Although the transactions occurred after the end of the first quarter, since it was the weekend, the money was not noticed. The total was $2.2MM and increased fiscal year reported profits by $2MM. Result: 14% same stores sales increase YOY, and 10% YOY for Jan & Feb rather than the expected 4%. o Eddie & father sold $30MM in stock after the sales figures were released but before auditor reports regarding store profits were released. • 1986: Inventory
The uniform cost of the product is decided irrespective of the plant. In this process all new technology plants would benefit as cost reduction is less than Pontiac plant. Analysis of Alternatives proposed by Noelle Allen(forecast of changes in the situation): 1>Close the plant as soon as possible and transfer product group 1 and 2 to other plants: As one of the most important features of setting up any business in catering to the customer demands , by simply closing the Pontiac plant is an invalid solution to the problem as Product 3 is in demand for a specific group of customers . If we consider this strategy as the solution to the problems faced by Pontiac plant, the total variable overheads for all other plants where the products were transferred would definitely increase and henceforth contributing to a decline in profits. Pontiac plant is centrally located near headquarters of HED and this location contributes a lot to the innovation and creation of new products where engineers and marketing people came up with new ideas and products.
Moreover, its supply chain initiatives are expected to deliver around $2.00 billion of net savings on annual run rate basis. Its supply chain initiatives such as rate reductions, greater equipment standardization, project re-scoping, and timing optimization are enabling the company to better negotiate cost reductions from suppliers. More importantly, the company is reducing its operating costs. CVX has reduced its operating as well as G&A costs by over 12% in the third-quarter to $6.6 billion from $7.5 billion last year. Also, it lowered its exploration expenses to $315 million, a reduction of 14% as compared to $366 million last year.
The drug maker forecast full-year adjusted earnings per share of $10.23 and $10.33 on total revenue of $10.4 to $10.5 billion. The projection marked a drop from earlier guidance of $11.67 to $11.87 earnings per share on total revenue of $11 billion to $11.2 billion. Looking toward 2016, Valeant said it expects total revenue of $12.5 billion to $12.7 billion, with adjusted earnings per share of $13.25 to $13.75. Financial analysts had expected $12.55 billion in projected revenue and earnings per share of $14.27. The company outlined plans for approximately $2.25 billion in debt reduction in 2015 as it moves toward an investment-grade credit
SYNERGIES Glaxo and SmithKline’s combination was set to generate annual cost savings of £1bn ($1.63 billion) after the third year, of which 25 percent will be reinvested in research and development. Combined Market value $177bn(£107bn) Combined Worldwide Sales $25bn Combined R&D spend $2.4bn Annual Cost Savings $1bn Combined work force 107000 employees SUCCESS/FAILURE OF THE DEAL In the first year of post-merger, GSK claimed 12% increase in pharama industry, with the help of cost savings and disposal of asset. Health Care grew by 3%. The merged entity did not benefit from the combined R&D spend and kept on buying other smaller firms patents. Instead of creating a powerhouse of research the managers kept on fragmenting the research zones.
Two are better than one and in this case, without having to divulge his personal interests, chances are that management may support such changes in the accounting method of amortization. Oscar must provide the advantages of using the straight line method, such as less complication in calculation and balance allocation of the expense. In this way, personal interests can be aligned with company’s interests and other stakeholders. In case the decision of the company is to lay off some employees, then it can be that this action is better off and strategically convenient for the business. In the case the management team decides to remain in the current method, then other solutions can be done without the need to lay off some employees.
Otherwise, the global economic conditions are still not very conducive for copper’s growth. As a result of the weakness in the end market, Freeport-McMoRan’s results have been hurt badly. For instance, in the recently-reported third quarter, the company reported a net loss of $3.8 billion. After adjusting for the net charges of $3.7 billion, or $3.43 per share, the third-quarter 2015 loss totalled $156 million, or $0.15 per share. The company sold 1 billion pounds of copper in the quarter, down from 1.1 billion pounds in the year-ago period.
Another reason Mr. Williams told me during the interview, was that Kodak was also trying to save money, and make money. One-hour photo finishing at retail stores is another reason the company made the decision to close the Qualex Houston photo processing lab. The one hour photo finishing is much cheaper than paying workers to process the photo. Times were changing and the company was changing with the time. There was no demand for processing the photos.
Waitrose opened 12 branches with gross sales up 1.1% and like-for-like sales (excluding petrol) down 1.3%. Operating profit was down 0.8%. John Lewis sales were 17.3% up online and 1.0% down in store, with overall like-for-like sales up 3.1% and operating profit up 0.2%. Its two businesses became increasingly interdependent, with 70% of John Lewis Click & collect orders delivered to Waitrose stores to be picked up by customers. Excluding the higher pension costs arising from volatility in the market-driven assumptions and property profits, Partnership profit rose by
IMPACT 3 of the group members left the job within 1- month of the project which resulted in a substantial delay in the finalization of the design of Goon and hence its launch. The XYZ Company had projected around $500000 revenue during the peak time. The company had to bear this opportunity cost and had to settle with 1 month delay in the products launch. RECOMMENDATION The team should have asserted and talked through Alex, the concern that they were being offended and should have reiterated the fact that they are his team mates and not his subordinates. They should have reported to a senior manager about the arrogant and aggressive behaviour of Alex and made their intensions of leaving the project clear in case the behaviour remains the same.