Is the real estate subsidiary a good idea? If the managers buy more stock, what is the appropriate price? There are two major concerns which are gaining competitive advantage and determining comparable valuations. Brazos should allow the company to sell the managers some stock of the business to benefit the managers. But the amount that a manager can hold stocks should be limited because the ownership would be split in this way as it is not good for Brazos itself to decrease its ownership.
A portfolio analysis help a company with making decisions on what products that they must considered to be the main focused and which one they should get rid of. The portfolio analysis raises the issue of cash flow availability for use in expansion and growth for products in the organization. The BCG Matrix and the portfolio analysis would benefit a company to see where they stand with their products and where they should put more focus on to bring that particular product up in the market. Even though there are products that are doing well for the organization they can also become problems. The economy is going through some tough times now and it could be hard to keep the stars the stars and the cash cow the cash cows (Portfolio Analysis,
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.
Spending money on training of these devices are also factors that must be considered this takes employees time and cost the company man hours and thus money that could be spent on other things. Lowes must continue to analyze the cost to decide whether these improvements are needed and continue to produce more of a profit with or without them. In the highly competitive market that Lowe’s is in strategic planning has helped them not only stay in business, but also maintain a competitive edge over the competition. Their initiative on energy conservation and concentrating on energy efficient products and materials has made good fiscal policy for the organization. This combination of cost savings and green policy provides Lowe’s with a low risk and positive image in today’s global
(Carrol, Archie B& Bucholtz, p91). Also, I believe competing with Big Box Mart will not position Smart Mart to achieve value for its stakeholders as Smart mart then have to compete on low cost rather than quality in future. Though the expected returns could have been enormous by growing bigger but this strategy would not have aligned with Smart Mart's philosophy of achieving healthy life style for its consumers and delivering best quality organic products. Though going niche will put Smart-Mart on backseat in ties with global suppliers but under the niche market business model, global suppliers will become marginal stakeholder type and thus will not play a relevant role in
In the next chapter we learn how sellers set the prices in which we pay for an item, why things cost what they do and not what they are worth. The key to prices are sellers that can sell their products as close to the cost of making the item. In a regular market, prices are the key. Businesses cannot afford to charge a higher price, customers are normally looking for a lower price and the lower the better, in today’s economy. Many customers ask the question, “What affects prices?” We learn that things happen beyond the sellers’ and buyers’ control to raise and lower prices in today’s market.
The order of competitive forces from strongest to weakest in Porter’s five forces model are as follows: Potential Entrants – Substitutes- Industry Rivalry- Buyers- and Suppliers. I believe that potential new entrants help liquidate the pay day market which might drive demand down in individual stores (the entries to barrier are extremely low 135k for startup), followed by substitutes such as credit cards offered by Providence (which were marketed towards unbanked costumers), current industry rivalry also proved to be a competition force that affected individual pay day locations (similar reason to new entrants). 3. What are the driving forces that are currently affecting the payday lending industry? The driving forces that are currently affecting the payday lending industry are entry or exit of major firms, regulatory influences and government policy changes, marketing innovation, and lastly changing societal concerns and attitudes.
However, separating this small contractor segment entails a process of market research to really know if the market is large enough and has enough purchasing power to be worth pursuing. Nevertheless, if the in-home market is really saturated, one way the company can expand and cope up with the competition is enter into this new market. Some of the junior salespeople can also specialize on this segment and might get better sales volume since it is still untapped or somewhat neglected. As long as the market is viable and the company has competent salespeople to attend to this new market needs, then there is nothing wrong in pursuing to enter this market. 2.
Big advantages need to be broke down for their financial value and smaller advantages might seem to be more difficult to measure at first, but they will ultimately give the business more financial opportunity in the future. If the assets surpass their cost of accomplishment, the assets should be broke down using capital budgeting and figure out if they will see a good sizable profit compared to the capital that the company must invest in. A company needs to arrive with information systems plans that satisfy the business plan and approach, and correspond with their existing information technologies. Using scoring models and portfolios breakdown can both be used to help evaluate information systems
This strategy emphasizes the company’s ability to utilize its existing internal resources and focuses on streamlining operation through proper sizing and cost reduction. Even though this way could create short-term benefits to shareholder, this approach could negatively impact the company’s ability to adjust to external changes, especially rapid market and competitors’ changes. * Outside-in strategy: which is external market oriented strategy. Company makes the business decision according to the customer needs and market trends. It is “outside –in” thinking, which could help company to catch up with the market trend and develop products and services that meet the needs of customers.