As stated in the paragraph above, the need for this change is to allow for us to keep close ties to our customers via the new customer management system. We must keep close ties to both our long-standing customers and our new customers as well. Implementing these new management systems will allow to strengthen our relationships with our existing customers while the new systems will also allow for our relationships with new customers to continue to grow. We have a goal of fifty million dollars to reach, to reach this goal we must increase sales to existing customers, increasing sales by forced promotion; price discounts; and customer user group services. We must also expand sales to our newer customers by utilizing public relations activities, trade shows, brand development, and sales force promotions.
* Describe how you would implement your recommendation. When asked about Rosewood Hotels & Resorts and their idea to find ways to increase company revenues and keep returning customers happy as well as new ones, I would think that the best things the company can do is to 1. Increase guest retention rates and returning guest quotas, as that will allow for company revenues to increase and will, in turn, create more brand awareness. 2. Merging hotels is a good idea, but being cautious as to which ones will merge will help to alleviate losses in profits and revenues for the company overall.
Exercise #1: Merliss Company(a specialty boat-accessory manufacturer) is expecting growth in sales of certain low price products. Merliss is thinking about a preferred stock issue to help finance this expansion. The company is leaning toward issuing participating preferred stock so as not to dilute ownership. Investors will get an extra dividend if the company does well. Merliss wants to be sure that all reporting for this transaction is proper and transparent.
Character (5/10) The sole proprietor for Lawsons is Paul Mackay, a well versed Englishman who moved to Canada in 1998 and opened his own business. Mackay has had some serious issues in the past with repaying loans, as he was not generating enough profit to be able to. Lawsons currently has a substantial amount of loan penalties accumulated from not paying their loans on time, and this could cause issues for the Commercial Bank of Ontario if Patrick grants them the line of credit and they are unable to keep up with the payments. Capacity to Repay (4/10) It is apparent that Lawsons is not in a position to repay debt without many changes occurring both internally and externally. Jackie should not give the current loan request a chance, but instead try and encourage Mackay to make a lesser request and then go from there.
Since the Walton Work Wear line is in the production stage, its accumulated development costs should be capitalized. The Carroway Cool Top has not started it commercial production which would allow the development costs not to be amortized yet. Also interest costs on loans to generate financing for the R&D activates of a product can be capitalized rather than expensed. The capitalization of interest would allow CCL to reduce taxable income in the future when it is more profitable. I would recommend that CCL make the above changes immediately so that the financail statements are not incorrect.
In-depth research and analysis needs to be conducted on other companies that have created similar successful programs. They need to determine what the breakeven point will be, and when these new products will start generating a profit and then make the decision on whether or not it’s worth the investment. Issue 5 Lack of planning CanGo is in rapid development, but at the same time lacks of any sort of planning. CanGo's management team cannot seem to reach a viable solution for the future development of the company. Recommendation 5 CanGo needs to make a comprehensive analysis and then decide on a long-term development plan.
A merger would best be used in this situation since it will help lower his taxable income and he can improve his operations and competitiveness. If he feels that the investment in new manufacturing equipment will help increase profits and can take on the extra liability, then he should buy Smithon. His debt –to-equity ratio will rise and may cause him to have a hard time getting money to finance his company. But with a two year loss he is keeping his taxable income down and may be able to show investors that things are going to turn around when all operations are working together and
Recently, the market is on an uptake with its improving stocks & bonds. The light in a year-plus-long tunnel is bringing both hope and realization. The market improvement is also shedding a truth on a troubling facet of the economy, the 401(K). The realization Stephen Gandel, of “Time Magazine”, has highlighted in his article “Why It’s Time to Retire the 401(k)” focuses on the sad truth that 401(K) is not effective and thus can not be relied on. 401(K) has become ineffective because of the corruption of big business, the misunderstanding of and as a result a mishandling of the 401(K) accounts, and its correlating dependency on the market’s success.
The reasons this occurs is due to numerous factors like the number of companies going out of business, lack of job growth, future plans for job growth does not meet the need, founding father’s not allowing large business to come to town, education level of community, sales tax is high, and average household income is low. Another reason for the high unemployment rates in Mohave County is that there are some very rural areas and job availability is low. Some people actually make more living off the unemployment benefits then they would get paid at a minimum wage job. “Unemployment benefits range from $60 to $240 per week depending on a person’s previous income” (Pelham, 2011). “The average job growth is 1.46% lower than the Nation’s average.
They need to make sure the profit obtained from this investment is enough to justified it. It is possible that additional research would have to be conducted which will involve a delay on the project but the possible fail on the investment is worth the wait. WEEK 4 ISSUE #1 - CanGo is looking at becoming more productive within their specific demographic. Before doing so they have to make the appropriate actions to encourage the customers to follow through with their orders and expanding to different demographics. Aspire Business Consultants has become aware of six key issues with recommendations that will help provide a solid foundation for future endeavors.