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Lastly, I learned about purchase discounts or sales discounts. At times there are business that offer discounts to attract customers to buy encouraging fast payment. Depending on the company there will be different sets of discounts and terms depending on the product. The term will allow for the customer to understand how much they are entitled to discount and how much money they will save for the product. Terms are simply the instructions to the discounts. For example, on an invoice you will see if the discount was at net for full price, the percentage of discount that was received, as well as the number of days that the bill must be paid. In regards to the future of merchandise operations, the biggest factor I see that would influence …show more content…
Perez sold a produce to the customer using the perpetual inventory system. If Dr. Perez’s company sold $1000 of goods for $2000 on May 1st on credit and the customer was given 6 months to pay according to the terms. The customer decides to pay early and pays $500 on June 1st and the remaining $500 on July 1st. Because a good was given away, sales were earned, which increases equity. The company got a legal right to collect from the customer on account receivable. There is an increase in assets because of account receivables, as well as equity because of sales by $500 on June 1st. Because of the perpetual inventory system there must be two entry’s. A sales entry on the sales account at the selling price as well as a cost entry to cost of goods sold for the cost of inventory. The journal must recognize that inventory has been sold. In addition to that entry, cost of good sold must be decreased and recognized in equity. When the customer pays on account, this means that the customer did not pay the full amount …show more content…
The first is what we just touched on are real and tangible assets, such as buildings and the equipment that supports the building. Although mostly every company will have tangible assets, not every company will have the following. Intangible asset are assets that you cannot physically touch. Examples are patents and copyrights what companies used to make their property their own legally. Lastly, natural resources are the final classification of plant assets. An example is oil or coal. If we look at the future of how this will affect us in the future, we can expect patents or copyrights/trademarks taking a blow by the legal protection, which is granted by each country. I can see the legalities become a little looser due to the creative ways that company’s are coming up with similar names. For example, new company’s who launch businesses or product pick names, they pick generic names and are not protected by trademark. Having a strong name that is implicitly and imaginatively conveying your business will allow you to defend them in court with competitors with similar
In the second year of business at Golf Challenge Corporation the company is struggling. The cost of their inventory is rising, and they are in grave danger of losing their bank loan (their prime source of financing) due to not meeting the required financial ratios agreed and set forth by the bank at the time the loan was given. The owner comes up with a solution, and figures that instead of using Last in-First out (LIFO) the company can use First in-First Out inventory cost system (FIFO) and meet their required financial ratios set forth by the bank. Ultimately, Golf Challenge Corporation should not submit documents to the bank using FIFO as opposed to their previous system LIFO in order to meet the bank requirements
It is through following these statements that will bring a firm success in the future. However, external factors outside of a company’s control can negatively affect the expected targets and steer the company from their mission & vision. Most companies do not have direct influence on this kind of environment (Harrison & St. John, 2014). The following three sections will evaluate the external forces & trends for Dick’s Sporting Goods. The following also will elaborate on external factors from direct competitors that faces Dick’s Sporting Goods. I will conclude on what other threats Dick’s Sporting Goods can expect to see, and how they can place a buffer in between these factors to stay on track towards their mission &
As a retailer and a supplier, Sobeys has an extremely large balance in their inventory account. During 2015, the inventories are more than 50% of the total current assets, and 13% of the total assets. We will compare the inventory accounts of 100 randomly chosen locations out of the 258 locations, as well as the 3 Cash & Carry stores. The company’s main portion of the total inventories would be food related, and they have certain shelf lives. If the unsold inventories are sitting in the warehouse for too long, then the inventory will be unable to sell, and this brings risk to future revenues. So the company should monitor the entire food related inventory, and strictly follow the FIFO rule. We need to compare the average inventory on hand ratio to other competitors in the same industry to find out if the inventory control has serious issues. Also, inquire inventory evaluation at the warehouses and possibly observe a test count done by
With the recent (and seemingly unstoppable) decline of JC Penney and Sears, much internet ink has been spilled lamenting the decline of these companies, while little analysis has been done exploring which retailers, brands, and stores can best profit from this massive outflow of JCPenny’s and Sears’ traditionally-loyal customers. The most obvious contender in this market share version of jump-ball? Kohl’s Corp. After all, Kohl 's, the 4th largest department store in the country, is where we, the consumer, are to “expect great things.” And as a company operating “1,146 stores in 49 states” with a stated “focus on providing excellent value to customers through offering moderately priced, exclusive and national brand apparel”, Kohl 's operates
How has the use of technology changed its interaction with its suppliers? Wholesalers? Other business partners?
Not much detail marketing will still need to do competitor research so it doesn't help much in that area
Wal-Mart’s competitive environment is quite unique. Although Wal-Mart’s primary competition comes from general merchandise retailers, warehouse clubs and supermarket retailers also present competitive pressure. The discount retail industry is substantial in size and is constantly experiencing growth and change. The top competitors compete both nationally and internationally. There is extensive competition on pricing, location, store size, layout and environment, merchandise mix, technology and innovation, and overall image. The market is definitely characterized by economies of scale. Top retailers vertically integrate many functions, such as purchasing, manufacturing, advertising, and shipping. Large scale functions such as these give the top competitors a significant cost advantage over small-scale competition.
On January 22, 2002, Kmart filed for Chapter 11 bankruptcy protection becoming the largest retailer ever to do so in U.S. history. Most industry analysts attributed the immediate cause of the company's bankruptcy filing to a dull holiday season and stiff competition from WalMart and Target as the chain's more fundamental problem. But competition wasn't the root cause of Kmart's consistently poor performance. The real reason for Kmart's poor performance is that Kmart never had a marketing strategy. Kmart completely misunderstood its market and was positioning itself in the wrong direction. Also, on the strategic side, there are issues of where stores were located. On the whole, Kmart stores did not seem to be sited as well as the stores of the competition. Then there was the issue of technology. While Wal-Mart was becoming the relentless efficiency engine that we know today by investing in technology and streamlining the supply chain, Kmart held back. As Wal-Mart developed an infrastructure that enabled it to lower prices, Kmart slipped into a price disadvantage. This paper discusses these strategic problems that led to Kmart's poor performance.
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
4. What factors do you see as critical to competitive success in the furniture industry?
What 2 powerful forces converged in the 90s that Walmart took advantage of? How did they take advantage of them? How has this changed the retailin...
One of the most important areas to consider is customer service. The atmosphere of a store
Penney's approach to strategy is best measured using a SWOT analysis, which maps out the company’s strengths, weaknesses, opportunities, and threats. For instance, J.C. Penney's strengths include a strong liquidity position, an efficient supply chain, and a broad product and service offering. J.C. Penney's liquidity position grew to lend the industry from 2014 to 2015 (J.C. Penney Company, Inc., 2015). Strong liquidity against its competitors provides J.C. Penney with an advantage while funding any potential opportunity that arises in the market. Its supply chain facilitates the flow of goods between two thousand four hundred domestic and foreign suppliers, distributors, and stores (J.C. Penney Company, Inc., 2015). Its efficiency enables J.C. Penney to generate higher margins, which allows for lower prices for customers. Moreover, it allows the business to operate in a cost effective manner. The broad product and service offerings help the company serve the diverse needs and preferences of its customers. J.C. Penney also has the largest apparel, home furnishing, and general merchandise catalog in the United States (J.C. Penney Company, Inc.,
2. Organized Retail: The emergence of organized retail have lead to more variety with ease in browsing, opportunity to compare with different products in a category, one stop destination (entertainment, food and shopping) etc, which is playing an important role in bringing boom in the Indian FMCG market. Currently the modern trade is capturing 5% of the total retail space, which will increase to 10% and 25% in 2010 and 2025 respectively. Also, as the credit card and organized retail trend picks up, people won’t think much while buying and buy more.
How does expanding internationally benefit Wal-Mart? What factors drove Wal-Mart to start expanding business across national borders?