Although the company did show an increased gross profit of $8,255,000 with $6,358,000 less Net Sales in 2013 versus 2012, that increase is due to the reduction in product Cost of Goods Sold by $14,613,000. Since increases in product price will negatively affect sales, one of management’s primary goals is to keep prices stable. This objective is achieved through implementation of cost cutting programs, investing in more efficient equipment, and automation of more steps in the production process.
Often times, a single factor can cause a business to lose profits. A business analysis done at the restaurant Munchy’s, showed when 80% of the customers were adults, a revenue of $32,000 was brought in. However, when 73% of customers were teenagers, only about $12,000 was made in revenue. There was a $20,000 loss
Nordstrom has done a lot to their technology department since 2009 to compete with competitors in the online market. If there were ideas that I could suggest for them, I would say that in their search area on the sites, they can still add more functions, such as a rating system where customers can rank the product on how good it is. Companies such as Macy’s and Nike have a customer rating system for clothing, so buyers know which products are being liked and which ones aren’t. Also, in the online inventory, Nordstrom needs to include which products are new, and which ones are old because it is not listed on their site. Companies such as Nike, Banana Republic and Macy’s all have a “new arrival” tab on their website while Nordstrom does not. Those would be the only inventory management overhaul ideas I would recommend to them. As far as stretch goals are concerned, I
One of our concerns regarding the expansion of MMDC’s clothing line is the company’s inexperience within the clothing industry. NHDC will have to compete outside its current niche of dolls and accessories. The fickle nature of children’s fashion trends requires that the management keep up with current market trends, in order to maintain its premium pricing.
Recently, due to decrease, in sales Company Q had to close two stores in high crime rate areas. Those closures where due to the result of months of losses in profits from those two stores. If those stores, in higher-crime areas were
Nordstrom faces the same challenges that other retailers are facing in the current retail climate. Their number one challenge would be the downturn in the economy. Especially since Nordstrom sells high end products. However, Nordstrom meets this challenge head on by making
Many people have stayed away due to the teens who began to come to munchy’s during the school year. When the owner of munchy’s says he began to lose the most amount of money. He did a business analysis
In regards to your concern towards the newest store, I have come up with two solutions to remedy the complaints against poor service interactions that the customers receive from cashiers, the sales floor and issues with apparel. These two strategies can help resolve the current problems and allow Flagship Apparel to be the best athletic destination it can be for our valued customers.
On February 26, 2016, AP closed a markdown case at the Bay St-Bruno store for a value of $75.68. The associate was observed during live surveillance giving unauthorized discount to his friend. Further investigation and also an associate complaint revealed that that associate had forced another associate to give him 2 unauthorized discounts on his personal purchase. During the interview he admitted given and received those unauthorized
After read the article I have better understand how to analyze the Gaston’s hiring of Decarlo as COO. Gaston’s has been very successful in her business and her organization has been grew so much then in October 2006 she realizes that she need a president and COO for her organization, because the organization has been expand. She create the position with job description that will help her company to become more successful. For this particular position Gaston raised her expectation what she wants and what should be the requirement for the COO position. These requirement was for COO to be in charge and responsible for manager supplies, retailer and partnership then to overlook the quality control in order to make sure her products was the disserved
After reading “The Situation,” there were a couple of different reasons that I could think of as to why there would be a decline in revenue for the soft drinks at Henry's store. For one, Henry had thought that the price for his soft drinks were going to be the difference maker between his store and his competitors. However, that would not be the case. When the two new competitors came into this local market and Henry decided to discount his soft drinks, the competitors would actually follow his lead. Which would hurt not only Henry’s store, but his competitors as well because all of them might have actually reduced their total soft drink revenue. A second thing that Henry did not consider with this soft drink promotion was the season in which he ran it, which in this case was the summertime. By not taking this into account, it created a dramatic impact on the demand for his soft drinks. A final thing that Henry did not consider with this soft drink promotion was the difference between special discounts vs. permanent discounts. By not taking these two promotions into account, Henry would see that the expectations for his customers would slowly decrease instead of increase. Overall, each one of these motives could be the reason why there was a decline in
The operating income of Snells retail department store is better than budgeted by $168,000. The factors that are attributed to this is the total of actual delivery and credit & collection expenses of $15,000 which is less than budgeted. And the selling and promotion expenditures that were $51,000 less than budgeted for the actual sales volume. The management should investigate these differences. Either unusual savings have been achieved, or the budget estimates are not realistic. Management should also carefully investigate its advertising strategy to see if the “savings” in selling expenses are having a negative impact upon sales and gross profit. These factors were offset in part by the total of building occupancy expenses, buying expenses,
2. Starbucks enjoyed strong financial performance in 2011. The company did not explicitly attribute this, but with an 8% rise in same store sales it seems that either the consumer market bounced back, or Starbucks made changes that attracted more consumers. The company feels that it offered better products and a better experience at its stores. The company also credited operating efficiencies and tight control of spending for improved profits. In addition, the company continued its global expansion, which improved the top line, and used the economies of scale it generated as part of its cost control program.
In addition, the self-service display at the shop is compromised with dependability (the pilferage by children directly affect the stock availability) due to a lack of automated security systems.
Match My Doll Clothing Line (MMDCL) is a successful existing line. Since it is a seasonal line for warm weather only, the proposal is to create “All Seasons Collection”. Marcy McAdams, the line’s brand manager believes project’s success, because of existing popularity of the line and moderate risk. She argues that new products will be profitable as existing ones, and that the company could obtain some discounts from suppliers lowering costs. She also forecasts a relatively large initial investment, but 35% of it is tax deductible. McAdams thinks these expenditures will be recovered quite easily because of the line’s popularity.