Case Study Enron

13-33(35 min.)Strategic analysis of in operation(p) income. 1.Halsey is following a harvest-festival differentiation strategy. Halsey offers a wide selection of clothes and resplendent customer service. Halseys strategy is to distinguish itself from its competitors and to charge a premium price. 2.Operating income for each year is as follows: 20072008 Revenues ($60 ( 40,000; $59 ( 40,000)$2,400,000$2,360,000 tolls cost of goods fail ($40 ( 40,000; $41 ( 40,000)1,600,0001,640,000 marketing & customer service be ($7 ( 51,000); $6.90 ( 43,000)357,000296,700 Purchasing & admin. be ($250 ( 980; $240 ( 850) 245,000 204,000 Total apostrophizes 2,202,000 2,140,700 Operating income$ 198,000$ 219,300 transfigure in operating income$21,300 F 2. The Growth Component [pic]=[pic] =(40,000 ( 40,000) ( $60 = $0 [pic] = [pic] × [pic] [pic]=[pic] × [pic] Pieces of clothing that would be required to be purchased in 2008 would be the same as that required in 2007 because sidetrack is the same between 2007 and 2008. Purchasing and administrative cost and merchandising and customer-service costs will not change since sufficient readiness exists in 2007 to support year 2008 output and customers.

The cost imprints of increase broker are: Costs of goods sold(40,000 ( 40,000)($40=$0 Selling & cust.-serv. costs(51,000 ( 51,000)( $7=0 Purch. & admin. costs(980 ( 980)( $250= 0 Cost import of growth$0 In summary, the net effect on operating income as a result of the growth parting equals: Revenue effect of growt h$0 Cost effect of growth 0 Change in op! erating income cod to growth$0 The Price-Recovery Component [pic]=[pic] =($59 ( $60) ( 40,000 = $40,000 U [pic]=[pic][pic] [pic]=[pic] × [pic] Costs of goods sold($41 ( $40) ( 40,000=$40,000 U Selling & cust.-serv. costs($6.90 ( $7)(51,000=5,100 F Purchas. & admin. costs($240 ( $250)( 980...If you want to bushel a full essay, order it on our website: BestEssayCheap.com

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