Financial Statement Paper P Agnes Pierre Louis ACC/280 September 26, 2011 Minh Truong Financial Statement Paper In today’s business world it is required to keep an accurate account for assets and liabilities of each company. Good and ethical accounting practices can build the base for a strong and profitable company if the information is used properly. The definition of accounting is obvious but one most know the purpose of accounting which will be covered in the following paragraphs. There are four financial statements that are prepared by companies in today’s society as a form of reporting accounting companies. Those statements are income statement, retained earnings statement, balance sheet, and statement of cash flows.
If he relocates one of the stores he could also lose customers as well. The internal weakness include not wanting to hire outside of his family and the timing if he relocated one of his stores which he could lose current and potential customers due to the opening of West 9. He is not sure of his ability of running two stores either . External perspectives The characteristics of this industry are that with similar companies that are larger it greatly affects smaller companies with the cheaper prices that these companies can offer to customers. The firm’s strategy for differentiation is to be able to provide exceptional customer service by react quickly to competition
It is a luxury product rather than an essential commodity. Mr. Wilson might be pricing his furniture as a premium product. He would however need to look at the current economic condition of his geographical market. He would need to ask himself a couple of questions. How many of his target audience has the buying potential for his product in the current economic situation?
Question 3 Question 4 If Heavenly Foods does not have an opportunity to lease the space, it is not free or costless to the lite product project. Instead it is an opportunity cost of $43,750 that must get charged to the new project and failing to do so would cause the new project’s calculated NPV to be too high. Question 5 Yes the erosion of profits should be charged to the High Energy Lite product due to cannibalization, a negative within firm externality where the new business eats into the profits of the existing business. Therefore the new
Ruth Chris had the following issues on hand; First, Dan Hannah had to decide which countries offer the greatest growth potential with the least risk. International businesses regularly offered opportunities for Ruth Chris but with strict selection criteria which in fact eliminated many of these business prospects. Secondly, the management team must agree on a standard development model and the decision of which mode of entry to use. Opportunities were evident for joint ventures or company owned stores in certain markets. Lastly but not least, Ruth Chris challenge was selecting the appropriate development model in conjunction with the management team but required additional information criteria in order to guarantee the future success of the organization.
At this point, sales are virtually diminished, pricing is considerably offset from market trends, and the ability to maintain a level of profitability becomes a major challenge. An organization can put forth efforts in the attempt to reverse, or otherwise avoid, the decline stage by a few idealogic strategies, all of which are designed to readapt and conform to newly enhanced demands by the industry and its respective consumers. Most importantly, an organization can empower itself to readapt and act in a proactive manner by analyzing market trends and determining the future scope of a certain type of product or service within a reasnable timeframe prior to the onset of saturation and declination. Perhaps it would be in the best interest of an organization to produce/ provide a product of similar fashion, yet a unique alternative, before actually retiring or discontuing a product. For production to end indefinitely of a specific good, an alternative must be researched, produced, and introduced into the marketplace at the same time to create an equilibrium of market introduction of one product and declination of another.
Going global is highly attractive, as it is mentioned in the article, it not only represents a perception of excellence but it comes with a challenging set of obligations that many do not anticipate or plan for. The risks of taking a brand global must be carefully weighed or the damage to the brand can be irrevocable. The authors have tried to find the perceptions of consumers regarding the global brands, the global consumer segments and have suggested the new opportunities and responsibilities in global arena regarding global brands. Consumers all over the world associate global brands with three characteristics and evaluate them on these dimensions while making purchase decisions. The first one is the quality signal, Consumers’ associate brands with quality and the producer/brand holder
The long-term benefit is the unexpected opportunity the new customized delivery system might bring. The short-term barrier for Woodmere is the timing and the approval of management. The long barrier for Woodmere is that it need to change the current delivery system which involves a great deal of unknown risks. The benefits for HomeHelp is that it can improve product availability for in-store customers while reducing overall inventory. The barrier for HomeHelp is that Woodmere may or may not perform as well as they expected.
Running head: GUILLERMO FURNITURE ANALYSIS Guillermo Furniture Analysis FIN/571 NAME 17 July 2011 Professor Guillermo Furniture Analysis Guillermo’s Furniture Store Scenario shows that there is a competitive advantage when it comes to specific retailers within the furniture industry; unfortunately, Guillermo is currently not experiencing such an advantage because of fresh overseas competitors who are able to sell products at a lower price than Guillermo. At one period, Guillermo did possess a competitive edge; however, because of new entrants, the utilization of high-technology methodologies, product pricing and positioning, and the rising costs of labor Guillermo is not experiencing the profits he once did. Guillermo has several options to consider such as manufacturing automation, outsourcing, or maintaining his current business platform with the addition of a new coating technique for his furniture. Regardless of Guillermo’s decision, it is essential for Guillermo to add value to his furniture. Guillermo must consider all alternatives and integrate a new strategy to reestablish his once-held competitive advantage.
Externalities cause deadweight loss which can lead to market failure. Businesses can make more money if they can internalize the externalities. Externalities can be internalized if the transaction cost of the business is low. “Transaction costs are the costs of identifying and bringing buyers and sellers together, bargaining and drawing up a contract”2and it is relatively high for department stores like Galeria Kaufhof in comparison to stores like H&M. Similarly, the transaction cost for stores such as H&M is more than that of the jewelry shops but less than the department stores.