Compare financial strategies of ―your store‖ and another store that sells similar merchandise categories, but to a
very different target market. If yours is a high margin/low turnover store, compare it with a low margin/high
Construct strategic profit models using the excel spreadsheet that can be found on the student side of the Online
Learning Center at www.mhhe.com/levy6e. Go to tutorials, and then to strategic profit model. Go through the
tutorial until you see the spreadsheet on the lower left side of the screen. There is also a blank SPM on p. 553
of the text. Obtain data using its annual report that you can get either in the ―investor relations‖ area of its web
site or from the Edgar files at www.sec.gov. or information as web sites like www.hoovers.com,
Explain, from a marketing perspective, why you would expect gross margin percentage, expenses-to-sales
ratio, net profit margin, inventory turnover, asset turnover, and return on assets to be different for the two stores.
Assess which chain has better overall financial performance. Your grade will be primarily based on your
analysis of why these ratios are different.
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