Case Background Jemima Pen Company was a low-cost producer of traditional blue and black ink pens. The classic pen had a profit margin of at least 20% of sales. Five years earlier, this company had introduced red pens using same technology at 3% premium. Recently, this company was introduced purple pens using same technology at 10% premium. Based on this cases, there are several issues that facing by management of company. First issue is regarding profitability. The new red and purple pens do
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fourth of total sales and Global is ready for a major expansion. It showed that there is already a good base of customers in Asia for the Luna pen, and it would be detrimental if Global were to lose the product. Whereas Luna pen produced a lot of profit to Global, DGG doesn’t want to be in the fountain pen business which weakens their lawsuit. Also, the company doesn’t have any real damages. The lawsuit would be expensive, there is not enough corporate support to pursue a lawsuit, and there is no
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Eradication of problem with distance 2. High Extra Liquid Assets for Credit | 1. Unable to profit from price fluctuation2. Opportunity Cost of letting go of the farm’s profitability3. Not able to maximize Farmland appreciation | RECOMMENDATION | Denise Grey should retain the farmland with the combination consideration of Price fluctuation, profitability, and appreciation of the land to reap a total economic profit of 2.22 million
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The service profit chain This case study sets out a simple and well-defined way to build profitability and growth in a service business. It’s focusing on how satisfied our customers must be in order to become profitable and to keep those customers, companies must manage all the aspect of the operation that affects customer satisfaction, which is determined by the service-profit chain as it helps managers target new investments to develop service and satisfaction levels to gain competitive advantage
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timely manner. Since their menu is vast there must be courtesy when it comes to serving, like “please” and “thank you.” “A company’s profitability is usually considered over time because it is seen as an indicator of its ability to generate future profits and capital.” (Mcgraw, 2007, p.11 ) So having a restaurant will not allow grand revenue but the reputation it builds through consumers
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locations that were losing money. This allows the company to retain profits from other locations and provide jobs to members of the community. Unfortunately, because of the high crime rates, Company Q has taken and apathetic view towards the community. This is displayed through their response to requests made by members of the community. It has taken several years of customer requests for the chain to begin carrying specialty high profit items. Members of the local food bank have asked for donations
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less effective as they failed to evoke the desired behaviors – achieving sales targets. Together with other offers by competitors, this resulted in high turnover rate. Profit Sharing - Result controls may serve well with congruence between employees’ and company’s objectives, but employees take for granted the law-required 10% profit sharing of the company’s income and so their motivational effect seems little. Salary Increase – The semi-annually salary increase is subjective and irreversible, and
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Measuring the financial performance of the business - Profit is the aim of the Next Store business and enjoyable accounting records will enable managers to assess accurately the levels of profit that are being achieved. Account records will also give clues about strategies that will be able to improve the profitability of the business. The accounting documents that they will consider and reveal a number of key figures: * Gross profit - it is the diversity between Next total revenue and how
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operate each oil and gas field (drill vs prdcn) (*licensing can be sold*) country owns right to resources issues license share in profits * Country can enter into JV with company (BUT gvt ONLY shares in profit) Criteria: proof of credentials 1. Tech ability 2. Environ. Awareness 3. Financial capacity PSA license: profit sharing w/gvt (% of profits ie. Rev. – amort cost of drilling- royalties – prdcn c.) Royalty tax also imposed by gvts (% mkt value of o&g prdcn) Independent
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Case Name: Jones Company Student Name: Ricky Sidhu Student Number: 100201154 Short Cycle Process: * I am the corporate controller and am to prepare a report to the president of JCL of my investigation into the areas of JCL that need management attention * The relevant events occur in 2002 * Events occur in Canada Critical Issues Organizational Structure – The president has an increasingly large workload which leads to the bottleneck effect, high rate of manager turnover
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