This may have been for any number of reasons, however if this was cut simply to conserve cash it could result in slower growth in the long term. The cash and cash equivalents have grown by 348.2% which is alarming. This is an indication that the company is not investing their cash appropriately. This cash could have been invested in the aforementioned research and development to keep the business competitive in the long term. A few smaller points that are still worth mentioning are that the receivables have dropped 15%.
Capital improvement can save the company on unexpected cost and long-term shut down. Moreover, since Alliance’s customers are sensitive to delivery times, improvement on capital can save Alliance from losing loyal customers as well as their reputation. Other necessary solutions: Renegotiate with the bank In order for Alliance Concrete to finance the additional money for capital investment, they need to present these forecast data to the bank: • The forecast of 2006 leverage ratios: o Debt to prior year EBITDA of 2.67 which is less than the prior year of 2.80 shows that Alliance’s additional finance will not exceed three times the prior year’s EBITDA. o Interest coverage
They would only end up losing a hundred dollars a week instead of more because if they hired three guards they would end up losing $250 (600-350). So it seems it would make sense to hire two guards. b.) The most the company would be willing to pay the first guard is $400 because if they don’t hire a security guard at all then they will lose $1,250 (25*50) a week and if they hire one security guard then they would only end up losing $750 (25*30), which is a $500 dollar difference. So if they pay one guard $400 at the most then they will still have saved themselves a hundred dollars.
Redbox pursues a low-cost provider strategy by striving to achieve lower overall costs than rivals on products that attract a broad spectrum of customers. It was able to achieve low cost by installing kiosks the cost of which is $15,000 with five years of useful life. The price competition among rivals is vigorous. There are many rivals who are selling similar products, but hardly anybody can offer the same price per DVD with no late fees. Moreover, the convenience of locations saves customers’ time, energy and money, taking into consideration that the rental fee of Redbox is “dirt cheap.” Through its successful strategy execution, in 2010 Redbox had 22,400 vending kiosks in the United States, Puerto Rico and United Kingdom.
If the company continues to loose billions of dollars year after year adjustments need to be made somewhere, so the concentration should be put in the plants that are successful and slow production in the lagging plants or just simply close down. Second I would choose to reduce the SUV and truck lines because of the high gas prices throughout the country simply because the smaller cars would be more gas efficient, more cost efficient, and a lot of money being lost through the lack of being able to sell the expensive SUV’s which also doubles in cost to fill up and drive on a daily basis. Most Americans are buying the smaller cars because of the recession or the public opinion that we are in a recession. Third, would be to go ahead and sell the premium automobile group to somebody that would be able to make use and profit off of the lack of sales year after year. Cars like Jaguar and especially Aston Martins which are one of the most expensive cars in the world, don’t really sell on a large scale in the US except for the wealthy percentage of the population, so selling the premium automobile group should be a good business decision especially since the PAG group doesn’t fit the way Ford intended their business to be operated.
Currently, Gatorade prices vary, but the standard 250ml sports drinks price varies from $1.29 to $1.59, which is lower than its main competitor PowerAde which varies from $1.79 to $1.99. The PowerAde brand that used to try to gain market share by unveiling wacky flavors that Gatorade hadn't tried, brought to us ION4 in 2009, telling the public that this drink had calcium, magnesium and B vitamins that Gatorade
This would also help improve the company’s inventory turnover ratio from 4.7 to the industry average of 6.1. The firm’s debt ratio anticipation of 44.17% is better than the market average and will allow the company to pay down its debt quicker than competitors and have more cash on hand. The extra cash on hand provides more liquidity and is attractive to potential investors. However, these numbers are based on high projections. If such numbers are not reached the company is considered underperforming and makes an unattractive appeal to investors.
However during bad times there was an access of inventory which led to problems. Another issue in the auto industry is the interest rates as high interest rates led to a decrease in consumer demand for vehicles due to higher monthly payments. Eaton’s strategy to counteract a downturn was to set aside built up cash balance of $7.6 Billion or $21.13 per share as a cushion for the next downturn. Eaton’s move had critics but results showed that Chrysler’s pension was fully funded for the first time in almost 40 years and their credit rating was also upgraded to single A by major credit agencies. Without the implementation of Eaton’s strategy Chrysler’s credit rating would be poor.
An average motorbike, however, cost about $2,000 a decade ago, but costs at least $4,000 to $5,000 now, not including COE. Thus, this makes motorbikes more affordable for people. Petrol is a necessity for vehicles. As compared to motorbikes, cars have a bigger tank to store more petrol for travelling; about $80 to $90 is needed for a full tank during a trip to a petrol kiosk. In HDB areas and town areas, drivers of cars will also have a harder time looking for a parking lot as compared to motorbikes.
The lost revenue will have an effect on profit and AAB’s ability to manage its stock well. The study does not state whether the problems encountered last year in some stores stock out just concerned AAB retail stores, or the 200 independent and national retailers it supplies, as well as its overseas franchise stores. However, the current problem with incorrect orders seems specific to AAB retail stores, which might suggest that the stock problem lays with communication and or IT systems between AAB's own branded retail stores and AAB's central purchasing function. This issue needs addressing and urgently it could have been key factor contributing to AAB's loss a making situation during the last financial year and could be key constraint in preventing AAB's a return to profitability in the next 12 months.