I have been hired as the controller of ABC Company, and the CEO has set a target sales goal of 3 million in annual sales over the next three years. The three million dollar sales objective is more than double where the company is at in sales today. This is an aggressive strategy which needs to be examined in terms of its perceived risk factors. There are several factors that impact the success of this strategy, and those risks will be discussed here.
The Risk Profile of ABC Company
The first and most obvious risk is that the new product(s) will not meet the expectations of the customers. Another risk that is involved is that once the new product line is launched, local competitors may introduce it into their product line as well. A risk that also should be considered is how the new product line will impact the cost of production. New products are going to require new raw materials that are provided by suppliers. Will the same suppliers that are used with the company today be able to be utilized for the new materials or will new contracts with different suppliers be needed? The CEO wants to utilize some of the scrap resources that ABC already possesses, but it is unlikely that this amount of material will be enough to depend on solely.
Current Company Cash Flow
ABC Company
CASH FLOW STATEMENT (Direct Method)
December 31, 20X2
Received from customers $ 1,260,000
Paid to Suppliers $ (830,000)
Paid for expenses $ (250,000)
Paid for taxes $ -
3. You are an ambitious manager in the sales department of a company and have just received the upcoming year’s targeted earnings report. You are concerned that top management has set revenue targets for your division that are practically unreachable. However, anticipating a promotion to vice president of sales if your division maintains good performance, you are determined to reach management’s goal. What actions would you take to satisfy management’s expectations and still maintain your
Finally, in order to complete a more accurate comparison between the two projects, we utilized the EANPV as the deciding factor. Under current accepted financial practice, NPV is generally considered the most accurate method of predicting the performance of a potential project. The duration of the projects is different, one lasts four years and one lasts six years. To account for the variation in time frames for the projects and to further refine our selection we calculated the EANPV to compare performance on a yearly basis.
1. Why are Houston Fearless 76, Inc. (HF76) managers unhappy with the company’s existing sales incentive plan? Are weaknesses in this plan a major cause of the company’s performance problems?
Luke is an employee of ABC Company. He has been assigned to a construction of an adult entertainment retail store within a neighborhood his brother, Owen, lives in. The development of the retail store has not been made public yet and will be announced one month from today. This announcement will decrease the property values of the surrounding areas significantly. Owen is trying to sell his house. He told Luke that he recently received an ‘okay’ offer. However, in hopes that a better offer might be present itself in a few years after the real estate market improve, he has not taken the offer yet. Luke is very close to his brother, which makes him concerned about his confidentiality obligation to ABC Company.
Review of ABC Company and the directions it is targeting. The strategy of the company is to lift the expected sales in an aggressive fashion, with the expected end target being to triple the current levels. The plan is to push sales into the targeted range of $3 million within 3 years versus the current amount which sits at $1.2 million. We will identify the perceived risk factors that may impact this aggressive strategy and its successful execution. The following will be those risk factors:
1.What are conversion factors? Why were conversion factors developed? How do they impact on which bond is cheapest to deliver? Under what conditions would there be no cheapest to deliver? Explain in detail.
Weaknesses: Massive delays in production. Abrogation of contract with current supplier. Extensive training costs for new products. Extensive project-management costs to deploy new product. Substantial increase in customer churn due to offering different product. Possible negative press in foreign market. Possible domestic layoffs due to change in product.
The company’s image will influence sales, which in turn will affect Huffman Trucking stock price. The senior leadership team is concerned with losing some of the key players in the research and development, sales, and information technology departments. In addition to the issues with employees, some of the
Launching a high risk/ high return business is not a simple process. There are several key factors and criteria that need to be met in order for your venture to have a chance. Ignoring them would most likely result in complete failure, and this is why a large number of startups fail in their early stages. This simulation is meant to help me identify the key pitfalls and factors of success.
ABC, Inc.’s new campus recruiter Carl Robins has found himself to have over looked some important details of his new hires orientation. If he can’t resolve these issues in a timely manner, Carl will not be able to hold orientation June15, like Monica wants. The deadline is closing in and there are some problems that need quick solving, since Carl is new to his position, he is still worried that he may not have the answers to fix the issues at hand. Seems Carl may not have been as organized as he could have been and necessary key aspects are missing. He finds himself frustrated and knows there is very little time to get these things done. Staying focused and calm, while being pro-active will make finding the solutions that much easier.
Canadian based company, Saralyn Mills, is in need of a new marketing strategy to repair the current shortage of sales in Quebec, Canada. According to the case study, the Quebec and Ontario markets account for 69 percent of the company’s sales in Canada. Currently, Saralyn Mills does not have an effective strategy in place for the market of Quebec. The company’s current goal is to implement a global standardization strategy, which is focused on keeping a set marketing strategy the same for every location. It is up to the marketing manager, Nicole Vichon, to come up with a new and separate marketing plan for Quebec. Even though this would be a major policy change from the current global strategy of Saralyn Mills, case facts prove it could be very effective.
We are providing below the assumptions and other calculations we used while computing the WACC and the cash flows.
In January 2006, company-owned bottling operations were brought together to form the Bottling Investments operating group, now the second-largest bottling partner in the Coca-Cola system in terms of unit case volume.
For any corporate risk management program, there are a number of factors whose absence signals an increased likelihood of failure for the risk management program and whose presence greatly increases the chance for success of the program (Hillson and Simon, 2012). These factors, called Critical Success Factors (CSF), include the following:
J Sainsbury plc is the third largest supermarket in the United Kingdom. J Sainsbury plc is engaged in retailing and retail banking. The Company includes Retailing, Financial services, and investments. The company offers different kinds of groceries, for example, fruit and vegetable, meat and fish, baby and household. Sainsbury 's Bank provides lots of products, such as insurances, credit card and loans. Not only risk profile analysis and value analysis of the Sainsbury’s could help people to decide whether people can trust the company and buy stocks, but also it is beneficial to Sainsbury’s understand the company 's operation status. So it is necessary to analyse risk profile and value of the Sainsbury’s company. This essay will focus on the analysis of the agency problem on Sainsbury’s company, analysis of the business risk of the Sainsbury’s company, analysis of the financial risk of the Sainsbury’s company and analysis of the Sainsburys company’s value. this essay will provide some possible solutions to this issue. This essay will attempt to show that the Sainsbury’s company and provide some recommendations in order to develop better.