Speedster Athletics Case Study Essay

The use of social media marketing has become a standard way in which organizations advertise their products or services. Social media marketing allows consumers to have immediate access to other consumers reviews or to post a review about a product or service. There is engagement between the company and the consumer (Evans, Dave 2010). Social Media emerged in the late 1980’s when websites such as Prodigy, Compuserve and America Online. Prodigy was first of it’s kind and was known as a ”consumer online service”. Half of the page is devoted to advertising. Facebook, Twitter, Myspace, Hi5, Bebo and Orkut are all social media platforms that are utilized as platforms today.

This indicates that RMW has been financing it’s expansion through debt rather than equity. The interest ratio has dipped a little but is still on the higher side, this signifies that RMW will is in a position to pay of interest on it’s debt comfortably. ROCE has gone from 12 to 12.9, which is a good sign as it indicates that the company is profitable and is using it’s capital efficiently. Inventory turnover ratio is has decreased, which shows that the inventory is being sold at a slower pace. This can be attributed to the declining sales. Inventory turnover ratio has decreased a little. Fixed asset turnover ratio has gone up from 1.31 to 1.42. This indicates that RMW is generating more revenue from it’s fixed assets, which is a good thing. ROA and ROE has increased over the past 4 years. This is again a good sign. ROE has increased more in comparison to ROA, this indicates that the company has taken a good amount of debt, which has increased the assets but decreased

The return on equity (ROE) has also shown an increase in 2009 over the previous year suggesting a successful investment by shareholders. This increase, coupled with the fact that the basic earnings per share (EPS) has increased significantly from 61.78 cents in 2008 to 88.26 cents in 2009 (143%) shows great improvement in the profit per share. Please note that the basic EPS has been used in this analysis as the diluted EPS includes employee options (JBH Annual Report, 2009), skewing and reducing the value of the EPS.

Return on Total Assets was 4.43% which is below five percent. That indicates that the company is not accurately converting its assets into profit. The total for Return on Stockholders’ Equity was 8.89%, however financial analysts prefer ROE to range between 15-20 %. The company’s low ROE indicates that the company is not generating profit with new investments. Lastly, Debt-to-Equity ratio for the company was 1.01 which indicates that investors and creditors are equally sharing assets. In the view of creditors, they see a high ratio as a risk factor because it can indicate that investors are not investing due to the company’s overall performance. The totals of these three ratios demonstrate that the company’s financial state is not as healthy as it should be.

Working with the DuPont analysis, the results we receive are profit margin which measures the operating efficiency, which is 27%, asset turnover is .55 times and equity multiplier with 2.26. The ROE is the traditional ration with 31.32% upon DuPont being 33.10% in contrast with the industry average of 18.75%, which shows that the firms ROE is doing excellent. The firm has its issues in favor of liquidity and management for inventory, and debt management; it is still working well with its shareholders and doing great.

Our cumulative profit of $73,908,302 was third in the industry, falling behind Digby and Erie. According to the final courier, at the end of year 8 we have accumulated a ROA of 21.3%, ROS of 10.1%, and a ROE of 26.9%. After calculations (82,421+14,343)/(10,948)=8.8385, we reached a Quick ratio of 8.84, indicating that we have a high asset to liabilities ratio, which is expected in a profitable company.

4) Company Q’s current rate of return (ROE) is 14%. It pays out (payout ratio) half of its earnings as dividends. Current book value is $50 per share. Book value per share will grow as Q reinvests earnings.

The three keys to successful marketing are identifying, targeting, and connecting with the right audience. In today’s technological world, having a presence on social media is essential to marketing success. According to studies, more than half of the population of the United States has a profile on at least one social networking site. Marketers who do not take advantage of social media are missing out on a crucial opportunity to connect with customers, and those who do are ahead of the curve.

* The offer results in 3% increase in EPS from $0.91 to $0.93 based on 2006 financial numbers.

This ratio measures how much the shareholders earned (return) on their investment. Lulu’s ROE of 25.5% in 2014 shows investors how effective management employed the shareholder’s investment and returned $25.5 per $1 invested. Whilst the company’s ROE is 7.5% above the industry average in 2013, it has nevertheless dropped by 5% in 2014. This is consistent with a drop in ROA and debt to total assets ratios hence, confirming the trend in profit margins where they rose in 2013 and subsequently dropped in 2014. This ratio has a coherent relationship between PM and ROE.

Social Media and Website of the company is significant. It is primary channel in modern marketing to communicate between consumer and producer (Zarrella, 2012). Facebook and Twitter are powerful tools to communicate between consumers and sellers. Facebook is a largest social network with more than one billion users logging into every month (BBC News, 2012). This modern channel makes it simpler for firm to engage their customers through customer

* Social Media and Networks. Social media marketing has become very popular as it allows the business to reach out and interact with its customers to get real feedback and create relationships with them so that a brand can become so integrated with their customers that they consider it part of their personal image. Through social networks such as Twitter and Facebook brands can involve their customers with their product by telling them about events and specials or by talking about the product or other customer’s experiences as well. It is a good way to find out about what customers think of the product as well as the brand perception and how to adjust. Social networks help to grasp a greater market share since they help reach more customers.

As seen in product marketing, successful marketing requires organizations to think outside of the box and find new ways to communicate to their consumers. The majority of consumers utilize social media such as Facebook, Twitter, Instagram, and YouTube; organizations must exploit their marketing techniques on these sites in order to maximize their advertising range (Adis, Ing, Osman, Razli, Pang, Sondoh, & Majid, 2015). Not to mention, social media marketing has become more popular because of its cost-effectiveness and efficiency in reaching and engaging with consumers (Castronovo & Huang, 2012). For this reason, social networking is becoming a necessity, according to St. Clergy (2012),

Social media is used to define the online means of communication, collaboration, share, and cultivation between interdependent platforms (Tuten and Solomon, 2014) and social media marketing is the use of social media to induce consumers to buy or support a brand, company, website, etc (Barker et al., 2013). Today’s advertisements are much more interactive and specially designed for a targeted customer because social media provides this facility. Also, it helps companies to track customer’s age, gender, habits in a way to adapt their products and reach them more easily.

It is no longer a secret that companies that want to be successful in today 's marketplace have to be involved in social media marketing. Just two years ago this was almost an unheard of strategy, and just 5 years ago the concept of facebook, Twitter and other social media sites was completely foreign but to a select group of individuals. But we live in the age of rapid change! The rate of knowledge doubles just every two years now, and in just two years the rate of knowledge will double on an exponential scale!