(Wal-Mart Corporate Website) Huge turnover, large customer base and returning customers show that Wal-Mart has been able to achieve this goal in its 50 years of existence. Wal-Mart sources material from third world countries at low price. Very efficient supply chain management and bargaining power has enabled Wal-Mart to sell goods at low price. Company is also pursuing vertical integration strategy to lower cost. Answer-2) Wal-Mart Stores had turnover of $446.95 billion and net income of $15.77 billion in financial year ending
Newell Company: Corporate Strategy Newell, manufacturer and marketer of basic home and hardware products, is a rather unrelated diversified company with more than 30 operating businesses. Grown over the years through many acquisitions, the company is facing one of her most important challenge: the acquisition of Calphalon (high-quality cookware) and Rubbermaid (plastic products). Both the acquisition were part of that period’s CEO’s plan to increase Newell’s strength on the market, and to boost the capitalization to $10 billion, in order to reach higher EPS and, in so doing, create more value for shareholders. Calphalon is a private high-end aluminum cookware manufacturer, distributed in department and specialty stores and with a new developing product line for the mass retailer Target. Analyzing Calphalon’s issues, it comes out that its acquisition by Newell (consisting in a process of related diversification) would create value for both companies.
Proctor & Gamble By Michael Mohr and Dean Golosinsky Acct 311 Proctor & Gamble Introduction Proctor & Gamble is a consumer products company that is publicly traded and is part of the S&P 500. The company’s goal is to improve “more consumers’ lives by innovating and expanding [their] product portfolio vertically, up and down value tiers.” (www.pg.com) The company seeks to serve price conscious consumers with low-priced goods that are superior to goods offered by the competition The company’s products consist mostly of daily use goods and are sold in over 180 countries through mass merchandisers, grocery stores, membership club stores, drug stores, high-frequency stores, neighborhood stores in developing markets, department stores, perfumeries, pharmacies, salons, and e-commerce. Products Proctor and Gamble is organized into three business units, Beauty & Grooming, Health & Well-being, and Household Care. Under GAAP P&G has six reportable segments: Beauty, Grooming, Health care, Snacks & Pet care, Fabric Care & Home Care, and Baby Care & Family care. Under Beauty & Grooming, brands consist of Head & Shoulders, Olay, Pantene & Wella.
1. Question: (TCO4) In a merchandising business, gross profit is equal to sales revenue minus: Your Answer: Instructor Explanation: Merchandising companies are those that buy products and resell them to the end consumer, so the cost of the product sold is usually their largest cost. Their income statement should start with revenues minus cost of goods sold equals gross profit. Points Received: 5 of 5 Comments: 2. Question: (TCO4) BMX Co. sells item XJ15 for $1,000 per unit, and has a cost of goods sold percentage of 80%.
SMC would have 11.7 percent market capitalization among its competitors in the Private-brand distribution in orders. SMC has consistently generated net profit sales of 10 percent annually and has a strong reputation of being successful. This company needs to understand the guidelines of the contract and see if the proposal is feasible for their company to keep their reputation high. Management needs to discuss contract factors such as: * purchase price 5 percent lower the SMC’s manufacture list price for its standard model; * prices would be fixed with free shipping (no seasonal or promotional discounts); * greater exposure to liability claims; and * 45-day collection payment
Although we consider ethanol an environmentally friendly alternative to fossil fuel-based petroleum because of its lower greenhouse gas emissions, the idea of any large-scale use should raise many questions for government agencies, scientists, and farmers alike. When the U.S. government first considered ethanol an effective alternative fuel source they mandated that ten percent of each gallon of fuel we used in our cars would be ethanol. This mandated created a market for the ethanol producers to sell their products to help initiate the industry. As a result of the mandate, the construction of ethanol plants was stimulated and ethanol production began to increase. To further help the initiation of the ethanol industry the government supplied ethanol manufacturers with subsidies to offset the cost of production.
Kraft Case Kraft mission, Corporation, Achieve leadership Fostering innovation Achieving high product quality Keeping a close eye on profit margins Corporate objective Build superior brand value Enhance product demand Expand global scale Build a learner cost structure Follow consumer trends Pod objectives 30% expected to be purchased out of home customers Goal for 80% of SSP machine owners to try the product 7-14 pods per week by users 60% of repeat purchase Break even by 2006 Households in Canada 6% to adopt SSP in 2004 and then 8% by 2006 2.5 million Households in Canada Kraft History Kraft performance Founded as cheese manufacture in 1903 Largest food and Beverage Company in the North. Second largest in the world Operates in at least 155 countries (2004) Business in 5 categories Beverage, snacks, convience meals, cheese groceries, Currently owns over fifty $100 million brands Strong distribution network 32% market share in Canada Known for innovative new products Europe coffee pod market First conceived in 1978 by Italy’s “lly caffe” This targeted office users Redesign by Kraft foods in 1982 2003, Kraft marketed pods in 10 European countries Senseo launched in 2001 first 3 years sold 3 billion In 2003 single sense pods accounted for 15% of all coffee pods sold in Europe Canadian coffee market Coffee market intense- growing selection Increase in specialty store; Tim Horton’s or Starbucks Retail sales- 600 million on 2003 Consumers willing to pay premium for convenice 2% increase in coffee sales 432 million in grocery stores Large size partners- price wars 15-20% sales- double digit growth Competition- regular coffee Kraft owns Maxwell and Nabob- #1, 32% share Nestle- 17% P&G- 9% Private Labels- 23% Smaller companies- 19% Maxwell- Canada’s top retail brand of roast + ground coffee Nabob-
Silver Lake Cabinets is approached by Ms. Jenny Zhang, a new customer, to fulfill a large one-time-only special order for a product similar to one offered to regular customers. The following per unit data apply for sales to regular customers: Direct materials $100 Direct labor 125 Variable manufacturing support 60 Fixed manufacturing support 75 Total manufacturing costs 360 Markup (60%) 216 Targeted selling price $576 Silver Lake Cabinets has excess capacity. Ms. Zhang wants the cabinets in cherry rather than oak, so direct material costs will increase by $30 per unit. Required: a. For Silver Lake Cabinets, what is the minimum acceptable price of this one-time-only special order?
GM try to find a breach to become best-in-class. And they carry out their plan without waiting for a chance. 2, GM’?s vision is to make more than $10 billion a year and become best-in-class peers. From my point of view, GM’?s vision is reasonable and realistic to achieve. First of all, GM has shed nearly $40 billion in obligations to become debt-free.
He led a series of changes, for example, he entered into a strategic alliance with FedEx, forming a sort of proto-federation, aimed at improving distribution for close to 500 Laura Ashley stores. The alliance was established as a 10-year partnership, but it was relatively open-ended, premised on trust. The objective was to be able to supply 99 percent of Laura Ashley's merchandise to customers anywhere in the world within 48 hours. The alliance replaced a legacy system that would route a T-shirt manufactured in Hong Kong to a warehouse in Newton, Wales, before sending it to a retail store in Japan. Also, he led Laura Ashley to its first gross profits since 1989, and in fiscal 1993, gross profits were expected to reach 12 million pounds during 1992.