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based on industry low, avg., & high values for benchmarked data in FIR, which is unconvincing indication that 1+ elements of your company’s cost are too high relative to rivals |
your co’s operating profits per pair sold in all 4 geographic regions of the wholesale segment for branded footwear are below the industry-high values |
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effective ways to boost co’s stock price |
strive to increase EPS each year, raise co’s div. (by > $.05) each year, & repurchase shares of stock |
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not a way to effectively dif. a co’s branded footwear from rivals |
achieve a lower reject rate on pairs produced |
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which statement is true about striving to reduce labor costs/pair produced at each of the company’s plants |
all companies, regardless of the strategy being employed, should pursue actions to mng empt. compensation and labor productivity in a manner that results in labor costs/pair produced = to or close to the industry low in each region where the co. has plants |
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when should you bid aggressively to win contracts to supply private label footwear |
when the co. has excess prod. capacity in 1+ region that would otherwise be idle |
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which is not included as part of co’s prod. costs for private label footwear |
a proportionate share of marketing expenses in those regions where private label pairs are sold |
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if a co. adds new plant capacity at a cost of $30M, it’s annual depr. costs rise by |
5% or $1.5M |
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most attractive way to reduce impact of tariffs on pairs improted to LA is |
build plant in LA and expand its capacity as needed so it can supply most of pairs sold in LA |
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the plant and prod. benchmarking data on pg. 6 of FIR |
provide mngrs with solid evidence regarding the degree to which various costs at the co’s plants are competitive w/ the costs at the plants rival companies |
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a co. has 10M shares of stock outstanding and (inc. statement), what are op. profit margin and EPS? |
25.7% and $4.34 |
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given balance sheet, what is debt to asset ratio |
.436 |
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the industry low, avg, and high cost benchmarcks |
are worth careful scrutiny by mngrs of all cos b/c help determine degree co’s costs are competitive |
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given inc. statement, which is false |
int. exp. are 2.7% of net rev. |
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if co. wants to offer 500 models/styles it should |
institute plant upgrade option B (at cost of $8M/ million pairs of plant capacity) |
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not a way to improve s/q rating |
increase # of models/styles |
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given inc. statement, what is co’s int. coverage ratio |
3.2 |
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benefits of pursuing social resp. and corp. citizenship |
+ impact it can have on co’s image rating if spend meaninful amt over a multi-yr period |
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in private label footwear, the sizes of a co’s margins over direct costs (on pg. 6 of FIR) should be viewed as |
how many $ the co earned from each pair of PL footwear that can a)help pay co’s admin. and int. exp. and b)boost co’s pretax profits |
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not an attractive option for trying to lower prod. costs/pair produced at one of plants |
increased spending for enhanced styling and features |
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most important results to review to guide strategic moves and improve co’s competitiveness and rank in next year are |
Mrkt snapshot data in top half of CIR that shows each co’s compet. efforts in each region |
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