Black & Decker Financial Statement Analysis

We evaluated our company’s position in the industry, and found ourselves in an excellent starting position to further develop our products and match them to the industry’s needs. Our market share is adequate and we can advance further with our strategy improve and reposition our products in the coming years. We have underutilized capacity, which we intend to improve, while increasing automation to reduce costs. We have plans to improve our promotion to improve product awareness and with the appropriate product lines we will increase price to improve margins and better align our high-end product image. Our current financial position is optimistic, showing our leverage (Assets/Equity) at 2.0, when our goal is to maintain 1.5-2.0 overall. By utilizing the analysis tools we are learning what elements are driving demand, how to effectively tailor our products through R&D, how best to adjust our marketing and pricing, while lowering input costs, in order to improve margins and to ensure our stakeholders are all satisfied.

Exhibit 3 highlighted comparison of performance of BBBY with its competitors. BBBY is out performing its competitors; its gross profit and net profit expressed in percentage of sales are much higher than other store chains. BBBY is turning over its inventory and assets to generate income at a better ratio than others. Sales per square feet of space ROE and sustainable growth rate are surpassing other players in the field. Due to all this company is getting superior price earning ratio (see exhibit 4 for reference)

Interesting acquisition price: due to the fact that DaimlerChrysler needed to quickly unload non core assets, BBD was able to acquire against low cost

Black & Decker Corporation is a corporation based in Towson, Maryland, United States, that designs and imports power tools and accessories, hardware and home improvement products, and technology based fastening systems.

B&H also has entered the digital age. As the company grew, not only they received a lot of customers and tourists, but they maintain an even larger presence online, ranking 13th in TWICE’s Top 20 E-tailers rankings, ahead of GameStop, Sam’s Club, QVC and Staples. (Wolf, 2014)

During this time, sales increased from: $7.11 billion in 2010 to $7.99 billion in 2012. Earnings improved from $2.84 to $3.57. While the total amount of dividends rose from $1.00 to $1.72. These figures are showing how the company has been continually increasing sales, earnings and dividends over the last three years. In the future, the management predicts that their current strategy will increase returns. As, executives believe that their focus on building the brand and accounting for costs will lead to net earnings of $5.20 to $7.19 annually by

The online market is the target for Blackmores in order to gain more market share, inform information to customer and various benefits.

In the 1990’s Black and Decker had a great position in the market for their products to appeal to the Professional Industrial segment and the Consumer segment but when it came to the Professional Tradesmen segment they were lacking. Their 9% market share vs. Makita’s 50% market share in the tradesmen segment was incomparable. Makita clearly had a better product in the eyes of the Professional Tradesmen. In the Professional Segment most of the people who buy the products are people who need these tools to make a living such as carpenters, electricians, plumbers, roofers, and general remodelers. Black and

Office Depot is a supplier of office products and services. The company's selection of brand name office supplies includes business machines, computers, computer software and office furniture, while its business services encompass copying, printing, document reproduction, shipping, and computer setup and repair. An S&P 500 company, Office Depot generates revenues of over US $14 billion annually and has 42,000 employees worldwide. It is headquartered in Boca Raton, Florida. Office Depot is one of the biggest office supplies retailers, but its sales revenue decreased dramatically 26% from 14.5 billion dollars in 2008 to 10.7 billion dollars in 2012.

J.D.B.T.’s overall business strategy was competitive benchmarking on factors such as price, brands, and advertising. After noticing a decline in our profits and market demand, we added a competitive twist to our business strategy. We expanded our sales channels,

Blackmores Ltd is one of the leading contenders in the Health Care sector. The company specialises in a range of products including herbal and vitamin supplements. The company has a major share in the Australian and New Zeeland’s market generating almost 85% of the revenue from this region. Blackmore’s capital structure has been analysed as requested by the Board of directors to assist them in optimizing the company’s current capital structure.

Office Depot achieves its strategy by offering products that are less expensive than its competitors. This allows Office Depot to make sales to the largest possible consumer base and yet, at the same, still differentiating itself by providing more of the problem solving, and innovativeness desired by many corporate and some retail customers. Over the past twenty five years, Office Depot has been able to enter into various global locations and develop or maintained its competitive advantage by following this strategy. In fact, this strategy has paid off well over the past several years. Office Depot consistently ranks high in terms of customer recall of office supplies and business solutions. This quantitative measurement may be used by Office Depot to quantify the Company’s growth in this area.

Conversely, looking at the income statement for PMWL, operating income shows healthy gains of $45,862, which means the operating expenses are significantly lower in comparison to AWBL’s. However, PMWL’s cost of goods sold appear abnormally high, which makes an investor question whether this company is at it’s maturity phase in the product life cycle, and how much additional capital is necessary to bring this figure down to a number that leverages economies of scale and allows for profit maximization.

* Product Differentiation: It is evident from the case that B&D products in the professional segment were of good quality with 10 out of the 14 products in leadership category (Figure E). Therefore, the problem faced by B&D products in this segment is more of differentiation than of product quality. The consumer level products in black in color are not substantially differentiated from professional level products which were charcoal grey in color (Figure D). This lack of differentiation has adverse influence on the buying decision made by professional tradesmen as they take pride in their work which is more rigorous than “do it yourself” low quality consumer segment. Therefore, the professional tradesmen segment has disassociated itself with Black and Decker brand name despite good quality professional tools manufactured by B&D.

The company was profitable once again by the third quarter of 1985. To maintain market share, the company invested heavily in research and development in 1987 and was ranked by a leading trade journal, Electronic Business, as second in R&D spending, based on a 131.7% increase from 1986 to 1987. The company’s share price bounced back from a low $1 in 1985 to $13 in July 1988. With all these developments, it seemed that the company had indeed made a comeback and was on its way to becoming a billion-dollar company.