...Grocery Store Analysis The Super 1 Foods grocery store, located in the small town of Walla Walla in the southeast corner of Washington State provides an extensive and diverse selection of produce and supplies from which the locals, and those passing through town on busy 9th Street, can stop by to select from. The grocery store offers fresh produce (with a selection of that being organic), fresh meat and seafood, frozen foods, a special natural foods section called Huckleberries (which includes a bulk foods), a ‘Wine Cellar’, a bakery, a delicatessen, a Mexican section, and an assortment of isles with baking supplies, cleaning supplies, dairy, pop, chips, cosmetics, etc. The grocery store seems to be more than just a place to purchase things, however. It appears to be a place where - through carefully selecting food, supplies, and produce - individuals can express their values and determine their identity. Individuals are understood to be most satisfied with their purchases when they consciously weigh the decisions they make about their purchase, when they consider the pros, cons, associations and assumptions that go along with making that decision (Meyers, 51). The self-concept of an individual – and there for the self-image that they present to employees and other shoppers at Super 1 Foods - appears to be at stake as they move their way through the isles. This is particularly apparent at a grocery store as social and as diverse as Super 1 Foods. At this specific...
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...Grocery Store Analysis We all go to the grocery store at some point through the month to get your groceries for the whole month, two weeks, week, or just to pick something up to prepare dinner tonight. Grocery shopping is a thorn in my side and do not enjoy it very well. There is one store that I actually despise tremendously, but we shop there because their prices are better than most other stores, and I do not have to go to 2 or 3 different stores for everything. The grocery store we are talking about is Wal-Mart. There are things that could be done for this experience to be more enjoyable and more efficient. The whole experience at Wal-Mart is a downer for me because they are always so busy and crowded. As I observed the way, Wal-Mart works during their busiest day of the week which is Saturday. As I walked the aisles, I found myself feeling as though I am stuck in five o’clock traffic on the highway. The aisles in the store seem narrow and on busy days they are packed so tight you cannot get through them. With the list I had it took me approximately one hour to get through shopping, and that does not include the checking out process. Overall I think a change to the width of the aisles would help the congestion throughout the store to help get people in and out. The second issue I found on my trip to Wal-Mart was the checkout lines on a Saturday morning are awful. The store has approximately 20 checkout lanes plus the self-checkout lanes...
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...Bebe Stores inc. Seems to be a very wealthy company and a couple of years ago they were doing very well in the industry. Lately the company seems to be going through a huge transition that has affected there company greatly. Some people would say that the decision to close the PH8 brand was a bad decision. Yes if you look at the short term it is a bad decision but in the long run this company will do a lot better. For the past couple of years the company has lost money because it cost a lot of money for the company to discontinue their PH8 division. What closing the PH8 division does is open up a lot of cash within the company which they plan to use on the expansion of their business over seas. Many countries like india are starving to be able to get stores like bebe into their country which means there is little to no competition which means a lot of customers at very high profits. Due to this due to this if they are able to afford to transfer into that market you can expect that this company will have a lot of revenue in their future. So someone might say on the cover it looks like this store is struggling but when you really look into the financials of the company its pretty much the opposite. There is a lot of upside in to this company and to this industry. This company cannot be compared to other company’s in the industry. They are going through many changes and if you were to determine if the company is doing good or bad just based on how other companies in the industry...
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...February 25, 2010 Assignment 2 Porter’s Six Forces Analysis General Retail: Merchandise/Department Stores Prepared by: Yulia Petukhova ID# A30 The department store industry will be analyzed taking department stores as players, individual consumers as buyers, and manufacturers and distributors as the key suppliers. The Rivalry among existing firms High The period from the end of the 20th century up until now has been marked by the consolidation trend in the department store industry, characterized by major acquisitions by a few larger, powerful competitors, greatly intensifying the rivalry among them.9, 13 Since there are only a few of them in the industry, they tend to match each other’s steps in some way or another. After JC Penny introduced itself to Manhattan just a block away from Macy’s, it is only a matter of short time before Kohl’s will finally announce its move into Manhattan as well.10 Slowdown in the industry growth coupled with reduced consumer spending and low switching costs intensifies rivalry even further prompting the market players to differentiate their products by introducing exclusive brands and increasing innovation.3, 15, 17, 19, JC Penny contracted Cindy Crawford to extend her jewelry brand exclusively at their stores, while Macy’s has signed a strategic alliance agreement to become an exclusive retailer of Ellen Tracy branded women’s sportswear in spring 2010...
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...INTRODUCTION In this report we assess whether an M&S Simply Food convenience store would be profitable when located in Complex Desjardins, Montreal. In the U.K. Simply Food possess a strong brand image and wide-variety of products that emphasize quality. Although considered more expensive than competing stores To see if the chain will have the same level of success in Montreal, we first analyzed the fundamentals and competitive landscape of the industry. Once a gap in the market was identified, we used quantitative research practices to examine each of the marketing mix factors involved in establishing the store. Our findings will indicate whether the location and consumer pool under consideration will RESEARCH OBJECTIVES * Identify the M&S Simply Food products and services, and the factors that drive the chain’s success in the U.K. * Analyze the market fundamentals of the convenience store sector in Montreal, and identify whether a market gap for quality, high-end stores such as M&S Simply food exists * Assess whether M&S Simply Food will be profitable in Complex Desjardins based on the following factor: (i) Location (ii) Consumer Demographic (iii) Consumer Preferences (iv) Competition & Pricing * Propose key operating and marketing strategies to ensure the success of M&S Simply food in Complex Desjardins. METHODOLOGY Industry Knowledge Exploratory research was employed to gain understanding of the U...
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...Statement Analysis Learning Team B Victoria Boykins, Vanny Manea, Justin Rogers, Princess Tillman ACC/561 June 20, 2011 Financial Statement Analysis Through the analysis of three companies from the manufacturing, service, and retail sales sectors, Team B will discuss how three differences in the industries and different IASB and FASB measurement conventions affect presentationsdifferent sectors: manufacturing, service, and retail sales. The team will analyze the companies based on the computations of the quick and current liquidity ratios, the DuPont ratio, profit margin, asset utilization, and financial leverage of each company. These values , which are computed using publicly available financial statements. We The team will also discuss differences in industries, IASB and FASB measurement conventions, and determinante differences in the cash basis versus the accrual basis accounting that affect presentations. Financial Information Coca Cola, INC. According to the Yahoo Finance website (2011), The Coca-Cola Company is a manufacturing company that distributes and markets soft drinks and syrups worldwide. The company primarily sells its beverages to distributors, fountain wholesalers, and fountain retailers. The company was founded in 1886 and has been standing strong for years. Its major competitors are Pepsi, Dr. Pepper, and a French company called Groupe Danone. WAL-MART, INC. According to the Yahoo Finance website (2011), Wal-mart Stores, Inc. Wal-Mart Stores, Inc...
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...1. Inside the store, the displays that are in the front of the store seem to attract the most attention. This is probably due to the fact that this is the first thing the customer sees when they enter the store. These displays are usually larger and more decorative compared to other displays in the store. For example, one display had products arranged in a large pyramid shape which made it stand out and attracted a lot of customers. Customers generally spent most of their time buying “every-day” groceries such as meat, vegetables, dairy, bread etc. These sections were usually placed around the perimeter of the store. Customers do not spend a lot of time examining the packaging of each product. They would usually pick up a product and examine it for a very short period of time before putting it back on the shelf or deciding to purchase it. Packaging plays a major role in whether the customer decides to purchase the product or not since it is one of the few ways the customer can judge a product. The packaging must first be able to attract the customer’s attention and also concisely summarize the benefits of the product so they can be seen at a glance. I noticed that they do not spend a lot of time examining the product closely, but rather take quick glances which means they do not look at every part of the packaging with great detail. I also noticed that customers tend to buy products that are closer to them. They would be more likely to purchase products that are easier to reach...
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...Guillermo Furniture Store Analysis FIN/571 July 9, 2012 Guillermo Furniture Store Analysis The furniture industry can be a profitable one many times, but it can also be costly when an opportunity arises and is not managed appropriately. Guillermo Furniture Store, in Sonora Mexico, is a manufacturer of furniture. The capital budget selections all correlate with choices the organization has to make. Guillermo has several selection opportunities; he is restricted by past and present choices. Guillermo’s Furniture Store is the largest in the area and has been the main staple for many years, but new competitors have claimed a part of the business creating a challenge for him to act. Guillermo’s operating environment has changed and is now mandated to decide on one of three investment opportunities. The ultimate value of what capital budget opportunities are available to Guillermo will be evaluated by the net present value they have to offer. Only a positive net present value will add value whether the proprietor is an individual or a shareholder. The rise in competition is causing a decreasing profit margin. The paper will provide the evaluation of the financial concepts in the conclusion of the appropriate alternative necessary to improve the business, evaluate changes the owner is creating, and show how the capital budget analysis will afford Guillermo with the necessary data to acquire the best return on his asset. As the largest furniture industrial manufacturer, Guillermo...
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...Guillermo Furniture Store Analysis FIN/571 - Corporate Finance December 17, 2012 Introduction Guillermo Furniture Store is a large manufacturer furniture store located in Sonora, Mexico. They specialize in the production of custom made furniture. Due to changes in the industry and local community Guillermo Furniture store along with other small competitors are beginning to notice a reduction in their businesses (Scenario: The Guillermo Furniture Store, 2012). The first of the changes that Mr. Navallez the owner of Guillermo Furniture Store and management team will be forces to deal with is an overseas competitor using high tech equipment and approach to not only enter but to also succeed within their market, and the second has to do with changes in the local economy. In an effort to determine an appropriate response to these changes, Mr. Navallez and his team has begun analyzing these changes that are affecting his business. Mr. Navallez does have a few ideas on how to move forward but will have to research more on the correct capital budgeting that is best for his organization. Capital budgeting is defined as the process of choosing the organizations long term capital investment strategy, this often consist of things like land, property and equipment (Emery, Finnerty, & Stowe, 2007). Alternatives With the changes the Mr. Navallez and his team are tasked to deal with there are some alternatives that they must decide on to adjust to the new market. They must...
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...Guillermo Furniture Store Analysis Olakunle Corporate Finance/FIN 571 August 15, 2011 Introduction The Guillermo Furniture Store is the largest manufacturer of furniture in Mexico, and it has made furniture of different types for several years. Until the late 1990s, when Guillermo’s competitor started carting away some of its businesses thereby affecting its revenue, the business had thrived very well in the sales of furniture. The new competition has latest state-of-the art manufacturing technology, which enables it to sell its furniture at a relatively reduced price because of lower cost of production (University of Phoenix, 2011) Competition brings the best out of business, so this has made Guillermo to want to step up production to a higher level by acquiring machineries to boost the quality of its furniture. The company’s biggest challenge is in trying to reduce production cost to meet up with competition. Guillermo has three options, which include working the same way it always has handled projects without making any changes, to improve production level and reduce production cost by investing in modern machineries, the third option is for Guillermo to distribute or broker for another furniture company. This situation best suits a competitive economic environment; it makes investors to make their products and services better and cheaper to attract patronage by customers (University of Phoenix, 2011). This paper will lay emphasis on analyzing Net Present Value...
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...Guillermo Furniture Store Analysis FIN 571 May 20, 2012 Guillermo Navallez has had a very successful furniture business in Sonora, Mexico. Lately, however, the retail environment has changed. Competition has moved in to the area, and labor costs have risen. This has caused Guillermo’s profits to decrease significantly. Guillermo now needs to research options for his business, in order to stay competitive in the market. One option would be to purchase automated equipment that would make his furniture precisely as he designed, and significantly reduce his labor costs. The other option would be to become a distributor to a furniture company in Norway, and sell both his own, and the other company’s products. This paper will analyze the different options available to Guillermo, and the financial outcomes of each alternative. It will determine the Weighted Average Cost of Capital, as well as the multiple valuation techniques of the available options, and make a final recommendation as to which alternative Guillermo should explore. While weighing his decision, Guillermo must analyze the income potentials for each alternative at the current production rate, and at another lower rate, to ensure he would be able to stay in business in the demand for his products dropped. It is not realistic to only look at one rate, as business cycles tend to rise and fall, and Guillermo needs to be able to ride the highs and lows of the retail market, and be able to keep his business. ...
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...Gillermo Furniture Store Analysis Dechazlon Burnett, Basma Fawaz, Jon Ehm, Janice Schmitt, Jenna Snowden University Of Phoenix Accounting 561 Michael De Marco November 14, 2010 Introduction Gillermo Furniture Store Analysis Risks Associated with Sales Forecasts Sales forecasting and budgeting are important tools used to evaluate the results of the company. The sales forecasting are used as guidelines that direct the company to the right path and help the management achieve the company’s goals. The company may face many risks when forecasting or creating budget and this is related to unethical decision making. Sometimes mistakes occur either because of misrepresentation of numbers when creating a budget or because wrong decisions made by managers that aimed to increase income and resources. This will cause financial loss and failure to the company because the data used in the budget are inaccurate that will cause errors in the future numbers. According to Horngren, (2008) sales forecast is defined as, “a prediction of sales under a given set of conditions.” Forecasting is usually done using many techniques and the most important is based on data from past history to predict the future demand. The only error that may occur is that when there is a mistaken assumption in the past sales demand will continue into the future (Chase, 1993.) Guillermo Furniture store considers sales forecasting as a strong foundation to build the company’s sales budget. Guillermo...
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...Guillermo Furniture Store Analysis Guillermo is properly positioned and ready to compete. The technology-infused manufacturing alternative gives him the ability to maintain a competitive edge. After examining the business with a cash flow and the problems that confronted it, a five member management team determined the best course of action going forward. Some businesses are proactive while others are reactive. The financial management team took a reactive approach because Guillermo previously was lackadaisical with no worries, a booming business and in total control. The chosen alternative will not compromise that control. Although unable to predict the arrival of new competitors, he has decisions to make. The management team evaluated his errors and hereby proposes alternative measures to combat possible loss of business and maximize profit. Reviewing the possible pitfalls, a financial assessment seeks to eliminate those pitfalls and place GFS as a front-runner in the furniture manufacturing industry. The alternatives are for review, modification and consideration to keep this thriving business alive. Alternative one seeks to increase technologically-savvy equipment to save time and reduce labor costs. Labor cost reduction does not necessarily begin with workforce reduction. The management team suggests focusing on working smarter by eliminating waste and improving performance. Alternative two examines a shift from primarily manufacturing...
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...hardware store. Training activities need to be aligned with the organization’s strategy to be effective (Blanchard & Thacker, 2010). Persons of leadership should determine the strategy but they should not rule out the input that could be beneficial from lower level employees. The management team met and discussed its strategic response and determined that the hardware store would focus on particular items and make personalized service the cornerstone of its effort (Blanchard & Thacker, 2010). Now that the target training areas are identified you can determine who will be doing the training and using what strategy. Fred decided to use an outsourcing strategy. This strategy employs outside training vendors for all, or almost all, training activities and provides a flexible way of meeting changing and diverse training needs with professionally developed and administered programs. (Blanchard & Thacker, 2010). It is imperative to isolate who needs to be trained and who will be doing the training. Key things when finding a trainer is to find out their background, work experience, clients, customers, etc. To be effective, the training process is not as easy as it comes across. There are many strategies and concepts at your disposal but the challenging part is deciding which one to use. In this case it was deciding the best training package to utilize. Before choosing a training package Fred should do a Training Needs Analysis (TNA). The training needs analysis process is...
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...Guillermo Furniture Store Analysis Guillermo Furniture Store Analysis An account system is nice to have, but is the system is worthless unless it can produce data that is useful to managers, employees, lenders vendors, owners, investors and other individual firms that have a financial stake in your business (Nelson & Economy, 2010). Guillermo flex budget must contain accurate information. When computing the numbers on the flex budget the information must make sense. The numbers must be computed correctly and information shared to lenders and vendors must have no errors. Lenders and vendors need to know your company’s financial health to decided whether to extend credit (Nelson & Economy, 2010) . Ethics is important when preparing a budget because integrity is essential to accountants because they provide information that users must trust to be right. User of the accounting information cannot directly assess the quality of that information (Horngren, Sundem, Stratton, Burgstahler, & Schatzberg, 2008 p. 30) . If the information provide is biased then the information is no use or value to the user. Ethical considerations in the preparation and subsequent use of the budget Code of ethics requires an ethics analysis for performance tool to avoid any conflict of interest and bias within a budget. Conflict of interest, include the use of position for personal gain and solicitation or receipt (Menson, 1990). Budgeting process is to be conduct in a correct manner...
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