much stock ties up cash and there is an increased risk that stocks become obsolete (i.e. it can’t be sold) | Allowing customers too much credit | Customers who buy on credit are called “trade debtors” Offering credit to customers is a good way to build revenue, but late payment is a common problem and slow-paying customers put a strain on cash flow
onsumers by increasing the price of products sold to make up for the products lost. Increased prices may now cause consumers to travel and go elsewhere to purchase comparable items at a cheaper rate. Honest shoppers now fall into the same mistrust category as shoplifters because they cannot be distinguished easily from one another by the retailer. If a store has to close down because they can’t make any money then that cuts jobs. One store may not seem like a big difference, but when stores are closing every day because they can't maintain a stable business because of shoplifters it changes a lot for families everywhere.
The recall brought Mattel lawsuit dealing with children illnesses and deficiencies, Causing Mattel to lose lots of money. Another big problem for Mattel was trade market and not manufacturing their product themselves and allowing the manufacturing to happen in China. This caused Mattel to not have control of what they were producing. This also gave Mattel’s competitors a chance to move up in the industry due to making more sale caused by Mattel’s lost in the consumer base. Alternatives Mattel needs to make a standard set of rules and regulation that need to be followed by everyone associated with the company.
However, the SPH program put a lot of pressure on store managers and sales. Consequently, a large group of the R&R associates sued it for “working off the clock” in 2010. This lawsuit might cause reputation damage, and the settlement could be up to $200 million. In 2008-2009 before the case, there was an economic recession. The whole luxury goods industry in the U.S. dropped over 14%, and R&R revenues declined 10%.
Without accurate data from each store, M&L inventory can be overstock, understock, or no stock. So when a store order supplies, M&L wouldn’t know how much inventory they have, they might have a lot of product 1, but very little of product 2. When using the judgmental forecast, sales staff and managers from other supply store can give M&L Manufacturing what is selling in their store, and ship out more products to fill up their inventory, and they can fill their warehouse on which product is selling faster than the other. Without having the correct amount of inventory in the warehouse, they can lose a lot of money because consumers will purchased other products from a different company. Using the judgmental forecasting, the manager from M&L Manufacturing can get a sense on what is needed at each of their supply store, and get accurate forecasting on each product, and how many products are selling each month.
Case Study: Target: From “Expect More” To “Pay Less” SHANNETT WALCOTT PRINCIPLES OF MARKETING MKT201 PETAGAYE WAUGH MAY 20, 2012 Case study Discussion Questions 1. What micro environmental factors have affected Target’s performance over the past few years? A marketing microenvironment consists of factors close to the company that affects its ability to share and its customers. Retail giants Target struggled to increase and maintain sales and profit growth over the past few years. Micro environmental factors that affected targets performance over the year have been a combination of the following factors: * The company – Targets marketing managers were not aware of the change in trends in the marketing environment.