Executive Summary This case study addresses the issues face by Kelwhit & Torilaine Enterprises Ltd (K&T), and help to make decision of K&T’s future growing direction. The key question is if K&T should take more stores to expand the business under the current circumstances. The recommendation I would like give to K&T is to set up appropriate strategy to expand the business size to increase the market share and to maximize the net profit of K&T. The detail recommendations to reach K&T’s financial purpose include: Apply to open more stores from Tim Horton head office so that K&T can catch more market share by increasing company’s sales and enlarging its reputation in Calgary region. Sign new agreement with the major food suppliers such as GFS and SAPUTO to get more competitive price, control product waste and excessive inventory as K&T is growing bigger and the overall operating cost is increasing. Standardize the incentive program such as bonus and vacation pay to increase the loyalty and to reduce the turnover. Hire a general manager to bridge the business owner and the store managers. Consult the professional accountant to optimize the tax planning to save money on tax and GST payment. Participated the community events in store area event to market products and attract more potential customers. If the above recommendations is implemented properly and monitored periodically, should it bring an improved financial result on a go forward basis. Introduction K&T Enterprises Ltd is the biggest Tim Horton’s franchise in western Canada. After almost 18 years growing, this company has become a key player in their field of Canada. The purpose of my report is to evaluate K&T’s current situation and strategic plan in orde... ... middle of paper ... ...41058 63.00% 61% 66% Operation Expense Selling, General & Administrative expense 442767 480192 409717 25.20% 28.42% 25.72% Total Operating Expense 442767 480192 409717 25.20% 28.42% 25.72% Operating Income 196959 189073 131341 11.800% 10.58% 8.2800000000000000% Other income (Expense) -1532 -988 -1033 -0.09% -0.0585% -0.06% Income (loss) before income taxes 195427 188085 130308 11.71% 10.52% 8.22% Income tax Expense -3852.7 -2580 -6041.33 -0.22% -0.15% -0.38% Net Income 199279.7 190665 136349.33 11.49% 10.37% 7.84% Gross Profit Margin 11.80% 10.58% 8.28% Operating Profit Margin 11.71% 10.52% 8.22% Net Profit Margin 11.49% 10.37% 7.84% Reference: http://www.slideshare.net/sidkauts/external-environmental-analysis-of-tim-hortons-gourav-manpreet
Shelly Zumaya (2220 East Hennepin Avenue, Minneapolis, MN 55413) is the president and sole shareholder of Kiwi Corporation (stock basis of $400,000). Incorporated in 2003, Kiwi Corporation’s sole business has consisted of the purchase and resale of used farming equipment. In December 2011, Kiwi transferred its entire inventory (basis of $1.2 million) to Shelly in a transaction described by the parties as a sale. According to Shelly and collaborated by the minutes of the board of directors, the inventory was sold to her for the sum of $2 million, the fair market value of the inventory. The terms of the sale provided that Shelly would pay Kiwi Corporation the $2 million at some future date. This debt obligation was not evidenced by a promissory note, and to date, Shelly has made no payments (principal or interest) on the obligation. The inventory transfer was not reported on Kiwi’s 2011 tax return, either as a sale or a distribution. After the transfer of the inventory to Shelly, Kiwi Corporation had no remaining assets and ceased to conduct any business. Kiwi did not formally liquidate under state law. Upon an audit of Kiwi Corporation’s 2011 tax return, the IRS asserted that the transfer of inventory constituted a liquidation of Kiwi and, as such, that the corporation recognized a gain on the liquidating distribution in the amount of $800,000 [$2 million (fair market value) - $1.2 million (inventory basis)]. Further, because Kiwi Corporation is devoid of assets, the IRS assessed a tax due from Shelly for her gain recognized in the purported liquidating distributi...
Actions such as increasing advertising, improving the store environment, and increasing the availability of quality merchandise must be taken to improve store performance. To make consumers more aware of Kmart’s merchandise more promotions and advertisement is essential. Television, radio, newspaper, and promotional ads should be shown to the general public to spark interest. Stores need to improve appearance and organization and also offer a wider range of quality merchandise.
Senior Management of PepsiCo is evaluating the potential acquisition of two companies – Carts of Colorado and California Pizza Kitchen – in order to expand the company’s restaurant business. If indeed PepsiCo decides to pursue the acquisition of one or both, they must decide how to align each of these business units in its historically decentralized management approach and how to forge relationships between the acquired business units and existing business units. In their evaluation, Senior Management is faced with the question of whether the necessary capital investment in order to purchase one or both of the businesses can be profitable for each of the acquired business units, but must also take into consideration that the additional business units will not hinder the profitability of the existing business units.
After conducting a basic 10 year financial analysis of the company, it has become evident that even with a highly competitive market structure they are able to improve on their performance. Ranging from 2004 to 2013 financial information, the company has shown a significant increase in their sales revenue roughly $3865 million sales in 2004 to almost four time that valuing $12970 million in 2013, which was an “increase of 10.4% over the 53 week prior year” The company’s growth strategy has been to diversify its product market and make them...
People tastes and preferences in Canada have changes over time and they are increasingly looking for the tangy and spiced Mexican flavor. Canadians have become more adventurous especially with regards to food and drinks than it used to be in the past. In addition they have become more health conscious and choosy in their choice of what to eat and drink. Judging by the variety of dishes provided at Quesada Burrito restaurants, people fancy Mexican foods and the trend is not likely to change any time soon. Franchising has created room and opportunities for franchisees with better models for doing business (Fisher, 1998). The core reason for franchising was to develop a win-win situation where both franchisor and the franchisee made money. Franchising is an excellent way to grow your brand and as well as infrastructure that is well thought
The corporation I chose to discuss is McDonald’s. McDonald’s is a publicly traded corporation that includes the following domestic companies, McDonald’s, Chipotle Mexican Grill, and Boston Market. This paper will discuss the following:
Tim Hortons has built a prominent vivid image since its establishment in the UAE. However, it is time for it to grow in order to meet the fierce competition it faces, especially in its field. This objective can be met easily considering the fact that there are many opportunities to grow such as opening a branch in an uncharted area. Moreover, Tim Hortons offers a limited variety
By taking a globalized approach, they are expected to open roughly 300 restaurants in the U.S. alone by the end of 2018. Essentially, Tim Hortons has gained the trust of millions of people in North America by their ethical practices. This disciplined approach of contributing to society has allowed the company to gain a commanding 42% share of the quick service restaurant market in Canada. In this case, it is evident from their positive same-store sales growth in the country for the 22nd consecutive year. Their recent annual report also shows continuing top-line and bottom-line growth, which supports the idea of not only attracting new customers, but retaining the loyal ones as well. Because of this, management is working towards opening more than 800 locations in North America. Generally speaking, Tim Hortons’ economic success is unquestionably correlated with the social conditions that are being
Some core competencies that must be exploited are: Brand Kmart is an existing well-known and trusted national brand in USA Kmart has private label and designer clothing that is well endorsed Infrastructure Kmart has a large number of well-located, low-cost, leased stores in urban far away from competitors through out the country ( Appendix B ). Staffing Confidence by the market in Kmart is created by the achievements of its staff and management. With the turn-around strategy in place, new blood has been put into the top management structures. In any renewal there will be retrenchment as unprofitable stores are closed. This can be used as an opportunity to retain and move high performing staff to where they are needed and to get rid of non-performing staff. Anderson the chairperson of Kmart is well supported by Wall Street and the board of Directors. These new staff members enter the company with needed skills to address problems in certain areas that previously were poorly managed such as inventory control and merchandising. Store locations, layout and Performance Stores conveniently located away from competitors like Wal-mart and Target therefore less to compete for customers face-to-face. There are 250 non-performing stores who have already been identified as being more cost effective to close than continue with running costs. Expertise exists in-house for the planning of store layout and appearance to meet different customer segments. This concentration of effort will enable focus on key areas Technology Kmart has already invested in good retailing systems. The system can be use to control inventory, supplier payments, track customer buying and monitor income versus profit margins across all stores. Research and Development The planning department is well established and in cross-functional to provide various perspective. The planning department to ensure that strategies at all levels are executed can further use the access to past data and knowledge of changes in buying patterns. Financial Backing JP Morgan Chase has agreed to support Kmart to avert the current threat of closure due to bankruptcy.
BR was sold to Delta Foods in 1996 for US $2 billion. At this time, it was one of the largest fast-food chains in the world generating sales of US $6.8 billion. DF purchase of BR brought in a new cultural paradigm. DF is an individualistic, aggressive growth company with brands they believe are strong enough to support entry into new overseas markets without the need for local partnership. The DF strategy is one of direct acquisition and JV’s were not part of their strong suit. DF strategic implementation is based on hiring local managers directly or transferring seasoned managers from their soft drink and snack food divisions. The DF disdain for JVs is clearly reflected by their participation in only those JVs where local partnering was mandatory (e.g. China) to overcome regulatory barriers to entry. JVs had been the predominant strategy for BR which was unlike the DF outlook. Terralumen’s strategy was misaligned and out of sync with the DF strategy. This was unlike the complementarity that existed with BR’s strategy. This misalignment began to affect the JV relationship that had worked well with BR in the initial years. The failure of Terralumen and DF to recognize this fundamental cultural difference between their operational strategy styles i.e. Individualistic and Collectivism leads to their inability to proactively create steps for better alignment in the early period after acquisition, creating uncertainties and difficulties for both corporations. There is a lack of communication and virtually absence of trust between two new partners. DF appeared to be flexing its muscles in the relationship and using a more masculine approach compared to Terralumen’s more feminine approach. Both the corporations are strategically involved in a complex situation where they appear reluctant to address the issues at stake and move ahead together. The DF strategy of
Companies all over the world varies but yet shares a common challenge, that is to solve problem not only effectively and efficiently but also creatively. The P-O-L-C framework which stands for Planning, Organising, Leading and Controlling plays a major role in both the company’s survivability and success. The SWOT analysis looks at both internal and external factors that can affect the Starbucks’s performance. The purpose of this report is to define and analyse how Starbucks respond and should have respond to the change of its external environment on the cofee market,This report will also identify and disscuss how The P-O-L-C framework and can help starbucks to compete and reduce the loss of their failing peformance in the Australian market and how SWOT analysis helps to define some externalities that can be a threat to Starbucks.
This paper will provide an argument for diversification to be presented to board of directors for Starbucks. A strategy for diversification indicating the products and industries for diversification and how synergies may be gained will be provided. The identification and the discussion of the foreign market Starbucks should enter will be presented, along with the strategy it should use to enter the market. Challenges Starbucks may face in the foreign market will be discussed, as well how it might respond strategically to minimize the impact of these challenges.
Kek Sayang should keep producing quality and unique products which will help to set them apart from the competitors. The owner has to be creative and keep up with the newest trend in order to move further in business. Besides that, it is about time for Kek Sayang to expand its wing to another states such as Penang. Being highly active in social media can help Kek Sayang to be closer to consumers and the website should be updated more often. Delivery service will also attract more customers. As for staff, Kek Sayang should consider sending new staff or recruits to training. Its marketing strategy should be improved and more bulk advertising and promotions should also be made. Due to the increase of health-concerned people nowadays, Kek Sayang should go for an attempt to increase the range of low fat and low sugar products that will satisfy the demands of those who are watching what they consume while still want to enjoy some sweetness. The attempt to go green should be made step by step as it going to cost a lot. It should be started with something small first such as replacing plastic
Nithin Geereddy. 2013. Strategic Analysis of Starbucks Corporation. [ONLINE] Available at:http://scholar.harvard.edu/files/nithingeereddy/files/starbucks_case_analysis.pdf. [Accessed 18 April 14]