How could a company in business for 70 years, with a famous product, loyal fan base fall from grace so quickly? The story of Kripsy Kreme Doughnuts still troubles most investors to this day. Were the revelations about the company’s franchise accounting practices sufficient to drive that much value out of stock? Are there deeper issues at Krispy Kreme that deserve scrutiny? Analysis of the Problem 1.
In 1979, Family Dollar’s stock began trading on the New York Stock Exchange (NYSE). In the 1980s, Family Dollar’s pace of store expansion led them to become a major regional discount store chain. The pace was so dramatic during the 1980s that from the beginning of 1981 to the end of the decade, Family Dollar went from opening their 400th store to opening their 1,500th store. The 1990s yielded about the same growth as it was in the 80s as far as stores opening. At the point of 1992, they exceeded 1 billion dollars in annual sales.
Market Conditions Centralia, Missouri had food and beverage sales of $62.3 million in 2002, which was a 4.6 percent increase over the previous year. Superior and three other major competitors, Harrisons, Grand American, and Missouri Mart account for eighty-five percent of food sales in Centralia. 41.6 percent of Centralia’s population is between the ages of twenty-five and fifty-four. 30.6 percent of household income is between $15,000 and $34,999 and 39.6 percent is between $35,000, and $74,999. In 2002, Superior held an estimated twenty-three percent of the food sales market, Missouri Mart had twenty-seven percent, Harrison’s had twenty-two percent, and Grand American had thirteen percent.
Historically, December sales represented only 3% of yearly sales, but this year they mushroomed to over 25% of yearly sales. CCL would like to defer the profit on what they consider to be "excess" sales generated as the result of the looming price increase. CCL believes that 2001 sales will be lower because of the bottlers' overstocking to beat the January price increase. Management of CCL is convinced that bottlers are overstocking due to the frank and open discussions that they have had with the bottlers. If deferring this revenue will not be acceptable to the company's auditors, management would prefer to treat these "excess" sales as consignment sales, with the recognition of revenue taking place in 2001 or when the bottler eventually sells this product.
Britvic’s pubs trade was also affected by the recession, company shares fell to its low in 5 years, reaching 222.25 p, a difference of 165p comparing with previous year. In 2008, still feeling the traces of the financial crisis and alert to the changing attitudes in consumer behaviour, Britvic secured exclusive bottling agreements with PepsiCo for V Water and Gatorade in Great Britain. It has also launched and re-designed its packages of squash range, increased large pack production facility, which “unlocked our ability to drive a large-pack performance through increased promotional competitiveness”. Due to these changes, Britvic’s ROCE rose by 3.5% on that year. On Britvic’s liquidity ratios, the most visible trend is that the lines on current and quick ratio are always working in accordance with each other.
IPG Product Portfolio : The BCG Framework We analyzed IPG's product portfolio in light of the BCG's framework (Cash cow, Star, Question, Dog) and confirmed that Anaerobics was firm’s “Cash Cow”. Anaerobics, along with Cyanoacrylates (CAs) adhesive products, made up almost 70% of IPG's revenues. Plus, the company held 85% of market share in the North American anaerobic market in 1978. CAs were the firm's “Star” portfolio. The growth rate of CA sales outpaced that of the total adhesives market, growing 20% annually.
In 2001, Zappos more than quadrupled their yearly sales, bringing in $8.6 million. In 2002, they opened their own fulfillment center in Kentucky. In 2003, Zappos reached $70 million in growth. In 2004, Zappos did $184 million in gross sales. Over the next three years, Zappos doubled their annual revenues, hitting $840 million in gross sales by 2007.
Slashing prices as they have over the many years lures in consumers to bring in more sales. Wal-Mart’s rapid growth strategy is aggressive as well. In 2003, 425 stores were added. Then, consumers demanded Super Centers so Wal-Mart supplied 4,000 globally. This leader began its massive international expansion of stores from “2,181 in 2006 to 2,757 in 2007 and 3,121 in 2008.
In 2008 Under Armours net revenue was $32,856, in 2009 it was $48, 391, and in 2010 it was $66,111. If the company follows this trend its profits are simply going to rise. Political/Legal The political and legal environment of Under Armour is greatly reliant and influenced by Planks usage of “authenticity” to grow as a brand. Being an original and genuine brand, Under Armour went public in 2005, seeking to sell as much as $100 million in shares of common stock. After it went public in 2006, Under Armour invested in a new SAP system.
In 2006 too much RBS product moved in the market, so need to deplete Inventory and increase sales RBS More aggressive in promotion during last 3 years. In 2006 consumer promotion had 4 parts and mainly focused on cash refunds, advertisements in women magazines, use of coupons and twin packs. In 2007 consumer promotions budget was cut and Regnante had to decide on the level and timings of consumer promotions. Trade promotions focused on discount on invoices, free cases, performance discount incentives and temporary discount used to promote sales. Past data about trade promotions shows that a lot of discount was given.