Working Capital Simulation Essay Example for Free

Working Capital Simulation Essay Introduction The working capital simulation has allowed us to analyze the financials of Sunflower Nutraceuticals Company(SNC). The decisions made by the CEO increased the working capital and maximized the overall organizational growth potentially with respect to time. Moreover in addition to various details of the SNC firm we have also examined various decisions which took place in each of the phase of SNC’s simulation which has an estimated values to figure out the results. The paper also describes how SNC’s decisions are influenced with respect to their working capital followed with the final step of evaluating the general affects associated with the limited access of financial mix. Sunflower Nutraceuticals (SNC) Background SNC is a privately owned Nutraceuticals company and is a wide distributor which provides all the vital dietary supplements such as herbs for women’s, vitamins, and minerals for all the consumers (mainly women’s), distributors and retailers. (Harvard Business School Publishing, 2012). Once the business was initiated after 2006, SNC expanded their operations and came up with various retail outlets in the nutraceutical industry and has been successful while introducing their own brands of sports drinks, vitamins for teenagers, metabolism- boosting powders, etc and various other products from a same product line which enhance the metabolism system of humans. Although the potential to grow as one of the major nutraceutical distributors in the, they are still struggling to break even and on more than one occasion have been forced to exceed the company’s credit line ($1,00,000) to finance the payroll and other operational needs. Because of the organization’s somewhat restrictive financing options, they are only able to use a small percentage (approx. 10%) to evaluate and invest in new business expansion which resembles great opportunities in other retail markets across the globe. Phase 1 of SNC’s Simulation (Years 2013-2015) During the initial phase of the simulation, they presented four major  opportunities which could be helpful for their company to maximize their growth, those opportunities includes- Discontinuing their Poorer Selling Nutraceutical Products –since they have more than 100 products, some of those products can be dropped off SNC’s inventory because they are outdated. Reducing or discounting those items will allow SNC to a) reduce its DSI to approximately 3 months, b) cut its EBIT by 50k approximately, c) drop sales to 1mm, and d) create more inventory space for the popular products. Doing this will rationalize the SNC’s SKU count. Leveraging their Supplier Discount –SNC is considering an offer to add Atlantic Wellness (a large successful food chain) to their nutraceutical product line. The company considered and accepted the Atlantic Wellness contract as it allows them to increase company sales to 2k. In addition to their contract offer with Atlantic Wellnes s, SNC also considered the acceptance of Ayurveda Naturals with the contract offer which was favorable to SNC as its payment terms reflected a net gain of approximately 50. They could have lowered its AP if it was related to pay of Ayurveda Naturals within a month and that payment can increase a discount of almost 2% on some of their raw materials. Acquiring a New Client – SNC acquired a new client by acquiring the services of health food giant Atlantic Wellness to their nutraceutical products line. This decision increased SNC’s EBIT by approximately 200,000 and thus their sales figures. Although SNC’s sales and EBIT figures increased, their net working capital and profit margins will remain at current figures. Additionally, acquiring Atlantic Wellness as a client will help increase SNC’s sales significantly, but the increased sales come at a cost as the increased sales will decrease inventory and accounts receivable. Sacrificing inventory and accounts receivable is not a good deal for SNC because of their current cash position as SNC must keep a minimum of amount of cash on hand to meet their company’s operational nee ds. However, there is a positive lining for SNC as the risk of inventory and accounts receivable could be balanced by negotiating a profitable deal with merchant Ayurveda Natural. Limiting their Receivable Accounts – Since Super Sports Centers account for 20% of SNC’s sales figures, those receivable accounts takes the company approximately 200 days to pay and those 200 days is well above the normal 90-day average. To resolve this issue, SNC could drop Super Sports Centers and improve their DSO number, but that come at a cost as SNC’s sales would  drop drastically. Phase 2 of SNC’s Simulation (Years 2016-2018) During phase two of the simulation, SNC was presented with three different opportunities and those opportunities include: Expansion of SNC’s Online Presence –Since SNC would like to expand their operations into new retail markets its company was presented with an opportunity to partner with Golden Years Nutracueticals so that they could reach a larger, more diverse consumer base. From 2016-2018, this partnership reduced SNC’s DSO figures because its web sales began to be collected more rapidly from few days almost 7 to 2 days throughout the duration of 2016-2018. Also SNC also saw about 10%, increase in their sales from 2016-2018. This was an ideal opportunity for SNC as it will allow them to increase their sales with having little-to-no effect on the company’s working capital. Take up Big-Box Contributions – SNC established a partnership with sales giant Mega-Mart, and that decision allowed SNC to see increase in sales of 25%, 10%, and 5% approximately during 2016-2018. Additionally, this decision dropped SNC’s from about 1%, however, their bills were paid on time causing SNC’s DSO to drop. Beginning with a partnership with Mega-Mart is a good idea. However, this partnership will drop margins and reduce SNC’s EBIT. Create a Private Label Product –SNC has a partnership with Fountain of Youth Spas, and Fountain of Youth Spas want SNC to develop their own private label product so that SNC can expand their nutraceutical products line and increase their sales and consumer base. Doing this would increase SNC’s 2016-2018 sales by 5%, 4%, and 3% approximately. Additionally, it will also increase margin by 2% while increasing SNC’s DSO’s and DSI. This partnership will allow SNC to increase their EBIT while sli ghtly raising their accounts receivable figures. Phase 3 of SNC’s Simulation (Years 2019-2021) During phase three of SNC’s simulation, there were three opportunities for SNC to consider, and those opportunities include: Adapt a Global Expansion Plan–SNC acquired a new Latin America client (Viva Familia), which helped SNC expand their business operations into Latin America. SNC’s partnership with Viva Familia allowed SNC to decrease their DSO for a couple of days because Viva Familia will cover delivery charges. However, this new partnership increased the company’s DSI by two days, and it also increased  SNC’s sales by 2% with margins remaining parallel to current business. Renegotiate Current Supplier Credit Terms – SNC want to renegotiate its credit terms with other vendors so they used their main vendor Dynasty Enterprises (located in China) as leverage (suppose SNC needed a 3% discount for payment in 10 days) with other vendors. SNC could use their negotiation tactics with other vendors because their main vendor, Dynasty Enterpris e offered SNC profitable terms of 2/10 with a net of 30. This reduces SNC’s costs of sales by $3278 and their AR by $13112. Acquire a High-Risk Client –Midwest Miracles is a potential high-risk client for SNC because of Midwest Miracles excessive debt and risky financial situation. However, acquiring this client will increase the sales of future prospects of SNC sales by approximately 30% in 2019. Midwest Miracles is a potential risk for SNC as their company has lesser chance of going bankrupt as compared with the recovery. Other effects of this client, includes a likely increase in DSO by 190 days, and higher fees with a longer than average invoice pay-period. SNC’s Final Metrics Results Final Metrics Results (Figures Reflect 2013-2021) Estimated values: EBIT (202% Increase): Figure went from $440 to $1,330, Sales (27% Increase): Figure went from $10k to $12,672 Net Income (412% Increase): Figure went from $156 to $798 Free Cash Flow (124% Increase): Figure went from $365 to $798 Total Firm Value (56% Increase): Figure went from $3,248 to $5,082 General Effects of Limited Access to Financing There are several general effects that limited access to financing can have on entrepreneurs trying to start or grow his or her businesses. For example, limited access to financing can lead to 1) higher interest rates on a business loans or credit fees. 2) Force a business to face a complicated and expensive entry (registration costs, policies, equipment fees, etc.) and exit procedures (Parrino, Kidwell, Bates, 2012). C) Limit the amount of growth (profits, SME, consumer/client base, etc.) a company can have in that new market. D) Make it more challenging (longer and more expensive process) to implement property and intellectual rights of privately owned and developed brand products. Conclusion SNC simulation reflected the challenging ways of managing growth and capital of an organization in our present scenario. In the business market we can find many companies with limited financial power or take on business partnerships because they cannot financially support the business with their credit line or resources as it is more than estimated budgets. Hence, managing a company while managing the working capital and finances of the company is really a difficult task. References Harvard Business Publishing. (2012). Working capital simulation: managing growth. Retrieved from, http://forio.com/simulate/harvard/workingcapital/simulation/?#page=dashboard. BIBLIOGRAPHY \l 1033 Parrino, R., Kidwell, D. S., Bates, T. W. (2012). Fundamentals of corporate finance (2nd ed.). Hoboken, N.J.: John Wiley Sons.

The UK Brewing Industry: PESTLE Analysis

The UK Brewing Industry: PESTLE Analysis The macro-environment of the UK brewing industry are the major external and uncontrollable factors that influence its operating organizations decision making, as well as its performance and strategies. To identify and assess its key factors, using the PESTLE framework will provide a comprehensive list of influences and key drivers in six main categories, which are: political, economic, social, technological, legal, and environmental. This method allows businesses to consider and explore how their external environment might change so that they are prepared if things should change. PESTLE analysis of the UK Brewing Industry Political Changes and reforms of Licensing Laws in line with Government policy Relaxation of opening hours and late night opening National minimum wage increase affecting salaries and wages EU influence and legislation regarding measures of drinks EU and National Government guidelines regarding health Local and National Government concerns regarding negative aspects of binge drinking Budget increases in duty on alcohol Government plan to increase taxes equating to around  £8million Increased duty on beer to 9% and inflation by 2% Economical National and international economic downturn means people generally have less disposable income for socialising Rise in staff wages due to National Insurance and Minimum Wage increases Cut price offers for alcohol in supermarket promotions Increases in transport costs in line with Fuel pricing Steadily falling employment Pubs create 18 jobs per pint than the supermarkets who only create 3 Rising costs of energy, food tax and employment Social Culturally pubs are the centre of social life, place to meet friends and for locals to socialise Easily accessible as pubs are generally situated close to Town Centres or on main routes Localised venue known for gigs, live music, themed nights for younger consumers Demographically increased local student population Media concern with negative aspects of binge drinking   Increased awareness of health concerns   Increased advertising on mainstream media of consuming alcohol responsibly   Wider choice and taste of alcoholic drinks in supermarkets for consumers Technological Developments in delivery of cold beers and chilled ale Development of wide range of flavoured alcoholic drinks Local interest in nightlife promoted via multi-media, websites, blogs and social networking Advertisements for alcohol awareness and responsible drinking on mainstream media Increased advertisement for alcohol brands via multi media Legal Smoking Ban Stronger enforcement of underage drinking regulations on local and national level Changes in Drink Driving Laws EU legislation on measures of drinks served Environmental Recycling Waste, litter, refuse produced in local area Transportation and delivery costs of goods The Macroeconomic Environment Key Drivers The Changing Nature of the Competitive Environment Present a Five Forces analysis of the competitive environment of the UK beer industry and discuss the changing nature and effect of these forces (30 marks) The brewery industry is highly competitive and highly saturated business. There are a number of forces at work here all of which can provide an insight into how appealing the brewery industry is, in terms of whether it is the type of industry to enter or leave; if there is room to exert any type of influence and how the competitors within this industry affect its performance (Johnson,2009). To help provide an analysis of the brewery industry and develop a business strategy, using Michael E. Porters Five Forces Model will determine its competitive intensity or attractiveness of a market. Porters Five Forces Analysis for the UK Brewery Industry ***NOTES FROM WORKSHOP: The industry is unattractive and unprofitable, the forces reduce the profits the firm can make†¦its getting worse The Strategic Directions of Adnams Against the background of a declining industry, the brewer and pub operator Adnams seem to be bucking the trends. Assess the strategic directions chosen by Adnams that have aided their progress. (40 marks) Adnams is a British brewery founded in 1890 in Southwold, Suffolk. In 2008 in spite of the economic downturn, Adnams began to make changes in how the brewery process operates to reduce its impact on the environment. In doing so Adnams decided to work more closely with local farmers and producers who supply their breweries and hotels; in addition to this through a partnership with a local business Adnams installed an anaerobic digestion plant to turn brewery and food waste into biogas, which has been a huge success. CONCLUSION Table of Appendices Meeting Logs Meeting Title: Strategic Management Assignment Date: 22ndFebruary 2011 Time: 12:00 Location: Kingston Hill Campus (Library Resource Centre) Meeting No. 1 Attendees: Alfred Okanlawon, Andrina Beau-Pierre, Damian Brooks, Rosetta Azah-Thomas, Jermaine Randolph Topics: Familiarize ourselves with one another and exchange contact details Ensure everyone has a copy of the case study Skim over the case study and brainstorm possible routes for questions 1, 2 and 3 Next meeting date: 1stMarch 2011 By the next meeting everyone should have read and understood the case study fully, and made bullet points for each question. Meeting Title: Strategic Management Assignment Date: 1stMarch 2011 Time: 12:00 Location: Kingston Hill Campus (Library Resource Centre) Meeting No. 2 Attendees: Alfred Okanlawon, Andrina Beau-Pierre, Damian Brooks, Rosetta Azah-Thomas, Jermaine Randolph Topics: Gather all the notes made for each question Decide who will do which question Next meeting date: 8thMarch 2011 By the next meeting everyone should have made a start on their assigned question so that everyone can read over it and offer suggestions Meeting Title: Strategic Management Assignment Date: 17thMarch 2011 Time: 14:00 Location: Kingston Hill Campus (Mid Level) Meeting No. 3 Attendees: Alfred Okanlawon, Andrina Beau-Pierre, Damian Brooks, Rosetta Azah-Thomas, Jermaine Randolph Topics: Combined the work that everyone has done so far individually for each question Whatever is left to do everyone should do, and we will bring it together for the next meeting Next meeting date: 22ndMarch 2011 By the next meeting all the questions will be answered by everyone and put together collectively and everyone will read the assignment and take notes on which sections they feel are irrelevant so that it will be cut down to make relevant together so that everyone is happy with its content Meeting Title: Strategic Management Assignment Date: 22ndMarch 2011 Time: 11:00 Location: Kingston Hill Campus () Meeting No. Attendees: Alfred Okanlawon, Andrina Beau-Pierre, Damian Brooks, Rosetta Azah-Thomas, Jermaine Randolph Topics: To discuss why sections of the assignment are irrelevant To take out sections that everyone agrees are irrelevant Next meeting date: Meeting Title: Strategic Management Assignment Date: 24ndMarch 2011 Time: 13:00 Location: Kingston Hill Campus () Meeting No. Attendees: Alfred Okanlawon, Andrina Beau-Pierre, Damian Brooks, Rosetta Azah-Thomas, Jermaine Randolph Topics: To write up the introduction (preface) and conclusion as a group Hand in the assignment Next meeting date:

Of Mice And Men :: essays research papers

"A guy goes nuts if he aint got nobody. Don’t matter no difference who the guy is, long’s he’s with you. I tell ya a guy gets too lonely an’ he gets sick." A major theme in Steinbeck’s novella Of Mice and Men is loneliness. The characters Crooks, Candy and Curley’s wife each suffer from this although the severity of their seclusion varied. The old swapper, Candy was victimized by isolation as a result of two main factors, one being his disability and the other being his age. For example, throughout the book we find the farmhands out bucking the barley while Candy is left behind to sweep and clean the ranch. He lost his hand after getting it caught in a piece of machinery and as a result he is forced to stay behind. This being one of the major factors that leads to his loneliness. Furthermore, Candy’s age adds to his feeling of uselessness. Because he thinks that he is old he puts himself in a state of mind that handicaps him more than his missing hand ever will. He looks down on himself as an old worthless man that’s wasting away his last few years. Not only is it the way that others think of him but also the way he thinks of himself that forces him to find solitude. The most evident case of loneliness is Curley’s wife. No matter how hard she tried she couldn’t fit in. For example, when she tried numerous times to talk to George and Lenny she was either ignored or told to leave. Because of her reputation for being a flirt none of the farmhands wanted to talk to her. It was the threat of getting in trouble with Curley that caused many workers to avoid her. In addition, because of Curley’s insecure feelings he neglected her and forced her to seek attention anyway she could, even it meant flirting. She was ignored by both the farmhands and her own husband and because of this she was being forced into loneliness, the one thing she fought so hard against. Crooks is a black man tha t experiences isolation in terms of racism. For example, he is forced to live alone in the barn. Because the setting of this book takes place during the 1930’s discrimination sadly still existed. The farmhands feel that since he is black he isn’t worthy of living with the rest of them.

Essay --

Scope of practice is defined as the broad framework of procedures, actions and processes that are permitted under a specific licence of an allied health professional. This medical terminology is used by both the national and state licensing commissions for various professions, including nursing, midwifery and paramedicine. The scope of practice restricts and limits the allied health professional, under an act of law, to have undertaken specific education, followed regulation guidelines and registered under licensing bodies in order to practice in their individual health profession. Additionally, every individual health profession (nursing, paramedicine, midwifery, doctor, surgeon, etc.) has specific requirements and levels which define the scope of practice for each individual. The definition of each individuals scope of practice is important, as it ensures the safety of both patient and professional. The scope of practice ensures the individual does not participate in practices that they may be deemed unsafe and ensures the individual does not partake in unskilled practices. ...

Analysis of Virtual Reality Essay -- Virtual Reality Technology Comput

Analysis of Virtual Reality The term Virtual Reality (VR) is used by many different people with many meanings. There are some people to whom VR is a specific collection of technologies, that is a Head Mounted Display, Glove Input Device and Audio. Some other people stretch the term to include conventional books, movies or pure fantasy and imagination. However, for purposes of this research, we restrict VR to computer mediated systems. We would define Virtual Reality as a way for humans to visualize, manipulate and interact with computers and extremely complex data. The visualization part refers to the computer generating visual, auditory or other sensual outputs to the user of a world within the computer. This world may be a CAD model, a scientific simulation, or a view into a database. The user can interact with the world and directly manipulate objects within the world. Some worlds are animated by other processes, perhaps physical simulations, or simple animation scripts. Interaction with the virtual world, at least with near real time control of the viewpoint, is a critical test for a 'virtual reality'. Some people object to the term "Virtual Reality", saying it is an oxymoron. Other terms that have been used are Synthetic Environments, Cyberspace, Artificial Reality, Simulator Technology, etc. VR is the most common and sexiest. It has caught the attention of the media. Types of VR Systems A major distinction of VR systems is the mode with which they interface to the user. We would describe some of the common modes used in VR systems. Window on World Systems (WoW) Some systems use a conventional computer monitor to display the visual world. This sometimes called Desktop VR or a Window on a World (WoW). This concept traces its lineage back through the entire history of computer graphics. In 1965, Ivan Sutherland laid out a research program for computer graphics in a paper called "The Ultimate Display" that has driven the field for the past nearly thirty years. "One must look at a display screen," he said, "as a window through which one beholds a virtual world. The challenge to computer graphics is to make the picture in the window look real, sound real and the objects act real." Video Mapping A variation of the WoW approach merges a video input of the user's silhouette with a 2D-computer graphic. The user watches a monitor that... ...irplane that the inspector can navigate through via voice commands to mark a region of the airplane that is in need of service. Once identified, the application tags the area for transmission to the maintenance database and initiates the proper form for the inspector to fill out. The form is completed and then transmitted to the same maintenance database. When the inspector has identified all of the problems with a particular region, voice navigation is used to continue to other areas of the aircraft. The inspector is not required to take any information about the aircraft, previous defect records, clipboards, paper, etc. with them, everything required to perform the inspection is on-line and displayed in a manageable fashion in real time during the inspection. When the inspector completes the inspection, no further input is required. The inspector is not required to take notes and then pass them off to someone else to decipher and input to the system. The information is already in the maintenance database and ready for verification, planning, and scheduling. The timesaving realized from start to finish of that inspection is 30-50% depending on the inspector and the aircraft. Analysis of Virtual Reality Essay -- Virtual Reality Technology Comput Analysis of Virtual Reality The term Virtual Reality (VR) is used by many different people with many meanings. There are some people to whom VR is a specific collection of technologies, that is a Head Mounted Display, Glove Input Device and Audio. Some other people stretch the term to include conventional books, movies or pure fantasy and imagination. However, for purposes of this research, we restrict VR to computer mediated systems. We would define Virtual Reality as a way for humans to visualize, manipulate and interact with computers and extremely complex data. The visualization part refers to the computer generating visual, auditory or other sensual outputs to the user of a world within the computer. This world may be a CAD model, a scientific simulation, or a view into a database. The user can interact with the world and directly manipulate objects within the world. Some worlds are animated by other processes, perhaps physical simulations, or simple animation scripts. Interaction with the virtual world, at least with near real time control of the viewpoint, is a critical test for a 'virtual reality'. Some people object to the term "Virtual Reality", saying it is an oxymoron. Other terms that have been used are Synthetic Environments, Cyberspace, Artificial Reality, Simulator Technology, etc. VR is the most common and sexiest. It has caught the attention of the media. Types of VR Systems A major distinction of VR systems is the mode with which they interface to the user. We would describe some of the common modes used in VR systems. Window on World Systems (WoW) Some systems use a conventional computer monitor to display the visual world. This sometimes called Desktop VR or a Window on a World (WoW). This concept traces its lineage back through the entire history of computer graphics. In 1965, Ivan Sutherland laid out a research program for computer graphics in a paper called "The Ultimate Display" that has driven the field for the past nearly thirty years. "One must look at a display screen," he said, "as a window through which one beholds a virtual world. The challenge to computer graphics is to make the picture in the window look real, sound real and the objects act real." Video Mapping A variation of the WoW approach merges a video input of the user's silhouette with a 2D-computer graphic. The user watches a monitor that... ...irplane that the inspector can navigate through via voice commands to mark a region of the airplane that is in need of service. Once identified, the application tags the area for transmission to the maintenance database and initiates the proper form for the inspector to fill out. The form is completed and then transmitted to the same maintenance database. When the inspector has identified all of the problems with a particular region, voice navigation is used to continue to other areas of the aircraft. The inspector is not required to take any information about the aircraft, previous defect records, clipboards, paper, etc. with them, everything required to perform the inspection is on-line and displayed in a manageable fashion in real time during the inspection. When the inspector completes the inspection, no further input is required. The inspector is not required to take notes and then pass them off to someone else to decipher and input to the system. The information is already in the maintenance database and ready for verification, planning, and scheduling. The timesaving realized from start to finish of that inspection is 30-50% depending on the inspector and the aircraft.

Sanitarium Marketing

Assignment 1. 1 Overview and Situation Analysis – Sanitarium evolution of marketing A brand that down any New Zealand supermarket? s breakfast cereal aisle which dominates the shelves†¦ that is Sanitarium! Sanitarium Australia and Sanitarium New Zealand are owned and operated by Australian Health & Nutrition Association and New Zealand Health Association. The company produces over 150 products and employs approximately 1700 people in the manufacturing and distribution sites throughout Australia and New Zealand. The company is leading manufacturer of breakfast cereals, soy beverages plant based meat alternatives, , and yeast spreads.Sanitarium – the maker of Kiwi staples Weet-Bix and Skippy Cornflakes – has evolved into a giant of the local food manufacturing sector over the last century. They are proud to be a group of people who believe passionately in the potential of every New Zealander. The potential to be healthy: physically, mentally and emotionally. T hey believe this journey all begins with good nutrition. â€Å"What you feed your body and your mind, changes the  way you feel. † Sanitarium's range of healthy breakfast options not only includes Weet-Bix, which is New Zealand's favorite cereal, they also offer something for everyone in the family. for example, products like beverages, spreads and another kinds of cereal†¦ all of them focused to sell the idea to be and eat healthy. Following that conception, Sanitarium is always looking at ways of sourcing ingredients and making products on a local level, to help minimize our impact on the environment. They do care about sustainability! The commitment to sustainability don? t stop at the farm gate but covers the entire supply chain and life cycle of foods, from inception, through manufacturing, to minimization of waste and the disposal of any waste, being inclusive of all resources that they control within the supply chain.Sanitarium’s mission is to lead, inspi re and resource the experience of happy health living in the community. For any business, growth is a significant element of being competitive within their industry and as discussed prior Sanitarium holds the largest portion of the market. The ability to create revenue allows Sanitarium the cash flow needed to put into costs such as marketing, advertising, and development of new products and brands. Without this Sanitarium’s life cycle would be short as even the cereal market will not lasts forever. In this segmentation, Sanitarium marketing has been improved.The company promotes events like â€Å"The  Sanitarium Weet-Bix Kids Tryathlon† which  is a community-based event that encourages Kiwi kids, aged from 7 until 15, to participate in a fun day out, to encourage exercises in a healthy life. There is also the program called â€Å"KickStart Breakfast†Ã‚  which was recently established by Sanitarium and has been recognised by Prime Minister John Key with an a ward as the ‘Best New Initiative' at the annual Prime Minister's Social Heroes Awards. These awards acknowledge businesses supporting charitable purposes as well.The company? s advertising has been always inspiring the community to make healthier food and lifestyle choices, with this proposal, Sanitarium invests a significant portion of resources into providing the community with free nutritional information and diet related advice by a team of nutritionists, receipts. All healthy information can be found in the company? s website. One of the recent marketing opportunities for Sanitarium was well done. The company had a perfect time to maximize its decade-long sponsorship in the 2011 Rugby World Cup.Rather than promote the Up;Go and Weet-Bix brands individually, Sanitarium decided on a parent-brand approach for its Game Plan campaign. However, it knew there would be an onslaught of companies jostling for in-store space and consumer attention in such a key year. The solution wa s thinking bigger, so Sanitarium had a display concept in mind that used 3. 2m goalposts in-store. They had used effective displays to demonstrating Sanitarium’s support for the team, and driving the sales required to meet business objectives.Another recent marketing activity, was the return of their Marmite. Sanitarium and their advertising agency Saatchi ; Saatchi made the most of Marmite's long-awaited comeback, with a Facebook countdown. Marmite (brand that is protected by trade mark laws) is back in production and supermarket shelves. A full year after it disappeared, Marmite has returned in a marketing campaign that included free jars sent to politicians and media types, recipes and a midnight supermarket opening that generated queues around the block in some centres.Sanitarium's marketing prowess could yet desert the company, however. One of the risks involved in taking the product off the shelves for a year could be that Kiwis lose the taste for Marmite – possi bly lowering their sodium levels at the same time. Anyway, Sanitarium must continue to provide and create value in the short term and long term future and also focus on three main of areas being: product development with market demands, communication regarding products, operations, services and refocus its attention around charity and community involvement.REFERENCES Sanitarium Game Plan – retrieved 2013 http://www. everythingmarketing. co. nz Christopher Adams article – retrieved Jun,30 2012 http://www. nzherald. co. nz Ben Fay / News – retrieved Mar,20 2013 http://www. stoppress. co. nz/tags/sanitarium Sanitarium News – 2013 http://www. sanitarium. co. nz/about-us/sanitarium-news/2013 Press Release: Weetbix Tryathlon – retrieved Jan,30 2013 http://www. scoop. co. nz

Financial Management Essay

The required rate of return is rs = 10. 1%, and the constant growth rate is g = 4. 0%. What is the current stock price? a. $23. 11b. $23. 70c. $24. 31d. $24. 93e. $25. 57e 8- Ratio analysis involves analyzing financial statements in order to appraise a firm’s financial position and strength. | | | a. | True| b. | FalseA| 9- Profitability ratios show the combined effects of liquidity, asset management, and debt management on operating results. | | | a. | True| b. | False| A 10 – One problem with ratio analysis is that relationships can be manipulated. For example, if our current ratio is greater than 1. , then borrowing on a short-term basis and using the funds to build up our cash account would cause the current ratio to increase. | | | a. | True| b. | False| B| | 11 – Arshadi Corp. ‘s sales last year were $52,000, and its total assets were $22,000. What was its total assets turnover ratio? | | | a. | 2. 03| b. | 2. 13| c. | 2. 25| d. | 2. 36| e. | 2. 48| D 12 – Rappaport Corp. ‘s sales last year were $320,000, and its net income after taxes was $23,000. What was its profit margin on sales? c| | | a. | 6. 49%| b. | 6. 83%| c. | 7. 19%| d. | 7. 55%| e. | 7. 92%| 3 – The first, and most critical, step in constructing a set of forecasted financial statements is the sales forecast. a. Trueb. Falsea| 14- According to the Capital Asset Pricing Model, investors are primarily concerned with portfolio risk, not the risks of individual stocks held in isolation. Thus, the relevant risk of a stock is the stock’s contribution to the riskiness of a well-diversified portfolio. a. True b. False a 18 – Diversification will normally reduce the riskiness of a portfolio of stocks. a. True b. False 19- If the returns of two firms are negatively correlated, then one of them must have a negative beta. . True b. False a 20 – Which of the following statements best describes what you should expect if you randomly select stocks and add them to your portfolio? a. Adding more such stocks will reduce the portfolio’s unsystematic, or diversifiable, risk. b. Adding more such stocks will increase the portfolio’s expected rate of return. c. Adding more such stocks will reduce the portfolio’s beta coefficient and thus its systematic risk. d. Adding more such stocks will have no effect on the portfolio’s risk. e. Adding more such stocks will reduce the portfolio’s market risk but not its unsystematic risk. A