China sustained an average annual rate of growth in real GDP of 10.1% between 2003 and 2009. Investment and international trade have been the source of China’s industrialisation and consequently its rapid growth. This economic growth has lead to economic development with its citizens enjoying rising per capita incomes, growing by an average of 8.2% per annum between 1975 and 2005, and improvements in quality of life, rising from a HDI of 0.530 in 1975 to 0.777 in 2005. The World Bank estimates that over the last 25 year poverty
First of all, From Dow’s performance, sales of chemicals and metals including the ethylene sales increases 7% in 1994, and then 34% in 1995. Sales of Plastics including polyethylene increase 22% in 1994, and 28% from in 1995.This high growth rate especially in 1995 attributes mostly to the high growth in European market (33%) and rest of the world (24%). Also, the demand for polyethylene in Latin America is expected to triple in next ten years. With a globally expanding market, Dow has to increase its capacity to at least maintain its market share. An acquisition seems to be a good way to increase its production capacity.
The current ratio was 3.6 on February 29, 1988which mean that it has plenty of cash to cover any of its current liabilities. Moreover, Interco’s capitalized leases were 19.3%. The company was financially “overcapitalized”. When looking at the company collectively, Interco also looks healthy, with sales increasing 4.04% in 1987 and 13.4% in 1988.Growth in earnings moved Interco further toward its goal of a 14-15% return on equity: 1988’s ROE of 11.7% was up from 9.7% in fiscal 1987. However, if closer examination is undertaken, it is clear to see that the general retail and apparel businesses are struggling while footwear and furniture have been flourishing.
For the full-year 2010, Timberland reported revenue of $1.4bn, an increase of 11.2% over the prior year and up 11.7% on a constant dollar basis. Moreover, Timberland can reach their global growth potential, take big brands and make them bigger while maintaining each brand's unique rugged outdoor positioning. It will perfectly complement the premium, technical positioning of The North Face brand. Lastly, VF provides Timberland a major opportunity of sales in China for expanding. Timberland is expected to begin adding to VF’s earnings by 45 cents a share this year and 90 cents next year, excluding
The increase was 17.25%. This is quite high gearing and has gone higher in last year. The total debt for 2007/8 rose about 39% which increased the gearing. Company’s huge capital expenditure is a reason for this. 3.
Sales have risen from 22.6 million pounds in 2001 to 43.1 million pounds in 2006. This has been achieved through growth strategies which have seen the company expand its retail outlets and at the same time enter into new markets with high growth potential. At the same time, the company has experienced growth in profit. It profits margin has continued to grow in line with its growing sales. It profits have increased from 1,322 million pounds in 2001 to 2,280 million pounds in 2006.
Zara was the oldest brand of Inditex and it was the innovator of the new category “fast fashion”. Its success was due to trendy cat walk inspired items manufactured at a fast pace but at affordable price. The supply chain design strategy responsible for the phenomenal success of Zara brand in its niche market was its quick response to the changing trends in the fashion industry and the requirements of the customers. Unlike the average of six months needed by a luxury brands Zara was able to manufacture and deliver the items in round three weeks period to its stores. Its key competitors typically supplied on average 2000 to 4000 items while Zara on the other hand was able to supply 11000 in a season.
The company recorded revenues of $12,990 million during the financial year (FY) ended December 2007, an increase of 8.3% over 2006. The increase in revenues was primarily driven by stronger demand for hotel rooms worldwide, which allowed Marriott to increase room rates, and by favorable exchange rates worldwide. The operating profit of the company was $1,188 million during FY2007, an increase of 9.3% over 2006. The net profit was $696 million in FY2007, an increase of 14.5% over 2006”. Marriott’s son J.W.
The announcement of the acquisition of the PC by the BH's wholly owned subsidiary, MidAmerican Energy Holding Co. seems to indicate that BH found a great opportunity. So on May 2005 it has been agreed that PC will become a subsidiary of BH. It seems that both companies will benefit from the acquisition and market will react. Market Reaction According to Appendix 1,which illustrates the performance of Berkshire Hathaway and Scottish power on 24th of May, the stock market reacted positively to the announcement of the acquisition for bothe companies. Berkshire’s stock price increased considerably by 2.4%, from $83,490/share to $85,500/share, raising the market value of Berkshire Hathaway by $2.55 billion.
This indicator is increasing dramatically by almost 11 days in two years, because of increase of Collection and Inventory days by 16 and minor increase of Payables days by 5 (Exhibit 2 and 3). The change in Working Capital (Exhibit 4) very clearly presents the greater increase of receivables than payables, which means that the company pays faster than its customers pays to the company. Therefore, additional source of financing should be found. Further, it is worth mentioning that debt-to-equity ratio increased in this period from 0.82 to 2.65. As a result, it is very easy to understand that the main source of financing the operations of the company are loans and other type of debts (Exhibit 5 and 6).