GAP, as many of its close competitors, was quite successful in pursuing integrated strategy by providing customers with premium clothing at reasonable prices. In the view of a recent decline in profits, the company’s management developed a turnaround strategy. In 2002 the major goal was the reduction of long-term debt while in 2007 the company was expanding internationally and worked on improvement of quality of its apparel and brand image. Although its major brands experienced an increase in sales of about 3% in 2010, the strategy was not targeting all the business areas as planned. Therefore, the results achieved were far from perfect.
This marks a dramatic improvement on the 0.5% growth seen in 2009, but is still well below the 5%+ growth rates seen earlier in the decade” ("Global Beer Trends Report 2011", 2011). Specifically in areas such India and China, there has been more growth than in areas in Europe. Europe is more of a mature market than Asia. A 2008 study by Carlsberg identifies where new growth markets in India, China and Vietnam have begun to emerge as well as areas where their more mature markets exist. According to "Trends In The Global Beer Markets" (2008), (Consumption patterns).
Also the low switching cost and consumer awareness of shopping around to find the best bargains increased competition around stores to capture customers. Corporate stakes were high for Wal-Mart, this can be seen in its earlier years (Ben Franklin stores) where they were losing
Exhibit 3: shows that the Metal wood product type sales in 1998 is decreasing by 8% compared to 1997, however, the sales of irons and putter, accessories has gone up. Exhibit 1: shows how the company has steadily increased its R&D expenditure to $36.5M in 1998. Investing in R&D is essential for CGS to stay on top in the industry, so, I will recommend them to continue with their R&D to come up with innovative products. * Retail partnership CGC did not provide volume discounts and their credit terms were also tight compared within the industry. CGC needs to improve its relation with the retail partners by providing volume discounts and relaxing the payment cycle to match the current standard within the industry.
With the creation and production of the line, Forever 21 is to collaborate with designer and celebrity clients in order to expand domestically and internationally. With this association and marketing to young adult working women and men, revenue will increase drastically. Development and Need for Renovation Forever 21 will need to collaborate with smaller designers and gradually increase with larger names. Small scale introduction collaborations will include, Isaac Mizrahi for the clothing line and Christian Siriano for a shoe line. As these collaborations bring success, we may move forward with large designer names such as Carolina Herrera, Derek Lam, Vera Wang..etc.
GDP composite of china 2009 Physical capital accounted for almost 50% of total growth and labour for only a little over 10% over recent. Total factor productivity contributed the remaining growth, partly driven by the reallocation of labour from the rural sector to manufacturing. China’s savings are high but it is not the household saving, it is unchanged since 1990's, therefore the consumption is 35%. The corporate savings have increased due to the firm tendency to retain earnings. According to World scope data, over half of listed Chinese industrial firms did not pay a dividend over the past decade.
BUSI 740 CASE STUDY Mercury Athletic Footwear: Value the Opportunity Group #3 Fu Yao Guo Peixuan Ma Yifan Fei Yunshu 2 Executive Summary AGI is a generally successful footwear company especially in operating volatility and supply chain management. But it has a relatively low growth rate partly because it faces competitive market and its small market size was becoming more of a disadvantage. One thing is that they suffer from outsourcing supplier conflicts. Contrast to that, Mercury Athletic Footwear is a subsidiary of a large clothing company and yield large revenue even though it is very small. Besides Mercury has a high growth rate and good relation with outsourcing manufactories.
Although Permaclean has several competitors, the total sales of each are small in comparison with those of Permaclean, mainly because none offers such a complete product range. In 2006 the price of one of Permaclean’s major products, Permashine, was raised from 75p per bottle to 99p when the product was repackaged in a newly designed bottle; however, the contents were identical to the previous pack, both in formulation and quantity. During the following two years sales fell by 27%. At 75p per bottle Permashine had been competitively priced but when its price was increased manufacturers of similar products had not followed. In the period from 2004 to 2007 the price of competing products had been raised by only 5p.
Recently, Good Night’s performance has slightly improved. The fiscal 2012 revenues increased to $389,150, a slight improvement compared to recent years but still not comparable to pre-2008 levels. 2012 marked the first time in 5 years that Good Night has made a profit but revenues are still predicted to remain flat for the next couple of years. This is not a good sign considering that competition keeps increasing and Good Night Motel’s rates are higher than its competitors. We must now decide if we should accept George Alward’s request to allow him to stay at the hotel for half the price of the regular rate.
Assignment #2- Internal Analysis of JCPenney J. C. Penney (JCP) has remained one of the most valued retailers in the United States due to its careful attention to customers' needs, in the past few years J. C. Penney has implemented a new pricing policy in hopes of keeping their edge. When JC Penney replaced its longstanding promotional pricing strategy with an everyday low pricing strategy, sales plummeted. The store typically attracted bargain-aware customers, but these consumers did not immediately associate the chain's new pricing strategy with low price and good value, despite the fact that it was heavily marketed in these terms. Still the company maintains a Price/Earnings ratio of 52, above the average retail industry P/E ratio of 42.7 and above the S&P 500 P/E ratio of 17.7. The company is leaving no stone unturned to become cost resilient, and is focusing on closing underperforming stores and exiting its catalog business.