Rock of Ages Case Study May 17, 2008 Executive Summary Rock of Ages (ROA) is an industry leader in granite quarrying and manufacturing, specializing in memorials. With nine quarries ranging through Vermont, Quebec, Pennsylvania, North Carolina, and recently Ukraine, ROA offers a variety of granite colors and grades for the selective consumer. Until January, 2008, ROA also had a retail division dedicated to memorials. Although ROA has been in business for over a century, economic factors in a global economy are eroding on their once rock-solid consumer base. Specifically, ROA has operated at a loss over the last several years, with 2008 being a transition year due to the discontinuation of the Retail …show more content…
Expansion of quarries and quarry business Until recently, ROA focused the business on domestic quarries only; owning and operating ten quarry properties in the US and Canada. ROA recently brokered a partnership with VIKA, Ltd., a Ukrainian quarrying company, to broaden their product offering and remain competitive with overseas competition. Reduce overhead and streamline operations Having recently sold the Retail division, ROA seeks to decrease redundant job functions and administrative office space costs. ROA focuses on product differentiation through quality. The only company who offers a perpetual warranty (guaranteed forever), ROA products set the standard for granite memorials. Situation Analysis ROA’s situation is defined largely by recent financials. They have demonstrated year over year decline in revenue, profit, and net income since 2003 as demonstrated in Figure 1 (below). (MSN Money, 2008) Figure 1 ROA’s 2006 and 2007 financials have been resubmitted to accommodate for the discontinuation of the Retail organization, providing skewed trend lines. However, one will still note continued decline of net income between 2006 and 2007 in spite of a slight increase in both revenue and gross profit. This additional loss has been attributed to the costs of discontinued operations (Retail), and constitutes a $5.2 million cost in 2007. The resubmission of 2006 financials have repositioned 2006 as a bounce-back year for
Research and development – totaled $98,280.00 in year 7, and in years 7 to 8 decreased -16.3% or $15,996.00. This is weakness in sales and performance, but a smart decision because of the cut in R&D saved -16.3% or $15,996.00 that would have been looked at as profit. They were able to use the previous year’s investment on R&D.
During our analysis of individual segments, exhibit 2, we found that the RONAs for the Retailing and Food were lagging behind that of the Drinks segment. Furthermore, the Drinks segment only has 26% of total net assets, yet it provides 46% of operating profits. Comparing this to the Retailing segment, which utilizes 40% of net assets while only contributing 24% of the total profits, shows a great disparity. The Food segment represents 34% of net assets and 30% of the total profits.
Cruickshank, Garth& Romano is formed by three experienced partners with good reputation. The initial targets of the company are the owners of small properties who will not patronize NCR’s top four companies. Recently, to ensure Cruickshank, Garth& Romano’s success, the company changes their targets to larger developers and tends to keep long relationship with leading company.
* Return on assets (ROA) – ROA shows how successful a company is in generating profits on the amount of assets they own. Since assets consist of debt and equity, ROA is a measure of how well a company converts investment dollars into profit. The higher the percentage, the more profit a company is generating per dollar of investment. Similar to ROS, this ratio needs to be looked at compared to the industry as different industries have different requirements that can affect ROA. For example, companies in the airline and mining industries need expensive assets to operate so will have lower ROA’s compared to companies in the pharmaceutical or advertising industries.
REI faces competition from numerous retailers who compete for customer dollars within the same market sector, with a similar range of products for sale. The list of REI’s competitors are extensive and includes major companies, like L.L.Bean, Cabela’s, The North Face, Bass Pro Shops, and Academy Sports + Outdoors, to name a few. Given the level of competition, what differentiates REI from its rivals and why is REI successful in a business sector that has seen numerous others failed? The answer is simply. Although numerous factors contribute to the success of a retailer, one element rises above all, namely the customer. A successful retailer needs to attract and retain customers and the optimal way to draw in and capture customers is through
* Sales results over the past 5 years indicated strong growth in forklift and truck sales. The rental market has been in decline. Result in company decided to reposition itself to focus solely on retail sales and service and exit the rentals market.
The first scholars that existed named the whole period of human devolvement the “Stone Age.” The stone age is divided into three periods which are Paleolithic which means the old Greek age, Mesolithic and Neolithic which is the new Greek age. The Paleolithic and Neolithic stone ages have many great differences and has changed greatly between the two periods.
Barney, J. (2004). Firm resources and Sustained Competitive Advantage. Strategy: Process Content Context: an international perspective, de Wit & Meyer , 285-292.
This essay will explore a case study of Origin Energy to illustrate an organisation that has undergone a change. The organisational culture before and after the change will be described, management styles within the organisation will be analysed, the relationship between motivation and performance will also be explored and finally the change management strategies used by the organisation will be discussed as well. Each of these sections will be explored to support the hypothesis that culture is an integral part of an organisation. Before the individual sections are discussed however, the essay will look at the background of Origin Energy.
The Grand Canyon is a wonderful place to gain a sense of how old the earth really is because of the ability to date the layers of rock in the canyon. The Rocks exposed in Grand Canyon are truly ancient, ranging from 1840 million years old or 1.84 billion years old (to 270 million years of age. (Beus, and Morales, 2003). While the Grand Canyon is not old in comparison to much of the earth, it is considered young earth because it was slivered by an ie in the last six million years. This gives the rocks in the Canyon Ice age fossils and new deposits, in the grand scheme of things. Some of the younger deposits in the Canyon are only a thousand years old and are the result of lava that began to come into the geographic. It is the walls of the
he retail industry is in the middle of an unprecedented economic crisis. All retailers are trying to figure out how to cut costs, retain customers, conserve cash and more importantly stay in business. Recently, the National Retail Federation (NRF) polled readers of its SmartBrief asking them what was on top of their mind. Loss Prevention (LP) came in second only to the overall economy! It is no surprise given that every dollar saved from retail shrink is a dollar added directly to the bottom-line. Looking back in history, we have seen tough times like these are conducive for higher shrink numbers. This is mainly due to retailers cutting down
The company currently faces serious financial challenges. It was struggling with declining sales and increasing costs. Since 2004, revenues had fallen by more than 40% while costs especially for employees health insurance, maintenance, and utilities climbed. Credits and loans had been borrowed to
Support: The inventory increase in 1997, YOY, was 58%. Additionally, the COGS to revenue ratio reduced from to 72% in 1997. This combination of increase in inventory and reduction in COGS as a percentage of revenue seems to indicate that the fixed costs may have been spread over a larger base through over production, thereby causing the COGS to reduce. This may be a cause for concern and could be a potential red flag.
The company had ambitious objectives with their own retail units, having as an objective to open three hundred stores, but the company realized that retail stores were a distraction to management making harder to focus in their core business and damaging the relationship with their main retailers, making clear that the company was struggling on creating profits in products that were not part of their core business, the strategies and objectives needed to be adjusted in order to turnaround the decrease in sales and profits of the
The case study is Macy’s Department Store Repositioning. The key problem is that the traditional department stores sales and profits are declining. There are specialty stores, discount stores, and online stores that offer similar products at a fraction of the cost for the most part. However, in the declining market for the department store industry, Macy’s consolidated stores, established a national department store and continues to make a steady profit. It is usually the time to divest, sale,