Mountain Man

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Case Analysis
On the basis of Exhibit 1,we find that Mountain Man is having over 50 Million sales which is supposed to be good revenue having a mature business in brew market.It is also having Goss Margin having 30 % ,which is good by Gross Profit Ratio standard.But as far as net Income after taxes is concerned it is still very good because as per NOPAT standard,anything above 6% in normal businessis supposed to be good other things remaining same and depending in the line of business and the industry standard. So going. by the financial figures of 2005,we can somehow conclude that company is in the healthy position to think of having expansion. If we look at the Advertisi8ng expenses of 1.35 Million which is 2.7 % of total revenue,we find the Mountain Light could have the market share by concentrating in the ad expenses.We can also say on the basis of 2005 figures of the Exhibit 7 where US Beer Advertising Expenditures in the Broadcast category is $ 627.8 Million and Print Category is $ 709.1 Million.By far being the Brew leader,Maountain could think of increasing the Ad Expenses if Maountain light is to be expanded and made popular specially in the female population where currently it has 19 % share and they are consuming Light Beer at 42%. If we look at the Exhibit 5,we find that Light Beer Consumption in the East Central Region is 50.4%,which is a huge potential for the Mountain Light to explore in that region.
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