Employee strategy: Aldi usually employs four or five employee for one store compared 15 employees at a standard supermarket. Although Aldi pays more to its employees but it have eventually reduced the employee cost. Simple promotion method: compared to Wal-Mart or Carrefour, Aldi never does advertising or public relations. Aldi holds the view of saving the cost for benefiting the customers because all the expenses related to the PR or marketing are all paid by customers. Aldi’s business strategy is also based on the customers-orientation concept.
Together, these findings suggest that Darden Restaurants Inc. only conservatively possesses the financial strength and stability to be considered for investment. Financial Analysis of Darden Restaurants, Inc. Darden Restaurants, Inc. is the world’s largest full-service restaurant company, operating 1,773 restaurants as of May 31, 2009 in the United States and Canada, to include subsidiaries such as Red Lobster, Olive Garden, LongHorn Steakhouse, and five lesser-known restaurants. The firm was originally incorporated in 1968 as Red Lobster Inns of America, Inc, was acquired by General Mills in 1970, and became a separately publicly held company in 1995 when it was incorporated as Darden Restaurants, Inc. as the parent company of GMRI, Inc. and other subsidiaries. In 2007, Darden acquired RARE Hospitality International, Inc. and its LongHorn Steakhouse chain. Darden’s direct competitors in the full-service restaurant industry include Brinker International Inc. who owns, operates, or franchises 1,689 restaurants including Chili’s Grill & Bar, On The Border Mexican Grill & Cantina, and Maggiano’s Little Italy.
Lenny's, a national restaurant chain, conducted a study of the factors affecting demand (sales). The following variables were defined and measured for a random sample of 30 of its restaurants: Y | = Annual restaurant sales ($000) | X1 | = Disposable personal income (per capita) of residents within 5 mile radius | X2 | = License to sell beer/wine (0 = No, 1 = Yes) | X3 | = Location (within one-half mile of interstate highway--0 = No, 1 = Yes) | X4 | = Population (within 5 mile radius) | X5 | = Number of competing restaurants within 2 mile radius | The data were entered into a computerized regression program and the following results were obtained: MULTIPLE R | .889 | R-SQUARE | .79 | STD. ERROR OF EST. | .40 | ANALYSIS OF VARIANCE | | | | | | | DF | Sum Squares | Mean Sqr. | F-Stat | Regression | 5 | 326.13 | 65.226 | 18.17 | Error | 24 | 86.17 | 3.590 | | Total | 29 | 412.30 | | | Variable | Coefficient | Std.
In contrast, Supply side economists believe that unemployment is caused by the supply side of the economy not functioning properly. Extract E states how the recent strong performance of our labour market has “to some extent, been based on a foundation of macro economic stability“. This macroeconomic stability has been reached by using “appropriate fiscal and monetary policies to manage aggregate demand“. The fall in unemployment from 7.1% to 4.7% from 1997 to 2006 shown in Extract D is therefore evidence that managing aggregate demand can contribute to an effective reduction in unemployment. Managing aggregate demand(eg) can be self-financing because when the increase in aggregate demand causes an increase in employment, it means that fewer people would be on unemployment benefits.
They believe in making better on product availability and inventory, the real risk that the customers take their basket elsewhere when there are items out of stock will be reduced. However, there are few factors which greatly affected the company’s total revenue. One of the factors is the continued store expansion activities. Each additional store may take away sales from the existing units. That’s why the Walmart management started to plan a slower new store growth, so that the impact of new stores on comparable store sales will be stabilizing over time.
Unemployment also shows a slow growth in economy. So an increase in unemployment rate will decrease the demand and the affect will be better in case of lowering rate in unemployment. The following picture shows it very
“We went over our overdraft limit and we did not hit revenue targets,” Ramsay said. The bank sent in KPMG to go over GRH’s books. A separate investigation by HM Revenue & Customs found that the company owed £7.2m in taxes. Ramsay concedes that his ego got the better of him and the company expanded too far, too fast, opening 10 restaurants in 10 months last year, many of them overseas: “Tenacity and
Secondly high taxes create disincentives to work and this can be analysed through income and substitution effects. The substitute for work is leisure time and when taxes increase the opportunity cost for leisure time decreases, also people will have to work longer hours to earn the same post tax income causing disincentives as it reduces living standards as people must work longer and harder for the same incomes. This will create disincentives to work and so lead to a reduction in the labour force meaning less people in jobs and so less people paying income tax. Also as people earn less this way consumption in the economy falls therefore reducing the governments VAT recipts and corporate tax revenues and businesses make lower profits. This will lead to increases in the fiscal deficits as the government earns less and may be spending more in forms of social protection i.e.
Food consumption is not an option; it is essential. To capitalize off their consumer studies, Wal-Mart set aside 45% of its store space exclusively for groceries and consumables. Its competitor, Target, only allots 20% of its store space to groceries, while leaving 40% to home and apparel. The success of their strategy is evident. “Target's same-store sales have fallen for eight straight months; Wal-Mart's have risen for 22 straight months” (Gregory, 2009).
“We intend to retain our earnings to finance the expansion of our business and do not anticipate paying cash dividends in the foreseeable future……Dividend Payments are restricted by our bank credit facilities to 50% of our net income for the immediately preceding fiscal year.”i Cash Flow Statement Analysis: Krispy Kreme uses the Indirect Method of reporting Operating Cash Flows. In 2001 the cash provided by operating activities was $32,112 (Thousand), while the Cash dividends was $7,005 (Thousand). Cash provided by operating activities exceeded the cash paid for dividends. The company did not