effectiveness of past promotional strategies in order to select a promotional strategy which will contribute towards a 10% increase in profits for 2008 before SGA, overhead, and taxes, specifically through marketing expenditures in advertising, consumer promotion, and trade promotion. Further Regnante must develop a 2008 budget P&L that will show the resulting 10% increase in profits from the marketing expenses. Situation Analysis Context Economic * Mature industry * Increasing raw material
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turnover ratio, total debt/total assets ratio and net profit margin to indentify which company is much healthier than other company in a particular industry. After thoroughly analyzing the financial data and ratios of the eight companies, we came to the following conclusion: 1. Health Products: | Company A | Company B | Current Ratio | 1.96 | 1.50 | Inventory Turnover | 3.08 | 0.93 | Total Debt/Total Assets | 5.34 | 14.99 | Net Profit Margin | 17.97 | 21.58 | From the above chart we can
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successful while having cash flow complications between the years of 2002 and 2005. However, the company has shown improvement in 2004 and 2005 in revenue by a little over 12 percent. In 2005 it was about a 15 percent increase from 2004 and operating profits were up even higher. Bob and Maggie were even more optimistic for 2006 and had higher expectations after doing really the past two years. How much was the accounts payable policy a factor in the erosion of the cash balance? How were there a cash
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1.0 Introduction Organizational systems, such as companies and value chains, have been studied in order to enhance the performance of entirety. System theory may help with the analysis of the real problems as well as finding the solutions. Based on the Applied System Theory “A system consist of element s discernible within the total reality (universe), defined by the aims of the investigator. All these elements have at least one relationship with another elements within the system and may have relationships
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Dakota Office Products Case 1. Why was Dakota’s existing pricing system inadequate for its current operating environment? Some problems with the current operating environment include: * Profits only when clients placed large orders for cartons * Real drop of profit when many clients place small orders * Wrong cost determination for individual customers * Wrong cost determination for new services provided by DOP Dakota Office Product uses traditional costing system where direct
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Hospital Case Study 1. Using the historical data as a guide (Exhibit 6.1), construct a pro forma (forecasted) profit and loss statement for the clinic's average month for all of 2010 assuming the status quo. With no change in volume (utilization), is the clinic projected to make a profit? With no change in volume of 45 patient visits per day, the clinic is not projected to make a profit. 45 patient visits per day x 30 days in a month = 1,350 visits per month x 12 month = 16,200 visits per
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is the bottleneck in the third process of production The second step is optimizing use of restraint, which means finding the product with the highest margin per unit of constraint which according to the data is model C210 because it has a higher profit margin of $420 per unit of constraint. The third step of Goldratt’s theory is subordinates everything else to the constraint, which mean to focus on trying to loosen the constraint, this can be achieved by what the marketing VP suggested by focusing
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In terms of profitability, Clarkson is fairly consistent over the years. Please see below table for calculations: | 1993 | 1994 | 1995 | Q1 1996 | Gross Margin | 25% | 24% | 24% | 25% | Operating Margin | 3% | 4% | 3% | 2% | Net Profit Margin | 2% | 2% | 2% | 0% | The gross margin indicates that Clarkson is selling its products for more than the direct costs of making the product. The consistent gross margin shows that Clarkson most likely is able to maintain the cost of its
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What is the difference between data, information and intelligence? Ans. Data are simply facts or recorded measures of certain things or events. Information is data formatted to support decision making or define the relationship between two facts. Business Intelligence is the subset of data and information that actually has some explanatory power enabling effective managerial decisions to be made. So there is more data than information, and more information than intelligence. There are hundreds
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is an important tool to use when understanding your organization’s health. Some of the most-important ratios to use would be short-term liquidity ratios and the profitability ratios. In this paper, I will go over the current ratio, gross profit margin, net profit margin, return on assets, and return on equity. I will then explain how these ratios effect my chosen organization which is Hospira Investor Relations, and explain how they compare to the historical data as well as the companies benchmarks
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