Grandma’s Best currently has a broad product/narrow- medium market focus. The firm offers products in all five categories within the confectionery industry (chocolates, soft candy, hard candy, holiday specific chocolates and biscuits/cookies). Grandma’s Best primarily targets the middle to higher end retail outlets and gourmet shops. Grandma’s Best has .05% market share of the United States confectionery market which consists of three considerable players. Mars, Inc. owns 30.2% of the market, Hershey Company owns 27.7% and Kraft Foods, Inc. owns 7.2% followed by other companies who own 34.9% of the market. Grandma’s Best has a good market performance with a 4.62% compound annual growth for the period of 2013-2015, that is greater than the …show more content…
Grandma’s distributes its products throughout the United States and has started to expand internationally. International sales make up around 6% of total revenues, of that total revenue Canada makes up 91% of sales. Imported goods: biscuits and hard candy make up 50% of total sales. They are 10% higher on cost of goods sold but have little overhead. Agreements with manufacturer suppliers that do not allow them to export products similar to what they produce for Grandma’s to any other firm in the United States. Diversification in raw material suppliers insures that Grandma’s will not be dependent on a single source. Grandma’s utilizes five bonded public warehouses that specialize in food and confectionery storage, selection based on: proximity to customers, ability to provide prompt customer service and efficient and economic delivery. Grandma’s takes the stress of consistency in supplying due to environmental factors off the suppliers through consciously choosing to diversify their supplier network. Grandma’s does not limit the sales of similar products produced by their manufacturer suppliers entirely, these suppliers can still sell to any nation other than the USA. This allows these manufacturer supplies leeway to make additional capital off of excess products produced. Another positive situation for both parties. Grandma’s has worked out the best …show more content…
Their current ratio is 1.4% (total current assets/total current liabilities). According to the Risk Management Association of Financial Ratio Benchmarks, the current average ratio is 1.5%. In 2014, the current ratio for the firm was 1.46% while the average ratio in the industry (NAICS 311330) was 1.6%. The company’s net property and equipment in 2015 is worth 2.6 million dollars, a slight increase from 2014, which was 2.3 million. The company is considering taking on some debt to increase their production capabilities. Their three options include a loan (sweetheart), bonds or an IPO. The firm has expressed interest in the first option (loan). This appears to be a good fit as they have decreased their long-term liabilities from previous years and if they want to expand, extra liquidity will be needed. The firm’s current line of credit is about double what it normally is and the payments on their remaining long-term debts are going to increase through the next four years with a balloon payment due in 2015 of $642,000. The increased current line of credit is due to the recently added production lines and only carries a 4% interest rate. Overall, the increased debt is justifiable as they are producing a lot more, but it does hinder their liquidity and ability to take on more debt. In 2015 the company had a gross margin at 30.8% which was higher than the industry. This is a good indication that the
They have a high brand awareness, history of product excellence, high contribution margin, and customer loyalty. They hold 50% of the market share on steak sauce as well as 10% of the market share on marinades after only one year. Their downfalls as a product are that they are a small niche market, meaning they are limited to only steak. The steak sauce market division is mature, and there is an operating loss from marinades.
Tootsie Roll Industries have implemented several internal growth strategies to ensure company success. First, Tootsie Roll has engaged in market penetration through their advertising campaigns on television domestically and internationally. Second, the company has used market development by extending their sales efforts into international regions, such as the Far East and Europe, and through expanding their sales efforts in warehouse clubs. Third, Tootsie Roll has used product development by creating new package designs for its Warner-Lambert products. Fourth, Tootsie Roll has used vertical integration by using corn syrup as a substitute for sugar and creating its own refinery.
Though they have many strengths, every great business also has weaknesses; Walgreens is no exception. Their first weakness is that the company only operates on American soil. Being limited to America limits their customer base as well as reduces their chance for a larger market share. Their second weakness is that the company is highly vulnerable to government regulations and pricing controls. Since a large part of their business is medical based, the government has a large amount of control over the company.
Index Page Introduction 2-3 Review of Literature 4-7 Process of findings (Source-based Essay- Rough Draft) 8-13 References List 14-15 Introduction- What significant
¥ Known for whimsical, colorful products ¥ Founded by Kate Brosnahan Spade in 1993 ¥ Set out to design the perfect handbag ¥ Opened first storefront in New York City in 1996 ¥ Sold in 2007 t0 Kate Spade & Company (formerly Liz Claiborne) ¥ Deborah Lloyd serves as Chief Creative Officer ¥ Currently sell Women’s and children’s Clothing, Handbags, Shoes, Accessories, Fragrances, Eyewear, Swimwear, Home Décor, Stationery, and Gifts ¥ 140 Retail stores in the US; 450 Worldwide ¥ Sold on every Continent ¥ Kate Spade acts as supplier to its wholesale partners (high-end department stores) ¥ Suppliers ¥ Li & Fung (sourcing) ¥ Offshore manufacturing ¥ On Purpose collection employs women in the Rwanda to hand craft the product line in an effort to give
As with any company Hill Country Snack Foods has goals and objectives they want to achieve. CEO Howard Kanner always had the shareholder in mind, when decisions are being made he always made it a point to keep the shareholders in mind. The goal of this was to maximize the shareholders’ value. Kanner made strategic decisions that grew the company’s ability to efficiently increase the amount of free cash flow over time. An objective that was used in order to accomplish increasing shareholders value was to avoid debt and fund investments internally (Stephenson, 2012, pg.2).
STUDENT NAME : MOHAMED ATEF YASSIN ID : 1451510411 Question number one : strengths weaknesses opportunites threats Wendy’s also offered several unique products such as Frostys and Spicy Chicken Sandwiches, as well as many healthy alternatives like salads, baked potatoes and even chili Wendy’s faced difficulties with international expansion. Wendy’s Old Fashioned Hamburgers was considered the third largest fast-food hamburger business in the world . Since its initiation in Wendy’s stores, the value menu had also been implemented in McDonald’s and Burger King’s restaurants in order to compete with Wendy’s.
1 Introduction The main issues in this case relates to a mature firm that does not use debt at all and is not taking advantage of the lowest interest rates in nearly 50 years. William Wrigley Jr. Company makes chewing gum, has a leading market share in their line of business, and yet has no debt. Blanka Dobrynin, a managing partner of Aurora Borealis LLC, wants to see if Wrigley Company can take advantage of and benefit from debt. 2
The company increased its long-term debt from 20 million to over 530 million from 2006 to 2011. This significantly increased its Debt to Equity Ratio from 0.18 to 1.17 over the previous fiver years. The increase in debt also hindered the company's current ratio and interest coverage ratio as time went on. As seen by the debt covenants and the decline in AP days, creditors began to feel uneasy about the amount of debt being taken on by the company. In a relatively short period of time a walnut distributor had taken the snack segment by storm and was poised to make a multi-billion dollar bid for Pringles.
Answer: As I am assigned with a question to pick 2 brands of same category and compare their brand elements in terms of their memorability, meaningfulness, transferability ,protect ability and adaptability so I selected Haagen Dazs and Ben and Jerry’s ice cream. Although Haagen Dazs and Ben and Jerry 's sell the same product and they are strong competitors, their products include variety of flavored ice creams and frozen yogurts. However, in terms of internationals presence, we can say that Häagen Dazs operates in 70 countries whereas Ben & jerry’s operate only in 35. Now let us compare their brand elements in detail that makes the two brands different and unique from each other in terms of their special characters and features. BEN AND JERRY’S
Introduction As the world we live in today continues to flatten, new channels begin to emerge across the globe. The technological age that we live in today has forever changed they way retailing functions, creating new opportunities for international success. However, the thought of internationalization can be daunting for many retailers, especially due the large history of retailers who have expanded internationally and then failed. Although this type of expansion can be overwhelming, if done properly, the new retail format can generate a great deal of success for the retailer.
When needing an MOT Service in Gatley one needs to look for an all in one solution where all the stringent requirements of a thorough test can be completed. Often it is more than one problem that needs to be seen to and driving around from centre to centre to make the necessary repairs and adjustments isn 't an economical approach. A comprehensive MOT service centre should be able to bring your steering system up to current safety standards. The braking system should be another integral part of the companies services as safety is the main part of the concern for an MOT service.
Strategic planning for retention of nursing staff using SWOT analysis. Strengths and weaknesses are often internal to organization, while opportunities and threats generally relate to external factors. For this reason, SWOT is sometimes called Internal-External Analysis and the SWOT Matrix is sometimes called an IE Matrix. The first step in SWOT is strength of the organization for retention of nursing staff. To develop a retention strategy is identifying the factors that motivate nurses to stay.
Flip Factory is highly leveraged as evidenced by a debt ratio of 0.86 in 2013. This means that 86% of the company is financed though debt instruments. While this is ratio is down slightly from the previous year (2012), demonstrating that Flip Factory is slowly paying back its debt, this is still a very high debt ratio. Additionally, flip factory has current ratio that is greater than one (Appendix A) which demonstrates that Flip Factory has no working capital at this time. For these reasons it would be unwise for Travis to go further into debt in order to expand.
PERSONAL SWOT ANALYSIS To be successful in today’s modern world. It is essential for one to identify his or her strengths & weakness including opportunities & threats that are presented by knowing these four aspects, its possible to use them for our advantage. If person knows his or her strength & opportunities they will know where to tread with confidence as well as security. However, if can know the weakness & threats of them, then its possible for them to focus on those areas to improve and overcome obstacles posed by threats in an individual’s life.