Assignment for “The Super Project” Case Questions for Case Analysis: 1. What are the relevant cash flows for General Foods to use in evaluating the Super Project? In particular, how should management deal with the issues such as: * Test-market expense? * This expense is much more important than a mere number of 360k because this is what has indicated the potential of the Super that it would capture 10% of the entire product market out of which 80% is from growth and 20% from erosion. Since this market test indicates that the powder market is significantly increasing which cannot be ties to just super project as it also relates to Jell-o.
Additionally, if the quantity or quality of the assets productivity is increased capitalize cost of improvements or replacement to the asset account. It is also important to consider whether the item being repaired is already capitalized and being depreciated and whether it is being separately tracked or considered part of a larger asset. If the item is capitalized and being separately tracked, dispose of this asset on the books and capitalize the repair and maintenance addition. This avoids having the same asset on the books twice with both being depreciated. Moreover, Small Fries Inc. should not report the repairs and maintenance in their balance sheet as aggregate cost but instead designated the expense to each facility as each expense is incurred.
Although the customers only needed the shipment the following year, this would be a way to exceed the targeted budget. Instead of offering the customers an early discount for receiving the merchandise earlier, Campbell sent the merchandise and reported the sales to be included in the financial reports. As a result of this procedure, the reported sales for the fourth quarter exceeded the budgeted amount with $80,000.00. The actual sales revenue for the year was over with $14,000.00. The internal auditors questioned why the two shipments were done before December 31, since the requested dates were in the following year.
Chiffon project is designed to increase a company bottom line. And since the Chiffon project itself is a project designed to provide facilities to manufacture and distribute a new product or line; then, the minimum criteria (hurdle rate) for this project is ten year average ROFE must be greater or equal than 40%. General Foods currently employs an incremental basis method to analyze its projects. Under incremental basis, the capital spending for this project is $20 million, and it can yield ROFE around 63%. This high ROFE exceeds the hurdle rate that the company establishes to accept a project.
Kudler Fine Foods Product Launch Plan Kudler Fine Foods Product Launch Plan Kudler Fine Foods provides gourmet fare to the San Diego area of California. After realizing continuous revenue increases since 1998, expansion efforts to Mexico and Spain include a new product line offering of gourmet flavored vinegars. Initial market research and competition research provided information that these areas were ignored in the gourmet food market. A wide range of market research determines success or failure when entering an unexplored market with a new product. For example, choosing the appropriate target market and communications mix when entering the gourmet market of these countries is vital to success.
Markstrat Final Report Andrew Auces Justin Barker Christine Chang Ashley Cohen Julia Economy December 1st, 2010 I. Markstrat Summary In our Markstrat simulation, our goal was to maximize shareholders wealth by increasing market share by targeting specific segments with specific brands. We started out by targeting multiple segments for each brand, unfortunately we had to change our focus to just one or two segments per brand because our products we underperforming. We chose our targeted segments based on consumer preferences, perceptual, maps and the ideal characteristics. All teams started out on an even playing field, unfortunately the decisions our team made in the first two periods started to decline our company’s wealth. Which eventually lead to a decline in our stock price.
They have now turned this into their full time job/business in 2010. This has caused them make some very quick and spontaneous decisions with their booming business that can impact the overall long-term efforts of the Cake Company. Currently being a sole proprietorship we are looking at the advantages and disadvantage of changing to a Limited Liability Company (LLC) or turning into a Corporation. I first would like to recap on the current situation that has put us at this decision point. First, additional workers were hired to keep up with the high demand of orders.
From this, Kellogg’s will receive a rough idea of consumers’ level of disposable income therefore helping them in deciding the prices of their new products. If prices are set appropriately for their target consumers’ and are able to afford it, Kellogg’s will experience an increase in customers buying their new cereal, expanding their customer base. More customers would mean greater profits and sales revenue coming into
Krispy Kreme Case Study Introduction Questions that have derived from Krispy Kreme doughnuts as of 2005 were far and wide. Some analysts and investors wondered if the company was a healthy company. Some wondered if it would grow to become as popular as Starbucks. And many more were wondering, why investors were jumping ship from this â€œpopular doughnut maker?â€ Business Description Krispy Kreme is a chain of doughnut stores. Krispy Kreme sells doughnuts that are best known for their glazed flavor.
) -> Competitors are growing faster than Mcdo -Small decreasing in McDonald's market share - 60% of the incomes depend of the franchisees - U.S market reached maturity TOWS: SO: - Maintain the abroad growth using the brand image and the adaptation ability - Combine the Limited Edition concept with the healthy food to create a new interest and to adapt the permanent offer to customer needs. - Improve the brand image toward the parents by using partnerships WO: - Take in place new training plans for employees to decrease the rate of turnover and to improve the customer service. - Increase the product diversification by using the experiences and results abroad, if possible. ST: - Use the strong activity abroad to "flee" the american market which reached the maturity. - Use the adaptation ability and create some products sympathetic with the new wave of technological advance as reheat products like soups to take away.