Stannards Superstores Case
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- 8 Pages
- Report
Stannards superstores Case
Stannards superstores Case
Task One
INVESTOR MEASURES RATIOS
Debt/Equity Ratio
2007
2008
Total Liabilities
37
104
Total Equity
1750
1794
Debt/Equity
0.021
0.057
Current Ratio
2007
2008
Total Current Assets
707
688
Total Current Liabilities
744
792
Total Current Assets/ Total Current Liabilities
0.950
0.86
Quick Ratio
2007
2008
Current Assets
707
688
Inventory
398
410
Current Liabilities
744
792
(Current Assets
- Inventory)/ Current Liabilities
0.41
0.351
PROFITABILITY RATIOS
ROA
Return on Assets = net profit before taxes / total assets.
2007
2008
net profit before taxes
115
91
total assets
1750
1794
ROA
0.065
0.050
LIQUIDITY RATIOS
Current Ratio
2007
2008
Current Assets
707
688
Current Liabilities
744
792
Current Ratio
0.95
0.86
Net Current Assets % TA
2007
2008
Current Assets
707
688
Current Liabilities
744
792
Sales
1,133
1,027
Net Current Assets
(0.03)
(0.010)
Task Two
ROE
Return on Common equity = (net profit - preferred share dividends) / (shareholders equity- preferred shares).
2007
2008
net profit
59
44
preferred share dividends
-
-
shareholders equity- preferred shares
1750
1794
ROE
0.033
0.024
ROI
Return on Investment Ratio = net profits before tax / shareholders equity.
2007
2008
net profits before tax
115
91
shareholders equity
1750
1794
ROI
0.065
0.050
Task Three
Current ratio is a measure of the degree to which current assets cover current liabilities. It has been seen that the current ratio is decreasing A high ratio indicates a good probability the enterprise can retire current debts. A ratio of 2.0 or higher is a comfortable financial position for most enterprises.Quick Ratio is a measure of the amount of liquid assets available to offset current debt. A healthy enterprise will always keep this ratio at 1.0 or higher. Generally, the acid test ratio should be 1:1 or better. Here we may see that the quick ratio has decreased a bit, and as it is lesser than 1.0, hence it indicates a bad sign.
Return on Assets is a percentage that shows how profitable a company's assets are in generating revenue. The higher the ROA number, the better, because the company is earning more money on less investment. Through the calculations we may say that the ROA has decreased from year 2007 to 2008, hence showing that it is bad for the company.
The Liquidity Ratios Analysis shows that the company has a bad impact on the company all over. The Current ratio or Quick Ratio show an ineffective output for the company.
Task Four
A key aspect of the CRM project is that it is cross-functional, and requires co-ordination of both front and back-office activities. This is why the emphasis must be on the culture and process, rather than on the technology. Mapping the processes involved from a customer's perspective when interacting with the company can be a useful way to identify where integration is necessary and what changes are required. As well as being cross-functional, CRM may also cross the boundaries of the organization itself to embrace partner organizations and suppliers. (Spivey 2007: 15-20)
Developing a sound business case that aligns the project with well-defined returns on investment is central to progressing CRM. Cost-savings are less likely from this type of project, placing a stronger emphasis on greater operational efficiency, increased revenue streams and longer customer relationships. The business case should identify both internal and external drivers of the shift towards a customer focus, and should propose solutions that address these issues.
All channels through which customers interact with the business should be considered, and whether the project will address all of these in one go, or whether phased implementation will be needed. A case should also be made for the ...