...viable , competitor in the biotechnology industry. There is also the hope that Gene One’s current leadership will be seen as capable of managing a successful pubic entity. Challenges for Gene One in this scenario include concerns about the experience level and leadership capabilities of the senior leadership team regarding IPOs and the communication plan that will be used to convey this new strategy to the employees Overall, the leadership team lacks the experience and, in some cases, the motivation and focus to take the business to new heights. The major problem for Gene One in the this scenario is to transform the culture of the current organization from the small start-up company to a global giant that is focused on growth and profitablity. The changes within the organization will require changes in the core values of the organization. The organizations staff is accustom to...
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...mentTHE RELATIONSHIP BETWEEN WORKING CAPITAL MANAGEMENT AND PROFITABLITY OF LISTED MANUFACTURING COMPANIES IN GHANA Agyemang Badu Ebenezer Lecturer, Department of Business Administration Presbyterian University College, Ghana Michael Kwame Asiedu Lecturer, Department of Business Administration Presbyterian University College, Ghana ABSTRACT This study examines the effect of working capital management on the profitability of companies listed on the Ghana Stock Exchange. Secondary data from the Ghana Stock Exchange on manufacturing companies within the Accra metropolis was used to examine whether working capital management influence the profitability of manufacturing companies in the country. The study found out that, the major component of working capital management such as inventory days, account payable and cash conversion cycle have influence on the profitability of manufacturing companies. The study recommended that, manufacturing companies should adopt efficient and effective ways of efficiently managing these components of working capital management. KEY WORDS: Working capital management, profitability, net operating profit 1.1 INTRODUCTION Working Capital Management has become very important in financial management because of its effects on the firm’s profitability, risk and consequently its value. There are several important reasons why the management of working capital is important to both small and large organisations. (Smith, 1980). A well designed and implemented working...
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...formally and informally recognized as a best customer? This case allows to customer's relationship with discount retailer Filene's Basement, from her perspective, to uncover the critical incidents and behaviours of each party that shaped their relationship. The company's customer relationship management (CRM) programs are analysed to show how they influenced and encouraged unprofitable customer behaviour. OBJECTIVE This case helps us to understand the complexity and dynamics of consumer-brand relationships and how they are formed, nurtured, and changed over time via a firm's CRM programs. We can use customer lifetime value analysis (CLV) to assess the profitability of a customer relationship, to assign customers to tiers in the customer profitablity pyramid, and to debate strategies for improving their profitability over time. The case provides an opportunity for us to debate the wisdom of firing the customers and to explore the processes by which customer relationships become unprofitable. Importantly, the case argues that behind most "bad customers" are poorly managed customer relationships, highlighting that firms bear responsibility for building unprofitable relationships through their customer acquisition and retention strategies. PROBLEM The main problem facing Filene’s Basement was the shifting management. This shifting management coupled with evolving strategy and pressure to perform resulted in the transition of a once Platinum customer to a Lead customer. With the changes...
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...Section 1, Group 11 Group Members: Alex Schaefer, Shilpa Sitaram and Tushar Bhandari Assignment #1: Wilkerson Company Case 1) The existing cost system allocates overhead based on each product’s proportion of direct labor costs. The rate per unit of direct labor cost is 300% for all product groups. This results in the following cost breakdowns: 2) When you use an activity based cost model the allocations are as follows: Product Profitablity analysis | | | | | Valves | Pumps | Flow Controllers | Direct Labor cost | 10.00 | 12.50 | 10.00 | Direct Material cost | 16.00 | 20.00 | 22.00 | Manfuacturing overhead ( rellallocated) | 20.17 | 25.70 | 83.38 | Standard unit cost | 46.17 | 58.20 | 115.38 | Target selling price | 86.15 | 107.69 | 95.38 | Planned gross margin | 35.00 | 35.00 | 35.00 | Actual selling price | 86.00 | 87.00 | 105.00 | Actual gross margin | 46.32 | 33.10 | -9.88 | In the ABC method the standard unit costs and gross margins are dramatically different. The standard unit costs for Valves and Pumps have dropped while the standard unit cost for Flow Controllers has increased. Accordingly, the gross margin for Valves and Pumps has increased and the gross margin for the Flow Controllers has dropped (into the negative). In the ABC pricing model costs better reflect the actual costs involved in delivering a finished product. Production for Valves and Pumps is a simpler operation than producing Flow Controllers. Flow Controllers have...
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...line. They decided to introduce an energy beverage brand to the market (existing market) which already has competitors. With this as focus, it was important to choose best market and distribution channels and some other business strategies for the product in order for it to be a success. The problem faced includes retainment of its present competitive position in the market with other energy drink companies and at the same time preserving profitability and customer base. In order to maintain the market competition, the business strategy to launch the new products into the market was very vital. Some of the factors that has to be considered before the product launch is considered are: * Industry Experience * Customer base * Profitablity growth * Favorable market condition * Core competencies * Management Team Decision. ALTERNATIVES PROVISIONS FOR PRODUCT SUCCESS The company could carefully select the strategy to launch the new product into the market to understand both the strength of their current competitive position and the strength of the position they are considering moving into. Then they need to come up with the following: Pricing Strategy, Distribution Strategy, Product Line and Positioning Strategy, Market Penetration Strategy, Target Strategy, SWOT Analysis, Advertising Strategy and Porter’s Five Forces. EVALUATION: For evaluation, SWOT analysis and the Porter’s five forces model are the tools to be used in this case to...
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...EIP Project S2-1: Multiple Allocation Bases and Ethical Dilemmas The profitability of the two types of products can be impacted by changing the allocation base in the way that the text implies. As stated in the case study, the controller’s reasoning is he wants the highest percentage of overhead cost assigned to the military contracts (Whitecotton, 2011). This impacts the profitibility of both product lines by (a.) increasing the apparent “cost” of each unit so as to increase the sale price in a “cost-plus” contract and (b.) to reduce the amount of actual cost being charged to each unit sold on the open market, thereby improving the profit margin. In other words, the higher the cost base for each unit, the more the company can charge the government affording the company the ability to sell the other line at a more competitive price as a greater portion of the cost has been allocated to the military line. With a greater portion of the civilian line’s cost allocated to the military line, the company now can enjoy greater profit potential through the civilian line as well. With a lower cost allocation attributed to the civilian line, the company can lower prices and gain a greater competitive advantage, increase unit sales, and though profit margins would then be lower, volume increases through reduced pricing would provide improved revenue. Although there is specific information that lacking to make an absolute decision on what is the best allocation base for applying...
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...Impact of Profitablity on Growth: consumer packaged goods (CPG) INTRODUCTION Economic recovery remains vulnerable on all fronts a top-performing company analysis Getting on the global map Introduction Sales and income growth can be expected to influence rate of return and market value measures in both simulated and actual industries. It is unclear if growth in one year will affect profitability and market value measures in a succeeding year in simulated and actual environments. Asset growth, which can be used as a proxy for plant and equipment expenditures, and research intensity, may also affect sales and income growth in a base year or succeeding year, indirectly affecting profitability and market value. These direct and indirect effects may be different in simulated and actual industries, but if students are to learn from simulations there should be a reasonable correspondence between variable effects in simulated environments and real world industries. Recently, value based planning and performance measurement has been receiving more attention in business literature and in actual practice, since it provides a framework for using firm value as a strategic performance measures and focuses on profitability and growth as determinants of firm value (Varaiya, Kerwin, and Weeks, 1987). Many analysts and company executives believe that shareholder value (e.g., stock appreciation + dividends) is a better measure of long term corporate performance than accounting...
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...BLUE RIDGE MANUFACTURING ACTIVITY‐BASED COSTING AND CUSTOMER PROFITABILITY ANALYSIS 1. Allocate SG&A Costs to SG&A Activities SG&A Costs Administration Selling TOTAL Actitives & Costs allocated Enter P.O Commissions Shipping Activities Invoicing Cost to Make Sales Calls Checking Credit Samples, Catalog Info Special Handling Charges Distribution Management Marketing by Customer Type Advertising/Promotion Marketing Administrative Office Support Licenses, Fees TOTAL Total Shipping Sales Marketing Other Assigned Note 17,000 37,400 20,400 56,100 130,900 From Table 3 15,500 117,800 9,300 12,400 155,000 32,500 155,200 29,700 68,500 285,900 ‐ ‐ 85,360 ‐ 55.00% 6,850 92,210 Percentage x Total Cost Of Each Function 10.00% 15,520 ‐ 10.00% ‐ 15,520 21,125 ‐ 65.00% ‐ ‐ 10,275 31,400 15.00% ‐ ‐ ‐ ‐ 13,700 13,700 20.00% 46,560 ‐ 30.00% 6,850 53,410 10.00% ...
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...ANALYSIS OF FIANANCIAL STATEMENT MUSTEHKAM CEMENT LIMITED PRESENTED TO: TAHSEEN MOHSIN PRESENTED BY: MUHAMMAD USMAN GHANI 105221003 (03454657966) PREFACE This is the project of financial statement analysis in which we have to apply the financial technique to doo the financial analysis in deep by firm comparability, by ding credit analysis, making pro forma statements and showing reality in it, we were asked to do long term solvency analysis, profitability analysis and valuation in which we have to calculate expected return through DDM and CAPM model. We do the analysis of whole firm in detail on its financial data, calculate the whole ratios of business through which we can analyze in which position the business is running and what problems are faced by the firm and is the firm having any financial risk or in case of solvency measure the firm has through which it can pay its obligations. The project was full of problem because to apply the financial technique we need financial data have to find out which element have to put in that formula and first time I have visit the KSE site to collect the previous stock price of share which was learning point for me that which place how you have to collect data have to do interpretation. ...
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...PART A Strategic Business Analysis – Expected exam questions | | | | | | | | | | | | | | | | Task 1 | | | | | | | | | | | | | | | | | | | | | | a. What type of organisation is ABL? | | | | | | | | | | | | | | | | | | | | Australian Beverages Limited (ABL), formerly Australian Soft Drinks Limited is an Australian Public Company which | | | commenced operations in 1937 and listed on the Australian Stock Exchange in 1996. | | | | | | Tom Dwyer the current managing director has been with the company for the past five years. | | | | | | | | | | | | | | | | Commenced soft drink manufacturing in 1937. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Bottled Water | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | b. What industry, product segments/markets does ABL operate in? | | | | | | | The food and beverage industry in Australia | | | | | | | | | Industry | | | | | | | | | | | ABL current operates in the food and beverage supply industry in Australia, and hopes to enter into and operate in the Australian bottled water manufacturing industry. | | Markets | | | | | | | | | | | ABL is currently the second largest competitor in the non-alcoholic beverage market in Australia...
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...Tayong Bih Instructor: DR. C. IREGBU, Ph.D. Health Financial Management (HSA525) Assignment 1 Company Overview Universal Health Services (UHS) is a health management company that operates in three divisions; behavioral health facilities, acute care hospitals and ambulatory centers throughout the United States, Puerto Rico. Founded since 1978, it has prided itself in delivering top-notch hospital services through its strategy of purchasing already existing strong and successful health care franchises. With its philosophy of integrity, competence and compassion, it has grown its employee population to 68.000 and has established a strong capital position which is enabling it stay an industry leader. (UHS, 2015). As its newly appointed chief financial officer (CFO), one of the many duties but not limited to will be that of a financial operator. In this role, operation will ensure that UHS becomes financially effective or stays financially effective. In order to determine whether this organization stays or is finally stable, conducting a wide range of financial operations starting with an internal financial analysis will be paramount. One of the first tools utilized is a trend analysis. This tool uses UHS’s revenues generated from 2012 through 2014. |Year |2012 |2013 |2014 | |Revenue |6961.4 |7283.82 |8065.33 | |Expense ...
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...RATIO ANALYSIS Meaning and definition of ratio analysis: Ratio analysis is a widely used tool of financial analysis. It is defined as the systematic use of ratio to interpret the financial statements so that the strength and weaknesses of a firm as well as its historical performance and current financial condition can be determined. The term ratio refers to the numerical or quantitative relationship between two variables. Significance or Importance of ratio analysis: • It helps in evaluating the firms performance: With the help of ratio analysis conclusion can be drawn regarding several aspects such as financial health, profitability and operational efficiency of the undertaking. Ratio points out the operating efficiency of the firm i.e. whether the management has utilized the firm’s assets correctly, to increase the investor’s wealth. It ensures a fair return to its owners and secures optimum utilization of firms assets • It helps in inter-firm comparison: Ratio analysis helps in inter-firm comparison by providing necessary data. An interfirm comparison indicates relative position.It provides the relevant data for the comparison of the performance of different departments. If comparison shows a variance, the possible reasons of variations may be identified and if results are negative, the action may be intiated immediately to bring them in line. • It simplifies financial statement: The information given in the basic financial statements serves no useful Purpose unless it s interrupted...
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...Industry Introduction: The newspaper industry has a long history in US. It is considered to start in Boston in 1690, when Benjamin Harris published Publick Occurrences both Forreign and Domestick. Its product, newspaper, is a periodical publication containing news of current events, informative articles, diverse features, editorials, and advertising. It usually is printed on relatively inexpensive, low-grade paper such as newsprint. The newspaper industry now has annual revenue of 33.8billon, of which 2.5 billon is profit. It’s annual revenue growth during 07-12 is -8.1%, and annual growth anticipated for the next five years is -4.2%. Recent revenue comes mainly from advertising, with 69.9%, and others from sales and subscriptions 25.1%, printing services 2% and miscellaneous 3%. Recent major market is readers aged 55 or over 39.9%, readers aged 35 to 54 35.6%, and readers aged 18 to 34, 24.5%. Three major players in the industry are Gannet, Co. Tribune, and The New York Times. The Newspaper Publishing industry faces escalating competition from other forms of media, particularly digital outlets. Consumers favor the real-time reporting capabilities of online news, including social networking platforms like Twitter. As a result, advertisers are spending less money on print and more on building their online presence, where they can create customizable campaigns and reach a wider audience. By 2007, there were 6,580 daily newspapers in the world selling 395 million copies a day...
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...Demographics & Marketing Mix | December 7, 2009 | | When using demographics and the marketing mix tools, marketers have a greater capacity to reach the most desired target market for the product being marketed. These marketing applications therefore have an important impact on the decision to purchase. | Demographics and the marketing mix tools have an important impact on the decision to purchase. In using these, marketers have a greater ability to reach the most desired target market for the given product. Demographics enable a marketer to look at specific characteristics of a human population, knowing this a marketer will be able to pinpoint what product is most wanted by a specific demographic segment. While knowing the marketing mix tools - product, price, promotion, and place – will enable the marketer to better understand where in the specific demographics the product should be placed and what factors will be used to encourage greater profits. Prior to having marketing mix tools, marketing was more of a straight-line function concept. “It is that combination of factors which is the promotional undertaking that has always characterized marketing that has differentiated it from trade or distribution.” (Bartels, 1988, Pg. 228) By having this combination of factors to work with, marketers have to look at a product and discover the aspects of its distinctions prior to the actual selling of it. The marketing mix tools, product, price, place, and promotion, need to...
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...Threats 7 Competitor analysis 7 Competitor Brand Analysis 7 Competitors - their target segments - and their strategy used: 9 SWOT 9 Marketing information requirements 10 Marketing strategy 10 Product 10 Marketing Strategy 14 Promotion 14 Price 17 Profit Margin by Brands: 18 Customer Price Judgements: 18 Financial Analysis 19 Alternatives Analysis 20 Recommendations and Action Plan 20 Exhibit “A” – P&L - 9 sales office configuration 21 Exhibit “B” – P&L - 12 sales office configuration 22 Exhibit “C” - Incremental analysis of costs and revenues 23 Exhibit “D” - Forecasted Demand 24 Exhibit “E” - Current and Pro Forma Statements for Four Quarters 25 Exhibit “F” - Return on Investment 25 Exhibit “G” – Brand & Regional Profitablity 26 Overview and Objectives Mission statement At Integrity Computers Intl. our goal is to supply quality computers to our customers at a fair price. We are committed to earning our customers trust in the market by maintaining the highest standards of service using the most advanced technology and by conducting business that is ethical, environmentally responsible, socially and economically acceptable. Integrity Computers Intl. (ABC) is a newly created division of a large international electronics company tasked with challenge of introducing a new line of microcomputers into several international markets. Seed capital has been provided by corporate to assist with the establishment of the division. Two million dollars was...
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