Current Performance: The current year of 1994, the inn again showed a positive increase in net income, with a slight drop in revenue. With proper managing of expenses and lower average collection period of 20, the inn has been able to report a higher net income. An issue for the inn shows a lower liquidity ratios, with the current ratio at .40 quite below the expected level of 1 and quick ratio of .35, representing the difficulty of converting inventory into cash. What this means is the low levels of the liquidity rations could spell the threat of possible bankruptcy.…
Sales grew approximately 16% last year. The company is building a 76,000 sq. ft. addition to its current 100,000 sq. ft. plant to meet the increased demand and to satisfy new markets.…
Tom Simmons, Marketing Manager for Green Acres Seed Company, is trying to make a strategy for increasing the company’s sale and profit even though province of Ontario has a highly competitive seed corn market. By setting a promising marketing strategy, the company could take over small part of market share from leading company, and this would result that Green Acre could get high reputation and awareness in Ontario as well as in Canada. Currently, seed leading company is Pioneer that has more than 50 percent of the market, and Green Acre has about 11 percent. When we read the background paragraph, there are two types of corn: grain corn and silage corn. Grain corn is harvested only the ear and used for commercial purpose. On the other hands, silage corn is harvested the entire plant and used for feeding livestock. Especially, leading company and 2nd and 3rd company are focusing on grain corn, because this product can be converted into commercial product, and this would make more profit than silage corn. For Green Acre’s position of grain corn product, it is very hard to penetrate and take market share in the grain corn product area. Thus, it is proposed that Tom Simmons, Marketing Manager for the company came up with solution by targeting silage producer with hybrids having high silage performance attributes, and average price of six varieties is . There are three reasons for choosing this strategy. First, market leader in Ontario is vague. Second, the silage strategy make the company differentiate from competitors. Third, Green Acre has better silage performance characteristic than competitors. In order to catch some useful information from 400 farmers they did market research.…
Yet, despite the fact that profits were also growing, the company experienced continued cash flow problems. As a result, Riley finds that an increasing amount of his time is being devoted to dealing with the cash flow problems. The company has normally relied on bank loan financing secured by accounts receivable and inventory. However, in 2006 the company was unable to reduce its bank loan during the seasonal slowdown period. Furthermore, the company's manufacturer suppliers were becoming unhappy. Some had even started to demand payment on delivery rather than offer the 2/10, n/30 terms standard in both the manufacturer and wholesaler markets. Riley is not sure what he should do. He expects that 2007 sales will be 30% higher than the prior year and that there will be continued strength in sales in the following years. Furthermore, his co-investor is becoming increasingly bothersome so Riley would like to buy back the 40% ownership in the company that he does not now control.…
Although this winter season has the makings of a profitable one for Norton’s clients, agronomy does come with its own set of…
Hayes, Robert H., and Wheelwright, Steven C. (1984). Restoring Our Competitive Edge: Competing Through Manufacturing. New York: John Wiley.…
1990 to 1991 was also the time of an economic recession. In order to face the company’s sales decline and the economic downturn they undertook several measures. They ended their diversification strategy and generated cash by selling off non-automotive business units. Cash came also from stock offerings and a debt offering. However, the company was in a miserable position, junk rated and facing an underfunded pension plan.…
Revenue Growth – Based on the strategy of investing revenues generated by property sales (with a stunning 254% growth - S$50M in 2005 to s$130M in 2006) to fund the expansion project, target an estimated revenue growth of 20% in 2007…
Newman, Albert D, and Carmen W Ruiz. The Agriculture Industry Today. New York: Alabama Press, 2012. Print…
Guna Fibres is a textile manufacturing company located in India that is subject to seasonal swings in demand as well as an increasingly competitive environment. Guna Fibres has historically utilized a line of credit from All-India Bank & Trust to finance the purchases necessary to fulfill the spike in demand that occurs each summer. Historically, Guna Fibres would zero out the balance on this line of credit in October, per the banks policy. At the end of 2011, Guna Fibres found themselves running a balance on their line of credit beyond October and was subsequently denied any more credit until the firm could demonstrate solvency to pay the balance off. To examine their company’s financial position Malik and Kumar created a financial forecast for the month-to-month operations of the company in an attempt to demonstrate to the bank that they firm could indeed pay off the loan.…
Jim McMaster is faced with the everyday dilemma of keeping his business running smoothly by conducting presentations to students to capture their enthusiasm on birds and wildlife. Within the few years Mr. McMaster became extremely busy in doing school presentations at various schools as well as running nature camps at his home. This led him to quit his job as a fourth-grade teacher and concentrate on the expansion of his business, Natural Designs Inc. On the long-term, Mr. McMaster and his wife Sheila produced bird feeders off of their garage but have to expand due to the increasing customer demands. For this long-term structural decision to be realized, it requires careful and thorough planning which could entail more time and a larger capital from them. On the expansion planning, the McMasters might come to recognize that using of new technology could present a big difference to increase production and shorten its timeline plus improve the quality of the bird feeders. Furthermore, they have to stabilize sourcing to guarantee that shortages would not become an issue in the production. Suppliers have to be able to satisfy Natural Designs’ increasing demand of raw materials for the bird feeders.…
3.)What are ways in which Clover can contain costs? Explain the advantages and disadvantages of alternative methods of production and distribution.…
This analysis focuses on Calyx Flowers, a subsidiary of Vermont Teddy Bear Company. It is a flower delivery service that ships fresh flowers direct from 18 growers in Florida and California. This permits Calyx & Corolla to provide fresher, longer-lasting flowers to consumers. This distribution channel gives them an edge over other conventional companies like 1-800-FLOWERS.COM and FTD. This also helps them to sell them at premium with 50% gross margin. In order to have a wider variety of flowers, some of them are flown in from farms in Ecuador, Columbia, and Holland to growers’ warehouses in US. Calyx also provides vases and other floral accessories in addition to flowers. They also have continuity programs wherein you can subscribe for a monthly delivery of flowers for a year. Calyx & Corolla appears to have a strong potential for a bright future, but the company also have some apparent weaknesses in their business.…
Second, although they have good profits, the company had experienced a shortage of cash. The company’s current borrowing from Suburan National Bank almost reaches the maximum loan that SN Bank would make. Meanwhile, the SN Bank now asks Butler Lumber to secure the loan with its real property.…
Calyx Flowers promotes its offerings primarily through catalogs and the number of catalogs, yields and marketing expenses known, the operating profits of current customers, flower recipients and the rented mailing list can be calculated (please see Exhibit1). As Exhibit 1 shows, only catalogs offered to current customers yields a profit of approximately $5.6 million, while the operating profits from delivering offers to flower recipients and the rented mailing list are negative. With this being displayed, offering catalogs to flower recipients and the rented mailing list will not help the company its gross margin target.…