Over the last number of years, Adidas has increased its marketing and sponsorships budget. Adidas operates an online store and has 560 store locations worldwide and also sells their brands via independent distributors. Adidas philosophy is to help athletes achieve their highest performance levels. Adidas leads the way with superior design and innovative technology. Website: www.adidas.com 2.
The company's gross margins went up by 126 basis points, to 29.7%, mainly because of better inventory management and a change in the product mix and selling and administration expenses range in at $274.4 million. Earnings before interest and taxes were up by 89%, to $71.6 million, and EBIT margins were up by a significant 340 basis points, to 6.1%. The company's net income also followed suit and soared by an amazing 146%, to $41.5 million, although it was slightly offset by higher
I increased Advertising for Allround+ at $20 Million and Allright at $19 Million to support their good sales improvement. Promotion budget was increased from $8.5 to $ 9.5 Million for Allroud, from $6.5 to $8.0 with launching of coupons $2.0 Million (matured product) and Allright from $5.7 to $6.25 Million with launching (period of coupons $2.0 Million to stabilize repurchase for matured products. By launching of coupons I started with cheaper coupons ($0.25) and continued with ($0.5) In the Period 10, I reached the highest Retail Sales volume $1,449.6 Million among competitors on the market, the highest Net Income $277.5 Million, the highest Stock Price $211.42 and Capacity Utilization 110.9 % The Allround product reached the highest awareness on the Cold, Cough market (95.1%) and Allright second highest (95.4%) on the allergy market. Allround has the highest (68.6%) satisfaction ratio on the Could, Cough market and Allright the highest (51.5%) on the Allergy
FastFit has expanded successfully in the New England area over the past five years. However to expand nationally as a major retailer, they need to improve the scalability of their operations (stores and warehouses). A key part of their strategy is to leverage information systems to automate and improve operations, to strengthen management controls, and to enable significant growth while maintaining the “high touch” customer experience. A diagram of their complete non-Web based operations follows. See figure 1.
FastFit has expanded successfully in the New England area over the past five years. However to expand nationally as a major retailer, they need to improve the scalability of their operations (stores and warehouses). A key part of their strategy is to leverage information systems to automate and improve operations, to strengthen management controls, and to enable significant growth while maintaining the “high touch” customer experience. A diagram of their complete non-Web based operations follows. See figure 1.
20% of the loan amount will be used to acquire capital equipment in 2 of Tootsie Roll’s plants. The addition of new packaging equipment and high-performing ovens will helped to increase the production efficiency of the Tootsie Roll line as well as 4 other major candy lines. This efficiency should help to increase profits by 25% and the depreciation cost of the ovens and packaging equipment is 15 years. This increase of capital equipment is a vital tool in the continued success and profitability of Tootsie Roll Industries. Global Expansion Tootsie Roll Industries has not only increased its brands and products over its 116 years but over
Case Study 1: Under Armour- Challenging Nike in Sports Apparel Under Armour (NYSE:UA), a developer and distributor of athletic apparel, footwear and accessories, is an organization, which continually watches its stock rise-typically upwards of 15% per quarter. The organization has shown phenomenal performance over the past few years with the incorporation of new top line products growing by more than 20% over the last 12 quarters (Lewis). The organization is continually growing and this growth is fueled by its opportunity for expansion in footwear, women’s, international and direct-to-consumer business. While the organization’s growth story remains intact, this paper will look at how Under Armour stacks up along Porter’s Five Forces to understand and provide an analysis of where it can gain or lose going forward along with an analysis of its problem identification. Key Issues A SWOT analysis reveals many key areas in which Under Armour has determined a competitive advantage in strengths and opportunities, suggesting its innovation and expansion efforts into the Canadian marketplace will drive its revenue and profits margins even higher for the coming year(s).
1. 2011 2012 ROCE = 30% ROCE = 34.58% Gearing = 32% Gearing = 28.2 % Asset turnover = 4.83 Asset turnover = 2 .38 Appendix A gave me a overall view of superstyles profitability and asset turnover. In 2012 superstyle has increased its return on capital employed by nearly 5 %. This is an advantage for the business, as it states that the business gets more money back from their money invested in 2012. Not only the ROCE has improved, the gearing ratio has decreased by 4%.
The increase in advertising can be helping with increase in net sales which has also increased from 46,520,500 in year 12 to $6,858,600 in year 14. The interest income has decreased which may concern a banker looking to approve a loan. It would be good to invest the money in a more secure or profitable investments. Utilities and services have also increased from $238,000 to $260,000 in year 14. Contracts with utility companies can be re-negotiated.
Support your position. Much interest has been generated around the potential investment in hollydazzle.com, an up and coming business specializing in the online retail of holiday merchandise. Hollydazzle.com has managed to turn a positive gross margin in its first year of existence, and many experts are bullish of the potential growth rates of the industry as a whole. However, it is in our investment groups belief that these numbers must be second guessed, and after careful analysis we should look elsewhere to invest its money. At first glance, the case for an investment in hollydazzle.com appears to be a strong one.