HERBALIFE
CORPORATION
Research Proposal
ECO 595
Applied Business Research
Suhas Raj Gedda - 50202133
Texas A&M University - Commerce
CHAPTER 1
Background:
Herbalife International (NYSE: HLF) is a multi-level marketing corporation that develops, and sells sports nutrition, weight management and personal care products. Herbalife’s product line includes several protein shakes; snacks; nutrition energy and personal care products like fitness supplements. Currently the most popular way of doing business is through Nutrition Clubs (Shops in densely populated areas).
As of May 2016, Herbalife reported net sales of US$4.488 Billion and a net income of $260.0 million. Federal Trade Commission (FTC) raided the company claiming that several
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HLF’s three-year net profit margin average is about 6.54%. The company took a hit of $1 billion short in HLF stock. Companies vision to change people’s lives by providing opportunity to improve their health and financial well-being and expand and market the company to each and every health conscious person all over the globe drives the interest to conduct the business research.
Problem Statement:
Due to several critics, the company took a hit of nearly $1 billion loss in their sales. After the FTC raids the company brand image diminished even further. As result Herbalife reported a net sale of $4.5 billion which is nearly 20% less compared to previous years. The product line up has also been reduced where-as the competition plans to launch more line ups this fall.
The Purpose of Study:
The purpose of this study is aimed
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The brands overcame the problem promoting safety practices with mobile phones. (The impact of smartphones and mobile devices on human health and life).
Michael O. Johnson, chairman and CEO of Herbalife, stated in their website that “As Adjusted earnings for 2016 was $4.85 per diluted share compared to $4.952 per diluted share for 2015. Due to the negative impact of currency, full year 2016 reported and adjusted net income were each negatively impacted by $82.2 million, and reported diluted EPS and adjusted1 diluted EPS were each negatively impacted by $0.95.” Cause there are so many allegations that some of the Herbalife products did not meet the health standards in certain way, negative publicity was done and the impact was on
Net Sales – totaled $4,485,000.00 for year 6, and grew +33.3% or $1,495,000.00 between years 6 to 7.
Based on Talbots filing of the 10-K, net sales in FY 2005 were $1,808,606 compared to $1,697,843 in FY 2004, an increase of 6.5%. Operating income was $152,148 in FY 2005, compared to $142,115 in FY 2004, an increase of 7.1%. Cash flow from operations was 12% of sales, or $211,438 for FY 2005, compared to $155,223 for FY 2004. Total revenues for the year rose 7% to approximately $1.8 billion. Comparable store sales also grew at a modest 2.6%. Comparable store sales were positive in each of the first seven months of FY 2005, driven by a healthy sales performance across the U.S..
Revenue: Net sales between years 6 and 7 demonstrate a 33.3% increase or an increase in approximately $1.5 million.
Although CB had a great year in year seven compared to year six, the numbers are very different when comparing year 8 to year 7. Sales were down 15% in year 8 compared to your 7, which is a big concern, it can be considered as a weakness for CB. In the storyline for competition bikes, it tells us that this was a year where the economy was very weak, and this can account for the sales to drop. A 15% drop in sales is not a good thing for any company. This 15% drop in CB sales is reflected throughout the rest of the income statement when comparing year 8 two year 7. Because the sales were down 50%, your cost of goods sold was also down 14.5%. Your gross profit was also down 16.3%, and these are all contributing factors from having an economy that is weak during that time.
The KPI’s did not provide a better picture for the company except for showing growth in revenues and gross margin, and all the results were unsatisfactory (Appendix B). The net loss per share also rose to 61.8 pence per share from the last year figure of 20.84 pence per share.
Sales (in millions) As reported (nominal) Adjusted (real) 2007 $178,199 $178,199 2006 $171,179 $176,019 % Change 4.10 1.24
In the latest figures released for the third fiscal quarter of 2016, Net sales increased 1.1% to $5.00 billion from $4.95 billion in the prior year's third quarter. This was the Company's 35th consecutive quarter of positive same-store sales with a 1.7% increase on a constant currency basis.
The 2016 balance sheet shows that this organization had revenue of 12 million dollars and expenses of 11.9 million. Total assets as of September 30, 2016 were 22 million dollars. This number shows that over 19 million dollars are investments.
to 2007 its profit margin decreased by $36 million, and its cost of goods sold increased
At the end of the fiscal year 2000, total company sales reached $191 billion dollars. This was an increase over the previous year of 15.9%. Total international sales amounted to $32 billion dollars at the end of the 2000 fiscal year, which was an increase of 41% over the previous year.
February 2012, J.M. Smucker Company 's gross margins in the third quarter fell to 32.6 percent, from 37.4 percent, a year ago, as a result of higher cost of green coffee, edible oils, peanuts and flour. The Company 's third quarter profit fell to $116.8 million, or $1.03 a share, from $132 million, or $1.11 a share, a year ago (Dalal & Nair, 2012)
Did you know that the cancer government, the federal communications commission’s says that hundreds of millions of Americans uses cell phones, and cell phones can cause you to have brain tumors? Did you also know that both adults and children spend most of their time on phone? When using your phone, it might give you a neck problem because in respect to cancer, concern focuses on whether cell phones might increase the risk of brain tumors in the head and neck area. But let me tell you something, as many of us use our phones daily, do we ever stop and think it might affect our body? No because we are so into social media and playing games that we don’t have time to think that it’s going to affect us. People say that phones are safe and other say they aren’t. I say that they can be safe at some time it can also depend what you do, and how long you use it for. Therefore, many of us get distracted easily and it’s pretty hard to get back on track. In 1973, the first portable cell phone was discovered, due to the cause that cell phones may not be safe at some time cell phones are also very important because in case of an emergency you will have a device with you.
Having people feel good about themselves is truly a sight to see, especially when you have been told you’re the reason why. It wasn’t the workouts nor was it the nutrition I was enjoying but it was the amazing feeling that I went home with and that is when I knew starting off my own branch off this company is what I wanted to do. With Herbalife they’re many different aspects that come with this company. It includes: becoming your own distributor, recruiting/signing people up under you, reaching your goals, maintaining those clients and so much more. As you may not have to go to school for this type of career studying things such as business administration, marketing, and management will strengthen your knowledge about the companies benefits. As far as my plan with this business goes I plan to open up my very own location with my own set of clients, coaches and nutrition.
The purpose of this study is to determine the influence of cellphones to humans’ lifestyle,
In today's society there have been numerous advancements to help us in our everyday lives. One of this advancement is cell-phones, which is one of the greatest development in technology. We have become dependent on mobiles phones and it seem like a high percentage of the population including elderly people, young adult and even kids under 18 have one of this devices. There are numerous advantages and disadvantages related to cell phones. In one hand there is the importance of being communicated for emergencies, business, social and personal purposes. On the other hand, the usage of cell phone had become addictive to people of all around the world and the abuse of prolongated hours on the cell phones can cause health hazard. Cell phones