1. Introduction In the module strategic hospitality management an analysis of the company YUM! Brands, Inc. will be made. The second week of the module especially focuses on the internal analysis of YUM!. In order to understand the internal analysis process, books are red on the topic. This will be done in order to define the strengths and weaknesses, resources, capabilities and the development of competitive and strategic advantages. The lectures and workshops provided important information and contributed to the learning outcomes of this week. These outcomes together will be related to YUM!. The internal environment will be analysed by discovering the vision, mission goals and strategies of YUM!. These aspects together will be …show more content…
With the profit margin the ability to generate profits on sales of the YUM Corporation can be determined. It can be calculated by the net income divided by the total revenue*100. In 2008 the profit margin of the YUM corporation is 8.53% and in 2010, 10.21%. This is an increase of 1.68%. The outcome percentage of the profit margin is also an overall measurement of the management’s ability to control expenses. The last ratio which has to be calculated for the YUM Brand Corporation is the working capital. The working capital can be calculated by the current assets divided by the current liabilities. The higher the revenue the greater the amount of working capital. The working capital turnover in 2008 is -10.59, in 2009 -13.05 and in 2010 -31.72. This is a negative increasing of almost 300%. Furthermore, it is important to calculate some relevant general ratios. Therefore, the Return on Assets (ROA) and the Return on Equity (ROE) will be calculated. The ROA is a key indicator of the profitability, while the ROE is a key indicator that compares the profit of YUM Brand Corporation to the shareholders investment. The ROA in 2008 is 9.5% and increases in 2009 to 10.29%, while it goes back in 2010 to 9.74%. The above written percentages from 2008 to 2010 compares the bottom line profits to the total investment and can be used to measure the performance of corporations operations.
* Return on assets (ROA) – ROA shows how successful a company is in generating profits on the amount of assets they own. Since assets consist of debt and equity, ROA is a measure of how well a company converts investment dollars into profit. The higher the percentage, the more profit a company is generating per dollar of investment. Similar to ROS, this ratio needs to be looked at compared to the industry as different industries have different requirements that can affect ROA. For example, companies in the airline and mining industries need expensive assets to operate so will have lower ROA’s compared to companies in the pharmaceutical or advertising industries.
I. Rate of Return on Total Assets: Measures the company’s profitability relative to total assets. A percentage increment for Company G, from 12.30% to 13.68% (2011-12) keeps them above industry benchmarks (8.60% and 12.30%). Rate of Return on Total Assets represents strength for Company G.
Kudler Fine Foods is a gourmet food store which also offers in store parties in order to introduce customers to their products and also teach customers how to prepare their specialty foods. They have expanded to three stores and are continuing to see growth opportunities in their industry. Kudler Fine Foods has planned on contracting with local growers to obtain their produce and now they want to add a catering service. Before they can do so, they must run the possibility fully through a marketing standpoint in order to assure the success of this project. This study will comprise of the opportunities Kudler Fine Food has in its marketing mix that will help them operate a successful catering business.
Rate of return on common stockholders’ equity: This ratio determines how much profit the company makes from the money invested by the shareholders. Investors will use this ratio to determine if the company is profitable over
The Return on Assets ratio is a basic measure of the efficiency with which TCI allocates and manages its resources (assets) to generate earnings. With a 20% projected increase in sales, for 1996, we calculated TCI’s ROA to be 12.95%, and 12.11% for 1997. Although this isn’t an extremely high ROA, TCI will be allocating its resources very wisely with the expansion of its central warehouse. If MidBank lends them the cash they need to complete this project, their central warehouse will be able to hold more tires for their increasing sales, which will then convert into profit. A true test of TCI’s ROA will be after 1998, when the warehouse is complete, so you can see just how well they can convert an investment into profit.
According to the financial report given, General Mills is an insolvent business. This is because even after making sum purchases and general expenses; it is still able to settle for them through its everyday operation. The various sources of money are also evidenced from the financial report.
Operating profit margin figures in the table above show the return from net sales[13]. However profit margin ratios are high enough for the 3 years, there is a fall from 12.86% to 11.26% during 2011-12. Sales revenue increases with a higher rate than gross profit so there is a poor
then create a formula similar to this .53 = 530,000 - 1,000,000 as you can see, Dean 's operating income is $530,000 (Net sales – all operating expenses). According to the formula used, Dean’s operating margin is .53. By taking that away from 110 this means that 57 cents on every dollar of sales are used to pay for variable costs. Only 53 cents remains to cover all non-operating expenses or fixed costs.
First of all, return on asset (ROA) is a ratio used to measure how efficient a company generates profit using its assets, which is the invested capital. We noticed that HH’s ROA was increasing from 2006 to 2010. However, HH’s ROA for 2011 dropped dramatically from 18.41%(year
Specialty Food and Beverage company (SF), which founded in 2004 in Denmark, mainly covers foods and beverage, restaurants and hotel area. Recent years, the company had faced several problems which lead SF to an embarrassing situation. This assignment will introduce SF’s current issues, analyze the decision and then discuss the solution way which chose by SF’s high level management team.
Net Profit Margin- The net profit margin of 18.34 percent for 2008 indicates that 18.34 cents of net income was generated for each dollar of sales. The significant increase of 7.83 percent, from 2007’s 10.51 percent, yielded an additional $1.84 billion in profit on the company’s $23.52 billion in revenue.
The internal environment consists of the inherent competencies of the firm and the structure of its internal systems and processes. It is imperative for the organization to conduct an internal analysis
This measures the relationship between net profits and sales of a firm. The net profit margin is indicative of management’s ability to operate the business with sufficient success not only to recover revenues of the period, the cost of merchandise or services, the expenses of operating the business and the cost of the borrowed funds, but also leave a margin of reasonable
The research will examine aspect of fine dining industry in Singapore. I will be assessing the competitive strategy of western fine dining restaurant in term of retaining existence customer and attracting new one. In order to identify retaining successful customer I will undertake survey in term of customer satisfaction and willing to pay. I will also interview restaurant’s managers who handle strategy and execution in order to develop attracting new customer. Last I will conclude with a good strategy would help a restaurant