In the wake of the financial crisis of 2008, many department stores struggled and were still able to remain in business while other department stores could not keep afloat and had to close their doors. By the end of 2008 the world 's major economies were in recession. This led to almost two million jobs lost in the U.S. This also resulted in the rate of unemployment rising to 7.2%. Due to the huge amount of layoffs taking place, the monthly income of families were dropping causing for dramatic cutbacks in consumer spending.
Massachusetts Stove Company return on Common equity ratio has fluctuated from 224% in year 3 all the way 32.6% in year 7. This change occurred because of the companies change in capital structure leverage. The reduction in the company's long-term debt and reduction in their deficit of retained earnings reduced their capital leverage, but this does not mean they are less profitable. Massachusetts Stove Company maintained a stable profit margin for ROCE from year 3 to year 7 and still saw increases in their net income. Over the past five years, the company has strategically crafted a niche market that is difficult for competitors to enter.
Global strategy is an international strategy that implements by a company which they doing their business in different countries. Internationalization is a process for IKEA expand its business and it was quite important because through the internationalization process, IKEA was able to gain a broader area of marketplace to sales their products, which will lead to profit and revenue increased and new market places existed mean new opportunity for IKEA to improve their product in order to meet the customers’ needs. The first reason that IKEA should go to international level is because the Swedish market is small and no enough for IKEA to expand itself. This is important for IKEA because the small market mean low opportunity, lower profit and
Lowering tax rates was another economic change that people said lead to the recovery. Unemployment went from 10.8 percent in December of 1982 to 7.4 percent in December of 1984. Inflation fell from 10.3 percent in 1981to 3.2 percent in 1983. Industries that were hit the hardest during the recession made dramatic improvements; these industries were paper and forest products, rubber, airlines, the auto industry, construction and manufacturing, and the savings and loans industry. During the recession and towards the end of the recession in 1983, President Ronald Regan’s approval ratings were at an all time low.
COGS increased which impacted gross profit and operating profit margin was also negatively impacted. Slow increase of sales also was not enough to support their expansion plans. Their interest expenses increased on their long and short term loans. This caused sweet dreams to have decreased earnings for their common stockholders. This is another indication that the company is not performing well.
Extra duty was charged on items like lead and glass. In fact, the average tax on the British people became four shillings for each pound. Trade between Great Britain and the thirteen American colonies also collapsed, causing many British business people to suffer financially. The overseas market also dried up. Income from the sale of metal and woolen products also dropped sharply because overseas trade decreased sharply during the war period.
The Similarity is that people lost confidence in banking because many banks had to close in the depression, and some had to close because of the recession in 2008 as well. In both situation you could see the terrible conditions of the economy because of rising unemployment rates. In 2008, the unemployment rate had reached 8.1 percent, but during the time of the depression it reached 25 percent (State). Both had bad unemployment rates, but you can also see that the recent recession was not nearly as severe as the depression. Government put policies and programs into place to prevent a depression from happening so severely again which is evident in the unemployment
For concentrated marketing, Nanda can focus all resources on promoting and distributing in the specific market segment which can increase effective use of resources, bringing the most efficient outcome. It also reduces direct competition with competitors as she focuses on a smaller market. However, risk diversification is not likely in concentrated marketing, as in a smaller and targeted market. If the demand declines in that market, it has a direct effect on revenue and the profitability. For product differentiation, Clocky is a new and advanced product that it is hard to have similar products to compete.
Between 1965 and 1980 number of community hospitals increased from 5,736 (741,000 beds) to 5,830 (988,000 beds) and the admission rate has increased from 130 to154 (AHA, 1990). Role of Government in the Decline of Hospitals There has been a tremendous shift and downfall in the hospital growth since the mid-1980s to almost 2005 and this shift is because of decreased utilization of inpatient services and increased use of outpatient services. The three main forces responsible for this shift are the changes in hospital reimbursement, the impact of managed care, hospital closures (Shi. L and Singh. D, chapter 8, 2015).