MGT499 - Strategic Management Mod 4 SLP Essay Example | Topics and Well Written Essays - 500 words

MGT499 - Strategic Management Mod 4 SLP - Essay Example nd the overall Starbucks experience warrants an analysis of how well the company manages its internal strengths and weaknesses by optimizing its core competencies and developing its weaknesses that will allow it to achieve its company mission and objectives. One of the biggest strengths of the company lies in the dedicated and exceptionally skilled workforce who is well trained. Company strategy has always been to reward excellence of employees and Starbucks is today among the best companies to work for as per Fortune 500 ratings and Financial Times ratings. With attractive fringe benefits, stock option plans and high wages and salary scales, the Starbucks refers to its employees as partners, promoting commitment and loyalty and this is one of the key resources of the company which is hard to imitate due to â€Å"social complexity† involved ( Barney 1991). The company utilizes this strength in many ways. It has used the service staff’s skills in customer care and overall enthusiasm to create an in store atmosphere that is cozy, friendly and home like that they have branded it as the â€Å"third place† in life. The regular customers are called by name and the Baristas of Starbucks outlets remember their usual drinks. Such customization has been at the cornerstone of Starbucks success. Another internal strength is the Starbucks special SWOT team specializing on stores opening. They have an excellent track record of location scouting and opening new outlets in cost effective and speedy fashion. This strength has allowed the company to make right location decisions and the use of in-house design and fabrication teams has allowed Starbucks to cut costs in outlet openings and also maintain the unique Starbucks ambiance in line with company expectations. Optimization of this strength has allowed the company to drive its expansion plans aggressively. Financial strength and low costs is strength. This is achieved through large scale roasting and milling facilities,

Interpretation of Financial Statements Essay Example | Topics and Well Written Essays - 1750 words

Interpretation of Financial Statements - Essay Example With the help of this information one can compute financial ratios relating to liquidity, profitability, gearing and efficiency that help in assessing the financial performance of the company. ... 8594 33607 Acid-test ratio 0.97 1.13 Â   1.19 0.82 Â   Â   Â   Â   Â   Â   Cash and short term deposits 107 47.8 Â   13698 4660 Current Liabilities 758.1 713.5 Â   28594 33607 Cash ratio 0.14 0.07 Â   0.48 0.14 Â   Â   Â   Â   Â   Â   GEARING Â   Â   Â   Â   Â   Total equity 133.4 140.5 Â   66230 62166 Long term debt 802 906.4 Â   1316 575 Long-term debt to equity 6.01 6.45 Â   0.02 0.01 Â   Â   Â   Â   Â   Â   EBIT 529.8 478.3 Â   19782 17161 Interest expense 25.3 50.8 Â   374 307 Interest cover 20.94 9.42 Â   52.89 55.90 Â   Â   Â   Â   Â   Â   INVESTMENT Â   Â   Â   Â   Â   Price 2,053.00 1,177.00 Â   652.5 25.8 EPS 188.50 156.00 Â   32.6 29.6 P/E ratio 10.89 7.54 Â   20.02 0.87 Â   Â   Â   Â   Â   Â   DPS 66 55 Â   16.65 17.15 EPS 188.5 156 Â   32.6 29.6 Dividend payout 0.35 0.35 Â   0.51 0.58 Â   Â   Â   Â   Â   Â   EPS 188.5 156 Â   32.6 29.6 DPS 66 55 Â   16.65 17.15 Dividend cover 2.86 2.84 Â   1.96 1.73 Â   Â   Â   Â   Â   Â   DPS 66 55 Â   16.65 17.15 Price 2,053.00 1,177.00 Â   652.5 25.8 Dividend yield 3.21% 4.67% Â   2.55% 66.47% (Next Plc, 2010; Ted Baker, 2010). Financial analysis of Next Plc (NXT) & Ted Baker Plc (TED) Profitability- For the financial year 2010 the gross profit margin of both the companies has increased as compared to the last year. Ted Baker reported a gross profit margin of 58% in 2009 and this increased to 61% in the following year whereas Next Plc reported a margin of 27% in 2009 and it increased to 29% in the immediate year. The gross profit margin of the former is more than double that of latter; this implies that the management of Ted Baker has exercised efficient control over the operating costs. However the operating profit margin of Next Plc is marginally higher than Ted Baker Plc. For 2010 the former reported an operating profit margin of 15% as compared to12% by Ted Baker Plc. This suggests that