Chronology of Events 2/22/00: CalPERS identifies 10 underperforming companies that will serve as their primary focus for corporate governance activism for the 2000 proxy season. The Focus List is made up of two retail companies, JC Penney being one of them, a bank, and 7 other corporations. CalPERS has investments in more than 1600 US companies. The 10 included in the Focus List were selected due to their long term stock performance, corporate governance practices, and economic value added evaluations. JC Penney was named on this list for its disappointing stock price relative to the retail industry.
1. How would you characterize the snack chip category and Frito-Lays competitive position in the category? * The United States snack food industry recorded retail sales of $37 billion in 1990, a 5 percent increase from the year before. A large source of growth results from increased per capita consumption. Consumers are buying more snack chips per person, an increase of 2 pounds over four years.
Introduction Bennett Alexander invented a glow light using a series of chemicals into a contraption he calls Chemalites. He started up his business by getting $500,000 from investors and to put his invention on the market (Wilson, 2008). But by the end of 2003, with operations in full swing for a good six months, Chemalite, Inc. saw its cash balance drop tremendously, which Alexander and his investors viewed as a negative. Even though they thought their business was doing well, the numbers they read indicated otherwise. Questions * What are some of the reasons the company should continue to operate?
This legislation leads then to tense negociations every year between Cable distributors and Broadcasters. In fact, it used to be 100% margin revenue for TV stations. But, according to SNL Kagan, broadcasters’ retransmission revenue skyrocketted to $1.757 billions in 2012 (which represent an increase of 717% since 2006). This money goes to programming, to put high quality programs. Sinclair Broadcast plays on its big audience to put pressure on cable TV.
The recent history of Air Canada is not bright one. In March of 2003 Air lines cut 3,600 jobs. Which at that time the company was in bankruptcy protection and was negotiating to make major reduction in labour cost. The company attempted to reduce its annual operating expenses by 25 percent, or C$2.4 billion. Last year, because the price of oil had raised to $150 a barrel many CUPE members lost monthly flying time.
We have downfall and then we pick things back up and everything gets better. But , just when things get better, it happens to get worse again. Many believe erroneously that the stock market crash that occurred on Black Tuesday, October 29, 1929 is one and the same with the Great Depression. In fact, it was one of the major causes that led to the Great Depression. Two months after the original crash in October, stockholders had lost more than $40 billion dollars.
Case Two: Starbucks in 2009: The Coffee Goes Cold Strategic Management 4813 David Lemons A. Problem Summary: After a couple decades of tremendous growth of the Starbucks expansion, the company took an unexpected turnaround in 2007, where they saw their stock price drop. Their share price had dropped more than 75% during the next years. Howard Schultz came back as CEO at the beginning of 2008 and suggested several turnaround strategies. Starbucks was hit hard, the net income was down nearly 70% and it also dealt with its first ever decline in quarterly revenues.
There can be a lot of factors as to why companies file for bankruptcy and closure. In the case of Enron, the first set of problems in the company manifested when traders reluctantly gambled with company assets in the oil market. They lost $90 million in a period of five days. Since then company reserves disappeared and auditors saved the company by reporting fake net worth and imprecise trading revenues resulting to accounting scandals in the company. Due to the company’s compound business model and unethical practices, they required that the balance sheet is to be modified accordingly to illustrate satisfactory
An Overview - Company Situation and strategy Krispy Kreme Doughnuts, Inc. (KKD) which began as a family-owned business back in 1937 has started from a wholesale business selling to local grocery stores, extended business to company-owned retail stores and franchising business. Since taking the company public in 2000, KKD had shined out on Wall Street, where its stock price and profit quickly rose. Revenue and earnings grew at 20-25 percent per year. The stock has tripled in price since its initial public offering of 3.45 million shares at $21 per share. Until mid of 2004, the company faced a lot of problems which included declining in sales, falling revenues, failing franchisees, closing stores, having problems with the U.S. Securities and Exchange Commission over false and misleading financial statement, and law suits.
In 1994 Quaker bought Snapple for $1.7 billion. The vision had been to combine Snapple with Gatorade, an earlier and very successful acquisition, to form a powerful beverage business unit. Snapple, however, did not thrive: sales fell in each of the next four years, and in 1997 Quaker despaired and sold the brand to Triarc Beverages for $300 million. In the fallout that followed, both Quaker’s chairman of 16 years and its president resigned. Mike Weinstein, CEO of Triarc Beverage Group, reflected on the acquisition.