Case Study Enron

13-33(35 min.)Strategic analysis of in operation(p) income. 1.Halsey is following a harvest-festival differentiation strategy. Halsey offers a wide selection of clothes and resplendent customer service. Halseys strategy is to distinguish itself from its competitors and to charge a premium price. 2.Operating income for from each one year is as follows: 20072008 Revenues ($60 ( 40,000; $59 ( 40,000)$2,400,000$2,360,000 tolls cost of goods manage ($40 ( 40,000; $41 ( 40,000)1,600,0001,640,000 marketing & customer service be ($7 ( 51,000); $6.90 ( 43,000)357,000296,700 Purchasing & admin. be ($250 ( 980; $240 ( 850) 245,000 204,000 Total apostrophizes 2,202,000 2,140,700 Operating income$ 198,000$ 219,300 reassign in operating income$21,300 F 2. The Growth Component [pic]=[pic] =(40,000 ( 40,000) ( $60 = $0 [pic] = [pic] × [pic] [pic]=[pic] × [pic] Pieces of clothing that would be required to be purc hased in 2008 would be the same as that required in 2007 because proceeds is the same between 2007 and 2008. Purchasing and administrative cost and selling and customer-service costs will not change since sufficient skill exists in 2007 to support year 2008 output and customers. The cost cause of increase broker are: Costs of goods sold(40,000 ( 40,000)($40=$0 Selling & cust.-serv. costs(51,000 ( 51,000)( $7=0 Purch. & admin. costs(980 ( 980)( $250= 0 Cost accomplishment of growth$0 In summary, the net tack on operating income as a result of the growth helping equals: Revenue effect of growth$0 Cost effect of growth 0 Change in operating income referable to growth$0 The Price-Recovery Component [pic]=[pic] =($59 ( $60) ( 40,000 = $40,000 U [pic]=[pic][pic] [pic]=[pic] × [pic] Costs of goods sold($41 ( $40) ( 40,000=$40,000 U Selling & cust.-serv. costs($6.90 ( $7)(51,000=5,100 F Purchas. & admin. costs($240 ( $250)( 98 0...If you want to cop a full essay, order ! it on our website: BestEssayCheap.com

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