This website uses cookies to ensure you have the best experience. Learn more

Body Shoop Essay

2272 words - 10 pages

Section 1

Financial situation of the firm at the closure of 2001 annual report

From the data available from the past three years it's possible to evince a lot of information concerning the overall finance and economic trends of the firm. In this way very interesting in our opinion is the analysis and the consequence of the dynamic of several indices of financial stability an of many others mainly concerning internal efficiency.
Indeed in this preliminary overview we won't pay much attention to the evolution of the company economic performance for two main reasons.
On one side in fact results enough clear the trend of a constant growth in the revenues and any analysis of the ...view middle of the document...

The last point bring us to deal with the analysis of a second class of indicators that we found fundamental in order to forecast future cash flows of the next three years.
We selected there the more interesting for our purposes(in Appendix A there is the entire list of them)

Taking a brief analysis of them data suggest that there is not a real balance between the time of
collection of receivables and the payables deadline. However the trend in the last year seems to suggest the will of the board of harmonize the two deadlines. One more crucial point that we'll see crucial in the financial planning is the first index that suggest the presence of a huge inventory that blocks cash flows.

Section 2

Body shop strategy and our assumption on the future financial and economic trend of the firm

The management strategy for the next three years consists mainly in a direct intervention in two direction.

A) a higher level of investment in Shops with a better organization of them
B) a direct intervention on the dynamic of the inventories in order to reduce the inefficient deposits of products

Assumption on the direct predictable consequence of firm new strategy in asset manegment

In relation to point A we hypotised a dynamic of fixed investment varying during the next three years: higher in the first one( 15% in the first year and 7% in the second two years).
The justification of than is inside the past dynamic of investment the firm carried on in 1999
Secondly we thing that is necessary to proceed to the depretiate the passed fixes( the gross net fixed at 2001 are still not under depretiation), so we'll prevent a plan of ten years for each fixed asset(Appendix A).

Assumption of the evolution of the revenues, n.w.c, cogs in the best and in the worst case

To explain and discuss our personal view on the future of the firm we decided to present a twofold prospectus of possible evolution of the economic activity of the firm( we're quite sure that all reasonable future realization will fall in the gap we forecast)

Table 1,2

Rates of growth //scenario Best scenario Worst scenario
0 0 0 0 0 0
Rate of growth of revenues 15.00% 15.00% 15.00% 5.00% 5.00% 5.00%
Rate of growth of cogs 13.00% 12.00% 10.00% 5.00% 4,50% 3,50%
Rate of growth of receivables 15.00% 15.00% 15.00% 5.00% 5,00%
5,00%
Rete of growth of payables 13.00% 12.00% 10.00% 5.00% 4,50% 3,50%
Rate of growth of inventory 15.00% 12.00% 10.00% 10.00% 10.00% 10.00%
Explanation of the assumptions.

To explain our assumption it's necessary to observe preliminary that it's our idea that the new strategy of the firm won't have as an effect an explosion of the rate of growth of revenues( even in fact in the best scenario the rate is quite close to the one we observed in 2001). Obviously in the bad scenario we think that the rate of growth will be significantly low(so we assumed a rate of growth similar to the one observed in 1999).
On the other side if the...

Other Essays Like Body Shoop

The French And Indian War: The "Real" First World War

1955 words - 8 pages The Seven Years War, or more commonly referred to as “The French and Indian War”, has been called the true First World War. In this book The French and Indian War: Deciding the Fate of North America, the author and historian Walter R. Borneman paints a detailed and elaborate picture that justifies the claim of it being the first true war of global proportions. If ever there truly was a climax to the never ending feud of the European powers

Is The Use Of Animals In Medical Research A Necessary Measure?

1513 words - 7 pages research (Thomassen 2). During his time, religion played a main role in society, making people believe they were supreme rulers over all other living beings on the earth as stated in the bible. Because of this fact, humans and animals were not linked and research was conducted only to learn more about non-human species. It was not until 1859 when Charles Darwin came up with his theory of evolution that human and animal body systems were connected

Education And The Evolving Job Market

2363 words - 10 pages The lives of students today are changing. They are preparing for lives and jobs that have never before existed. If teachers hope to have a significant and worthwhile impact on these quickly changing lives, they must change the way they think, prepare, and instruct our future generations. Children cannot afford to have teachers who remain stagnant in their methods and ideals. Students crave instructors that are willing to allow them to tap

Young And Relentless

1737 words - 7 pages There are numerous influences that can be responsible of teenager’s behaviors and attitude as they develop. One factor that is important to these behaviors is parental figures being over involved or uninvolved in their children’s lives. Many of these effects include illegal substance abuse, rising sexual activity, underage alcohol consumption, and tobacco use. Studies show parental participation plays a key role in the characteristics developed

The Natural Law Theory

1231 words - 5 pages Obeying by the natural law theory is the only true and moral way to live life; especially a life lived in God’s image. God’s presence is a guiding factor to obtaining a moral and virtuous life, which can only be obtained by following the natural law theory. God created a set of laws as a supreme guide for humans to live life, like any law these laws were created to ensure wellbeing for everyone. The laws he created are the civil law, the natural

Resolved: Presidential Signing Statements Threaten To Undermine The Rule Of Law And The Separation Of Powers

1811 words - 8 pages The subject of signing statements has created much debate among the houses of Congress, government officials, and the public alike. These signing statements fall under the categories of constitutional and legislative history signing statements. Constitutional signing statements are those in which the president deems certain provisions of the legislation as unconstitutional, therefore they should not be enforced (Bradley & Posner, 2006

Oppressive Systems Of Government In Egypt And Animal Farm

1529 words - 7 pages As in Egypt, Orwell demonstrates through his allegorical novel “Animal Farm” that leaders are able to establish and maintain power over a people, and in turn create an oppressive and corrupt government system. Orwell shows the significant difference in the education and levels of knowledge in the animals, and how the government takes advantage of this difference. The split between the levels of intelligence is portrayed in the first chapter when

The Pathway To Psychosis

1415 words - 6 pages “How all occasions do inform against me” is a line from act IIII, scene IIII of William Shakespeare’s Hamlet. This line, spoken by Hamlet, expresses his emotional state as he is currently overwhelmed by the death of his father, the king of Denmark, and the situation surrounding it. After Hamlet learns of his father’s death he finds out that his mother has married Claudius, Hamlet’s uncle. On top of all of that, Hamlet soon after

Rated “M” For “More Censorship Not Needed”

1241 words - 5 pages Since the moment video games became a commercial success there have been people who have pushed for unfair amounts of censorship to be placed upon the content of the games and its availability to children. These groups push for increased regulations on content but there is already an appointed group to handle this issue, the ESRB. Even though there has been an increase in mature content in the video game industry, increased censorship is not

Four Components Of A Legally Astute Social Media Marketing Manager

1914 words - 8 pages With the advances in technology constantly changing companies have to find better ways to market their products to consumers. The explosion of Facebook has given companies a way to market products to consumers. Examine how a legally astute manager can use social media to his advantage. Review different forms of dispute resolution and determine which one works the best. What is the best course of action, the government can use to

Obama's Values

1217 words - 5 pages As individuals, we don’t tend to take action unless it’s for self-interest; however, in Dreams from My Father, Obama spends three years, after college, as a community organizer in Chicago. Obama goes through tribulations, disappointments, and even complete failures organizing meaningful events, decisive meetings, and humble gatherings but he keeps working toward achieving any possible change in the community. Even though results give him every

Related Papers

The Separation Of Capital Ownership And Control

1577 words - 7 pages The argument of whether the separation of capital ownership and control is an efficient form of organization has constantly been a controversial issue. The criticism whether the controllers’ act is in the best interest of the owners’ wills never end as long as hired managers operate management. As the number of public companies has been increasing over the course of this century, meanwhile the American style of contact based corporation has

The Versatility And Flexibility Of Oled's

1014 words - 5 pages In April 1, 2002, organic light emitting diodes gain rise in the scientific community with their published, more practical form at Ames Laboratory. “Scientists at the U.S. Department of Energy's Ames Laboratory, in collaboration with scientists at the University of Michigan, Ann Arbor, have developed and demonstrated a novel, fluorescence-based chemical sensor that is more compact, versatile and less expensive than existing technology of its

Comparing The Moral Virtues Of Antony And Julian The Apostate

1103 words - 5 pages -control, wisdom, justice and courage. (The Later Roman Empire) In spite of the fact that the author is speaking of Julian in this book, these virtues are also applicable to Antony. The Devil was “unable to stand such outstanding virtues” (Early Christian Lives, p.11) when he saw Antony. The Egyptian saint showed much self-control when he was fasting for days at a time. Every time the devil would try to tempt him, he would fast until his body

Living In A Cashless Society Essay

1637 words - 7 pages Money in a traditional sense no longer exists. Money is becoming much of a concept than a physical material, and most ordinary bitter have not see the reality of the switch. People today are using credit and debit cards on a regular basis and in everyday situations such as meal purchased at fast food, highway tolls, clothing, groceries, gas stations, etc. all of these means of systems could be regarded as a cashless society or world. The question