Profit - 707 Words
a. The total explicit cost is $793,000($970,000-$177,000). The total implicit cost is $190,000($175,000+.15X$100,000). The total economic costs is $983,000($793,000+$190,000).
b. The accounting profit in 2010 is $177,000($970,000-$793,000)
c. The economic profit in 2010 is $-13,000($970,000-$793,000-$190,000).
d. The owner should not leave his job because the economic profit is negative, which means he will earn less if he does his own business.
a. The type of agency problem that is...
707 Words | 3 Pages
Profit - 996 Words
Profit Maximization Theory / Model: The Rationale / Benefits:
Profit maximization theory of directing business decisions is encouraged because of following advantages associated with it.
Economic Survival: Profit maximization theory is based on profits and profits are a must for survival of any business.
Measurement Standard: Profits are the true measurement of viability of a business model. Without profits, the business losses its primary objective and therefore has a direct risk on its...
996 Words | 4 Pages
Economic: Economics and Profit Max Profit
1. Sally is considering opening her own beauty salon. She anticipates the following costs per year:
Additionally, Sally is withdrawing $34,000 from her savings account that pays 4% interest/year to purchase the furniture and equipment; she will quit her current job that pays $25,000 per year. She expects total revenues from the new business in the first year to be $70,000. Calculate the following:
Coloring products: $6,000
430 Words | 2 Pages
Profit Center - 1108 Words
The TallTree2 Hotel Casino is a 640-room resort complex featuring a full range of Nevada-style gaming with slot machines and table games. Besides the hotel and casino, it also operates four restaurants, two entertainment showrooms and three gift shops. Because of the economic environment at the time, TallTree2 wanted to improve its bottom line by launching a range of Special Events like golf tournaments, boxing matches, New Year Parties and a series of pit, keno and slot tournaments. Those...
1,108 Words | 3 Pages
All Profit Essays
Net Profit - 1490 Words
November 14, 2013
STRATEGIC AND OPERATIONAL OPPORTUNITIES
FORECASTED YEARS: 2013 -2015
Prepared by Dev Das, CMA
November 14, 2013
TO: Paul and Sam Livoria
From: Dev Das, CMA
Subject: Strategic and Operational opportunities
Livoria Sandwiches faces major changes within the food industry in Dawkins. The city is in continuing growth and expansion, being ranked as the fastest growing number of vegetarians in the country.
1,490 Words | 6 Pages
Hiring for profit - 676 Words
Hiring for profit
In the society we live in today, where the outside beauty is more important than the inner beauty. Businesses realized how to use that beauty to make a great amount of benefit become quite successful. Attractive and trendy employees will help draw more customers to a specific store and will generate more profit for that company. This is a commonly...
676 Words | 2 Pages
Profit Max - 1034 Words
Profit maximization is the traditional approach and the primary objective of financial management. It implies that every decision relating to business is evaluated in the light of profits. All the decision with respect to new projects, acquisition of assets, raising capital, distributing dividends etc are studied for their impact on profits and profitability. If the result of a decision is perceived to have positive effect on the profits, the decision is taken further for implementation...
1,034 Words | 3 Pages
Pacioli on Profits - 370 Words
Luca Pacioli is referred to as both the “Father of Accounting” and the “Father of Profitability.” He was the first to describe in detail the double-entry bookkeeping, a process that plays an integral role in the development of capitalism as it allows us to calculate profits (Fischer, 2000). According to Pacioli, the hallmark of a successful business is what he calls the profit motive. This is the notion that successful business men and women must acknowledge and be influenced by the spiritual...
370 Words | 1 Page
Profit Margin - 464 Words
1. [Sales Growth Rates, Sales, and Profits] Petal Providers Corporation opens and operates “mega” floral stores in the U.S. The idea behind the super store concept is to model the U.S. floral industry after its European counterparts whose flower markets generally have larger selections at lower prices. Revenues were $1 million with net profit of $50,000 last year when the first “mega” Petal Providers floral outlet was opened. If the economy grows rapidly next year, Petal Providers expects its...
464 Words | 2 Pages
Cost and Profit - 1304 Words
WHAT ARE COSTS AND PROFITS?
HUNGRY HELEN’S COOKIE FACTORY
• Helen, the owner of the cookie factory, buys flour, sugar, flavorings, and other cookie ingredients. • She also buys the mixers and the ovens and hires workers to run the equipment. • She then sells the resulting cookies to consumers.
TOTAL REVENUE, TOTAL COST, AND PROFIT
• The amount that Helen receives for the sale of its output (cookies) is its total revenue. • The amount that the firm pays to buy inputs (flour, sugar,...
1,304 Words | 5 Pages
The Difference between Economic Profit and Accounting Profit
The Difference between Economic Profit and Accounting Profit
When it comes to business decisions, there are many ways to analysis the financial status of a firm. What guidelines determine profit margin? Who uses these guidelines? How is profit used to analysis a firm and its business decisions? This paper will discuss two terms that are used to define profit: accounting profit and economic profit. The first term is called accounting profit which uses the equa-tion.
The second term for...
1,010 Words | 4 Pages
Can Profit-Maximization Be Achieved?
Module Code: 26390
Student ID: 201019522
Module Leader: Steve Braund
Word Count: 2365
Due Date: 15 March, 2012
Profit was the well-known significance of the enterprise’s existence in the past, because the enterprise was considered as private property of its shareholders. Naturally, profit-maximisation is the objective what the enterprise pursues. With the development of the time, many people began to query the...
2,659 Words | 9 Pages
Profit Maximising Midel - 661 Words
[See Chap 11]
• A profit-maximizing firm chooses both its inputs and its outputs with the goal of achieving maximum economic profits
• Firm has inputs (z1,z2). Prices (r1,r2).
– Price taker on input market.
• Firm has output q=f(z1,z2). Price p.
– Price taker in output market.
• Firm’s problem:
– Choose output q and inputs (z1,z2) to maximise profits. Where:
π = pq - r1z1 – r2z2
661 Words | 5 Pages
Increasing Profit Margins - 1514 Words
Increasing Profit Margins Proposal for Artemis Sportswear
Profit Margin is a ratio that is calculated by dividing net profits of a company by its sales. This ratio measures how much of every dollar generated by sales is retained in company's earnings. Generally speaking, a higher profit margin indicates that a company is more profitable and has better control of its operational expenses. Gross profit margin can also be used to set and monitor sales goals for your company. Because the costs...
1,514 Words | 4 Pages
Business profit and fairness - 509 Words
Is it possible for large, profit focussed organisations to be both profitable and “fair”?
Over the past year there have been an increasing number of issues which have risen on how businesses such as Amazon, Thames Water, Google, Facebook and Starbucks have made vast amount of profits but haven’t been fair-minded. For example Starbucks made £400m sales in the UK but paid no corporation tax. According to Milton Freidman the main objective of a business is to increase profits so long as it stays...
509 Words | 2 Pages
Profit Maximisation in Zimbabwe - 749 Words
PROFIT MAXIMISATION IN ZIMBABWE
The traditional economist’s view is that firms are profit maximizes, with each decision based on the need to maximize profits (Griffiths and Wall, 2005). Although the assumption of profit maximization has come under repeated criticism, it still remains relevant to the Zimbabwean firm today irrespective of size. To begin with, a profit objective is often the principal reason for the original formation of the smaller companies, the majority of which are under the...
749 Words | 3 Pages
Profits Tax Answer2013 - 459 Words
Profits tax computation
Year of assessment 2008/09
Basis period: year ended 31 January 2009
Profits per accounts
Add: Sales proceeds of computer
Commission to undisclosed recipients
Contributions to recognized retirement scheme
($90,000 – $500,000 x 15%) + ($54,000 –
$300,000 x 15%)
Interest paid to Marce Ltd
Loan to employee written off
Increase in general provision ($180,000 –
459 Words | 5 Pages
Profit and Order Costs - 519 Words
Under the old costs system, Kanthal management felt that selling and administration costs were fixed costs, and as a result they could not be changed, manipulated, or utilized to influence growth or profitability. Traditionally, Kanthal had considered S"E expenditures to be period costs and were expensed in that manner rather than allocating them to the various product lines and customers. Under the old system, management failed to realize that some of their customers placed heavy demands on...
519 Words | 2 Pages
Improving Quality to Improve Profits
Improving Quality to Improve Profits
BUS 642: Business Research Methods & Tools
Prof. Donna Wall
September 10, 2012
Improving Quality to Improve Profit
Public companies continuously experience pressure to increase profits for shareholders. One method of increasing profits is to reduce expenses. One expense Schlumberger management believes is totally within the company’s control is the first pass yield of their products. Specifically, Schlumberger management believed...
2,469 Words | 7 Pages
Profit and Turnaround Strategy - 506 Words
Times of corporate distress present special strategic management challenges. In such situations, a firm may be in bankruptcy or nearing bankruptcy. Often turnaround consultants are brought into the company to devise and execute a plan of corporate renewal, assuming that the firm has enough potential to make it worth saving.
Before a viable turnaround strategy can be formulated, one must identify the root cause or causes of the crisis. Frequently encountered causes include:...
506 Words | 2 Pages
Marginal Cost and Total Profits
Economics 5315 Fall 1999
Managerial Economics Professor Henderson
1. The Zinger Company manufactures and sells a line of sewing machines. Monthly demand for one its most popular models is given by the following relationship:
Q = 400 – 0.5P
where P is price and Q is quantity demanded. Total costs of production (including a “normal” return on owners’ investment) per month are:
C = 20,000 + 50Q + 3Q2
a. Express total profits (()...
641 Words | 4 Pages
Profit and Account Management - 882 Words
1. What was the Kanthal president, Ridderstråle, attempting to accomplish with the Account Management System? Are these sensible goals?
Ridderstrale had the objective to find hidden profits and losses contained in their current accounting system. The old system did not fully disclose how their costs were applied to the sales accounts. The goals are very sensible as they will allow them to move forward with the proper information.
2. Why did Ridderstråle feel that the previous cost...
882 Words | 4 Pages
Profit and Corporate Hurdle Rate
Over the Hurdle
Currently, Teletech Corp. is using a single corporate hurdle rate to evaluate its investment decisions in its products and systems segment as well as its telecommunications segment. Using only one hurdle rate doesn’t take into account the risk that the company faces within each segment. Investors demand higher returns for riskier investments. Victor Yossarian is concerned about the low returns for the high risk in the products and systems...
1,633 Words | 6 Pages
Gain Sharing vs. Profit Sharing
April 5, 2007
Gainsharing and Profit-sharing are incentive plans that are designed to pay employees incentives based upon good company performance. By using these plans, companies found that employees are motivated to stay with the company longer. Because employees can directly affect the output of a company they will also work harder to achieve selected goals when incentives are attached. However, incentive plans are not appropriate for every company and business...
3,622 Words | 11 Pages
Why Are Cost, Revenue & Profit Important?
Why Are Cost, Revenue & Profit Important?
Cost, revenue and profit are the three most important factors in determining the success of your business. A business can have high revenue, but if the costs are higher, it will show no profit and is destined to go out of business when available capital runs out. Managing costs and revenue to maximize profit is key for any entrepreneur.
Definition of Terms
Revenue is the same as total income for a business and measures all money taken in through...
508 Words | 2 Pages
The Only Rule of Business Is the Increase of Profits
1.) “The only rule of business is the increase of profits.” Discuss.
We are now discuss about the rule of business, is it just maximize profit without any moral responsibility? Or we need to make decisions that protect and benefit society? According to the Dictionary of Finance and Investment Terms, social responsibility is the “principle that businesses should actively contribute to the welfare of society and not only maximize profits”. We don’t have “absolutely” in the...
759 Words | 3 Pages
Profit Margin and High End Segment
After contemplating many different strategy options and evaluating our markets, the Ferris group decided that we would utilize and follow a strategy discussed in chapter 6 of Wheelen and Hunger’s text: cost leadership. This strategy focuses on “a lower-cost competitive strategy that aims at the broad mass market and requires efficient scale facilities, cost reductions, and cost and overhead control. This strategy avoids marginal customers, and aims for cost minimization in...
2,929 Words | 8 Pages
Understanding and Computing Gross Profit Margin
Understanding gross profit margin can be challenging to new business owners, but it’s critical to knowing whether your business is efficiently producing products and growing at the pace you desire.
Calculating Gross Profit Margin
Business owners use gross profit margin to set prices at levels that ensure a strong profit or as a measure to try to reduce cost for better profitability. It’s also helpful when determining whether you can charge enough for a new item to make it profitable....
441 Words | 2 Pages
Financial Leverage, Eps and Profit Margin
Profits might be compared with sales, assets, or stockholders' equity. Why might all three bases be used? Will trends in these ratios always move in the same direction?
All the three bases are used to find the return earned with respective to sales as well as investment made. When the profit is compared with sales, it is called as the net profit margin. When the profit is compared with assets, it is called as return earned on total investment and when profit is compared with stockholders’...
460 Words | 2 Pages
Profit Maximization vs Wealth Maximization
PROJECT REPORT ON
In requirement of partial fulfillment of Master of Business Administration (MBA)
As a part of the curriculum of the MBA Program of the _________________, the students are required to undergo project work in addition to their theoretical study so as to enable them to have the knowledge of theoretical aspects taught in the class room with its practical application....
5,724 Words | 31 Pages
Putting the Service – Profit Chain to Work
PUTTING THE SERVICE – PROFIT CHAIN TO WORK
Group - 5
Introduction: Factors that drives profitability
Investment in people
Leadership Vision – Patina of spirituality, importance of mundane
Technology supporting frontline workers
Successful service companies: Banc One, Intuit, Southwest Airlines, Service Master, USAA, Taco Bell, and MCI
Compensation linked to performance
Recruiting and training practices
The Service - Profit Chain
785 Words | 5 Pages
Profit Margin Increase Artemis Sportsware
Profit Margin Increase
When writing a proposal two things need to be addressed, the problem and the proposed solution to that problem.
Our task is developing a solution, to a need for a profit margin increase at Artemis Sportswear Company. Artemis Sportswear Co., is an international, multimillion dollar company, has been mentioned countless times in top financial and business magazines such as Forbes, Fortune, and...
2,492 Words | 7 Pages
Simple Ways to Increase Your Restaurant Profit Margin
If you have a restaurant, you have perhaps the most profitable business there is. The food business has been known to give back 200-300% of the investment – if handled right. Are you handling your restaurant right? Let us run a fast diagnostic check up.
What do you need in order to increase your restaurant profit margin? Increased patronage is one possibility. The more people that come to your restaurant, the higher your sales and profits will be. Another possibility for improving the...
292 Words | 1 Page
Businesses Should Do Anything They Can To Make A Profit
Businesses should do anything they can to make a profit
All most people are really interested in doing business basically because this is a challenging and wealthy career. In order to run a business, remaining the profitability is an important part deciding the company survival. Therefore, some people raise the question that should all company will pay any cost to make profit. Personally, I understand the immense role of profit through I disagree with the idea that business could do anything to...
386 Words | 1 Page
Can Facebook Turn Social Media Data into Profit?
Can Facebook turn social media data into profit?
The utilization of technology in the business world has become extremely useful and effective. Smart phones, tablets, laptops, and other items have simplified communication and interaction among people greatly. Sure, you have your major companies and innovators such as Apple, Amazon, and Google however anyone can utilize a social network. Small and big businesses are now encouraged to...
1,221 Words | 4 Pages
Econ 561 Profit Analysis Question 2 LO3
2-8 (Key Question) With current technology, suppose a firm is producing 400 loaves of banana bread daily. Also, assume that the least-cost combination of resources in producing those loaves is 5 units of labor, 7 units of land, 2 units of capital, and 1 unit of entrepreneurial ability, selling at prices of $40, $60, $60, and $20, respectively. If the firm can sell these 400 units at $2 per unit, will it continue to produce banana bread? If this firm’s situation is typical for the other...
673 Words | 3 Pages
CSR- are for-profit businesses responsible to the society? Why or why not and to what extent?
“We have looked for a definition and basically there isn’t one” that is how far Jackson and Hawker (2001) are going when talking about the complexity of defining Corporate Social Responsibility (CSR). This is not quite true due to the abundance of definitions appeared in the past. A very common definition characterizes CSR as the businesses’ responsibilities in economic, ethical, legal and philanthropic affairs (Carroll, 1991). This means that organizations have moral, ethical and philanthropic...
927 Words | 3 Pages
Do You Agree or Disagree with the Following Statement “Business Should Do Anything They Can to Make Profit”?
Topic: Do you agree or disagree with the following statement “Business should do anything they can to make profit”?
Nowadays, business plays a very important role in our daily lives. The more profit a business makes, the more successful it is. Some people think that businesses should do anything they can to make maximum profits. However, in my opinion, businesses should not do anything that break the law or do harm to our environment and think of customers beforehand.
First and foremost,...
344 Words | 1 Page
Financial Analysis on Tata Consultancy Services
TATA CONSULTANCY SERVICES
PROF . D.V.RAMANA
Dinesh Kumar Mandal(80
TABLE OF CONTENTS
2. Executive Summary……………………………………………………………...4
3. Environment Analysis…………………………………………………………...5
4. IT Industry Overview……………………………………………………………6
5. Company Analysis………………………………………………………………10
6. Ratio Analysis…………………………………………………………………...15
11,176 Words | 43 Pages
North Country Auto - 1984 Words
NORTH COUNTRY AUTO, INC.
1. Executive Summary
North Country Auto, Inc. was restructured by George Liddy so that each department will operate as an independent profit center. However, a recent new car purchase sparked friction and disagreements among division heads on setting of transfer prices and allocation of costs and profits. It was important that as one department aims to maximize profit, it does not negatively affect other departments. Issues that needed to be resolved include...
1,984 Words | 8 Pages
Managerial Economics - 271 Words
Q1.6 Which concept—the business profit concept or the
economic profit concept—provides the more appropriate
basis for evaluating business operations? Why?
Businesses i know are there to maximize profit and minimize cost.On this basis,i think the business profit concept is the most appropriate basis for evaluating business operations because banks,lenders or creditors will the creditworthiness of such business if loan or any other facility has been...
271 Words | 1 Page
Solutions Chap 8 Suggested Exercises
Solutions Chap 8 Suggested Exercises
2. Howard Bowen’s cotton farm analysis appears below.
a. Accounting profits:
Less: Variable operating costs 4,500,000
Less: Depreciation 40,000
Less: Wages 50,000
Equals: Operating Income $410,000
Less: Interest expense 400,000
Accounting income before tax +$10,000
b. Economic profits:
Less: Variable operating costs 4,500,000
646 Words | 4 Pages
111 - 1717 Words
Case Analysis of Naivete or Boldness
This is a case about Denise Foley, who used to be a Chief of Nursing in a hospital and now is the Senior Vice President and Chief Operating Officer. The argument that she depicts is about her career and the prospects of the hospital. She has an overall view of the situation and a rational analysis of every aspect of the hospital faced.
The major stakeholders in this case are Denise Foley, the new Chief Operating Officer, the consultant, the...
1,717 Words | 4 Pages
ACCT 3610 week 5
1.Inventec Corporation Case Study
Q1: Despite its growth and size, why is Inventec not very profitable?
It can be concluded into 3 main factors :
1. Rivalry existed
In the existing ODM industry, there are lots of competitors such as Quanta, Mitac and Compal. Because of the fierce competition, there is increase difficulty for completing differentiation. Moreover, client companies tend to limit ODM use to highly commoditized products commoditized products. There is also inherent risk...
564 Words | 2 Pages
Ann Talyor Strategy - 764 Words
Corporate Level Strategy:
Firstly we start the planning of strategy from the less specific to the most specific. That is starting from vision, then mission statements and lastly the strategic objectives. For the Ann Taylor, the vision is “WE GET WOMEN”. Ann Taylor aims to evolve with the needs of women. Ann Taylor get that a woman expresses herself through what she wears – at work, at home and at play.
For the mission statement, Ann Taylor associates are committed to and driven by a...
764 Words | 2 Pages
Sippican Case Study - 269 Words
The Sippican Corporation
Cost System Analysis
We were tasked with analyzing Sippican’s costing structure to determine if activity based costing can give a clearer picture of the company’s true costs. Currently, Sippican assigns overhead costs at a flat rate across all three products.
Our analysis of cost and profitability reveals a dramatic difference between the cost to produce each product as reported using Sippican’s traditional costing structure and the detailed...
269 Words | 2 Pages
Case - 903 Words
BUSI 497 Corporate Strategy Case Questions: #11 Sara Lee Corp
20 points; due Thursday, March 7, 2013
Sara Lee Corporation uses primarily a related diversification strategy. Note that questions 5 and 6 will be discussion only; no written answers required.
1. (Yair) Prepare a weighted industry attractiveness assessment similar to Table 8.1 on page 169. See Table 1 below as a template. Based on your table, what are your conclusions regarding the industries Sara Lee has chosen?
903 Words | 3 Pages
Eva vs Roi - 1129 Words
Why EVA is better than ROI (ROCE, ROIC, RONA, ROA) and earnings, operating profit etc.
Equity investors should earn on their capital a return far over risk-free interest rate in order to induce and maintain capital in the company
Therefore earnings should always be judged against the capital used to produce these earnings
Earnings can be easily increased simultaneously worsening the position of shareholders e.g. if more capital is poured into! company although the return on capital is 5% or...
1,129 Words | 4 Pages
Retailing Financial and Strategic Analysis
MKTG 3310: Retailing
Professor: Dr. Gao
Retailing Financial and Strategic Analysis
Abercrombie and Fitch and American Eagle Outfitters
Gross Margin Percentage
Abercrombie and Fitch (A&F) has higher gross margin percentage than American Eagle Outfitters (AE) due to its higher average selling price (ASP) than AE’s; the approximate average price for a pair of men’s jeans at A&F is $80 compared with $45 at AE. This is because of the different strategies between A&F and AE. A&F targets...
2,643 Words | 7 Pages
Panera Bread Company Case Study
Case 8: Panera Bread Company
1. Panera Bread’s strategy is to make great bread broadly available to consumers across the US. The vision was to provide consumers with a high quality, authentic, fresh-dough artisan bakery and upscale quick-service dining experience. The following key elements comprise the Panera Bread strategy:
a. Capitalize on market potential by opening both company-owned and franchised Panera Bread locations as quickly as possible. Management planned to expand...
1,065 Words | 3 Pages
Annual Report - 686 Words
Pepsi Co. is the largest food and beverage business in North America listed in the Fortune 500. Just like all other companies, Pepsi Co. prepares an annual report every year. An Annual Report is a comprehensive report that provides information about the company’s activities and financial performance to its shareholders and investors. It helps the shareholders and investors in their decision making about the company. After reviewing Pepsi Co.’s Annual Report for 2011, Pepsi Co....
686 Words | 2 Pages
Kathal - 856 Words
1. Ridderstrale, the president was attempting to accomplish the company’s strategy for higher growth and profitability. He thought the account management system would enable the company to get sales managers to accept responsibility for promoting high-margin to high- profit customers.
2. The Kanthal 90 plan specified overall profit objectives by division, by product line, and by market. The Kanthal 90 account management system is to determine how much profit was earned each time a customer...
856 Words | 3 Pages
The Impact of Abc and Eva on Business Profitability and Performance
The Impact of ABC and EVA on Business Profitability and Performance.
Value-added activity-based costing (ABC) and economic value added (EVA) measures have much impact on business profitability and performance. With the implementation of the ABC methodology, companies are able to pinpoint the products that are most profitable, determine what contributes to financial performance, forecast costs, profits, and amount of resources needed, identify the root of poor financial performance and...
1,420 Words | 4 Pages
Lehigh Steel - 1032 Words
To: Jack Clark
Cc: Mozaffar Khan, Derek Johnson
From: Mauricio Sadi Andrade
Date: March 15, 2010
Subject: Lehigh's 1993 product mix
The objective of this memo is to recommend you a product mix for Lehigh in the year of 1993 based on profit calculations and other business considerations.
Recommendation: 1993 product mix should include only High Speed
Based on an approach resultant from the combination of ABC plus Theory of Constraints (TOC), I recommend...
1,032 Words | 4 Pages
Assessing the Goal of Sports Products, Inc.
Chapter 1 Case: Assessing the Goal of Sports Products, Inc.
Loren Seguara and Dale Johnson both work for Sports Products, Inc., a major producer of boating equipment and accessories. Loren works as a clerical assistant in the Accounting Department, and Dale works as a packager in the Shipping Department. During their lunch break one day, they began talking about the company. Dale complained that he had always worked hard trying not to waste packing materials and efficiently and...
445 Words | 2 Pages
Porter's 5 Forces - 1192 Words
What Is It?
The Porter five force analysis was formed by Michael E. Porter of Harvard Business School in the year 1979, this model identifies and analyses 5 competitive forces that shape every industry, and helps determine an industry's weaknesses and strengths. This analysis shows the overall attractiveness of an industry meaning how profitable it is. For example an unattractive industry would be the pure or perfect competition, because all profits turn to normal profit in the long run which...
1,192 Words | 4 Pages
BF_case - 260 Words
Brannigan Food´s Soup Division is going through difficult and challenging times – the soup industry had been in steady decline for several years (with for example 2011 total sales representing a decline of 2,8% vs. 2010, this excluding deli soups data) and the division´s sales, market share and profitability decreased for the last three years. Bert Clark, vice president and general manager of this division, solicited proposals from his team members in order to get feedback on their best...
260 Words | 1 Page
Incentive Plans Paper - 452 Words
Incentive Plans Paper
University Of Phoenix
June 23, 2010
Incentive Plans Paper
Verizon Wireless is the nations largest wireless provider in the world. Verizon is also number one in providing in store customer service to all customers. What makes Verizon the best is there employees and great customer service. After conducting several studies and continuing to give first class service, Verizon realized that it is service that the employees gives to...
452 Words | 2 Pages
Rationalize Why Ntuc Engaged in Marketing Activites
The upmost reason why NTUC FairPrice engages in marketing activities is to attract customers to make profits. It would be most difficult for a business to exist without marketing. NTUC FairPrice being a corporate company also requires marketing activities to raise awareness. Their objectives of marketing are both economic and social.
From the economic point of view, FairPrice would benefit overall in profiting. The subsequent beneficial are in terms of strategic branding, creating shareholder...
380 Words | 1 Page
Case Study-Inventec Technology
The essential reason regarding Inventec’s profitability was lower than expectation is due to the high competition between the many ODMS. Therefore, though the field of ODM was once high profitable, with the intensive new entrants entered in this industry, supply for quality goods are rapidly increasing, the profit margin that each competitor could share is simultaneously shrinking. In other words, despite the fact that Inventec has done quite well in expansion and decision making, strategic...
464 Words | 2 Pages
LP Analysis: Product Mix Problem
LP Analysis - Product Mix Problem: 2 products, 2 constraints
I Observations about initial solution:
1. Max OF = $15,263.16
2. Optimal Soln: X1 = 2894.74 X2 = 263.16
3. X1 is more than 10 times X2
4. Profit: X1 = $5.00 & X2 = $3.00, profit margin of IPODs is 166% larger than DVD’s not 10 times.
5. Conventional approach: product mix is dependent on profit margins.
II Observations about constraints
1. LHS = RHS for both constraints, no leftover resources.
2. Limitation on...
521 Words | 2 Pages
What Is the Dupont Model?
WHAT IS THE DUPONT MODEL? DESCRIPTION
The DuPont Model is a technique that can be used to analyze the profitability of a company using traditional performance management tools. To enable this, the DuPont model integrates elements of the Income Statement with those of the Balance Sheet.
ORIGIN OF THE DUPONT MODEL. HISTORY
The DuPont model of financial analysis was made by F. Donaldson Brown, an Electrical Engineer who joined the giant chemical company’s Treasury department in...
429 Words | 2 Pages
Western States Stationary - 675 Words
1. Total Forms Control (TFC) fit well into Western’s strategy when it was initially implemented. It allowed Western to offer these “value-added” services to their customers that most of their competitors did not. Total Forms Control should have increased Western’s margins and helped them to increase the loyalty and number of customers. TFC was not performing up to expectations. It had become an increasingly time consuming process and profits from TFC had been consistently declining over the...
675 Words | 2 Pages
Inditex profitability ratios - 426 Words
In this report we are comparing two of the biggest clothing companies H&M and INDITEX by using profitability ratios for making a financial statement analysis. We will state opinions in regard to the previously analyzed figures and comment on them.
The overall profitability (ROI) is 23,01% in 2011 and 24,18% in 2012. So the ROI is showing...
426 Words | 2 Pages
Internal and External Factors paper
Internal and External Factors
December 17, 2014
Internal and External Factors
In this paper, I will be discussing the internal as well as the external factors such as Globalization, technology, innovation, diversity and ethics affect the four functions of management in the restaurant plan. I will be using examples from each factor as well as using peer reviews from my team discussion.
The globalization in the restaurant industry is crucial...
830 Words | 3 Pages
Inventec Case Study - 572 Words
ACCT3610 – Business Analysis and Valuation
Week 3 (Tutorial 2) – Inventec Case Study
1. Despite the growth of Inventec, there were a number of reasons why it was not very profitable.
* Firstly, they were operating in a highly competitive market. This created pressure to reduce costs and offer the best price to clients, thus decreasing profit margins.
* Inventec were operating in an industry that has rapid rates of growth and development in terms of products and product...
572 Words | 2 Pages
bank risk analysis - 820 Words
Statement of purpose
The Global Solution Tobacco project(GST) if success will boost the gross profit of the Global Solution by 176 percent in the nest fiscal year(2013) according to the research department of the global Solution. It will move our core business into another level in terms of profitability.
Global Solution core competency has always been the production of agriculture product such as corns and rice. The corporation owned approximately 46590 acre of land...
820 Words | 3 Pages
Industrial Electronics, Inc. Acctg Case
1. The first point about the current bonus system is one that can be viewed as either a pro or a con the fact that the bonuses are based on a company-wide performance. On the positive side, a bonus structure based on overall company performance displays a unitary goal as the main objective. This means that either everyone in the company enjoys the fruits of success or nobody does. Negatively, this also means that if a specific division has a great year, but the overall company doesn't...
1,144 Words | 4 Pages
Mngt 5000 - 1047 Words
CH 2-3 Homework
1. Describe the elements of microenvironment and competitive environment that effect wild water now. Then describe elements that you anticipate will affect the water park in the next few years.
The elements of microenvironment for Wild Water (WW) (laws and regulations) are a new state safety law was passed and WW has to make some expensive upgrades to meet the new state standard. (Technology) In the area beach cottages are going to torn down and expensive condominiums...
1,047 Words | 3 Pages
Divorce of Ownership - 637 Words
4 (b) Evaluate the argument that managers controlling large companies might follow policies which do not necessarily maximise the profits of the owners.
There is a divorce of ownership is the difference between people who own the firm who are the shareholders, and the people who control the firm the managers. The shareholders are investors into the firm and want the firm to make a profit so they receive dividends which is a share of the profit, they want to maximise their dividends/profits....
637 Words | 2 Pages
Ust Debt Policy - 798 Words
How would you characterise the economics of UST business? What are the primary business risks associated with UST [Hint:Compile a list of factors that a credit analyst would take into account when evaluating the proposed recapitalisation]?
UST is a principal producer of moist smokeless tobacco products, controlling roughly 77% of the overall market. It has $913.3m of assets of which tobacco accounts for 54.5%. The net income for UST has been growing at 11% compounded annual growth...
798 Words | 2 Pages
Feasibility Study: Mang Inasal
A franchise feasibility study will analyze and prioritiz in recognizing the strengths and weaknesses of the underlying business model of Mang Inasal. In the new business of franchising, it is critical to develop evaluation, documentation, training, mentoring and consulting skills, all within an ongoing, long term franchise relationship. The study will conduct analysis of opportunities and trends in franchising Mang Inasal to be able forecast the profit of the business. Once the market...
362 Words | 1 Page
Kanthal 90 - 472 Words
Kanthal is a Swedish company that specializes in production and sales of electrical resistance Heating elements. The 3 major divisions of Kanthal are
1) Kanthal Heating tech 2) Kanthal furnace product 3) Kanthal bimetals
95% of product sales was exported out of Sweden.
Ridderstrale, the president of Kanthal wanted to further consolidate the position of Kanthal. He found scope for improvement in the current account management system. He introduced Kanthal 90 plan, the basic...
472 Words | 2 Pages
Ryanair - 658 Words
Examining Ryanair’s Launch Strategy
Ryanair was set up in 1985 by Cathal and Declan Ryan, as one of the first independent airline servicing the Dublin-London (Luton) route. Ryanair launched its service focusing on delivering first-rate customer service and lowest – simple, single – fare @ I£ 98, compared to I£ 208 full fare and I£ 99 discounted fare offered by competition, Aer Lingus and British Airways.
Ryanair Executives believe that Aer Lingus and British Airways’ flights are typically...
658 Words | 2 Pages
Case: Hilton Manufacturing Company
1. Mr. Hilton stated that he thought product 103 should be dropped. In reviewing the statement for the period of January 1, 2004 to June 30, 2004, this idea is not supported. Even though product 103 continued to be unprofitable in 2004, Hilton Manufacturing Company did realize a profit of $158,000 for the first half of the year by keeping it in production. By keeping product 103 in production, Hilton Manufacturing Company was able to spread out its fixed costs over three products instead of just...
368 Words | 2 Pages
Premier Furniture Case - 1490 Words
Premier Furniture Case
Harvard Business School
June 12, 1986
Premier Furniture Company
It was mid-April, and Richard Zimmerman, credit analyst for the Premier Furniture Company, was completing his first round of credit reviews for 1984. Two of his accounts—Designers, Inc. of Pittsburgh, Pennsylvania, and Walcott Department Stores of Hartford, Connecticut—had moved well beyond the credit limits set by Premier. It was Zimmerman's job to determine the appropriate...
1,490 Words | 4 Pages
micro - 844 Words
3. How do the entry and exit of firms in a purely competitive industry affect resource flows and long‐run profits and losses? LO3
Answer: Entry and exit help to improve resource allocation. Firms that exit an industry due to low profits release their resources to be used more profitably in other industries. Firms that enter an industry chasing higher profits bring with them resources that were less profitably used in other industries. Both processes increase allocative...
844 Words | 3 Pages
Eva Better Than Roi
Why EVA is better than ROI (ROCE, ROIC, RONA, ROA) and earnings, operating profit etc.
Equity investors should earn on their capital a return far over risk-free interest rate in order to induce and maintain capital in the company Therefore earnings should always be judged against the capital used to produce these earnings Earnings can be easily increased simultaneously worsening the position of shareholders e.g. if more capital is poured into a company although the return on capital is 5% or...
1,267 Words | 5 Pages
Why Lml Failed - 979 Words
In July 2012, Mr X, CEO of Corp Y, was preparing his presentation for tomorrow’s meeting with company’s board of directors and Investors. He has just rattled off a list of statistics describing the financial performance of Y (NYSE : YYY), the company he has run since late 2006. They show that it has been growing, earning high profit margins, and paying respectable returns to shareholders through dividends and stock buybacks. So, he wonders, what's the problem? Why on earth has he been taking...
979 Words | 3 Pages
Social Responsibility - 433 Words
The social responsibility concept is based on the premise that business has greater impact on society than can be measured by profit or loss. As a participant in society, business should contribute to the human and constructive social policies that guide society. The concept of social responsibility is merely a first step towards social effectiveness of business. It is the underlying value which gives businessmen a sound basis for social action. It is the philosophy which justifies business...
433 Words | 2 Pages
Our Engineers Are Just Not Motivated
OUR ENGINEERS ARE JUST NOT MOTIVATED Situation: You are a consultant to the manager of mechanical engineering for a large company(8,000 employees,Rupess 700 crores annual sales) that manufactures industrial equipment. The manager had been in this position for six months, having moved from a similar position in a much smaller company. Manager: I just can't seem to get these guys to perform. They are all extremely competent, but they just don't seem to be willing to exert the kind of effort that...
445 Words | 2 Pages
Financial Analysis of Mulberry - 390 Words
- Gross margins
2011 - Higher proportion of sales being made at full retail price throughout the year and because there was relatively little end of season stock for clearance compared to the previous year.
2010 – Dropped slightly form 60% to 59% because of price discounting within our retail business as we cleared surplus inventory during the first quarter
2009 - The proportion of retail sales to wholesale sales is increased, but due to the devaluation of sterling, the margins...
390 Words | 2 Pages
Btec unit 1 P1
1. The business environment
This report will tell you something about two companies. The first one is a profit organisation and the second one is a non-profit organisation. The author chose the organisation “Innocent Smoothies” as profit organisation and “Greenpeace” as non-profit organisation.
The author is going to describe the type of business, purpose and ownership of the two organisations....
689 Words | 3 Pages
Poa Sba - 1721 Words
The purpose of completing this School Based Assessment for Principles of Accounts was having the opportunity of running a business with my classmates and applying accounting principles in a practical business environment. Another aim was to run the business as a team to make a profit and provide a stationery service to the St. Augustine Girls’ High School population.
Description of Entity
The business run by the form four Principles of Accounts students is the Business Student...
1,721 Words | 7 Pages
Retail Buying & Category Management
Retail Buying & Category Management Assignment
- by Shifa Rastogi
Q1.What is the difference between a line and a staff job.
This division still exists in many company organizations. Line professionals are executives and others who take risks for enterprise success and are the combat soldiers of business. They are general managers, sales, production and operations people and...
895 Words | 4 Pages
Awa Gmat Argument 2 - Apogee Company
The following appeared in a memorandum from the business department of the Apogee Company:
“When the Apogee Company had all its operations in one location, it was more profitable than it is today. Therefore, the Apogee Company should close down its field offices and conduct all its operations from a single location. Such centralization would improve profitability by cutting costs and helping the company maintain better supervision of all employees.”
807 Words | 3 Pages
Different Between Aims Objective
Different Between Aims &
All businesses have aims they want to achieve. These are long-term plans, probably over
the next three to five years. Businesses will probably want to focus on one or more of the
following areas this includes:
• Profit and Profit maximisation are privately owned businesses that aim to make
profit, when some want to achieve maximum profit.
• Survival is when a business is having a hard time making profit they will try and survive
till a better time to come.
823 Words | 5 Pages
unit 5 D2 - 692 Words
D2: From your analysis in M2, decide which is the better performing business overall, and justify your decision.
In this task, I will be analysing the result of Turks Whole Sale and Turkish Great food, in terms of what business has performed better over the financial year. I will be using the financial ratios in both businesses, to critically explain which business has stood out in terms of profit, sustainability, and processes in their performance over the year....
692 Words | 2 Pages
Mismanagement of Customer Loyalty - 6004 Words
THE BEST CUSTOMERS, we're told, are loyal ones. They cost less to serve, they're usually willing to pay more than other customers, and they often act as word-of-mouth marketers for your company. Win loyalty, therefore, and profits will follow as night follows day. Certainly that's what CRM software vendors--and the armies of consultants who help install their systems--are claiming. And it seems that many business executives agree. Corporate expenditures on loyalty initiatives are booming: The...
6,004 Words | 16 Pages
Unit 2: Investigating Small Businesses
Unit 2: Investigating Small Businesses:
Task 1.3: What is the most appropriate method for the business you have chosen to increase its profits?
My investigation is about visiting a local store in Aston, Floors-2-Go and having verbal feedback from the manager her/himself also analysing and suggesting what methods can be used to make the business even more profitable in the local are (Aston).
In this section I will be talking about where the Business is located and...
3,148 Words | 9 Pages
Rewarding employees - 300 Words
Using rewards to motivate
How to pay: rewarding individual
employees to variable pay programs
Types of pay programs
Merit based pay
Skill based pay
Profit sharing plans
Employee stock ownership plans
Evaluation of variable pay
Piece rate pay
Provides no base salary and pays the
employees only for what the one
E.g. ball park workers
Limitations are that they are not
feasible for many jobs
300 Words | 4 Pages
Financial Markets - 1904 Words
Lim Jun Xian Clarence
Business Computing 1
Lim Jun Xian Clarence s9104475G Presents:
MONTEGO BAY APARTMENTS
Workshop Lecturer: Dr Lawrence Sim
Workshop Timing: 12-3pm
(Note: Windows 7)
1 Executive Summary 3
2 Body 3
2.1 Why create the spreadsheet? 3
2.2 What the spreadsheet says. 4
2.3 The What If Analysis 6
3 Appendices 8
4 Conclusion/Recommendations 9
1,904 Words | 7 Pages
Black Friday - 846 Words
Principles of Microeconomics
Black Friday, the day after thanksgiving, is the biggest shopping day of the year by far. It is the beginning of the traditional Christmas shopping season. The term dates back to as far as 1966. Thought to of originated on the east coast by the year 2000 it was a term known throughout the United States. Black Friday is the most profitable day for many companies in the United States. Merchants and the media have used it instead to refer...
846 Words | 3 Pages
Dim Lighting Company Case Analysis
The Dim Lighting Company is faced with a proposal that could potentially revive themselves from the 15 percent decrease in profits they have seen over the past two years. However, the new proposal for micro-miniaturization could put the Dim Lighting Company ahead of its competitors and contribute to higher profits despite the high costs of initiating the program. Jim West is the general manager and has been running the company for five years. Robert Spinks is the director of R&D and joined the...
582 Words | 2 Pages
Grolsch Company Case Study
1. Yes, several of the major players have been actively engaging in mergers and acquisitions, leading to a more concentrated market with larger market shares for the leading firms.
2. There is not a clear leader which absolutely dominates the industry. While Heineken is the leader in the international market, Bud (Light) leads total volume. There is also no core, the leading companies in international and total volume markets differ from each other.
3. In its...
376 Words | 2 Pages
Coast4Life - 727 Words
From: Pat Brown, CMA
To: Board of Directors
Subject: Analysis of alternative strategies to maintain profitability during industry downturn
Since starting operations in 2002, our company has enjoyed immense profit growth as well as healthy liquidity and coverage (see EX-5). However, due to the recent attack, we are anticipating a substantial drop in revenues for the upcoming season. As per my analysis in EX-2, I have determined that if we expect bookings to decline by 30% -assuming that we...
727 Words | 3 Pages
Kanthal - 1449 Words
Kanthal Case Study Solutions
INTRODUCTION:Kanthal is company that specializes in the production a
nd sales of electrical resistance heating elements. Kanthal has about 10,000 customers and they pro
duce about 15,000 items. The company consists of three divisions and these three divisions are as f
ollows:1)Kanthal Heating Technology - 25% global market share2)Kanthal Furnace Products - 40%
global market share3)Kanthal Bimetals - Manufacturer of one of the few fully integrated temperat
1,449 Words | 5 Pages