Problem:
One of the key issues faced by McGraw is that there is a large gap between his projections for next year, and what the manager’s are promising him . His goal is to obtain a 15% increase in the operating income from his division (OM, LR and NP). The managers are projecting a decrease of 5.2% from the current year. In absolute terms there is a gap of $27 MM in the projected divisions operating income.
If McGraw were to keep his A&P budget the same as last years, he would save $32MM over the managers’ projections. Therefore, one solution could be to effectively use the strengths of the product lines and the A&P dollars by consolidating his sub-divisions.
Analysis:
Comparing the contributions and costs of the three
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Additionally, LR brand generates less operating income for the number of pounds sold compare to Oscar Mayer.
Our next question follows, Can Louis Rich Brand alone make up the income short fall? The answer seems no, looking closely at the numbers, one can clearly see a decline in pound volume from 3% to 2% in the current year. Increase in the operating income is likely being driven by the change in consumer trend towards white meat, not superior management of the sub-division nor its marketing distribution channels. Additionally, LR is generating only 7cents per pound of operating income compare to Oscar Mayer which generates 16 cents per pound.
The decline in Oscar Mayer brand is also due to consumer trend, but is further compounded by a decline in A&P and increased competition. Loss of market share is evident by the 6% decline seen in pound volume matched by a 6% decline in revenues. Oscar Mayer has so far opted to loose market share rather than lower its price.
Based on this analysis, there is more to loose if the Oscar Mayer brand is allowed to wilt over the Louis Rich Brand. Giving up on Oscar Mayer would mean loosing it’s well established, well recognized OM brand name and its equity. May be even future profitability may be lost if the trend towards white meat is only a temporary one. This can be seen in McTiernan’s Report on consumer satisfaction survey,
If you compare bakery sales in July to bakery sales in September, it shows a 66% increase in sales in just two months. Peyton Approved uses its equity to finance the business than taking out loans. It has a .36% Debt to Equity ratio. The best ratio for the business is the profit margin. In three months the profit margin for Peyton Approved is 53.4%. The company just added a product line of hypoallergenic shampoos. It has been selling these products for one month and the company only turned the product over once during that month. At this time it does not look like adding these products to sales is
* Our company’s sales forecast has been based on performance from previous years along with market circumstances. We are looking at the future of the business objectively which we then can evaluate past to
In conclusion, the factors related to Oval production and sales are the main factor s for the decrease in income.
The rise in revenue was rapid starting from the year of operations. The key period of business was from April to September were revenues were equal to 65% of total revenue as the product was seasonal. The basis of forecasting for the year 1981 & 1982 is the expectations of sales by Mr. Turner & Mr. Rose. It is given that total sales were $ 15.80 million in first half of year 1981 and the total sales in 1981 to reach $ 30 million. Profit after tax was expected to be $ 1 million for 1st half and we assumed for the next half, profit will be in proportion to first half & expected to be amounting to $ 0.90 million. For year 1982, the sales expectation by Mr. Rose was around more than $ 71 million &
Another issue is that although A.1. Steak sauce has more brand equity than Lawry’s product one must consider pricing and promotional/discount rates. Specifically, if Lawry’s acquires the ad at Publix and they are selling bottles of steak sauce substantially cheaper than Kraft’s product with the way the economy is now, people will go with what’s fiscally more viable, as opposed to taste in some cases.
MLF is losing market share due to proliferation of unsuccessful brands such as _Beef Dogs_, _Lean 'n Lite_ and _Burns_. Having too many brands has spread corporate resources thin and has underutilized the Maple Leaf brand name leading to lack of a national identity of their hot dog segment, productivity problems and rising costs, both operational and production.
The second task that needed to be finished was to forecast the income statement and the balance sheet for the next two years. We grew sales at a 15% rate, which is the stated rate from Koh. Also, in forecasting the balance sheet, we only showed debt financing for the capital expenditure of the DVD manufacturing equipment, which was the requested structure. Other relevant facts and assumptions for preparing the financial forecast are stated below-
Financially 1993 was a record year: FPL’s capital expenditure was expected to decline by 33% over the next five years. Annual sales growth of 3.4% for the past five years exceeded the national average of 2% and was expected to exceed the average again for the next five years (2.7% vs. 1.8%).
It is believed that the decline began when the market became more competitive and consumers began to demand lower costs and quicker delivery. Since this had not previously been an issue, the company had a difficult time adjusting (Beer & Tushman, 2013).
For the first time ever, the "Coop" is experiencing a decline in sales by 6% in 20 of 76 "Coop" restaurants even though the overall growth rate was steady for the chain. These same stores were carrying about 32% of the company's retail sales.
That the leadership approaches adopted by Yahoo’s leaders is transformational leadership. Transformational Leadership by Yahoo is Women's Leadership in Tech. like is Marissa Mayer, CEO at Yahoo. We should be trying to ensure that women can have balance between the various aspects of their lives rather than trying to be superhuman. Mayer is now one of 20 women, just 4%, who run Fortune 500 companies and at 37 she is one of three under the age of 50 (Perlroth, 2012). She is also #14 on Fortune’s list of most powerful women and is one of the few leading women in the technology industry today. Mayer has helped to set a precedent as a strong leader in the discussion about women in the workplace. She is a transformational leader because through her actions she is motivating her followers to go above and beyond and creating a change in American culture. She is also a charismatic leader in that her portrayed personality characteristics and behaviours surrounding her own decisions have set the stage to have profound effects on her “followers”.
Many advertisements want you to buy their product, but Oscar Mayer wants you to enjoy their product as you eat it. The founder Mr. Oscar F. Mayer moved from Germany to Detroit, MI, then later to Chicago, IL to open his German meat market, that was founded in 1883. He implemented and utilized so many tools to open the market, that he had to expand and have local events for his customers. Although many of these companies formulate so many strategies to attract their target audience, their ad can be very misleading.
However, it should be noted that Diageo’s Food and Fast Food segments had relatively stable cash flows similar to its Alcohol segments; the food segments even exhibited higher average ROA over time than industry samples (~19.8 to 21.0% vs. 15.4%). However, volatility is lower for the industry sample than Diageo’s food segments although that may be reflective of the much smaller sample size for calculating Diageo’s ROA.
Yahoo and google have the Revenue at $73,785,000,000 for 2016 which is a $1,167,000,000 increase from 2015 when they were at $72,618,000,000. However this increase does not continue into the income statement on 01/28/17 where their revenues fell to $69,495,000,000 which is about a 6.17% decrease as compared to the 1.61% increase from the prior years. Even 2014 to 2015 saw an increase in revenue of $1,339,000,000 equating to a 1.88% increase. The profit shows a similar tended expect when a discontinued operations is involved by resulting in a loss for 2015 of $1,636,000,000. Both 2016 and 2017 reports show a profit however 2016 is gain lower than the statement for 01/28/17 with profit dropping by $626,000,000 translating to a 22.87% less
Helen Keller was born on 27 June 1880 in Alabama. Her father was a newspaper editor. She was a lively and healthy child with a friendly personality. She could walk and even say a few simple words.