Jcpenney Industry Analysis

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• JCPenney Essay

  ... FNBK 3000 JCPenney Input Data Table Income Statement Year 5 Year 4 Year 3 Sales $18,424 $17,786 $17,633 Net income (loss) $524 $(928) $405 Gross interest expense $279 $271 $245 Preferred Dividend $12 $25 $27 Tax rate 35% 35% 35% Balance Sheet Total Assets $14,127 $18,300 $17,787 Total Debt $9,271 $12,875 $11,417 Preffered Stock $- $304 $333 Total Common $- $- Shareholders' Equity $4,856 $5,121 $6,037 a) Disaggregation of ROA Year 5 Year 4 Year 3 Profit margin for ROA 3.83% -4.23% 3.20% Total Asset Turnover 113.63% 98.57% 98.41% ROA 4.35% -4.17% 3.15% b) Disaggregation of ROCE (%) Profit Margin for ROCE 2.78% -5.36% 2.14% Total Asset Turnover 113.63% 98.57% 98.41% Capital Structure Leverage 325.02% 323.42% 303.61% ROCE 10.26% -17.08% 6.41% c) Reasons for change in ROCE over the three years: The reasons for a change in ROCE are (1) an increase in interest expense, (2) an increase in debt, (3) a decrease in total assets, (4) a change from a net loss to net income, (5 )an increase in sales, and (6) the issuing of preferred stock. d) Compute the ratio of ROCE to ROA for each year Year 5 Year 4 Year 3 235.92% 409.95% 203.39% e) Calculate net income to common...

  247  Words | 2  Pages

• Industry Analysis Essay

  ...Rabulan I. Cover Page II. Executive Summary III. Industry Analysis A. Environmental Analysis The competition between businesses within the textile and clothing industry has always been steep. The change in lifestyle combined with the fast changing trends has left entrepreneurs with the challenge of keeping pace with the demand of the consumers. With KRaze-Zip’s fresh, unique, and high in quality yet economical products, it is in the best position to answer such growing needs. The Clothing Accessories Industry Today Since KRaze-Zip will be selling clothing accessories, it will be penetrating the clothing and textile industry. The clothing and textile industry has been a declining industry in the Philippines since 2005. This decline is due to the MFA (Multi-fiber Agreement) phase out and lowered of trade quotas which greatly affected the Philippines due to its inability to compete with countries with lower wage costs. Aside from this, the global crisis in 2008 has also led to the decline of the industry not only in the Philippines, but also worldwide. However, the textile and clothing industry remains to be Philippines’ second largest industry based on the number of establishments according to the survey released by the National Statistics (August 29, 2012). Out of 4, 643 manufacturing firms employing...

  1681  Words | 7  Pages

• Industry Analysis Essay

  ...1. Industry Analysis (80%) The five force analysis is one of the most recognized frameworks for the business strategy. Porter, the guru of modern day business strategy, used theoretical frameworks derived from Industrial Organization economics to derive five forces which determine the competitive intensity and therefore attractiveness of a market. As Porter's 5 Forces analysis deals with factors outside an industry that influence the nature of competition within it, the forces inside the industry that influence the way in which firms compete, and so the industry’s likely profitability is conducted in Porter’s five forces model. A business has to understand the dynamics of its industries and markets in order to compete effectively in the marketplace. Porter defined the forces which drive competition, contending that the competitive environment is created by the interaction of five different forces acting on a business. In addition to rivalry among existing firms and the threat of new entrants into the market, there are also the forces of supplier power, the power of the buyers, and the threat of substitute products or services. This describes the attributes of an attractive industry and thus suggests when opportunities will be greater, and threats less, in these of industries. The industry that I have chosen for my five force...

  1689  Words | 5  Pages

• industry analysis Essay

  ...trategic planning is an organization's process of defining its strategy, or direction, and making decisions on allocating its resources to pursue this strategy. It may also extend to control mechanisms for guiding the implementation of the strategy. Strategic planning became prominent in corporations during the 1960s and remains an important aspect ofstrategic management. It is executed by strategic planners or strategists, who involve many parties and research sources in their analysis of the organization and its relationship to the environment in which it competes.[1] Strategy has many definitions, but generally involves setting goals, determining actions to achieve the goals, and mobilizing resources to execute the actions. A strategy describes how the ends (goals) will be achieved by the means (resources). The senior leadership of an organization is generally tasked with determining strategy. Strategy can be planned (intended) or can be observed as a pattern of activity (emergent) as the organization adapts to its environment or competes. Strategy includes processes of formulation and implementation; strategic planning helps coordinate both. However, strategic planning is analytical in nature (i.e., it involves "finding the dots"); strategy formation itself involves synthesis (i.e., "connecting the dots") via strategic thinking. As such, strategic planning occurs around the strategy formation activity.[1] Contents   [hide]  1 Process 1.1 Overview...

  1246  Words | 5  Pages

• industry analysis on pharmaceutical industry Essay

  ...on Industry Analysis of pharmaceutical industry. Prepared for- Shahnoor lecturer Daffodil International University Prepared by- Name ID Ruhul Amin 113-11- MD. Tuammel Hossain 113-11-2190 Amina Afrin 113-11-2244 Arshad Pharmaceutical Industry of Bangladesh Abstract Pharmaceutical is the core of Bangladesh’s Healthcare sector, and serves as one of the most important manufacturing industry. With a history since 1950s, the industry has now turned one of the most successful pharmaceuticals manufacturing industry among the developing countries. Presently, the industry meets 97% of local demand and exports to more than 80 countries. The industry has been experiencing robust growth over the last few years. A local industry supporting drug policy and effective regulatory framework, along with TRIPS relaxations are the key reasons for success of the industry. While the industry is achieving self-sufficiency, it yet procures 70% of raw materials from abroad. But developments are already taking place, with a number of firms now manufacturing raw materials locally. In addition, an API project has...

  1573  Words | 6  Pages

• Essay about Industry Analysis

  ...IV. Industry Analysis A. Porter’s Five Forces Model High Potential Development of Substitute Products Bargaining Power of Consumers Rivalry among Competing Firms Bargaining Power of Suppliers Low High High High Potential Entry of New Competitors High Rivalry among Competing Firms. For most industries, firms, organizations and institutions like DYCI, the intensity of competition is the most important factor which determines market attractiveness. Here in Bulacan, there had been a growing number of competitor schools, namely ABE, Baliuag University(BU), Centro Escolar University(CEU), College of Mary Immaculate(CMI), College of St. Laurence(CSL), Colegio de San Pascual Baylon, Fernandez College of Arts and Technology, Meycauayan College(MC), St. Mary’s College of Meycauayan(SMCM), Polytechnic University of the Philippines(PUP) and University of Regina Carmeli(URC), which offers the same or higher quality programs connected with its College of Accountancy. Most of this schools have advantage with regards to its technology, facilities, competent professors and especially its number of board passers. These factors affects the decision of individuals in their choice of school and course. These factors also intensifies competition, since with a wide variety of good choices, the customer can easily go from one school to another. Added with this mentioned schools, are schools...

  673  Words | 3  Pages

• Essay about Porters Industry Analysis

  ...Porters Industry Analysis: The automobile manufacturing industry The Automobile Manufacturing Industry 3 Introduction 3 Power of Buyers (Medium-High) 3 Power of Suppliers (Low) 4 Threat of New Entrants (Low) 4 Threat of Substitute products (High) 6 Internal Rivalry (Medium) 6 Relative Power of Other Stakeholders (High) 7 Conclusion 8 References 9 The Automobile Manufacturing Industry Introduction The automobile manufacturing industry is comprised of companies that produce self-powered vehicles: cars, trucks, vans and commercial vehicles (trucks, buses, farm equipment). For the past twenty years, the automobile manufacturing industry has experienced continuous growth and globalization. The industry utilizes a global supply chain and provides its services to a universal customer base. Porter developed a five-force model, which outlines the five competitive powers of the automobile manufacturing industry. The five basic competitive forces are: (1) market competitors, (2) new entrants, (3) suppliers, (4) buyers, and (5) substitutes (Porter, 1985). Porter identifies the forces are being the power of buyers and suppliers, threat of new entrants and substitutes, and potential rivalry with the companies within the industry (Kotler, 2009). It was not until later that a sixth force was developed: relative power of...

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• Essay about Industry Analysis of Restaurant Jaclivery

  ...Industry Analysis Our Company Restaurant Jaclivery Sdn Bhd creates a mobile application named Jaclivery Malaysia for iOS and Android user. Jaclivery is an official Restaurant Jaclivery Sdn Bhd’s mobile app. Customers can use this app to order and purchase food and beverage online for fast delivery to your doorsteps. Check out the full menu on the go. Plus, customers can keep track with your calories intake with the built-in calories counter. All this scale we are using PEST and Porter’s 5 Forces. PEST includes Political influence, Economic influence, Social influence and Technological influence. Risk of Substitutes, risk of new entrants, bargaining power of suppliers in addition buyers and competitive challenge are main details of Porter’s 5 Forces. (Dean A.Shepherd, 2008, p235) Political factor (P) Political factor affect a business to operate ethically by using government regulations and legal issues. For example, tax strategies, political stability, trade regulations, employment laws and safety regulations. Government regulation from a restaurant will be hygiene; health, food standards, and food they are allow to serve. Our Restaurant Jaclivery Sdn Bhd ensures that our food and beverage and environment of restaurant will up to the standard of government regulation. Government stated that Goods and Services Tax (GST Malaysia) will be implemented with effective from 1 April 2015 and GST rate is fixed at 6 (%) per cent. Sales tax and service...

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