8 keys Research Paper Example | Topics and Well Written Essays - 500 words

8 keys - Research Paper Example The arrow pointing upwards represents the market direction while the horizontal arrow is the product. The company needs to make development strategies by using the internet and targeting geographic markets and customer segments that are new. The company can enhance its service delivery by recruiting more skilled personnel and trying to work on reducing the process of their products slightly in order to ensure that it attracts more customers into their products. The management can also think about incentives that are attractive to loyal customers and make proper product promotion. The company can also decide to reduce or cut out some intermediaries in the chain of supply in order to ensure that the structure of their business is conducive and in line with the market place. However, they can also weigh and see if they can consider reintermediation to enhance the chain of supply of their products in some areas. I would suggest that the company decides on countermediation to have a position of enhancing their operation when it comes to e-business. The company has to come up with a mechanism of ensuring that knowledge sharing systems are installed in their appropriate positions and are functioning at all times. Internet connected computers, phones and bells must be installed at every desk and room where operation takes place. Employees must also work according to their qualifications and areas of expertise to ensure that there is free flow of relevant information and perfect instruction following. The management of the company plans for staff meetings three times in a week or any other time that need arises. It is significant to deduce a way of emphasizing the company’s strengths and ensuring that weaknesses are minimized in order to ensure that there is a future in the flow of the entire system. For instance, the company needs to maintain the quality of its products, keep on motivating its workers and staff for

Pepsi Co bid for quaker oats Case Study Example | Topics and Well Written Essays - 250 words

Pepsi Co bid for quaker oats - Case Study Example The quick ratio of Pepsi in 2000 was 0.89. Quaker had a quick ratio of 0.87 in fiscal year 2000. Gross margin is a financial metric that measures the broad profitability of a company. Pepsi had a gross margin in 2000 of $8,595 million. Its gross margin percentage was 61.27%. Quaker in 2000 had a gross margin of $2,240 million with a gross margin percentage of 55.37%. Pepsi’s gross margin percentage is better than Quaker by 5.89% which implies that its broad profitability is superior. During 2000 Pepsi had a net income of $1,572 million, while Quaker had a net income of $309 million. The net margin measures the absolute profitability of a firm. The formula to calculate net margin is net income divided by sales. Pepsi’s net margin in fiscal year 2000 was 11.21%. Its net margin is better than Quaker’s 7.64% result. Return on assets (ROA) measures how well management has employed its assets (Garrison & Noreen, 2003). Pepsi’s return on assets of 8.90% is inferior to Quaker’s metric of 12.30%. The ratio analysis performed on these two companies’ shows mixed results. The short term liquidity of these two companies is similar with Pepsi holding a minor edge of 0.01 and 0.02 in the current and quick ratio. The broad profitability of Pepsi is better, but the absolute profitability of Quaker is superior. The return on assets of Quaker is much better than Pepsi. Overall based on the ratio analysis Quaker had a better financial performance than Pepsi. The acquisition of Quaker by Pepsi makes sense from a financial standpoint. Buying Quaker will not impose any constraint in the liquidity position of the firm since both companies had similar current asset and quick ratio results. The profitability of Pepsi will be enhanced by the acquisition due to the fact that Quaker’s net margin and return on assets was superior to Pepsi. From a marketing