The Wrigley Company The Wrigley Company In this paper I will discuss the Wrigley Company and how it became one of the most recognized and largest branded companies in the world. When you think of Wrigley people tend to think of the gum products it is now for, as well as the commercials we all have grown to love over the years. Remember the double mint twins, what about, Juicy fruit, even big red- all are a part of the every expanding brand of Wrigley. One of the many achievements the company can tip its hat too is being able to say that it lead all gross product sales in the year of 2007. This is a major accomplishment considering that the US is one of the largest consumers on the planet- so the competition is fierce. But overall …show more content…
This was all taking place during a time where hope, ambition, where all but a memory- as during the Great Depression he took the company one step further, continuing to push the envelope by setting minimum wage levels high enough that his workers could make a decent living and live with dignity- not to mention Financial Security. This was considered a very risky move as increasing the company’s bottom line was his fellow management teams focus, but William was ahead of the curve and knew that a happy worker is a better worker and the move productivity you would get out of that worker in return. So he knew the return on his investment would pay dividends for years if not decades to come. Wrigley took chances in order to make it the success it is, he even has a baseball field named after him. Wrigley began to expand to such items as lifesavers candies which also came in an assortment of flavors, which was purchased from Kraft products. Wrigley mission and value statements are what make them one of the greatest companies in our history along with Kraft and Johnson & Johnson and Budweiser. Wrigley offerings include mostly consumable products which are the backbone force its consistent success. Now that the back story has been adequately explained, we will go into evaluating the financial leverage and liquidity of the Wrigley Company. If a firm wants to be profitable it must link key success factors with its key accounting policies. One of Wrigley’s key success
At the beginning, in Chicago 1891, the father of Wrigley’s company, William Wrigley Jr. was selling soap. With every sold soap, he was giving to his clients some baking soda. When he detected more interest in his baking soda rather than in his soap, he decided to change his merchandise. To incite people to buy baking soda, he was giving out free gum.
- The Wrigley Company has many loyal customers. As company expands their customer base and gain experience satisfying their customers grow normal to the business achieve a certain task for them. The company or product’s brand name may even coordinate with the task the customer uses it for. In fact, as long as customers continue to be satisfied with their purchase, the act will brand the company to achieve a certain task to be normal. To deal with the challenge to improve the availability of products with the latest technology combined with in-depth analysis, Wrigley not only increases sales in the short term, but also experienced customer loyalty where it is the key to maintaining the income and money market leadership.
Before reading this book, I had no idea about the story of Walmart or who its founder was or anything like that. All I knew was that Walmarts are huge and everywhere you go. After reading this book, I learned that Walmart really did start from the bottom and came out of nowhere. In addition, I learned that a reason Walmart was successful was because Sam Walton wasn’t a risky man like most greedy business owners who want to make as much money as fast as possible “Sam never did anything in size or volume until he actually had to. He played it close to the belt”(Walton 89). He was careful with his money and considered all his options before making any decision. Another thing that really stood out to me was his policy on giving back to his employees
The Wrigley Company is a market-listed US company. And it has more than 40 Branch offices or factories all over the world. William Wrigley Jr. established the company in Chicago in 1891. In the beginning, the company was selling soap and baking powder. One day, Wrigley decided to change his business to chewing gum.
I decided to do more research on William Wrigley since he seemed to come up on about all the links I scanned over. He was the billionaire great-grandson of the founder of chewing gum. He introduced chewing gum products in new markets including Brazil, Asia, Latin America and other regions. There are international sales account for more than half of Wrigley’s $2 billion in annual sales. The company sells gum in 140 countries. Sales last year rose up 11%. Sales in the U.S. were flat in 1998, reflecting a domestic gum chewing market which isn’t growing said a analyst William Leach of Donaldson Lufkin & Jenrette Securities. He stated “Wrigley is a financially impeccable company,” (Keeton- by William Leach).
It is common to view share price, annual reports, or any bit of information that you can get your hands on in order to gain a clear picture before you invest. The report you are about to read will discuss the financial aspects of BJ’s Restaurant and Brewhouse in order to make a recommendation on whether to or not invest in the company.
Not only was P&G recognized and awarded for their contribution of marketing effectively and using their platform for good, but the multiple millions of views demonstrate the magnitude and importance of the message and its acceptance. The brand found its purpose, recognized the need to communicate it to the world, and understood the importance of unusual media placements (Solomon, 2017). The company took a negative view and transformed the mentality; further influencing other brands to do the same.
William Wrigley Jr. Company is exploring whether it is optimal to recapitalise with taking on $3 billion of debt. Three options are revised; borrow and repurchase shares, dividend payouts or continue to function with full equity. Debt will provide a tax shield of $1.2 billion given the tax rate is 40%, this should increase the market share price to $61.53 per share. The viable method for the company is to utilize this debt to repurchase shares. The will not only increase Wrigley’s market value, via the debt shield, but also signal to market that management believes Wrigley’s is undervalued, something the dividend payment won’t achieve.
Introduction This assignment is based on the Pillsbury case study; Pillsbury Cookie Challenge written by Natalie Mauro (2011). The aim of this paper will be to discuss the opportunities Pillsbury can utilize to improve their performance in the refrigerated cookie market. While answering this question, I hope to asses the most promising target markets that were presented in the Pillsbury case study, as well as how research results can inform branding decisions and what type of communication plan would be the most effective for the company and their refrigerated cookie segment.
As we look at our leverage over the years, the company objective was to take on as much debt as possible during the first couple years, issuing both long-term debt and equity. However, our leverage remained lower than our main competitor, Digby as shown in figure 2. It is also noted that our competitor began to pay off their debt starting at year 5, which led to large increments in the stock market price while our company fell behind in repaying debt as well as buying back common stock as we began to make profits.
This case describes sales promotion strategy at frozen foods maker Giant Consumer Products. The case focuses on the multi-disciplinary facets of brand management and sales promotion. Started with background analysis, problem statement, problem analysis, identification and assessment of alternatives, and recommendation and implementation.
The debt interest coverage ratio is EBIT/Debt Interest. The interest on the debt is $390 million as calculated above. The EBIT in 2001 is $527,366,000. So debt coverage ratio is 527,366/390,000=1.35 If Wrigley’s gets a non-investment grade rating then their financial flexibility is severely limited.
Aurora Borealis LLC is a hedge fund that has around $ 3 billion under management and they are currently targeting William Wrigley Jr. Company to make their next investment. William Wrigley Jr. Company is the biggest chewing gum manufacturer in the world and it has no debt yet. Aurora Borealis is trying to convince Wrigley to do a
In June 2002 Blanka Dobrynin, a managing director of Aurora Borealis hedge fund, considers the possible gains from increasing the debt capitalization of The Wm. Wrigley Jr. Company. Blanka suggests Wrigley raise the amount of $3 billion in debt of the capitalization while Wrigley has been conservatively financed and remained no debt at the end of 2001. This report is aiming to analyze whether Wrigley should use $3 billion debt recapitalization to either pay dividends or to repurchase shares.
Blanka Doborynin a managing partner of AURORA BOREALIS LLC tries to initiate a research for a potential investment in Wrigleys. They are trying to recapitalize the firm. Wrigley’s which is 100% equity financed has a market value of $13,103,000,000 the question begins if it is totally equity financed is it running at its efficient level? Or Is it better to recapitalize the structure and thereby bring out more efficient operational levels. They are planning to get a debt of 3,000,000,000 using it to extract the profit out of the low risk (BBB) forecast that the company possesses. They are potentially investigating, if it is good to recapitalize