Case Study : Bed Bath And Beyond Investor Relations

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)

Bath & Body Works (BBW) enjoyed a successful decade after its inception in 1990. However, over time their limited offering of products was sending their customer base to other retail chains - either trading up to better brands or trading down to cheaper prices. As demand for their product seemed to dwindle, they needed a way to increase their customer base. An increase in

| Enterprise entered in two new markets, discretionary & leisure and corporate. Both of these markets are attractive as their industry share is larger than that of the replacement market (33% and 40% compared to 27%). So far Enterprise was successful in entering these markets. Since the opportunities are greater in them, it might be reasonable for the company to diversify its operations further towards the new markets.

The first recommendation for this firm is to adopt a global policy and try and explore new markets so that market growth and market share can be expanded. In case of a firm entering an international market, it requires to analyze the nature of the market and suitably form its marketing strategies in alignment with its business strategy and decide whether it is more beneficial to adopt a global approach or use a strategy that is customized to suit the needs of the local customers.

High cost of entering new markets International growth is expensive. Entering new markets with a new brand

BBBY has too much cash even though it has used the cash for store growth and small acquisition. They should be focusing on using their cash to increase shareholder value.

BBBY is a home goods industry leader in sales growth, margins and return on equity. The company continues to generate excess cash through profitable operations despite large capital expenditures for growth. The company needs to create a plan to invest their excess cash to optimize company results and increase shareholder value.

By 1979 the company had seen rapid expansion and had a total of 26 stores. Further expansion ensued through a combination of mergers and acquisitions. In 1980 B&Q bought

5). Some of these superstores were 80,000 square feet and carried more than 300,000 different products stocked from floor to the ceiling. By 1991, they started opening new stores in more states, and two stores already in operation increased in size to match the trending superstore format. Sales and earnings for the founders increased unexpectedly and they invested the revenue right back into the organization. As the number of stores increased, Eisenberg and Feinstein were also strategically placing Bed Bath and Beyond stores in locations contrary to the norm in metropolitan areas.

The development of the business environment has determined companies to develop innovative strategies in order to create competitive advantage. Some of them have identified the potential of developing markets in Asia, Africa, and Europe, and have expanded their business to such areas. These countries provide a large pool of cheap skilled workforce that can help these companies reduce their production costs, which leads to reduced prices intended to increase the number of customers. The economic development of these countries provides customers with increased incomes that can purchase companies' products and services.

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,

The O.M Scott & Sons Company has had continued success in the grass seed and lawn care industry. The company started in 1868 as a local company in central Ohio, focused on selling grass seed only. The company saw great opportunity in the lawn care industry, so it decided tot take action. O.M Scott & Sons grew into a national company that distributed its products by mail, and eventually sold to retail stores nationwide in 1959. The company was able to grow expanding the company’s field sales force. This increase in sales force led to a continued increase in sales and profits, which allowed the company to invest in R&D more heavily. This increase in R&D led to better products, which further increased sales and profits. The objective was to service the various retailers across the U.S with adequate inventories, especially in the high seasonal peaks. This was difficult for most of the smaller sized dealers the company was selling to, so Scott had to fund the dealer inventory buildup by itself.

In this case study of Berkshire Industries PLC, we will be focusing on the evaluation of their new incentive system and address their potential options. This new system focuses on economic profits instead of accounting profits. To better understand the implications of the economic profit-focused system, we will perform a data analysis on the companies Snack Division. Furthermore, we will assess the negative effect this system had on their underperforming division, Spirits.

Cendant Corporation, one of the world’s largest hotel and real estate franchises was known as the largest accounting fraud before Enron. Cendant Corporation was created in 1997 when Hospitality Franchise Systems (HFS), Inc. merged with Comp-U-Card international (CUC). Chairman Walter Forbes and Vice-chairman Kirk Shelton were the perpetrators to a decade long accounting and securities fraud. The day after Cendant exposed evidence of accounting irregularities the corporations stock and convertible bonds lost nearly $14 Billion (Morgenson, 2004). This paper will address the issues that went wrong with Cendant and how the crimes fit into to Friedrichs’ typologies.

As discussed in Chapter 21 of our text book, any company that is looking to expand globally must make five key decisions. A firm must decide if: a) they really want to expand to the international market; b) they