Internal sources: • Retained profit – this is the profit kept by the company after the first profit has been given to the shareholders. In Asda, this profit could be used to give bonuses to employees, to charity, or it could also be used to finance possible changes in company strategy. • Savings – this is the amount of money left over when the manufacture costs have been subtracted from the main profit. An advantage of retained profit is that it allows more money to be available to expand Asda in other countries; this investment could mean an increase in returns and shareholder equity when such projects are successful because it means that there would be more profit. A disadvantage of this is that if the retained profit is higher, Asda would have to pay more taxes to the government, which could sufficiently decrease their retained profit, not having enough money to pay for projects. …show more content…
• Loan – this refers to the money borrowed by the company, for example, for productions costs. This money is expected to be paid back to the lender with interest. • Mortgage – this is a legal agreement between a building society and Asda where the society lends money in order for the company to buy a building, in the condition that the money lent is paid back with interest. Asda usually doesn’t have these as they may use their own company money to build/renovate buildings for their stores. • Hire purchase – hire purchase is a system where if Asda uses a certain equipment from another company, they must pay back the cost of this equipment in regular instalments. This could include the self-service kiosks that Asda has available in their stores. • Share/equity capital – share capital defines the part of Asda’s company that is funded by shares while equity capital is when the organisation is free of any
David Jones’ gross profit margin for the past three years has remained stable with minimal fluctuations. The following calculated figures are for the year 2010, 2011, 2012, and 2013; 39.73%, 39.10%, 37.50% and 37.8% respectively. Such an observation is desirable as it is indicative that the company is financially stable as it is generating enough income to cover its operating expenses and make savings. It suggests that the industry in which the company operates has not experienced drastic economic fluctuations that can affect the company’s cost of goods sold. However,
Hire purchase is when a company or person lends out goods to companies for a short period of time, with added interest. Tesco could benefit if they were the company as they would lend out equipment, machinery, property and vehicles, as they would gain interest and also regain some of their investment into the product.
This review provides an in-depth strategic SWOT analysis of the company’s businesses and operations in the areas of internal strengths and weaknesses and external opportunities and threats. (Sector Publishing Intelligence)
The market opportunities and competitive threats that impact Allstate can be discovered through a SWOT analysis. Furthermore, opportunities and threats are the external uncontrollable factors that usually appear or arise due to the changes in a particular industry (Jurevicius, 2013). Moreover, opportunities represent the external situations that bring a competitive advantage if seized upon. More importantly, threats may damage the company so it’s better to avoid or defend against them (Jurevicius, 2013).
Capital is the source of fiancé through which resources are provided. It may be debt financing
Debt capital: borrowing someone else’s money to finance the business under the condition that the money plus accrued interest must be paid back in full by an agreed upon date in the future
Accent was founded in 1993 and is 90 percent majority owned by Canada-based MDC Partners, Inc. Accent has 11 locations in six U.S. states and two international locations in Jamaica and the Philippines. They do business with several fortune 1000 companies such as: American Family, Sprint, Asus, Char-broil, Samsung, Sharp and Weight Watchers. (PR Newswire, 2011)
The name of the union is Unifor. It was created as a result of a merger between CAW (Canadian Auto Workers) and CEP (Communications, Energy and Paperworkers). (Unifor website)
Fluor Corporation is one of the top, major companies that deliver a variety of services, including integrated engineering, acquiring goods, fabrication, construction, and vastly reaching out to private and governmental sector clients in regards to the various maintenance and project management solutions. (Fluor Corporate Information, 2017) This company was founded by a family of Swiss immigrants who had the brilliant idea to set up a construction business in the western part of the United States. This very small, family business eventually became Fluor Construction Company before evolving to the modern-day, Fluor Corporation. Fluor prides themselves on the development and implementation of groundbreaking solutions for diverse project issues
Any profits remaining after deducting operating costs, interest payments, taxation, and dividend are reinvested in the business and regarded as part of the equity capital. The finance manager will monitor the long-term financial structure by examining the relationship between loan capital, where interest and loan repayments are contractually obligatory, and ordinary share capital, where dividend payment is at the discretion of directors. This is known as gearing. There are two basic types of gearing, they are capital gearing which indicates the proportion of debt capital in the firm’s overall capital structure; and income gearing indicates the extent to which the company’s income is pre-empted by prior interest charges. Both are indicators of financial gearing.
7-1 “Debt includes all borrowing incurred by a firm, including bonds, and is repaid according to a fixed schedule of payments and Equity consists of funds provided by firm’s owners, and the stock(pg272).”
Profit refers to the surplus that remains after deducting total costs from total revenue, and the grounds on which
Earnings per share is introduced by the Financial Accounting Standards Board as the functionality used to calculate an institutions’ earnings for the year-end financial statements. The institutions can be made of up a simple or complex capital structure. It must be calculated on a constant basis in order for reports to remain consistent. FASB provides a formula of “dividing income available to common stockholders by the weighted average number of common shares outstanding during the period” (FASB 2009), to measure each share of stock earned. The net income of an institution simply comes from their income statement. The weighted average of common shares outstanding references on average how much was stock was outstanding during the entire year, since it fluctuated throughout the year. An issue that can be faced when determining earnings per share is the concept of share buybacks. This concept discusses cash that is not actually being invested but gives off the impression of good performance, when in all actuality, nothing had been generated. Investors and creditors focus a lot of attention to the findings of earnings per share as it sparks monetary interests. Ultimately, institutions strive for higher rates of earnings per share to demonstrate the institution’s performance and the likelihood of future success.
Operational excellence is important in delivering quality education using functional areas such as learn and grow, look after customer, look after share holder and the business process to excel which are assessed using a balanced scorecard for their performance. A quantitative technique used with the supported tools in the decision analysis process for making in a situation where uncertainty exists. Strutledge can perform decision analysis using simple excel or OM tools which is a quantitative tool that organizes into a payoff table. The SWOT analysis is a quantitative tool used in the decision analysis to access the impact of adding a new MBA and other Master of Science courses.
According to What is SWOT Anlysis (2011), SWOT analysis is an analysis used to identify the internal factors (strengths and weaknesses) of the company as well as external factors (opportunities and threats) of the company.