Business Case
Autor: bmap23 • June 9, 2013 • Term Paper • 551 Words (3 Pages) • 1,137 Views
Business Brief
A: Current Situation
Crafting strategies can assist managers with the skills needed to: access the current situation, take an assessment of the objectives and goals, and implement a simple strategic plan and an approach to stay competitive in the industry. Findings show that the Focal Company has sales volumes in the following countries: Europe-Africa, Asia-Pacific, Latin America and North America. The company’s highest sales volume currently is in Europe-Africa at 40 percent. The company’s lowest sale volume is in North America with only 10 percent of sales. The market position is the same as the other competitors at this current time globally. Although each rank higher in one graphic region, two market positions are intermediate and they are all week in one region with only 10 percent sales volume. All the company’s sell the same type of products which are: entry level cameras and multi-featured cameras. The cameras are sold to camera shops, online stores and retail stores within each of the four regions. For year 5 the Focus Company had the following:
• ROE was 17% which exceeded shareholders standards by 2%.
• The credit rating was a B+ which met standards
• Image Rating of 70 which met standards
B1: Expectations
The expectations of the board of directors are the following: increase earnings per share to 8 percent from years 6-10 and increase earnings per share to 4 percent for the remaining years 11-15. That would entail increasing the earning per share from $2.00 to at least $2.16 for year 6. Also expected is an annual increase in return on equity of at least 15 percent or more. The stock price is also expected to increase from $30.00 a share to $32.40 per share totaling an annual increase of at least 8 percent for years 6-10, and an annual
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