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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sentiments are high as compared to under-priced when sentiments are low. It was found from the tables that all 11 anomalies were stronger following high levels of investor sentiment. When averaged across anomalies, 70% of the benchmark adjusted profits were in months
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power of suppliers (SUPPLIER POWER) * Rivalry among existing competitors (RIVALRY) * Bargaining power of customers (BUYER POWER) * Threat of substitutes Anomalies * Some anomalies occur due to a variety of reasons with regards to profit over time * Ex: Tobacco was not profitable in 2007 due to lawsuits but was much more profitable during 2008 What is 5 forces analysis? * A framework for analysing industryprofitability * NOT company profitability – that depends
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traditional cost of accounting system distributed resources equally, across every product, and customer base was treated homogeneously. As a result, there were substantial errors on cross-subsidisation and cost allocations, by which they created “hidden profit” and “hidden loss. An important fact that had to be taken into account was that the higher sale volume, the higher commissions and bonuses Kanthal had to pay to its employees. In other words, the more sales revenue the company generated, the higher
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Case Study: Dakota Office Products 1) Identify expenses on the income statement that are sales fulfillment expenses and divide them into cost pools. * Warehouse Expenses: includes personal and non-personal expenses related processing cost within the facility * Desktop Truck Expenses: includes personnel and delivery truck expenses related to performing desktop delivery functions. * Commercial Delivery Expenses: includes freight cost * Order Entry Expenses: includes manual order
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How does innocent conduct market research? Surveys: What innocent do is “They hired a stall at a music festival and asked customers who bought a drink, “Should we quit our jobs to make smoothes?”. People could choose whether to throw their empty smoothie bottles into a bin marked “Yes” or “No”. (http://www.utalkmarketing.com/Pages/Article.aspx?ArticleID=4113&Title=The_marketing_secrets_behind_Innocent_Drinks ). By this method which is a survey you can see that Innocent is using primary research
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associated with producing the goods and services sold by a company. Considering that eBay’s gross margin shows they are more efficient than the Amazon. Amazon have larger the cost than the eBay. They sale more than eBay but because of cost their gross profit is less than eBay. If we consider gross margin for an investment it shows eBay is safer than the Amazon for an investment. Operating Margin eBay Amazon. $1022, 000/$4530, 000 $510, 000/$25587
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1. I assume the Georgia-Pacific, Brunswick Chemical and Southern Chemicals are the identical twins of the Collinsville investment because their net incomes during the 1974 to 1978 period have extremely high correlation with Collinsville’s net income. Net Income (in millions) | Collinsville | Brunswick Chemical | Georgia-Pacific | Southern Chemicals | 1974 | 1.096 | 0.2 | 164 | 0.1 | 1975 | 0.817 | 0.15 | 148 | -0.05 | 1976 | 2.326 | 0.37 | 215 | 0.28 | 1977 | 4.357 | 0.71 | 262 | 0.74 |
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7% 7.4% 4.5% 9.7% 4.2% Sales Revenue per employee £518,566 £523,261 £547,137 £537,402 £486,951 Return on capital employed is considered to be the primary measure of profitability. ROCE compares inputs (capital invested) with outputs (operating profit). Fig.1 ROCE went from the highest registered in the 5 year period in 2012 of 9.7% to the lowest ever in 2013 of 4.2%. This is a substantial decline to occur in an year interval which indicates a poor performance. The sales revenue per
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| How To Map Your Industry’s Profit Pools | Bus J-411 | | Carl Greeno III | 10/1/2013 | In this article it describes a useful framework for analyzing how profits are distributed among the various activities that form an industry’s value chain. A profit-pool opens a window onto the underlying structure of the industry, helping managers see the economic and competitive forces that are determining the distribution of profits. The strategy of a firm should be informed by an understanding
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