Marketing analysis: Hafren Baum retails luxury home furniture which makes the demand for it being cyclical. Over the last two years from 1994 to 1995 the net sales for Hafren Baum have fallen by 21.05% and 1.24% respectively. There are number of factors which have caused this change. According to German economic statistics, we can see that the economy slowed down which forced retailers to reduce their prices to keep the old demand. Despite the fact that Hafren Baum constructed 3 more outlets in the expectation of higher sales volume their sales went down by almost 18% which seems to be the result of boom turning to bust in 1993. Later in 1995, the economy started recovering, but the sales for small retailers like Hafren kept declining. The …show more content…
Ratio analysis of Hafren Baum are the evidence for the lack of efficiency in 1994 and 1995. First, the total asset turnover implies that the firm is investing high as compared to its sales growth. However, in 1994 Hafren Baum constructed 3 addition outlets in suburbs which could be the main reason for short TAT from 2.1 which was before expansion to 1.5 of TAT after expansion. Secondly, the fixed asset turnover for Hafren Baum would not be as important as it would be for a capital intensive manufacturing firm like Wiegandt. In 1993, FAT was 9.1 which displays Hafren Baum’s ability in generating sales were higher as compared to FAT of 7.1 in 1995. Again, the important factor that is effecting this efficiency is the construction of new outlets in addition to lower sales …show more content…
In 1993, average account receivable was 53 which indicates firm had a better ability to collect funds from customers than it is in next two years of 77 days. The reason for increase in average collection period could be because of providing relaxed credit policy to maintain sales because of the economic conditions in Germany, or to compete with the new furniture retailers from Europe. However, Hafren Baum is not a strong firm that has a huge market share that could afford longer average collection period. In 1994 and 1995 the average number of days it took Hafren Baum to sell inventory was 129; that shows the firm is less efficient in managing inventory than it was in 1993 (103 inventory in days). Due to more outlets firm might have expected higher sales and this could also have led to higher
Anti-Kickback Statute prohibits anyone knowingly or willfully offering, paying or soliciting or receiving remuneration, directly or indirectly; in cash or kind; in exchange for; patient referrals or furnishing or arranging a good or service for a Federal healthcare program including Medicare or Medicaid. Stark would also apply to Hanlester as well but Stark was not enacted until after the Hanlester case. Stark is strict liability, does not require the knowingly/willfully element, and is not prosecuted criminally.
Sales growth after 2000 were only 9%, which the average annual sale growth rates range from 10% to 30% in their industry. The lack of cash is explained by the current liquidity ratio
Return on sales is decreasing and is below the industry average, but the goods news is that sales and profits have been increasing each year. However, costs of goods are increasing and more inventory is left over each year causing the return on sales to decrease. For 1995, it was 1.7% which is less than the average of 2.44% but is a lot higher than the bottom 25% of companies as seen in exhibit 3, which actually have negative sales return of 0.7%. Return on equity is increasing each year and at a higher rate than industry average. In 1995, it was 20.7%, greater than the average of 18.25% and close to the highest companies in exhibit 3, of 22.1% showing that the return in investment in the company is increasing, which is good for the owner.
...o renegotiate credit agreements with banks. However, the liquidity was a result of structural changes and would not bring significant effect to the company because it is unusual and infrequent (the extraordinary credits of $15 million fall in this category also). The financial report must be consistent year-by-year. A company should do the same or similar activities, especially operating activities, to generate “money” every year and recognize “money” as its profit. However, this is not the case for Harnischfeger. We are doubtful that the company will perform well in the future. The company recorded modest profit this year because it reduced operating cost not because it increased operating revenue. Since Harnischfeger did not generate its profit by operating activity, it would be too risky to predict if its stock price will reach $6.00 per share in the 1986-87.
Its receivable turnover is 13.4 times per year, which is higher than C-P 10.5. In addition, the average number of days from sale on account to collection for P&G is 27.2 days while for C-P is 34.8 days. Based on the efficiency ratio analysis, P&G’s inventory moves quickly from purchase to sale, which the inventory turnover ratio is 6.2 and the time for the purchased inventories to be on sale is on the average of 58.6 days while C-P’s turnover ratio is 5.2 and the average days to sell is 70.6. This shows that P&G takes a shorter time than C-P to sell their inventories. However, C-P has a higher ability to pay their short-term liabilities, whereby the current ratio is 1.08 as opposed to P&G
This report comprises of the explanation of two different companies working in different market fields, the two companies I’ve chosen are Primark and Samsung I am going to write about the influence of the 4vs which are the volume of output, variation in demand for output, visibility of production, and variety of output. I am also going to look at the performance objectives in each of the companies. Example, for a given year and how they are able to reach their objectives, and also the effect on the cost efficiency of the operations.
The business world is becoming more and more heated up as a result of the ever increasing levels of competition. Each and every industry is witnessing an alarming rate in the number of competitors that exist within it. This is further fueled by the increasing world population, which brings about the speculations that the future of the market is rather bright. It is interesting as to how many things are nowadays done based on speculations and future expectations. In the turmoil of it all, marketing has been established as a very effective tool used by various firms to gain competitive advantage over others. As such, each organization has been able to develop its own marketing strategy based on the various things that affect the industry and the nature of business undertaken. Theories and practical research are two major items that form the basis of development of marketing strategies. Rolls-Royce is one of the many organizations that have been in big business for a long time. As such, the company has been able to identify major areas of strength and weakness when it comes to marketing.
DataMonitor, 2007. IKEA major retail competition in the US are: Furniture Brands International Inc., Office Depot Inc., Sauder Woodworking Co., Stanley Furniture Company, Inc., and Staples , Inc. This paper will identify the key macroeconomic variables that affect IKEA and the retail industry as a whole. To better understand the effects of such variables upon the industry, two specific variables will be developed further.
Hennes & Mauritz (H&M) is a Swedish clothing retail company. The company was founded by Erling Pesson in 1947. The first H&M store was opened in Vaesteras, Sweden in 1947. The mission of H&M is to offer fashion and quality at the best price where “quality includes ensuring that products are manufactured in a way that is environmentally and socially sustainable” (H&M, vision & policy, n.d., para. 1). This essay is to highlight the current market analysis, pricing strategy, retail strategy, and competitive advantage analysis of the company.
Second, the rapid development of the Home centers such as The Home Depot, with prices 30% less than the traditional hardware store made Black & Decker to lose market share to Makita. As per Exhibit 2 we could notice that in the home center channel that represent 25%of the trades...
By altering Home Plus product offering the organization now has an opportunity to enter new markets. As a result the organization will attract new customers who prefer the high quality and cost products will offer. Additionally, Home Plus will have the opportunity to increase its profit by increasing its margins. Home Plus will now have excess revenue to reinvest in itself. Managers can use these funds to build new stores, purchase a wider variety of merchandise and provide better service for customers. Lastly, Home Plus will have the opportunity to diversify its product. Though it is cutting the discount products by half management intends to double the high end product that the store
In advertising its products, the IKEA catalogs played a primary role as they were attractive and easy to use. The efficiency of IKEA products and quality of design were emphasized in the catalogs. Every household in the area surrounding a new store received a copy of the catalog during the busy years of expansion. Although direct mail-order sales usually represented a very small portion of the total sales. The whole IKEA range was not offered by the catalogs. To attract new customers to the stores, they were always a key factor. Throughout the world, IKEA continued to open stores in different locations and attracted various customers. It was interesting to look at a company offering the same basic products at all stores and do well in many different cultures with different tastes. Lastly, the IKEA’s current number of employees in retail and expansion functions is 116,500 as of 2015. Thus, the total sum of employee worldwide in 2015 was 155, 000. Literally, the rate of employee would be increased in terms of business development in the future. (Brammer, Jackson, and Matten,
After a 4 P analysis of the company one found that it found itself in a luxury market where product quality and constant innovation are key points for the success. That is why the production process and its design can take even months. Product line is extensive however it is only conformed of high priced products. Price in this case is a guarantee of the quality present in the product. Moreover, high pricing represent an element of differentiation that the customer appreciates. However this is not a setback, LVMH has managed to have world wide presence and success. To accomplish it its selective retailing division is of high importance. Nevertheless, promotion posses the major challenge since its through this that the image of the product its transmitted that is why the company poses a major part of its budget in this section. It is Important to note that the percentage allocated is higher than those of most competitors.
IKEA is more than a furniture store they are a company driven by values (IKEA, 2014). The company seeks to make their consumers lives easier by providing them with modern, innovative, inexpensive products which they use to tackle daily home activities. IKEA Group has 298 stores in 26 different countries (IKEA, 2014). The company’s vision is “to create a better everyday life for the many people” (IKEA, 2014, para 1). Using innovative techniques for creating, producing, and marketing their products IKEA can provide consumers with durable products for reason...