...Comprehensive Analysis of Staples Harding University Angela Maloch Ashley Perez Keith Miller Ricky Griffin Abstract This paper will review Staples, Inc. comprehensively. The authors will discuss Staples’ visions, missions, and objectives, in addition to outlining the firm’s internal strengths and weaknesses and their external opportunities and threats. Several matrices will be included to provide visual aid and better observations of the operations and current practices of the company. Recommendations will be provided on new courses of action that may benefit the company and help increase sales and brand awareness. Vision and Mission Staples, is the world’s largest office product organization, and a reliable source for office solutions. The company products and services include office supplies, copy and print supplies, and technology to support these products. Staples, also provides supplies for facilities, break-room, and furniture (Staples, Inc, 2012). Staples conceptualized the office superstore in 1986. It has more than 88,000 associates worldwide, in 26 countries, and fosters annual sales of 25 billion (Staples, Inc, 2012). Many organizations foundations began with a vision and an organizational mission. The vision and mission are set to be accomplished by setting objectives, and implementing strategies to achieve the goals set by the organization. According to Business Improvement Architects: Creating a compelling vision and developing the...
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...I. BACKGROUND Staples Inc. founded in 1985 by Thomas G. Stemberg and Leo Kahn in Brighton, Massachussets. It is headquartered in Boston and employs 89,000 employees worldwide. Staples sells office supplies at more than 2,000 stores as well as through its catalog and call centers, the internet site, and contract sales force. In additional to typical office supplies, stores offer computer hardware and software, furniture, art and school supplies and printing and copy services ( Staples 10k, 2012). The company has 3 operating division: North American Delivery, North America Retail and International. The retail stores in Australia, Brazil, China, Denmark, France, Germany, India, Norway, Portugal, United Kingdom and the United States are operate under its original name “Staples”. Argentina operates as Officenet-Staples, Belgium and Netherlands as Office Center, Canada as Staples Canada and in Italy as Mondoffice. The company recorded revenues of $25.1 billion during 2012, an increase of 1.9% compared with 2011. 39% of revenues generated from North American Retail, 40% from North American Delivery and 21% from International operation. (managementparadise.com, Staples 10K, 2012). II. STRATEGIC DIRECTION A. Mission “Our mission is to bring easy to offices worldwide” (Staples Soul, 2012). B. GOALS/OBJECTIVES • Maintain our leadership position by delivering on our brand promise • Focus on customer service, customer acquisition and retention, and providing our customers a broad assortment...
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...carrying office supply products, effectively lowering our market share. This, in turn has left Office Depot struggling to offer competitive pricing, selection, and services to our customers. A recent trend shows that the rapid growth of the Internet has caused consumers to make a shift toward online purchases over in-store purchases. In this memo, I will explain how we will use this trend to our advantage. I will also explain how a reduction of brick-and-mortar retailers, concentration of our e-commerce operations, and the expansion of our private-label product line will drive down costs and increase our sales revenues and operating profits. Current Industry Status The specialty retail industry is dominated by three major players: Staples (39.2% market share), Office Depot (22.9% market share), and OfficeMax (13.5% market share). However, the dominance of these three companies has been waning within the recent years. The start of the recession triggered competitors from other retail industries including warehouse clubs, grocery stores, discount stores, and shopping supercenters to carry office supplies at lower prices. In response, office supply stores have been forced to reduce their prices, taking a loss, in hopes of attracting customers for big buy purchases. These newly emerging external companies have been successful in offering customers a one-stop location for all of their daily necessities...
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...serving a diverse customer base. Best Buy’s current competitors include specialty home-office retailers (Staples, Office Depot); retail discounters (Wal-Mart); wholesale clubs (Costco, Sam’s Club); and online competitors (Amazon, Circuit City). Strengths * Revenue of $16.26 Billion and profit of $651 million in 2011 * Operate more than 1,150 stores in the U.S. and abroad * Retail class leader based on customer satisfaction surveys * Leading U.S. retailer in computers, televisions, tablets, and cameras * Implementation of green initiatives to reduce electronic waste Weaknesses * Initially established image as a lower quality retailer * Impact of class action lawsuit settlement in 2011 * Previously neglected niche market for higher end products Opportunities * Purchase of Carphone Warehouse Group interest (U.S. / Canada) * Growth in sales of mobile phones and tablets * Improving inventory management through long-term relationship with suppliers * Further expansion of chain by opening “mobile” stores * Increasing availability of higher end merchandise Threats * Online competitors * Pressure from competitors to reduce prices * Rising labor wages * Current economic trends Amid stiff competition from online retailers and retail discounters such as Amazon and Wal-Mart, Best Buy should take a closer look at its current business strategy. Revenue and profits for 2011 were higher than forecasted. However, sales for 2012 have declined, indicating that Best Buy’s current restricting...
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...COST ANALYSIS REPORT Grasim Industries Limited | Management Accounting – CIA 2 | Submitted By S. Hari Prasath 1220716 Section V --------------------------------------------------- Submitted To Latha Ramesh Assistant Professor-Finance Christ University Institute of Management | Introduction Grasim Industries Limited, a flagship company of the Aditya Birla Group, ranks among India's largest private sector companies, with a consolidated net revenue of Rs.216 billion and consolidated net profit Rs.22.8 billion (FY 2011). Starting as a textiles manufacturer in 1948, today Grasim's businesses comprise viscose staple fibre (VSF), cement, chemicals and textiles. Its core businesses are VSF and cement, which contribute to over 90 per cent of its...
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... with the economy, which by the way affects all businesses, you just do not have an exact science on how things will turn out. Industry businessman, economist etc. can only make assumptions based on occurrences. So, if you are in a business to make a profit, and satisfy stakeholders you need to have a plan. Sometimes the plan calls for mergers and acquisitions. Mergers and acquisitions can have a positive and/or negative effect. “According to a KPMG study, 83% of all mergers and acquisitions failed to produce any benefit for the shareholders and over half actually destroyed value.”(http://www.itapintl.com/...the-impact-of), to be a good CFO you must do the research to determine if acquiring another company will be beneficial. This report will identify the risk factors of the target acquisition company Kmart and the risk factors present in the parent company Costco. Our team will then show how these risks can be mitigated. BECAUSE OF THE RISKS CAN COSTCO ACQUIRE THE #3 KMART? KMART RISKS/MITIAGATION Many investors such as Costco may be unaware of all the risks associated with investing in a specific company. Providing current and future investors with risk factors allows investors to evaluate a company and make an informed investment decision. Kmart’s operations and financial results are subject to various risks and uncertainties, including those described below, that could significantly affect the Costco’s judgments in acquiring the business. Here...
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...collaboration with other students. Assessment task 2 is to be completed as a group. Groups will be formed in the second week and confirmed in the third week. Group sizes are to be a minimum of 3 students with no more than 5 students. It is preferred group members are selected from the same tutorial. You are advised to commence organising your group no later than week 2. You can start early on some aspects of assignments such as downloading of data and other relevant information. This will allow time for you to familiarise yourself with downloaded information so that you can apply knowledge gained in lectures. Submission Details • Use a minimum font size of 12 point and a minimum margin of 2.5 cm on the left and right hand side of the page. Staple the assignment in the top left hand corner. Students are to take the maximum word limits that are detailed for each task as a guide only. The word limit excludes calculations, appendices, tables and charts. Assignments must be submitted with the...
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...Staples Equity Valuation and Analysis David Lecky Chad Loudermilk Bennett Matkins Kara Reynolds Amanda Rhodes David.Lecky@ttu.edu Chad.loudermilk@ttu.edu Bennett.Matkins@ttu.edu Karereyddd@yahoo.com Amanda.b.Rhodes@ttu.edu Table of Contents Executive Summary……………………………………………………….. 2 Overview of Staples and the Industry………………………………... 7 Five Forces Model……………………………………………………………………….. 9 Rivalry among Existing Firms……………………………………………………….. 9 Threat of New Entrants……………………………………………………………….. 15 Threat of Substitute Products………………………………………………………. 17 Bargaining Power of Buyers………………………………………………………... 17 Bargaining Power of Suppliers…………………………………………………..... 18 Classifying the Industry………………………………………………………………. 18 Key Success Factors……………………………………………………………………. 19 Competitive Advantage Analysis………………………………………………….. 19 Accounting Analysis………………………………………………………. 25 Key Accounting Policies………………………………………………………………. 25 Accounting Flexibility………………………………………………………………….. 26 Evaluation of Actual Accounting Strategy……………………………………… 29 Quality of Disclosure…………………………………………………………………… 30 Screening Ratio Analysis….…………………………………………………………. 33 Revenue Diagnostics………………………………………………………………….. 34 Expense Diagnostics…………………………………………………………………… 37 Potential “Red Flags”………………………………………………………………….. 39 Undo Accounting Distortions……………………………………………………….. 41 Ratio Analysis………………………………………………………………. 44 Liquidity Ratio……………………………………………………………………………. 44 Profitability Ratio……………………………………………………………………….. 56 Capital Structure...
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...Amazon.com’s E-Business Model Donna Lowther Dr. Kitoko Contemporary Business July 30, 2011 1. Discuss whether or not Amazon has lost its identity by expanding into markets well beyond books. According to Sandoval (2001) Amazon is losing its original identity because it is losing ground in the book selling department, for which it was created and because Amazon may have diverted its attention from books or, worse, spread the company too thin to compete effectively in any single area, by expanding into other areas. Though I do no ever remember a time when Amazon was just strictly books I would have to agree with Sandoval, since Amazon now sells items such as video games DVDs, toys, electronics, software, and home-improvement products as stated by Quittner (1999). Quittner (1999) also states that Bezos has further expansion plans such as: “washing machines, cars, rubber gaskets, Prozac, exercise machines, marmalade, model airplanes, everything but firearms and certain live animals.” Looking at this shows that Amazon has definitely lost its identity as strictly a bookseller. I think Amazon’s identity is becoming close to that of e-bay, in so far as the fact that Hof (1999) states that Amazon now has daily auctions. In their annual report for 2010 Amazon (2010) states “this expansion increases the complexity of our business and places significant strain on our management, personnel, operations, systems, technical performance, financial resources, and internal financial...
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...2012 2020 2020 The rural FMCG market expected to increase at a CAGR of 17.7 per cent to USD100 billion during 2012–25 The overall rural FMCG consumption continues to grow at 12.5 per cent during 2013-14 Total consumption expenditure to reach nearly USD3,600 billion by 2020 from USD1,328 billion in 2012 Source: World Bank, Emami Reports, Dabur Reports, AC Nielsen, McKinsey Global Institute (MGI) titled The Bird of Gold, Booz & Company, Aranca Research India’s working population to be more than double the total population of the US (361.6 million) by 2030 950 900 850 800 750 700 CAGR: 0.8% 780 2011 2030 2011 200 267 100 0 2011 800 600 400 200 0 Working population (aged between 15 and 64 years) estimated to increase from 780 million in 2011 to 900 million by 2030 160 2016 2011 Rural India’s per capita disposable income set to increase 2030 CAGR: 10.8% 300 India’s middle income class to be thrice the total population in Germany by 2016 900 India’s middle income population estimated to reach 267 million by 2016 from 160 million in 2011 2016 CAGR: 4.3% 631 411 2010 2010 2020 Rural India’s per capita disposable income is estimated to rise to USD631 in 2020 from USD411 in 2010 2020 Source:...
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...Ferozsons Laboratories Limited Week 6 Final Paper Ferozsons Laboratories Limited Ferozson Laboratories was established in 1954. They become the first local pharmaceutical company to be listed on the country’s stock exchange in 1960. Ferozsons' specializes in generic brand pharmaceuticals including anti-infectives, Gastrointestinal, Cardiovascular, and dermatology. The company has a consistent prescription growth rate of over 20% per year. As a publicly traded company on the Karachi Stock Exchange (KSE) and the Lahore and Islamabad Stock Exchanges, Ferozson Lab’s sets a goal to provide “best-in-industry” returns to their shareholders. Despite participating in an environment with a challenging regulatory environment Ferozsons Labs consistently reward shareholders with cash/stock dividends. Despite ridge price controls and a local currency depreciating the company has been named one of KSE top companies. Pakistan is part of the Islamic Republic, whose capital is Islamabad. Pakistan has a rich heritage, a large amount of resources both natural and human, a great potential for vast agricultural production, as well as a strategic location for trade. Pakistan has maintained a positive economic growth despite its political instability. The republic has been under military rule for an upward of 50% of the time over the past 64 years. More recent developments in the accounting sector have helped to stabilize Pakistan growth. The Institute of Charter Accountants...
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...3. Is the firm more stakeholder or shareholder focused? Wal-Mart is the world largest retailer and successful retailer in US market that offer low prices to customer. Wal-Mart is a company that focuses on it shareholder. Wal-Mart most definitely makes shareholder money. Since the establishment, Wal-Mart has served the public interest by creating wealth, primarily by selling worthwhile goods and services for a profit. This encourages Wal-Mart expand their business to international markets. Today, Wal-Mart’s customer base no longer targets only low income customers and has expanded into targeting African-Americans, the affluent, empty-nesters, Hispanics, suburbanites, and rural residents. As such, Wal-Mart took a holistic approach to changing its mission statement to “we save people money so they can live better” to appeal to a broader customer base. By expanding the target customer base, the retail giant has strategized to appeal to a mixed demographic which out performs other rivals. Wal-Mart’s net sales over the last 3 years have increased consistently with an increase in 2012 of 5.9% year over year. Wal-Mart’s performance and shareholders are inter-related, shareholders are concern about company performance because it will affect shareholders interests if company not doing well in their business. Wal-Mart main focus is to uphold and maintain it responsibilities to shareholders and follows free the market libertarianism model. Milton Friedman model was that...
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...ABSTRACT In this valuation report, we will analyze the performance of Metcash and Woolworths (Australia) in the past six years from 2007 to 2012 and make some forecasts in order to aid investors in making decisions about investments between these two companies. Two methods of DCF valuation and relative valuation are used during the analysis. Firstly, we estimate FCFF with calculated WACC to determine the two companies’ stock price, comparing their actual current stock price. Secondly, we analyze P/E Ratio, P/S Ratio and EV/EITDA Ratio to make a comparison between the two companies and average industry. Our estimation will show that both Metcash and Woolworth are undervalued and suitable for investment 1. Overview : Metcash Limited(MTS) and Woolworths Limited(WOW) 3 1.1 Metcash Limited 3 1.2 Woolworths Limited 3 2. Metcash DCF valuation within FCFF approach 4 2.1 Weighted average cost of capital 4 2.1.1 Cost of equity 4 2.1.2 Cost of debt 4 2.1.3 Capital structure analysis 5 2.1.4 Effective tax rate analysis 5 2.2Estimation of FCFF 6 2.2.1 Growth rate expectation 6 2.2.2 FCFF and present value 6 3. Woolworths Limited DCF valuation within FCFF approach 7 3.1 Weighted average cost of capital 7 3.1.1 Cost of equity 7 3.1.2 Cost of debt 8 3.1.3 Capital structure analysis 8 3.1.4 Effective tax rate analysis 9 3.2 Estimation of FCFF 10 3.2.1 Growth rate...
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...The Procter & Gamble Company Jake Rehtmeyer Analyst July 8, 2010 Recommendation: HOLD Pros: • • • • • Ticker Exchange Industry Sector Classification Market Cap. 52 Week Price range Recent Price Current P/E Projected 2012 P/E 2009 EPS Projected 2012 EPS Dividend Yield Debt Rating Beta PG NYSE Household Products Consumer Staples Income & Capital Appreciation $175 B $39.37 - $64.58 $59.38 (7/2/2010) 15.9 15.2 $3.58 $4.26 3.2% AA0.60 • • • • Disciplined cash and cost management Investing in capacity, innovation, and consumer value this year 23 $1 billion brands and 20 $500 million brands Poised to grow in developing markets (low costs, great growth potential) Excellent consumer understanding, marketing, and brand-building Cons: Global economic conditions Regulatory environment (environmental, competitive laws) Currency and debt exposure Critical Issues: Near-term results vs. Long-term growth Growth strategy Cost and price pressures Regulatory environment 1 • • • Brief Overview The Procter & Gamble Company (P&G) is focused on providing branded consumer packaged goods. The Company’s products are sold in over 180 countries worldwide primarily through mass merchandisers, grocery stores, membership club stores, drug stores and in highfrequency stores, the neighborhood stores, which serve consumers in developing markets. As of June 30, 2009, the Company was organized into three Global Business Units: Beauty; Health and Well-Being, and Household Care. The Company had...
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...The Procter & Gamble Company Jake Rehtmeyer Analyst July 8, 2010 Recommendation: HOLD Pros: • • • • • Ticker Exchange Industry Sector Classification Market Cap. 52 Week Price range Recent Price Current P/E Projected 2012 P/E 2009 EPS Projected 2012 EPS Dividend Yield Debt Rating Beta PG NYSE Household Products Consumer Staples Income & Capital Appreciation $175 B $39.37 - $64.58 $59.38 (7/2/2010) 15.9 15.2 $3.58 $4.26 3.2% AA0.60 • • • • Disciplined cash and cost management Investing in capacity, innovation, and consumer value this year 23 $1 billion brands and 20 $500 million brands Poised to grow in developing markets (low costs, great growth potential) Excellent consumer understanding, marketing, and brand-building Cons: Global economic conditions Regulatory environment (environmental, competitive laws) Currency and debt exposure Critical Issues: Near-term results vs. Long-term growth Growth strategy Cost and price pressures Regulatory environment 1 • • • Brief Overview The Procter & Gamble Company (P&G) is focused on providing branded consumer packaged goods. The Company’s products are sold in over 180 countries worldwide primarily through mass merchandisers, grocery stores, membership club stores, drug stores and in highfrequency stores, the neighborhood stores, which serve consumers in developing markets. As of June 30, 2009, the Company was organized into three Global Business Units: Beauty; Health and Well-Being, and Household Care. The Company had...
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