... 631 | 855 | 2,681 | | | | | 1.81141046 | 1.288888889 | 0.628123834 | Analysis- If we see project vision its current liabilities has grown more than its current asset, which has a direct impact on its liquidity which has gone from 1.81 in 2010 to 0.62 in 2012. This is largely due to increase in short term borrowings which has gone from 116 to 776 and other current liabilities has also increase significantly from just 486 in 2010 to 1353 in 2012. This shows that company has undergone an expansion programme. 2. Asset turnover ratio: Sales/Total asset Implication- How effectively a company is using its asset. The greater the ratio better it is. If more sales can be achieved by given set of asset better it is. Sales/Total assets | Total Assets | | | | ₹ 3,548.00 | ₹ 5,215.00 | ₹ 8,821.00 | Sales | | | | ₹ 1,584.00 | ₹ 3,131.00 | ₹ 4,688.00 | | | | | 0.446448703 | 0.600383509 | 0.531459018 | Fixed asset turnover ratio: Sales/Fixed assets Sales/Fixed Assets | Sales | | | | ₹ 1,584.00 | ₹ 3,131.00 | ₹ 4,688.00 | Fixed Assets | | | | ₹ 2,405.00 | ₹ 3,528.00 | ₹ 5,513.00 | | | | | 0.658627859 | 0.887471655 | 0.850353709 | Analysis- Company has been able to effectively use its fixed assets over the period, In 2010 there has been expansion programme which has slightly impacted the...
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...TOWARDS AGRICULTURE | 4 | 5 | CVP ANALYSIS | 5 | 6 | CONTRIBUTION INCOME STATEMENT | 8 | 7 | CONTRIBUTION INCOME RATIO | 9 | 8 | BREAKEVEN POINT | 10 | 9 | MARGIN OF SAFETY | 11 | 11 | BIBLIOGRAPHY | 12 | EXECUTIVE SUMMARY This report examines the CVP analysis on ENGRO Fertilizer Company limited which is registered under SECP rule in stock exchange as a public company. For CVP analysis contribution income statement is made. Besides this, total fixed cost, total variable cost, contribution, contribution margin, contribution margin ratio, breakeven point of sales and margin of safety is computed form the data which is gathered from annual report of the company year 2013. Considering the importance of the agriculture sector in Pakistan, contributing up to 24% in GDP growth (Pakistan bureau of statistics), and fertilizer industry becomes an integral part in crop cultivation and ultimately excising the agriculture sector. The Fertilizer industry in Pakistan has not been able to get its due share in long term government policies. The private sector has come up with huge investment and its present infrastructure not only ensures sufficient cheap and good quality Fertilizer for domestic use but has the potential to earn foreign exchange. I made its contribution income statement and computed its net operating profit which shows that company is performing very well and is earning profit this is it growth period and it...
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...its profitability target and maintain its strong reputation of having a high quality and unique product in the industry. This report provides an analysis of the company’s current situation, identify strategic issues and analyze strategic alternatives. These also provide recommendations as to courses of actions the brothers should adopt to reach their goal, and proposed implementation plan. CURRENT SITUATION Stakeholders Preferences: * Go franchising (Paul) * Enhance vegetarian menu (Sam) * Preserve quality and control (Sam) * Realize $1.1M net income by 2015 (both Paul and Sam) *Avoid using line of credit (both Paul and Sam) Constraints: * Cash * One supplier of all store requirements/ingredients * Bank requires $20,000 minimum cash balance at any given time * Number of hours work * Working space Environmental Scan : SWOT Analysis Exhibit 1 Current Financial Assessment - Lowest profit of .29% compared to industry wide due to $500,000 contingent liability booked in 2012. Removing this extraordinary item would result to 24% operating income which is higher than Dawkins industry benchmark - 52.93% highest Contribution margin than industry average - High growth % versus set by the industry - Available line of credit -Impressive performance among competitors whether franchising or non-franchising -Debt free Key Success Factors: * High-quality traditional custom-made sandwiches developed through generations *Loyal client...
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...Team 9, Cohort A Instructor: Terry Power BUSA506: Strategy April 8, 2012 Total Word Count: 1994 Executive Summary This paper provides a comprehensive review of the business model and challenges faced by Blue Nile Inc., attempting to answer the question of whether its strategy to remain number one in online diamond retailing will work. Analysis of competitive strengths, business model and business strategy have been completed, and an assessment of current strengths, weaknesses, opportunities and threats has been supported with recommendations on how to best align and act on a winning strategy in the online diamond space. Competitive Forces – Five Forces Competitive Rivalry * HIGH: Competition in the online diamond market is intense and sustained. Originally dominated by mature jewelry chains such as Tiffany and Zales, the diamond retail market in 2009 was highly fractured with entries from online, offline, TV and mass merchant retailers chasing a customer base substantially reduced due to economic recession. Supplier Power * MEDIUM: Supply of diamonds is in short supply, with production controlled of non-conflict diamonds by only a few large suppliers. Blue Nile has only nominal volume compared to global sales, therefore small leverage with suppliers, and cannot self-manufacture. However, they have negotiated multiple vendor agreements, and have price certainty into next several years. Buyer Power * HIGHEST: Buyers are large in volume, have...
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...achieve its profitability target and maintain its strong reputation of having a high quality and unique product in the industry. This report provides an analysis of the company’s current situation, identify strategic issues and analyze strategic alternatives. These also provide recommendations as to courses of actions the brothers should adopt to reach their goal, and proposed implementation plan. CURRENT SITUATION Stakeholders Preferences: * Go franchising (Paul) * Enhance vegetarian menu (Sam) * Preserve quality and control (Sam) * Realize $1.1M net income by 2015 (both Paul and Sam) *Avoid using line of credit (both Paul and Sam) Constraints: * Cash * One supplier of all store requirements/ingredients * Bank requires $20,000 minimum cash balance at any given time * Number of hours work * Working space Environmental Scan : SWOT Analysis Exhibit 1 Current Financial Assessment - Lowest profit of .29% compared to industry wide due to $500,000 contingent liability booked in 2012. Removing this extraordinary item would result to 24% operating income which is higher than Dawkins industry benchmark - 52.93% highest Contribution margin than industry average - High growth % versus set by the industry - Available line of credit -Impressive performance among competitors whether franchising or non-franchising -Debt free Key Success Factors: * High-quality traditional custom-made sandwiches developed through generations *Loyal client...
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...because of this affordability. However this growth would be regarded as organic. Based on analysis of the financials, HPL is an excellent business and shows maintainable and sustained growth. There has been growth in the areas of revenue, current assets, owner’s equity, sales and net working capital. As shown in Exhibit 4, sales across HPL retail channels increased year over year in the areas of mass merchants, grocery, club, drug, dollar stores and miscellaneous distributors. Groceries increased or remained constant during the 5-year period. Long term debt experienced a decrease each year. Exhibit 1 shows that operating revenues have increased from $503.4M in 2003 to $680.7M in 2007. During this time, gross operating profit increased by $23.4M. This illustrates that the company is not sacrificing profits for top level growth. One disadvantage is that the company is operating at 90% of capacity and addition of more accounts will necessitate investment in expansion. After reviewing the case a number of risks need to be considered. These risks would fall into two main categories, namely, financial and non-financial risks. The non-financial risks to be examined are market related. For example, entering into this contract would cause a dependency on only one customer and this current investment is not in keeping with HPL’s history of minimizing risk through conservative expansion, a diverse customer base, and minimal debt. Additionally, the commitment requirement of the...
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...CONTENTS 1.0 Introduction 1.1 History 1.2 Market and strategies 2.0 Review of the business performance 2.1 Business opportunities and threats 2.2 Operational strengths and weaknesses 3.0 Findings from the annual report 3.1 Ratio analysis 3.1.1 Profitability 3.1.2 Efficiency 3.1.3 Liquidity 3.1.4 Risk 3.1.5 Shareholder return 3.2 Limitations of ratio analysis 3.3 Corporate governance 3.4 Sources of fund 4.0 Conclusion 1.0 Introduction China Food Company (CFC), located in Shandong province of China, owns a group of well-established food manufacturing businesses that produce a range of consumer condiments together with animal feed. It’s primary product is soya sauce along with other cooking and dipping sauce. China Food Company has a very strong brand for cooking and dipping sauces and is currently the 9th largest manufacturer and seller of soya sauce in China, operating three production lines at its plants in Shouguang City and Weifang City, in the central of Shandong province and employing more than 1000 people (www.chinafoodcompany.com). 1.1 History The company was founded in 1994 in China by Mr Fu Guoping and commenced trading as a manufacturer of Compound Feed for poultry, cows and pigs. It established its first factory in 1995 and diversified into manufacturing higher margin condiments like soya sauce and vinegar, which have become its primary products now. The second factory was constructed in 2001, with an integrated production...
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...Strategic Business Analysis - Tim Hortons 1 EXECUTIVE SUMMARY 3 2 TIM HORTONS MISSION AND VISION STATEMENTS 3 2.1 Mission Statement 3 2.2 Vision 3 3 HISTORY 3 3.1 Tim Hortons Brand 4 4 PAST STRATEGY 4 4.1 Merger with Wendy’s International lnc. 4 5 CURRENT STRATEGY 5 5.1 Brand Recognition 5 5.2 Unique Business Model 5 5.3 Market Expansion into the U.S. 6 5.4 Co-Branding – Cold Stone Creamery 7 5.5 Community Involvement (Children’s Foundation) 7 5.6 Coffee Partnership - Working within the Industry Value Chain 8 5.7 Measures Of Performance 9 6 FUTURE STRATEGY 9 6.1 Five Key Points for 2010-2013 Strategic Plans 9 6.2 U.S. Market expansion 10 6.3 Market Leader in Canada 10 6.4 International Strategy 11 7 CONCLUSION 11 8 APPENDIX 12 9 REFERENCES 12 1 Executive Summary A strategic business analysis of Tim Hortons’ restaurant chain was conducted and action plan is recommended. We are the Vice President of Marketing and Chief Financial Officer and presenting this report to the shareholders of Tim Hortons. This report includes a review of Tim Hortons’ past strategies by focusing on its origins from the beginning to the establishment of their valuable “Brand” reputation in Canada. We will perform an analysis of the past, present, and future strategies of the business. 2 Tim Hortons Mission and Vision Statements 2.1 Mission Statement: Our guiding mission is to deliver superior quality products...
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...Risk Analysis Risk Seeker After analyzing the case study it is evident that the company has a good risk appetite and is a Risk Seeker. The company’s vision to create a diversified group of niche resorts and hotels in strategic locations throughout the world amplifies that it wants to create a distinct image for itself. Banyan Tree identifies strategic locations where a typical resort would play safe and charge moderate prices whereas Banyan tree would price exuberant rates and be price maker than a price taker. It ability to create a niche where others are conservative clearly shows it is ready to take higher risks for higher benefits making it a Risk Seeking organization. Its strong strategy is to enjoy higher prices for the concepts like tropical garden spa and pool villa which is a signature feature of Banyan Tree and complement it with residence and property sales and gallery operations. Banyan Tree has grown and established its presence in Asia - Pacific against the backdrop of many disasters like Terrorists attacks in 2001, breakout of SARS in 2003 and Tsunami in 2004. Some facts like the profits of Banyan Tree grew by 41.9% from 2003 to 2004 when breakout of SARS severely hit countries like China, Hong Kong, Singapore and Vietnam where Banyan Tree had its major operations proves its adaptability and strength. In 2004 when Tsunami hit even though the profits from resorts receded profits from property sales helped Banyan Tree to not run into losses. Thus multiple revenue...
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...the organization. There are various issues which are described in this report like the ratio analysis, break even analysis, and the other appraising methods which are used in strategic decision making and planning of Tesco. The management of the tangible and intangible assets of Tesco are also analysed by the different analytical tools and the report reveal that the organization is taking effective steps and it is managing its resources effectively and efficiently. Contents TESCO PLC: 2 Task 1: 3 Resource Decisions and their Impact on Strategy of the Organization: 3 Task 2: 5 Role of financial Analysis and techniques in the strategic planning and strategic development: 5 Task 3: 8 International Financial perspectives of Tesco: 8 Risk Assessment and Management 9 Financial Performance 9 Task 4: 11 Task 5: 16 Contemporary management Accounting: 16 Task 6: 18 Analysis of environment of Tesco: 18 Political Factors 18 Economic Factors 18 Social/Cultural Factors 18 Technological Factors 18 Steps Taken By Tesco to respond these changes: 19 Task 7: 20 Importance of Communication: 20 References 22 TESCO PLC: Tesco plc is a global grocery and general merchandise retailer headquartered in Chesnutt, United Kingdom. It is the third-largest retailer in the world measured by revenues (after Wal-Mart and Carrefour) and the second-largest measured by profits (after Wal-Mart). It has stores in 14 countries across Asia, Europe and North America and...
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...A Financial Ratio Quarterly Trend Analysis of Starbucks Corporation Stock Symbol: SBUX Listed on the NASDAQ Exchange Prepared for: In partial fulfillment of the requirements of the course: Section A: Computations The following table summarizes the ratio computations for SBUX. SBUX’s closest competitor, Caribou Coffee Company, Inc (CBOU) used as the industry benchmark. Section B: Financial Trend Comparison Starbucks’ liquidity ratios suggest that they can make their payments as they fall due. The current, quick and net working capital ratios all remained fairly constant throughout the four quarters. The current liabilities to inventory ratio saw a steady decline from the beginning of the year to the end, suggesting that the least liquid current asset, inventory has been more heavily relied upon to cover short term debts as the year progressed. This is also reflected in the cash ratio as it has declined, meaning cash, the most liquid is covering less of the current debt. The operating ratio saw a spike in Q3 followed by a trough the following month, most likely an accounting function as the annual number overall increased from the beginning of the year. The asset management ratios calculated remained constant over the year and suggest that assets are being utilized fairly for the level of sales generated. The inventory turnover saw little variation quarter to quarter with a slight dip in Q3 followed...
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...the firms are in fear expansion of manufacturing jobs which is affecting their cost advantage. Though, the non-manufacturing jobs such as customer service, manufacture analysis, technical work, computer programming, are not causing any disturbance for the firms cost budget. The availability of global human capital for a firm brings out numerous challenges for the managers as they would move to various countries on terms of work and should be feasible to adopt the new culture and policies of the same firm. Globalization of human capital also focuses on the mobility of the talent beyond a specific company. Example: People aim to work in reputed companies like Google, Microsoft etc. Globalization is helping in picking the right talent from various countries and giving the opportunities. Yes, globalization is inevitable as companies always aim in expanding their business with various intentions. This leads to constant work trips made by the qualified employees to different countries. How does this case illustrate the threats and opportunities facing global companies in developing their strategies? The threat facing Apple in the case study gave an adverse image after the inquiry by President Obama regarding the jobs offshored. This gave a kind of perception to people that, this company is into greed and did not care about the customers in their country, an issue which every global company would face. The opportunity for Apple is low cost, more profit. This company is able...
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...Caribbean Brewers: Transfer Pricing, Ethics and Governance Abstract Caribbean Brewers is a fictitious company although the case depicts a real international business situation focusing on transfer pricing, ethics and governance. It exposes students to the role of management accounting concepts such as cost allocation and transfer pricing in terms of how they impact the performance and reward of individuals at different levels within the organization. Students are also exposed to impact of the management accounting and control tools/methods used upon stakeholder interests. The case puts the new comptroller in a difficult position with respect to discharging his or her professional and ethical responsibilities when the interests of the different stakeholders are at odds with one another (e.g., majority and minority shareholders, individual managers and tax authorities). It contains a good balance of quantitative and qualitative analyses, and forces students to delve into the issues in some depth. The ethical issue forces students to think hard about how they would react when facing similar situations. The case offers considerable flexibility to the instructor to emphasize different aspects contained within depending upon the specific course and the level at which it is being used; it can also work well as an integrative case. The case is most suitable for use in advanced undergraduate management accounting courses as well as graduate level courses including those in...
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...CHAPTER 1 - COMPANY DESCRIPTION NATURE OF ORGANIZATION’S BUSINESS DHL global delivery network is known as the “undisputed international market leader of international express and logistic industry globally, with almost 45% of the total market”, (DHL Company Overview, n.d. para 1). DHL is over 34 years old and is known for its focus on product quality, achieved thorough a technical and meticulous quality control system that offers customers new ways of transporting solutions for customers. DHL has system in place that integrates quality control, efficient customer services, and robust transportation systems to ensure that the global transportation and delivery service reaches the customer is of the highest standard. The marketing challenge for the company is to position its product and services as a high-quality, high value alternative to other transportation and international express and logistic brands that exists. Figure #1 below outlines the process and highlights the major activities at each stage. Figure 1: Overview of DHL Service delivery’s Production Process [pic] DHL has the largest logistics and infrastructure of any international express delivery company in the market. Essentially – they dominate the market. Their customer base has spanned over thirty million (30,000,000) customers annually and the service lines span over 220 direct destinations via direct service over thirty-two (32) continents. DHL has some unique product and service...
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...transportation in this region. There was a rise in fuel prices by 36.6% compared to 2010 and the airline hedged 17% of its fuel consumption in 2011. According to IATA, International freight demand will grow at 4.9% in the Middle East, the strongest growth among the regions. Price: AED 0.59 Ticker: PJSC Recommendation: BUY Price Target : AED 0.79 Future Plans: Air Arabia plans to remain focused by capitalizing on their strength and remains the leading low cast air travel provider for the region with more number of destinations and highest-quality services. It aims at establishing more hubs to Link the whole range of the Arab World to Africa and Europe. It also signed agreement with Airbus to acquire 44 A320 aircraft by 2016. Financial Analysis: As of 2011, the ROA decreased from 4.86% in 2010 to 3.85%. The ROE also dropped slightly by 0.54%. Profitability and asset management ratios decreased by a slight percentage but the airline portrays operating efficiency. In addition the liquidity position of the firm is very strong and the airline has seen a reduction in its dividend payout ratio. Buy Recommendation: Based on the target price of Air Arabia’s Stock, the recommendation is to BUY. As we can see in the appendix the Market Price as of 31/12/2011 is AED 0.59, and our targeted price is AED 0.79. The stock of Air Arabia is undervalued by 33.89%. Done By: Samira Hafeez : Mehakk Gupta: 4323452 [Consumer Products] Business Description Air Arabia is the first and...
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