Izak Jacob Held
Project: (ECO/MBA 5500, Grade Received: A)
Economic Prosperity At Under Armour
Under Armour has taken the apparel industry by surprise just a few years ago. No one would have bet that a new company could penetrate an industry dominated by just a handful of brands, in the short time it did. With inventory more expensive than ever and financial obligations that are on the rise, this industry has economic challenges that it will hit going forward. Through the financial statements and company documents we have obtained the proper literature, sources and references that will suite the economic information to better understand Under Armour’s economic position.
In This paper we will analyze the exuberance of the famous retailing company, Under Armour. Their platform concentrates on the business of sports clothing and how it concentrates its resources to its economic productivity. From the evaluation of the company’s financial statements, it can be determined if the financial position of Under Armour holds economic prosperity.
In Under Armour’s annual report the chief executive officer expressed the following comments in the letter from the CEO. “We've posted strong results on our scoreboard highlighted by 30% average topline growth and 23 consecutive quarters of 20+% net revenue growth this ongoing net revenue streak is something we are especially proud of given that we are one of only two companies that can make this claim in the S&P 500” (Under Armour, 2016). A company that trades in the stock market puts their financial well-being largely into hands of trading and the futures of the market. And for Under Armour to outperform almost the entire S&P 500 is itself an enamored success of achievement that this company has created.
International Business Management & Operations
Project: (BUS/MBA 6750, Grade Received: A-)
Pret A Manager Should Expand To Israel and Canada
Pret A Manager (Pret) is not your typical local coffee or sandwich store. Pret operates between a restaurant and an on-the-go type of food store. Sell-by-dates do not exist on the sandwiches, they along with the coffee, are made fresh either in the restaurant or at a facility close by. The coffee which is the top seller is organic and that’s what Pret is looking to sell. Fresh, stylish and an organic life style.
Today on-the-go is crucial for the food consumer business, the consumer wants the product fresh and they want it quick. The price can fluctuate depending on quality over quantity in that respected order. The consumer doesn’t mind if they can’t afford the product, for it all depends on when they want it.
Pret is not a Starbucks or Dunkin' Donuts that offers fast food and cheap with a long shelf life. The success of Pret started in its 1986 opening with a strong bold mission. To create handmade natural foods which avoid chemicals, additives and preservatives for the fast food or unhealthy track. (Pret, 2015).
In 2015 with 30 years in the game Pret has grown its stores to over 350 worldwide shops. Pret now spans over several countries that include the United Kingdom, the United States, France, Hong Kong and Shanghai. They have grown a small healthy movement to a consumers market that is now targeted by companies all over the world. Pret has gained market territory with the same organic fresh new catch that is here to stay and a part of the future.
The company’s current position in their global strategy has been to leverage location by the consumer index for a healthier alternative. This alternative demand for products with less concentrated genetically modified organisms (GMO) and gluten is the healthier alternative choice. Pret has based their locations off of potential demand and created it into active customers.
Their unique alternative and attractive methods has lead Pret to a positive financial position. William Reed Business Media has done an article on their success from their financial reports. “The article focuses on the business performance of British sandwich store Pret A Manager. It mentions that the store has recorded a 9.71% increase in like-for-like sales in the 52 weeks period ending January 1, 2015. It adds that the total sales of the company increased by 16% while earnings before interest, taxes, depreciation and adjustments (EBITDA) increased 14%.” (Foottit, 2015). Pret has proven their game in market as well as through their financial standings.
New products and developments have accounted for an increase in sales with the businesses healthy food products causing the growth. “The chain saw an increased demand for 'grazing' options, such as protein pots, vegetable juices and more breakfast options as 57% of sales now occur outside lunchtime.” (Foottit, 2015). Pret has met their innovation and growth from their international brand, it’s now time take this to a new market and a new destination.
There has been a temptation in my mind for sometime now, it is leaving the physical commerce market to online. Specifically; not shopping for household appliances at a Walmart, CVS, or Costco and going to something online. Recently I somewhat made the switch by using Jet.com, a store for that purpose that seeks competition with amazon and was founded by former Quidsi co-founder and CEO Marc Lore (Diapers.com, soap.com, etc..). Relating this to the IMA's ethical standards is an approach that I thought about shortly after.
I would relate to the IMA's 3 overhead points of Competence, Confidentiality, and Integrity. Confidentiality for credit cards and private information has not changed, so I won't bore you on that. If Target an in store mega power had itself hacked, hackers can get to you and your info. Thus its safe to say that Jet.com is operating on the norm of confidentiality procedures.
Next IMA point is competence, Jet.com promises 2 day delivery and free returns given that they have no to limited product display costs (ie: a physical store) they are competent to meet their personal and customer expectations of fast shipping. Finally integrity, If I don't like my product they will refund it and they will send me it perfectly in the first place all together.
We have to have in mind that time is money and especially in some areas and especially with millennials, people just don't have the time. A trip to a local store means a 15 minute round trip, 10 minute shopping and then a 10-15 minute line. The ethical issues I had was, what to happen with peoples jobs who are working in a store like CVS, Rite-aid, or Walmart, obviously the shift creates an offset and a disadvantage to the physical commerce stores. As this is another discussion, I would just say that it is the same thing with Uber and Drive-In-Movie theaters. The market is almost living and changes itself over periods of time. So get on board before it can backfire.
IMA. (2015). IMA STATEMENT OF ETHICAL PROFESSIONAL PRACTICE . Retrieved from IMANET.org: http://www.imanet.org/docs/default-source/generalpdfs/statement-of-ethics_web.pdf?sfvrsn=2
Lore, M. (2015, 7 21). Jet.com competes with Amazon. (L. Gallagher, Interviewer) Retrieved from http://fortune.com/video/2015/07/21/is-marc-lore-using-jet-com-to-seek-revenge-against-amazon/
<From Shorter U Class>
Barnes & Noble (also known as BN) is an investment that you should stay away from. Last year Barnes & Noble made a bold move, moving it’s Nook out of its locations and into Walmart stores, but still the Nook has failed to meet the necessities it needs to take in order to save Barnes & Nobles. Now, yes the Nook is proven to have better features like it’s longer battery life and reader friendlier screen, along with other great selling points. Still, Barnes & Noble is still taking hits from Apple’s iPad and Amazon’s Kindle, who are the top competitors, and are drastically dominating the industry. In fact it is likely that Barnes & Noble will take the path of the Borders company and other book stores that had to surrender to the consumer changing market.
The fact that Barnes & Noble is still here, is a major statement itself. Just remember people will always need books, and students will always need what to study from, but the way they are getting it is not the same as it used to be. And the question lay, has Barnes & Noble stepped up their game yet?
Looking at the financial part of it and on the reports from Barnes and Noble’s q10 show cash flow from operations to have gone down. When the operations statement goes down, this is usually an indication of something that took a hit, and that the company is in deep trouble. This is without looking at it’s net loss, in fiscal 2011, and 2012. According to their annual reports, in their closing fiscal year the total sales were dropping until the great recession and the economy meltdown. Afterwards their total sales picked up from 5.8 million in 2010 to 7.1 in 2012, but this was largely due to the Nook series. And we can surely say, is this enough to carry themselves over?
Now they have had a run in the past with their Nook, but again that was not is. With the launch of competitors new products that came out and affected the sales of Barnes and Noble’s Nook, such as the iPad 3, Windows 8, and the iPhone 5, it is clear that the innovation and taste for the Nook is elsewhere.
Perhaps Barnes & Nobles needs to stop following and start leading. Look at the Amazon company that ran on a net loss through most of their years during the late 90’s. It is all about the hype, and like they say, stocks trade ahead of themselves, meaning if the investors see potential and life they will follow. Something we are just not seeing from Barnes & Noble.
In the past year the stock of Barnes & Noble has traded at a low of 12.59, and a high at just 23.71 which is does not entice consumers to invest, and investors to expect more. Not to mention their Market Cap floating at around 800 million, and their margin showing a -9.95% from this past year and a -12.19% within the last two.
It’s return has been pretty good so far this year, as compared to other companies, and it also has a debt to equity ratio better than Amazon, but still not enough to get them back to the peak. As it gets colder and the holiday season is here the demand for getting cozy with a book in the magnificent Barnes & Noble local stores should indicate that this time of year is its most successful, but it is what the investors are looking for? A case where a company is just holding on from it’s Christmas, and Hanukkah sales alone.
Companies online are striving and growing in the numbers day by day, and don’t have to worry about upkeep on hot spot locations. It goes without say that one of the biggest assets to the company, as expressed in the real estate world: location, location, location. Barnes & Noble has one of the prime hot spots of most areas that attracts and will always bring in its clientele, which is an essential reason of the business they do. If this continues to happen perhaps Barnes & Noble trade in for cheaper locations?
Barnes & Noble college bookstore partnerships, the division of Barnes & Noble that works with college campuses to get books to students, a business that brings in billions of their revenues will also be an unsustainable revenue as the shift to the online market buying is here. Barnes & Noble expressed in their annual report great aspects for the cornerstone of their industry, including a 1.1% increase in sales and opening of new locations to further their success, but is this where they should be innovating and putting their time into.
Today we need to buy a lot to educated and entertain ourselves. Barnes & Nobles was a place to educate and entertain ourselves, but will it be a thing of the past? As shows, it may be a safer investment to stay away from the bookstore, and invest elsewhere.
Kaufman, Leslie. “Barnes & Noble Weighs Its E-Reader Investment.” New York Times [NYC] 24 2 2013, n. pag. Web. 17 Dec. 2013. <http://nyti.ms/XQIU67>.
Moskowitz, Dan. “Buying Barnes & Noble’s Stock Here Be a Good Read?.” (2012): n. page. Print. <http://wallstcheatsheet.com/stocks/would-buying-barnes-nobles-stock-here-be-a-good-read.html/>.
“Barnes & Noble, Inc. (BKS) Yahoo Finance.” (Dec 1, 2011-Dec 1, 2013): n. page. Print. <http://finance.yahoo.com/echarts?s=BKS+Interactive#symbol=bks;range=2y;compare=;indicator=volume;charttype=area;crosshair=on;ohlcvalues=0;logscale=off;source=undefined;>.
“BN Form 10-Q Quarterly Report.” (2013): n. page. Print. <http://forinvestors.barnesandnobleinc.com/secfiling.cfm?filingID=1193125-13-358093>
Barnes & Nobles, . “Barnes & Noble 2013 ANNUAL REPORT.” (2013): n. page. Web. 13 Nov. 2013. <http://www.barnesandnobleinc.com/for_investors/annual_reports/2013_bn_annual_report.pdf>.
Barnes & Nobles, . “Barnes & Noble 2012 ANNUAL REPORT.” (2012): n. page. Web. 13 Nov. 2013. <http://www.barnesandnobleinc.com/for_investors/annual_reports/2012_bn_annual_report.pdf>.
Amazon, “Amazon 1999 ANNUAL REPORT.” (1999): n. page. Web. 13 Nov 2013 <http://www.barnesandnobleinc.com/for_investors/annual_reports/2013_bn_annual_report.pdf>.
Barnes & Nobles, Inc. “ANNUAL REPORT TABLES” <http://www.barnesandnobleinc.com/for_investors/annual_reports/annual_reports.html>.
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