Clariant Co. Marketing

Financial performance measures, such as operating income and return on investment, indicate whether the company’s strategy

All segments are critical for the implementation of our company’s strategy because we chose to be broad cost leaders. Cost leaders maintain a presence in all market segments by focusing on low production costs and competitive pricing. With that in mind, one segment is considered to be slightly more important than the others: the low end segment. We will compete in every market segment, but this is one of the most important due to the fact that price is the main consideration of the buying criteria at 53% importance. Our costs will be much lower than our competitors which translates into a lower market price for this product, which is ideal for our customers.

The success of a business depends on its ability to remain profitable over the long term, while being able to pay all its financial obligations and earning above average returns for its shareholders. This is made possible if the business is able to maximize on available opportunities and very efficiently and effectively use the resources it has to create maximum value for all involved stakeholders. One way the performance of a company can be measured on critical areas such as profitability, its ability to stay solvent, the amount of debt exposure and the effectiveness in resource utilization, is performing financial analysis where a set of ratios provides a snapshot of company performance and future

(a) In a merger agreement, the assets and liabilities of the firm which is being acquired end up being absorbed by the buyers firm. A merger could be the most effective and efficient way to enter a new market without the need of creating

Nonfinancial measures can also be used to measure performance. “Nonfinancial, or qualitative, factors also play a role in managers’ decisions and, as a result, can be relevant” (Nobles et al., 2014). In fact, just like relevant financial information, relevant qualitative information provides the same traits (Nobles et al., 2014). Here are a few suggestions for nonfinancial performance measures that the company should take on. Peyton Approved should include customer and employee satisfaction, employee evaluations, provide training for all new and old workers, look at inefficiencies, indefinite assets, balanced scorecards, and even incorporate a reward plan. Incorporating any of these suggestions though will include pros and cons.

find little evidence of wealth creation, with shareholders of the target firms gaining at the expense of the bidder firms. A merger is said to create value, if the combined value of the bidder or target firm increases on the announcement of the merger (Houston et al., 2001) (Ghosh & Dutta, 2015) (Campa, 2004). Moreover, the synergistic gains hypothesis of corporate acquisitions underlined by Isa & Yap (2004) states that, a combination of two firms will result in a combined gain that is, more than the sum of the value of the individual firm. These gains may be attributed to the increasing efficiencies and synergies of the companies involved.

It is understood that Frank is liable to choose any one of the mentioned strategies, so that Calveta is able to double its revenue by the end of the year 2011. Every strategy has got its own pro and cons from which a decision had to be made. As all the options have been analysed, it can be derived that the third alternative is comparatively worth enough to be used rather than the others. Even though it has to bear huge risks, it seemed to be having a great customer potential if it could retain its customer accounts. The problems in taking up the other strategies are cleared out below:

b) Based on Schneider Foods’ recent history, I would reccomend the concentration growth strategy, which Maple Leaf Foods used by buying out Schneider Foods. This strategy will involve Schneider Foods introducing new products on a regular basis. I also reccomend using strategic alliance planning in order to eneter foreign markets, as Schenider Food desires to do.

A non-cash item is an expense charged against revenues that does not directly affect the cash flow.

2 . What are two ways for a competitive firm to determine the optimal level of

I. Introduction 1. There are several basic approaches to competing successfully and gaining a competitive advantage, but they all involve giving buyers what they perceive as superior value compared to the offerings of rival sellers. 2. This chapter describes the five basic competitive strategy option for building competitive advantage and delivering superior value to customers – which of the five to

We can also get data from the stock exchange if the company is listed. For example Hapag Lloyd is listed in Frankfurt so values of the value of their shares and their fluctuation can be used to determine their financial performance. Since the stock exchange is regulated by strict authorities and its operations are clear. Consequently, this is a very reliable data to take into account.

MARKET LEADER STRATEGIES 1. Expand total market 2. Defend market share 3. Expand market share

Since the Balanced Scorecard was developed in the 1990’s by Robert Kaplan and David Norton (1992), it has gained in popularity amongst academics and practitioners. In 1990, Kaplan and Norton led a research study of a lot of companies with the purpose of exploring the new methods of performance management. The importance of the study was an increasing belief that the financial measures of performance management were not as effective as before with the development of modern business enterprise. Representatives involved in the study companies, including the researchers Kaplan and Norton, were persuaded that the reliance on financial measures of performance had an effect on their ability to create value. After

The measure of performance in such situations is based on the efficiency of the resources of the organization in leading to the achievement of the goals. The measure of the level of attainment of goals by the different individuals, teams or departments in the organization and the different processes employed. It is believed that many firms performance is the result of poorly performing assets (business). The effect of strategic errors resulting into low performing assets from earlier acquisition provides a position needing improvement. For example, some firms acquire business with unrealistic expectations of achieving synergy between the acquired assets and their current set of assets. A common reason for search error is managerial hubris. Appropriate performance measures are those which enable organizations to direct their actions toward the achievement of the strategic objective of the organization. The measure of performance is through subjective and or objective means. Subjective employs the difficulties sighted in collecting data on qualitative performance of the organization to the reliability on the data originating from the different accounting methods employed. The objectives of performance measure include profit growth, revenue growth, return on capital employed and other financial measures include value of long-term investment, financial soundness, and use of corporate assets. However,