...to understand the precise number of goods on the shelves and storage areas in order to place an order or loss of control. Industrial unit managers have to to understand how much product’s units for buyer orders. Restaurants have to order extra food depend on their recent supply and the demand of the menu. All of these operations depend on the stock count to give a respond. The word "inventory" means the amount of goods and calculation of their performance. A lot company takes regular supply of inventory to avoid running out. Others take inventory, to make sure that the number of items ordered items to match the actual number counting. Shortage or excess inventory that theft (referred to as the "contract" retail circle) or inaccurate accounting practice. 1.1 Advantage and Disadvantage of hold inventory First advantage is improving customer service. By hold inventory can increase investment in inventory may result in a higher level of customer service and able to meet and anticipate customer demand. It also prompts and precise customer order upon request. Second advantage of hold inventory is economies of scale. Take advantage of per unit price reduction for purchasing in large quantity and enjoy economies of production as greater plant capacity and lower per unit manufacturing costs. The following is disadvantage of inventory such as consume space, higher order and carrying costs, tax depending on demand and market pattern, difficult to predict. 1.2 Push inventory strategy Push...
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...company has grown over the years from 4 employees to 130; but has not shown growth in the operational side. Some of the challenges they face are lack of space and disorganization within the administration of the front office. This coupled with old, outdated technology and safety issues have hindered them in creating a larger profit margin. These issues must be addressed if Albatross Anchors is to improve in their market segment. Question One Based on the information presented in the scenario/case study discuss Albatross Anchor’s competitiveness in relation to (please address all items in the below list and provide support for your conclusions): 1. Cost a) Cost of Production: Cost of production of the two types of anchors they manufacture are as follows: A) Freshwater Mushroom/Bell Anchors: $8.00 per pound B) Saltwater Snag Hook Anchors: $11.00 per pound As Albatross Anchors price per unit are on scale with their competitors, concerns need to be address as to the issues of profit margin being under 35% on some of their products. Outdated technologies as well as inefficient manufacturing practices need to be revised and implemented to make the manufacturing process more efficient. b) Economies of Scale in material purchasing: Due to the size and scope of the plant space, as well limited area for storage of raw materials, Albatross Anchors will be hard pressed to meet capacity utilization. According to The Economist, “Economies of scale are factors that...
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...Case Study: Nodal Logistics and Custo Brasil Analysis of International Capital Investment Case Study: Nodal Logistics and Custo Brasil Analysis of International Capital Investment Table of Contents I. Introduction 2 II. Analysis of Different Hedging Methods 2 a. Forward Contracts 2 b. Currency Options 3 c. Currency Adjustment Clause 3 d. Local Currency Debt Financing 3 e. Cross-currency Swaps 3 f. No-hedging (“self insure”) 3 g. Extra: Cross-hedging 3 III. Decision 3 IV. References 4 V. Appendix 4 I. Introduction Nodal Logistics Corporation is an American-based Real Estate Investment Trust (REIT), working with warehouses and property acquisition for logistics purposes. Therefore, as a REIT, most of its revenues come from rents and leases. REITS also have a unique tax structure of their own: given that more than 75% of their profits arise from rents from real estate property, and they distribute at least 90% of their current period profits as dividends to their shareholders, they don’t pay corporate income taxes. Hence, as no tax benefits would arise using debt, they typically financed investments with all equity. All these characteristics of a REIT point to a very high profit rate of the business (large up-front capital investments with little actual ongoing operating expenses). However, it is important to bare in mind that a REIT might present some risks to the stakeholders, like investors, if it has vacant properties...
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...Cloud computing can offer small businesses significant cost-saving benefits namely, pay-as-you-go access to sophisticated software and powerful hardware while at the same time offering a host of other advantages 1. Fully utilized hardware Cloud computing brings natural economies of scale. Your workloads will share server infrastructure with other organizations' computing needs. This allows the cloud-computing provider to optimize the hardware needs of its data centers, which means lower costs for you. 2. Lower power costs Cloud computing consumes less electricity. That's an inevitable result of the economies of scale I just discussed: Better hardware utilization means more efficient power use. When you run your own data center, your servers won't be fully-utilized (unless yours is a very unusual organization). Idle servers waste energy. So a cloud service provider can charge you less for energy used than you're spending in your own data center. 3. Lower people costs Whenever I analyze organizations' computing costs, the staffing budget is usually the biggest single line item; it often makes up more than half of the total. Why so high? Good IT people are expensive; their salaries, benefits, and other employment costs usually outweigh the costs of hardware and software. And that's even before you add in the cost of recruiting good staff with the right experience. When you move to the cloud, some of the money you pay for the service goes to the provider's staffing costs. But...
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...requests down to those that fit best to their requirements. Sam Goodwin currently has three proposals he thinks may have great potential. Through this case study I will use the SWOT analysis to help Mr. Goodwin determine which proposal is best for Angels Ltd. Forever Fresh Milk SWOT Analysis The first proposal is Forever Fresh Milk a not so very new product, but focused mainly on the changes in the packaging. The strengths to this idea are that humans have been drinking milk for centuries. Milk is also one of the items most purchased in grocery stores. The advantage of Forever Fresh Milk comes from its packaging. Forever Fresh Milk comes in aseptic packaging that allows the milk to be stored for months and only until opened does the milk need to be refrigerated. Furthermore, the weaknesses to Forever Fresh Milk it has been available only three years. Its limitation on distribution and focus has mainly been in areas in the U.S. where consumers may still have difficulty getting to a supermarket on a regular basis. The opportunities that Forever Fresh Milk may offer is that it is largely promoted as an emergency supply to keep in hand in case of bad weather. Forever Fresh Milk feels that with the proper promotion the product could have a much wider consumer acceptance. Refrigerator space is the most expensive for both the supermarket and the homeowner, but Forever Fresh Milk has mainly been packaged in smaller containers than the typical half-gallon or gallon containers...
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... | |Valuation using RIV (Residual income valuation) |6 | |Source of data | | |Justification of growth | | |Justify cost of capital | | |Valuation using multiples with sound justification of comparables along with assumptions made |8 | |Analysis of why different methods give different results | | RELIANCE COMMUNICATIONS LIMITED - AT A GLANCE Reliance Group, an offshoot of the Group founded by Shri. Dhirubhai H Ambani (1932-2002), ranks among India’s top three private sectors business houses in terms of net worth. The group has business interests that range from telecommunications (Reliance Communications Limited) to financial services...
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...SWOT Analysis for S Pack * Strengths S pack is a new design of backpacks that is more useful, affordable, spacious, and practical for college students than other backpack styles in today market. S Pack comes in different colors and a variety of styles that college students can have more choices. It’s designed to make with even more space than other backpacks in the market and can be carried up to any reasonable weigh. They are sectioned off into many different compartments for college student needs such as water bottle holders, headphone, phone, Mp3 player, and extra accessory storages. This product also comes with an adjustable strap on the sides where college students can fix the weight on their backs whether it’s too heavy or light. * Weaknesses Using wrong type of material can make S pack less durable and cause college students’ back pain when carrying heavy items. To prevent this, S Pack has to be made by good, strong materials to last long that college students will enjoy when carrying and using it. * Opportunities Since our marketing goal is making the highest profit we can, we will introduce our S Pack to both online and in-store markets. An online S Pack market has more opportunities. However, both markets will bring us profit. First, college students don’t have to spend time going to stores to get it. S Pack can be bought online and get it shipped within a few days. For in-store market, college students who need to purchase S-Packs right away, they...
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...Study Case Study Anaysis Four Star Industries Case Study Case Study Anaysis Table of Contents Background Current Situation * Market * Production * Manufacturing * Order Process * Inventory Management Issues * Model Proliferation * Inventory and Demand Mismatch * Poor Order Management Analysis * Safety Stock Analysis * Warehouse Rent Analysis * MOQ v/s EOQ * Production /Assembly Line Analysis Recommendations Conclusion Background: Four Star Industries Private Ltd is the manufacturer and wholesaler of the renowned Four Star Pocketed spring mattresses which was founded by Neo Gim Sin in 1966. Its business is aggressively and exclusively focused on servicing the local market and until recently, the company has enjoyed tremendous growth and recognition – becoming a leading manufacturer of pocketed spring mattress (PMS) and winning the Grand Prix for International quality. Four Star sells directly to large dealers (LDs) and small dealers (SDs) who then sell to consumers. Current situation: Market: Mattress models grew rapidly from 13 to 230 models between 1996 and 2002, while sales has been experiencing steady decline within the same period. Decline in mattress sales can be attributed to various factors such as; increased competition, seasonality and volatility of the mattress market, supply and demand mismatch, poor production scheduling and focus on high-end mattresses. Production: Four Star’s manufacturing process...
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...Marketing Plan: Phase 2 MKT/421 Marketing Plan: Phase 2 Market Segmentation In doing market research and conducting how a company is going to sell a product that company needs to take the time to focus on a target market. In this phase of the marketing plan we are going to focus on the segmentation we will use to market our product. Needs The Market Segmentation Company states that, “Market Segmentation, correctly applied, is about understands the needs of customers and, therefore, how they decide between one offer and another” (The Market Segmentation Company, 2012). When we focus on the needs of our target market we can consider needs such as the need for extra space or the need to save time and forgetting about your laundry once you’ve started a load. Geographic Simply put, this segmentation is done by the geography of our target market. In this instance it may be best to focus on the urban consumer that lives in apartments where space is limited. However, it is also a way for us to break into the larger home community and offer this product to those who would like additional space in their washrooms for more storage or even a second All-in-One to do two loads simultaneously. Demographics Dictionary.com defines Demographics as “the statistical data of a population, especially those showing average age, income, education, etc” (Dictionary.com, n.d.). As we target our demographic we must look at who most likely does laundry and focus on them. Statistically...
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...services. This study speaks about how the deployment of cloud storage enables those who work in the education sector to meet these new challenges. Today’s students are more technologically inclined and have a great aptitude to use web-based applications. Educators need to efficiently create, store and share learning resources among their peers, students, and parents that provide them easy access and are available anywhere, anytime to an internet connected device. Apart from teaching, educators also need to manage and monitor the quality of the education delivered in schools. The system used should be user friendly so that minimum training is required to use them. Also, educational institutions are constrained by cost containment and are required to ensure compliance with regulations specially pertaining to security and privacy. The system should have the capability to protect the privacy and confidentiality of information. Cloud storage has emerged as the optimal solution to meet the requirements of cost containment, pervasive access and real time availability of service with a scalability web based architecture for accessing data and providing to meet the growing demand. An education system support based on cloud storage will eventually help in efficiently managing the education system in an institution. This study explores the capabilities of cloud storage as a cost effective solution for implementing an education...
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...would sell for a premium. When Davidson decided he was going to pursue this business, he enrolled in a 12-week business program at the Entrepreneurial Manufacturing Generator (EMG) in St. Thomas Ontario. In August 1998, Davidson was opening up the Catfish Creek Canoe Company (CCC). He was going to specialize in manufacturing and selling 16-foot Peterborough canoes. Problem Statement: Market the Peterborough canoe in a proper location with an appropriate selling price. Symptoms Steve Davidson is going to experience many different situations while starting up Catfish Creek Canoe Company. He is planning to produce 30 canoes in the first year and average one canoe every ten days which would leave a 65 day buffer period; although, it will take him almost 12 days to produce his first canoes. An experienced craftsman can only make 25 to 30 canoes per year, so if requests increase, Davidson will have to hire more employees to insist him with the demand. The canoe industry is also seasonable; people will not be shopping for canoes in the middle of winter, especially in his target market area of Ontario, Canada. During the cold seasons, Davidson should be trying to produce as many canoes as possible so his inventory levels are ready for the warm seasons. By advertising on the internet, CCC has access to thousands of prospective clients at virtually no cost. Although, there is one problem with the...
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...inventory control system is the mechanism within a company that is used for efficient management of the movement and storage of raw material, work in process, finished goods, effective utilization of people and equipment, and the communication of this information within the organization and its customers. The inventory control system provides the vital information needed for managers to make decisions. Critical Aspects and Objectives of an Inventory Control System The main goals of an inventory-control system are distributing product to customers on time and as cost-effectively as possible. With this said, the main objectives of the inventory control system are to avoid back-orders while avoiding excess inventory, provide for the efficient movement of goods, and to maximize profit margins while maintaining sustainable cash flow. Avoiding back-orders: Back-orders are costly. You want to make sure that the company has sufficient stock on hand to deliver to customers when they want the product. A defined replenishment system is critical to maintain inventory at sufficient levels to meet customer demands. Seeing as it costs time and money to promote products and attract customers, it is important to have inventory on hand when they come to buy. Avoid Excess Inventory: Carrying too much inventory is costly. Excess inventory ties up working capital, takes up space and employee time, and increases utility costs. In addition, products usually have a shelf life. They become obsolete...
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...Pejenca Industrial Supply LTD. Case Study - Finance Laurentian University Austin Davey Themistoklis Vlahos 0320252 COMM 1007 EL - 01 Executive Summary: Peter Charles is the president and a major shareholder of Pejenca Industrial Supply Limited, which is located in London, Ontario. The company focuses on supplying specialized cutting tools to its desired consumers. With all the success his business has had since the opening in 1989, Peter is in need of an extension to the company’s building. Peter is faced with a tough decision in order to decide which route to chose for his company future. Peter has less than a week to prepare and determine how much financing would be required to add the $150,000 extension to the company’s building. Peter is faced with analyzing the company’s financials to see what would be the most cost effective to his company’s equity. Pejenca’s growth since its opening in 1989, was tremendous. By August 2002, sales had reached just over five million dollars. Peter knew his company was in very good shape with regards to being financially stable. Having already met with the designers and contractors, Peter was able to determine that the extension would cost $150,000. With that being said, Pejenca had nearly $300,000 is cash at the end of the 2002 fiscal period which could be used for the extension if chosen by Peter. But Peter knew $130,000 in cash was needed to sustain the company throughout the course of the operating period. Peter...
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...PpP PpP Smart Design Get more for less space. Written by: Maha Aladdin 120521 Samar Mahanna 118911 Menna Yousry 120360 Smart Design Get more for less space. Written by: Maha Aladdin 120521 Samar Mahanna 118911 Menna Yousry 120360 Table of Contents Executive Summary 2 Company Description 3 Company Profile Description Mission and Vision Company Ownership/Legal Entity Product Description 4 Industry Analysis 4 Industry Description PESTL Analysis Market Analysis 5 Market Segmentation, Target Market, and Positioning Buying Decision Competitors SWOT Analysis Competitive Analysis Grid Product-Branding Strategy Marketing Plan 11 Products Distribution (Place) Price Promotion Strategy Sales Process and Sales Tactics Operations Plan 12 Design and Development Plan 13 Management and Personnel 14 Schedule 15 Risks and Overcome 17 Financial Plan 18 Appendix 19 Executive Summary This document will be discussing the different aspects of the business plan for a new startup company which is about creating a unique furniture manufacturing shop in Egypt. This company would like to be the first to introduce the idea of expandable furniture in Egypt. Expandable furniture is based around the idea of making essential pieces of furniture which can be folded or expanded so it can fit in relatively small spaces without compromising the design of the furniture or using a large space at the same time. Moreover, expandable furniture is about...
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...La Rosa, Maria Sophia S. BSBA – MM3 CHAPTER 7: MARKET SELECTION AND RETAIL LOCATION ANALYSIS 1. Why should retailers be concerned about selecting the right target market? How are target market selection and location related? Retailers should be concerned about selecting the right target market because their target market is their potential customers. These are the people who are most likely to buy their products or to buy from their stores. For the follow up question, target market selection and location are related to each other with regards to reaching the target customers. Location is a very important thing to consider when targeting a segment. Retailers should also be concerned not only with the demographics of their market but with the geographics as well. It would help the retailers in reaching their target markets and it could also help minimize the marketing costs and ensure the focus on the right target market. 2. What three criteria should be met to successfully target a market? The three criteria that should be met to successfully target a market are measurability, accessibility, and substantiality. 3. What types of retailers would be best suited for locating in a lifestyle center? For me, I think specialty and convenience retailers would be best suited to be located in a lifestyle center. 4. Why are some shopping centers and malls now using big-box stores such as Home Depot, Bass Pro Shops and Kaplan’s as anchors? Aren’t anchor stores supposed...
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