Monday, January 27, 2020

External Factors Affecting To The Pepsico Marketing Essay

External Factors Affecting To The Pepsico Marketing Essay Books, articles, journals and periodicals were reviewed; internet sources were also visited, to elicit information. The major threat identified were more of environmental, arising majorly from its sludge which was alleged to contain a high level of toxic chemicals, including cadmium and lead, both of which can be harmful to human and plants. The case of coca-cola plant in Perumatti in the southern state of Kerala in India was used as a case study Not only is PepsiCo the worlds largest beverage company, but in 200 nations ( with consumers enjoying an average of 1.6 billion servings a day), sells about 500 sparkling brands, including 4 of the top sellers (coca- cola, diet coke, sprite and fanta), sparkling beverages, juices, and ready to drink teas among others. In this assignment we focused on the activities regarding the external factors which affect the PepsiCo, needs and expectations of stakeholders of PepsiCo, major changes taking place in the external environment in PepsiCo, modeling tools develop strategic options, basis of future PepsiCo strategy, comparative understanding of competitor activity from others. External factors affecting to the PepsiCo. PEST analysis is concerned with the key external environmental influences on a business. POLITICAL ECONOMICAL SOCIAL TECHNOLOGICAL PepsiCo product are subject to various federal laws New opportunities in other countries Replenishing water Operates in almost all the countries Land acquisition for new factories Fuel price Replenishing water Introduction of cans and plastic Bottles Govt. focusing on stricter water pollution norms Availability of labor Partnership with farmers Newer and attractive Designs Raw Material prices A great worry. Have a global economic perspective Solid waste management program State-of-the-Art plants Needs and expectations of stakeholders of PepsiCo Consumers PepsiCo are proud to offer PepsiCo consumers a wide range of products that deliver great taste, nutritional value, convenience and affordability. PepsiCo are committed to playing a responsible role in health and PepsiCo are finding innovative ways to reduce the use of energy, water and packaging, and to better serve consumer wants and needs through new products and packaging And PepsiCo work relentlessly to improve productivity so PepsiCo can offer affordable products to a broad range of consumers. Consumer Privacy Consumer privacy is important to PepsiCo, and PepsiCo make every effort to make sure consumers are provided with PepsiCo policies, terms and conditions. PepsiCo business divisions and many markets maintain corporate and brand PepsiCo sites, fully accessible to all interested parties. Communities PepsiCo support PepsiCo communities through PepsiCo businesses by contributing to not-for-profit groups and by working with organizations dedicated to improving the lives of people. PepsiCo have advisory groups that focus on health and issues of concern to the African American, Asian and Latino/Hispanic communities, among others. Investors PepsiCo strive to provide investors with a reasonable return on their investment, based on consistent financial growth in the marketplace and consistent financial results. PepsiCo take a long-term view and make appropriate investments to strengthen PepsiCo brands, develop PepsiCo capabilities and pursue new opportunities. Partners PepsiCo did not control these bottlers, PepsiCo did not consolidate their results. Instead, PepsiCo included PepsiCo share of their net income based on PepsiCo percentage of economic ownership in PepsiCo income statement as bottling equity income. Suppliers PepsiCo suppliers provide us with the goods and services needed in PepsiCo business. PepsiCo buy goods and services at competitive prices with the goal of allowing both PepsiCo suppliers and PepsiCo to make a reasonable profit. Major changes affect strategy. PepsiCo intend to continue to focus our efforts on, among other initiatives, the following. These changes of the external factors changes the Strategy of PepsiCo PepsiCo Company to develop a business model to continue exploring and participating in new lines of beverages, extending existing product lines and effectively advertising and marketing our products; implementing selective packaging strategies designed to increase consumer demand for our products and to build a strong returnable base for the PepsiCo brand; replicating our best practices throughout the value chain; Adapting organizational and asset structure in order to be in a better position to respond to a changing competitive environment; to build a multi-cultural collaborative team, from top to bottom; and broadening our geographic footprint through organic growth and strategic acquisitions. SWOT analysis of PepsiCo SWOT Analysis of PepsiCo Strengths Weaknesses Opportunity Threat one of the most recognized brands of the world Low Productivity In 2008 PepsiCo had approximately 198,000 employees. International Expansion PepsiCo is in the midst of making a $1, 000 million investment in China, and a $500 million investment in India Decline in Carbonated Drink Sales Soft drink sales are projected to decline by as much as 2.7% by 2012, PepsiCos diversification is obvious in that the fact that each of its top 18 brands Image Damage Due to Product Recall Growing Savory Snack and Bottled Water market in US PepsiCo is positioned well to capitalize on the growing bottle water market which is projected to be worth over $24 million by 2012. Intense Competition The Coca-Cola Company is PepsiCos primary competitors. But others include Nestlà ©, Groupe Danone and Kraft Foods. Intense competition may influence pricing, advertising, sales The company delivers its products directly from manufacturing plants and warehouses to customer warehouses and retail stores Its revenue per employee was $219,439, which was lower that its competitors. Broadening of Product Base PepsiCo is seeking to address one of its potential weaknesses; dependency Potential Negative Impact of Government Regulations Develop a comparative understanding of competitor activity from other organizations in the market. pff2.jpg Create options to form the basis of future organizational strategy. The PepsiCo reaffirmed the underlying strength of its integrated food and beverage portfolio and concluded that PepsiCo offers the most compelling value to shareholders as one company. Significantly increase investments in its iconic brands and in bringing innovation to market. Advertising and marketing spending will increase by $500-$600 million in 2012, the majority in North America. Going forward, it expects to maintain or increase that rate of support as a percentage of revenues. To drive efficiencies, it will reduce the number of agency partners and also take steps to leverage the global scale of its top brand platforms. The brand investments are expected to drive top line growth and enable greater price realization; Implement a three-year productivity program that is expected to generate over $500 million in incremental cost savings in 2012, further incremental reductions in the cost base of about $500 million in 2013, and an additional $500 million in 2014. The productivity savings will span every aspect of the business: Improve its net return on invested capital by at least 50 basis points annually beginning in 2013 through increased focus on capital spending and working capital management. As an example, in 2012 we will be reducing capital expenditures by 10% versus 2011. The emphasis is on systematically improving the efficiency of the existing asset base; (Armstrong, 1986) Strategy plan that ensures stakeholders of an organization The newest campaign slogan, introduced this year, is More Happy, which definitely coincides with one concrete example of more in the packaging of Pepsi products today-more designs. Many more. At least 35 distinct design ideas will grace the packaging of Pepsis cans and bottles this year alone, and this design strategy may continue indefinitely Pepsi actually asked their loyal consumers what brand elements would have to remain so that they would be intuitively reassured that their favorite drinks were not changing and the brand they trusted was still essentially the same. Their answer was direct and consistent. Pepsi-lovers needed to see three elements for sure-the Pepsi globe, the iconic Pepsi blue, and the familiar tilted Pepsi capital letters. Television ad campaigns are reinforcing the globe-centric approach by featuring a boulder-sized Pepsi globe in various settings careening to and fro like a pinball. In the ads and on the front of most of the new packages is the reassuring tag line: Same Pepsi inside, new look outside. Miller explains that it is customary and important to reassure consumers for at least six months in situations like this. (Renger, (2002). ) Create options for a strategy plan Hopefully you and your team will come up with several options or solutions to fix the problem you are working on. In evaluating these options or potential solutions, I have found the following criteria to be beneficial: Effectiveness: How likely is it that this solution will get me to the desired situation? Feasibility: How realistic is this solution? How likely is it that this solution can be implemented effectively? Time: How long will it take to implement this solution? How long will it take to get the desired results? Cost: How much will it cost, in money or other resources, to implement this solution? Human resources: How many people will need to be involved to implement this solution? Difficulty or ease of implementation: Overall, how easy or difficult will it be to implement this solution? Risk: How much is at risk in implementing this solution? (Armstrong S. , 1985) Strategy plan ensuring the resource implications. Intensive growth (Identifying the opportunities to achieve further growth within the current business) Product -market expansion grid is useful framework for detecting new intensive growth opportunities. (Conley, 1992, April.) Market penetration strategy (The Company first considers whether it could gain more market share with its current products in the current markets): Headquartered in Purchase, New York, with Research and Development Headquarters in Valhalla. A third force was the perceived synergy between salty snacks and soft drinks. As Kendall succinctly related to Forbes in 1968, Potato chips make you thirsty; Pepsi satisfies thirst. The plan was to jointly market PepsiCos snacks and soft drinks, thereby giving Pepsi a potential advantage in its ongoing battle with Coke. Expand the Global Leadership Position of Our Snacks Business. PepsiCo is the global snacks leader, with the No. 1 savory category share position in virtually every key region across the globe. Ensure Sustainable, Profitable Growth in Global Beverages. When combined with the actions we are taking to refresh their brands across the entire beverage category, they believe this game-changing transaction will enable them to accelerate their top-line growth and also improve their profitability. Unleash the Power of Power of One. The combination of snacks and beverages-with our high-demand global and local brands-makes PepsiCo an essential partner for large-format as well as small-format retailers. Mission, Vision, Objectives of PepsiCo Mission Mission is to be the worlds premier consumer products company focused on convenient foods and beverages. PepsiCo seek to produce financial rewards to investors as they provide opportunities for growth and enrichment to our employees, our business partners and the communities in which they operate. And in everything do, they strive for honesty, fairness and integrity. Our Vision PepsiCos responsibility is to continually improve all aspects of the world in which they operate environment, social, economic creating a better tomorrow than today. Vision is put into action through programs and a focus on environmental stewardship, activities to benefit society, and a commitment to build shareholder value by making PepsiCo a truly sustainable company. Objectives At PepsiCo, theyre committed to achieving business and financial success while leaving a positive imprint on society delivering what they call Performance with Purpose. PepsiCo approach to superior financial performance is straightforward drive shareholder value. By addressing social and environmental issues, they also deliver on our purpose agenda, which consists of human, environmental, and talent sustainability. PepsiCos Future management objectives As a global food and beverage company with brands that stand for quality and are respected household names-Pepsi-Cola, Lays, Quaker Oats, Tropicana and Gatorade, to name a few-PepsiCo will continue to build a portfolio of enjoyable and wholesome foods and beverages; find innovative ways to reduce the use of energy, water and packaging; and provide a great workplace for our associates. The Companys operating management structure consists of five geographic groups plus the Minute Maid Company. Name of the group Country/Region The North American Group USA and Canada. The Latin America Group Central and South America The Greater Europe Group Greenland to Russias Far East. The Africa and Middle East Group Middle East and the Africa continent. The Asia Pacific Group From India through the Pacific region . Values and culture of PepsiCo PepsiCos mission is to continue to be the worlds premier consumer Products Company focused on convenient foods and beverages. They endeavor to produce financial rewards to investors while providing opportunities for growth and enrichment to their employees, their business partners and the communities in which they operate. In everything the company does, they strive for honesty, fairness and integrity. PepsiCos mission for 2008 was Performance with Purpose which the CEO of PepsiCo Indra K. Nooyi elaborates on when she says this mission combines the two things that define what we do-growing the business, and acting as ethical and responsible citizens of the world The companys values philosophy are centered on being a socially and environmentally responsible company. Therefore every policy it formulates and decision it makes is based on the following guiding principles: * Care for customers, consumers and the world they live in. * Sell only products that they can be proud of.  · Speak with truth and candor. * Balance short term and long term. * Win with diversity and inclusion. * Respect others and succeed together. Evaluation of a strategy plan The introduction stages starts when products lunched in this period sales will be very slow, must of the organization faced negative profit and high cost. There are some stages where organization has to face high risk in innovation of new product. When the coca-cola company launched power the stages are: where high risk product development stage Introduction stage Growth stage After passing these stages product will be in maturity stage where organization make more profit and try to stay in this stage after this stage is decline stage which is also risk and here need to some force/change to stay in maturity stage. (Conley, 1993, April) The action plan, basically developing a very detailed list of to do thing where PepsiCo included task, time and budget or cost framework with relating marketing mix the coca-cola company in estimate the budget and talks in marketing about activities. Implementation of strategy plan Step One: Goal Setting This first step is a bit obvious. PepsiCo have a goal in mind. And PepsiCo see at earlier Coca cola made its goal at early of the year. Step Two: Research Start talking about goal and research what it will take to fulfill it. Step Three: Weigh Options Theres almost never just one way to do something. PepsiCo depend RD in here. Step Four: Direction Now that PepsiCo have a goal, knowledge of that goal, and options towards obtaining it, theyre now ready to decide the best course of action. Step Five: Begin Analysis Current situation Goals Target Customer Key Services Communication Strategy Evaluation Has this type of communications activity taken place before? If so, what was the result? Are PepsiCo seeking to provide new information? PepsiCo target the Customer with the market segmentation. Motivate the customer Fit with the resources PepsiCo already have. can learn how plan worked with various Customer, What are your major communications opportunities? Are PepsiCo calling the audience to action? PepsiCo focus on the Customer Keep in mind that consumer PepsiCos best assets. are the most effective communications vehicles to reach target Customer which activities had the most impact Define your communications challenge Are PepsiCo seeking to change behavior? PepsiCo develop strategy to implement this quickly. What are the Customer knowledge regarding PepsiCo. Helps to achieve goals and deliver the outcomes you wan which parts of the plan failed Many people fail at this step. It can be relatively easy to make a plan up to this point. But, heres where its time to put in the work. Step Six: Adapting The most successful people in the world are those that can adapt to current situations. Sometimes opportunities will open up and youll need to revise your plan to take advantage of them. Communications plan in a tabular format to support the roll out of the plan Monitoring and Evaluation system of PepsiCo Scenario Planning: Scenarios are realistic descriptions of the organizations possible futures that allow the scenario team to set aside its individual and organizational assumptions about how the external environment will operate and explore new ones PepsiCo is constantly aware of the link between its strategy and the changing future, thus, itself for the ifà ¢Ã¢â€š ¬Ã‚ ¦then probable future. This is exemplified it its mission statement, thus: Benchmarking is the comparison of performance in one organization or part of an organization against that in another, with a view to finding ways of improving performance. This avails the company the opportunity to take corrective measures actions. Experience to Strategy Plan A business strategist can be regarded as the leader of an expedition to find the highest elevations on a companys fitness landscape. Fog prevents the hikers from seeing more than a few feet in front of themselves. What can be done when things look so hazy? Biologists have identified key rules that evolution uses to find high peaks. Managers too can use them. The first rule is that evolutionary searches never stop. No matter how successful a strategy is at a given moment, a business must experiment constantly to find something better. Another key principle is parallelism. The entire expedition should not explore the same region. Instead, many search parties should spread out from the base camp to explore the shifting terrain and bring back news of discoveries. (Cook, 1988) Effective strategy formulation is about Building collective intuition Encouraging healthy conflict Maintaining a pace so that decisions are taken within a stipulated time Defusing political behavior. Conclusion This strategic plan articulates for the PepsiCo community and for our constituents an understanding of who we are, what we do, and the values by which we define ourselves. It articulates as well our ambitious aspiration, five key goals we believe we must meet in order to achieve that aspiration, and an assessment of where the PepsiCo stands today as we rededicate ourselves to these shared objectives. The plan does not reflect everything that the PepsiCo hopes to do over the next five years; nor does it represent an irrevocably fixed set of directives, since the planning process must be dynamic and adaptable. It will, however, serve-at the PepsiCo level and also at the collegiate, departmental, and unit levels, where so many of the important decisions of the PepsiCo are made-as the framework according to which we will make difficult decisions, focus our resources, and thereby advance the PepsiCos distinction as a leader in higher education. Company or any of its Subsidiaries or any license, franchise, permit, certificate, approval or other similar authorization affecting, or relating in any way to, the assets or business of the Company and its Subsidiaries or (d) result in the creation or imposition of any Lien on any asset of the Company or any of its Subsidiaries, with only such exceptions, in the case of each of clauses (b) through (d), as would not reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect on the Company or prevent or materially impede, interfere with, hinder or delay the consummation of the Merger

Sunday, January 19, 2020

The Task :: essays research papers

It was a quiet afternoon so crudely interrupted by a knock at the door. A messenger had come with a letter. I took the letter and began reading. It was from my father. The old man was ill and had requested my immediate presence. I gathered my things and mounted my best horse.   Ã‚  Ã‚  Ã‚  Ã‚  I arrived at my fathers house before nightfall and was let in by one of his illustrious maids. Her name was Margarette`. She had been tending to my father for many years now. A tall, young lady yet always bleak and deteriorating. She led me strait to his chamber which was filled with the aroma of medicines and ails. The physician was also present as were a few maids. Upon seeing my arrival the old man made a weak attempt to sit up, coughing as though his lungs were filled with smoke from a thousand chimneys, and motioned for me to come closer. It was painful for me to see my once strong, cunning and seemingly invincible father in this state. In his youth, his strength had equaled ten men but now he had been reduced to a thin and withering, pale, old man. I greeted him warmly, hiding my true feelings of disgust and immorality.   Ã‚  Ã‚  Ã‚  Ã‚  My father instructed all to leave us and began talk of death nearing him. My father was not a poor man and had said to be leaving a greater portion of his wealth to me and the rest being divided amongst the maids and my sister who after marriage had moved to Spain. However before the fortune was upon me I would have to complete a task—to kill the one man who had wronged my father. The old man instructed me to take a key from his neck and open his personal drawer with it. From there I would take his prized dagger and use it to slay my fathers adversary. The jewel was wrapped in fine cloth and was not to be opened until I face my enemy in combat. My father spoke of great evil that was in the heart of this beast and only that dagger which had been soaked in his own blood could destroy him. He bid me be careful and keen with my task as this man wore a mask of kindness that I should not fall under.   Ã‚  Ã‚  Ã‚  Ã‚  Automatically I dispersed my fathers warnings, questioning his sanity and left to retire before my journey.

Saturday, January 11, 2020

Barbie Doll:Represent What A perfect American Woman Is

Jennifer Perez ENC 1102 Research Paper Marge Piercy ever herd this name before? Well if you have, did you know she was the founder of Leap track Press? Marge Piercy is very well known as an American poet, novelist and social activist. Many of he founded work has been graded as best-selling. Piercy has a goal to have her feminist voice be herd by society. She shares her opinions threw the characters she makes in her writing and poetry. Piercy wrote the poem Barbie Doll, and in this poem she states woman do not need to fit into society’s point of view of what a woman should look and act like.Piercy has a fascinating history and high valued awards, but what was Piercy’s message to her audience when Barbie Doll was published in 1973. Piercy was born on March 31, 1936 in Detroit, Michigan into a family that was greatly affected by the great depression. As a child Piercy lived in a segregated neighborhood. Piercy has a half-brother from her mother’s side who is fourtee n years older than her. She was raised in the Jewish religion by her grandmother and her mother. Till this day Piercy still remains a Jew.Piercy attended a public school in Detroit and half way through grade school she became sick with the German measles and rheumatic fever. When she got ill Piercy was disabled from doing what all of the other kids were doing as a result she built an unconditional love towards the world of literature. Piercy attended the University of Michigan and was the first in her family to attend college. At seventeen, Piercy won a Hopwood award for poetry and fiction. The scholarship money that she had won because of the award enabled her to finish college.She enjoyed the college style of life but found it very difficult to find her comfort zone because of all of the political decisions government had made for woman. Her schooling finished with an M. A from Northwestern University. After her first marriage Piercy lived in Chicago. She proceeded in writing and tried her best to develop poetry and fiction she was not yet able to produce. As a woman society had a horrible out-look on her. Piercy was a twenty three divorce woman living pay check to pay check on multiple part time jobs. She became and activist for the civil rights movement. She wanted woman to be valued not minimized.Piercy’s early work was omitted because of her feminist viewpoints. In 1982 Piercy married Ira Wood. As soon as her marriage was finalized the couple moved to Cape Cod. Wood and Piercy are both a part of the same work field. Wood is an author, teacher, a former publisher, and the host of a weekly radio talk show called â€Å"The Lowdown. † The due wrote a play titled â€Å"The Last White Class† and a novel called â€Å"Storm Tide. † In 1997 they founded a small literary publishing company called Leapfrog Press. Piercy and Wood have a very intimate and loving relationship, till this day the couple is still living in Cape Cod.Piercy neve r considered herself to fit into the image of what a woman was supposed to be like in the 1950’s. Piercy published her first novel called â€Å"Going Down Fast† in 1969. It was very difficult for Piercy to publish her first book because many did not agree with her feminist viewpoints. Piercy is the author of seventeen novels including four of New York Times best sellers and eighteen volumes of poetry. Piercy has played major roles in progressive political battles of our time. She was in activist in the anti-Vietnam war and the woman’s movement, and most recently an active participant in the resistance to the War in Iraq.Her novels â€Å"Woman on the Edge of Time† and â€Å"He, She and It† have great political commitment and imaginative power. With the Baby Boom era in play woman were becoming wives and mothers rapidly. During the Mid fifty’s thou 35 percent of all woman were working and a quarter of them married. Piercy was divorced, unsucce ssful, and had multiple part time jobs at a young age. She worked as a secretary, a switchboard operator, a clerk in a department store, an artist model, and a faculty instructor.Consequently society looked down upon her and fell into the 35 percent of working woman. Piercy’s poem â€Å"Barbie Doll appears in her collection, â€Å"To Be of Us,† published in 1973. Piercy fundamentally states how humanity classifies woman for their stereotypical demeanor. Piercy uses a Barbie Doll to represent what a perfect American woman should appear as. The Poem begins with a normal young â€Å"girlchild† who plays with dolls, miniature kitchen items and pretend make-up. The poem takes an unsuspicious turn when the young girl was criticized by an outsider.He or she claimed she had to â€Å"exercise, diet, smile and wheedle† (page 647 line 14). The poem continues and there is a visual moment of her lying in a casket without her nose and legs â€Å"So she cut off her no se and her legs and offered them up†(page 647 line 17-18). Piercy uses the young child’s image as a representation of a Barbie Doll. The young child shows description that challenges were being faced by women of all ages who do not feel as if they do not fit society standards of being a woman. Despite of how sorrowful she felt the truth is she was healthy, happy, intelligent, and beautiful.

Friday, January 3, 2020

Evaluating The Value Of Halfords Uk Finance Essay - Free Essay Example

Sample details Pages: 5 Words: 1528 Downloads: 6 Date added: 2017/06/26 Category Finance Essay Type Analytical essay Did you like this example? Halfords is the UKs leading retailer, on the basis of turnover, in each of the key product markets in which it operates, being, car maintenance, car enhancement and leisure (including cycles and cycle accessories and roof boxes etc. Founded as a local hardware store in Birmingham inÂÂ  1892ÂÂ  by F W Rushbrooke, Halfords has since grown to establish its position as the leading retailer of car parts, car enhancement, cycles and travel solutions in the UK.ÂÂ   Don’t waste time! Our writers will create an original "Evaluating The Value Of Halfords Uk Finance Essay" essay for you Create order In this report the value of the company is evaluated on the basis of its current statutory accounts. In this report the alternative sources of finance available for the company are also discussed. The areas of corporate risk when raising finance, paying particular attention to funds available to the company are also discussed. Business valuation: A formal assessment of the value of a business using pre-determined and generally agreed upon formulas. Theres a range of ways to value a business. Valuations based on multiples of future earnings and the capitalisations of future cashflows are the most common. There are a number of common valuation methods: Asset valuation Earning value approaches Entry cost Market approach. Discounted cash flow Industry valuations Asset-based approaches Asset based business valuation methods total up all the investments in the business. Asset-based business valuations can be done on a going concern or on a liquidation basis. AÂÂ  going concern asset-based approachÂÂ  determines the business net balance sheet value of its assets and subtracts the value of its liabilities. AÂÂ  liquidation asset-based approachÂÂ  represents the net cash that would be received if all assets were sold and liabilities paid off. Earning value approaches Earning value business valuation methods are predicated on the idea that a businesss true value lies in its ability to produce wealth in the future. The most common earning value approach is about Capitalizing Past Earning. With this approach, a valuator determines an expected level of cash flow for the company using a companys record of past earnings, normalizes them for unusual revenue or expenses, and multiplies the expected normalized cash flows by a capitalization factor. The capitalization factor is a reflection of what rate of return a reasonable purchaser would expect on the investment, as well as a measure of the risk that the expected earnings will not be achieved. Discounted Future EarningsÂÂ  is another earning value approach to business valuation where instead of an average of past earnings, an average of the trend of predicted future earnings is used and divided by the capitalization factor. Market value approaches Market value approaches to business valuation attempt to establish the value of the business by comparing the business to similar businesses that have recently sold. Obviously, this method is only going to work well if there are a sufficient number of similar businesses to compare. Valuation of Halfords Using the Market Value approach: In the report the Halfords Company is going to be evaluated using the market value approach. Valuation Multiple A value, typically expressed as a factor, used to multiply a business economic benefit to arrive at the business value. Market-derived business valuation multiples Valuation multiplesÂÂ  derived from similar business sales are often used to estimate the likely selling price of a business. These multiples are calculated as ratios which relate some measure of business financial performance to its potential selling price. The most popularÂÂ  multiplesÂÂ  are: Selling price divided by business gross revenue Selling price divided by business net sales Selling price divided by cash flow, such asÂÂ   Sellers Discretionary Cash FlowÂÂ  orÂÂ  Net Cash Flow OtherÂÂ  valuation multiplesÂÂ  that are also used rely on well-known accounting measures, for example: Selling price divided byÂÂ  EBITDA,ÂÂ  EBITÂÂ  or net income Selling price divided by gross profit Selling price divided by the book value ofÂÂ  business assets Selling price divided by the market value of total business assets or fixed assets such asÂÂ  Furniture, Fixtures and Equipment Selling price divided by the value of owners equity Analyst Estimates: ÂÂ   2009 2010 2011 Revenue (GBP millions) 790.34ÂÂ   792.00ÂÂ   816.67ÂÂ   Estimates 15ÂÂ   15ÂÂ   11ÂÂ   High 816.00ÂÂ   829.00ÂÂ   842.55ÂÂ   Low 784.70ÂÂ   780.00ÂÂ   774.30ÂÂ   Net Profit Pre Exceptional (GBP millions) 62.89ÂÂ   66.77ÂÂ   68.84ÂÂ   Estimates 9ÂÂ   8ÂÂ   7ÂÂ   High 69.83ÂÂ   69.00ÂÂ   71.31ÂÂ   Low 53.90ÂÂ   62.61ÂÂ   64.98ÂÂ   Net Profit As Reported (GBP millions) 63.64ÂÂ   67.20ÂÂ   70.80ÂÂ   Estimates 5ÂÂ   2ÂÂ   2ÂÂ   High 65.20ÂÂ   67.80ÂÂ   71.20ÂÂ   Low 62.60ÂÂ   66.60ÂÂ   70.40ÂÂ   Pre-Tax Profit Pre Exceptional (GBP millions) 91.11ÂÂ   94.18ÂÂ   97.80ÂÂ   Estimates 17ÂÂ   14ÂÂ   10ÂÂ   High 94.50ÂÂ   97.08ÂÂ   102.00ÂÂ   Low 78.00ÂÂ   89.44ÂÂ   92.70ÂÂ   Pre-Tax Profit As Reported (GBP millions) 87.48ÂÂ   94.90ÂÂ   98.23ÂÂ   Estimates 6ÂÂ   3ÂÂ   3ÂÂ   High 92.00ÂÂ   96.00ÂÂ   101.00ÂÂ   Low 75.90ÂÂ   94.20ÂÂ   96.00ÂÂ   EPS Pre Exceptional (GBp) 31.21ÂÂ   31.94ÂÂ   33.10ÂÂ   Estimates 18ÂÂ   16ÂÂ   12ÂÂ   High 33.60ÂÂ   33.25ÂÂ   34.70ÂÂ   Low 29.86ÂÂ   29.84ÂÂ   30.97ÂÂ   EPS As Reported (GBp) 27.55ÂÂ   32.87ÂÂ   34.38ÂÂ   Estimates 6ÂÂ   5ÂÂ   5ÂÂ   High 32.40ÂÂ   33.60ÂÂ   36.30ÂÂ   Low 23.00ÂÂ   31.98ÂÂ   33.28ÂÂ   CPS (GBp) 34.36ÂÂ   39.34ÂÂ   40.82ÂÂ   Estimates 5ÂÂ   5ÂÂ   4ÂÂ   High 40.50ÂÂ   44.10ÂÂ   46.04ÂÂ   Low 26.00ÂÂ   25.10ÂÂ   28.60ÂÂ   DPS (GBp) 15.88ÂÂ   16.69ÂÂ   17.60ÂÂ   Estimates 18ÂÂ   16ÂÂ   12ÂÂ   High 16.50ÂÂ   18.00ÂÂ   19.00ÂÂ   Low 15.14ÂÂ   16.00ÂÂ   16.50ÂÂ   EBITDA (GBP millions) 123.84ÂÂ   124.99ÂÂ   128.60ÂÂ   Estimates 13ÂÂ   13ÂÂ   8ÂÂ   High 128.50ÂÂ   131.00ÂÂ   135.00ÂÂ   Low 109.45ÂÂ   116.00ÂÂ   125.71ÂÂ   EBIT (GBP millions) 101.47ÂÂ   100.53ÂÂ   104.05ÂÂ   Estimates 12ÂÂ   11ÂÂ   8ÂÂ   High 105.00ÂÂ   105.00ÂÂ   110.00ÂÂ   Low 86.97ÂÂ   95.00ÂÂ   100.50ÂÂ   NAV (GBp) 118.00ÂÂ   131.20ÂÂ   147.80ÂÂ   Estimates 1ÂÂ   1ÂÂ   1ÂÂ   High 118.00ÂÂ   131.20ÂÂ   147.80ÂÂ   Low 118.00ÂÂ   131.20ÂÂ   147.80ÂÂ   Currant finance structure: Treasury policy The Groups Treasury Policy is structured to ensure that adequate financial resources are available for the development of its business whilst managing its currency, interest rate and counterparty credit risks. The Groups treasury strategy, policy and controls are approved by the Board. The main elements of treasury activity and associated risk are outlined below: Funding The treasury function arranges sufficient secure financial resources to enable the Group to meet its medium-term business objectives, whilst arranging facility maturities appropriate to its projected needs. The Group has a syndicated five-year term facility, maturing with a bullet repayment in July 2011, totalling 300m of committed bank facilities, comprising a non-amortising term loan of 180m and a revolving credit facility of 120m, which, together with cash surpluses, provide adequate funding for the Groups operations. Counterparty credit risk The Group actively manages its relationships with a panel of high quality financial institutions. Credit risk is controlled by the treasury function setting counterparty credit limits by reference to published rating agency credit ratings and the Corporate Default Swap market. All such counterparties, which constitute the syndicated bank group, held at least an A credit rating at the time of the facility agreement. The Treasury Policy recognises that an exposure to a counterparty arises in relation to investments, derivatives and financial instruments. The Groups treasury departments main responsibilities are to: ÃÆ'Â ¢-ÂÂ   Ensure adequate funding and liquidity for the Group; ÃÆ'Â ¢-ÂÂ   Manage the interest risk of the Groups debt; ÃÆ'Â ¢-ÂÂ   Invest surplus cash; ÃÆ'Â ¢-ÂÂ   Manage the clearing bank operations of the Group; and ÃÆ'Â ¢-ÂÂ   Manage the foreign exchange risk on its non-sterling cash flows. The Groups debt management policy is to provide an appropriate level of funding to finance the Business Plan over the medium term at a competitive cost and ensure flexibility to meet the changing needs of the Group. The Group has a syndicated five-year term facility totalling 300m that provides the Group with committed bank facilities until July 2011. The key risks that the Group faces from a treasury perspective are as follows: Financial risk The Business Plan and cash flow forecasts are subject to key assumptions such as interest rates and the significance of these risks is dependent upon the level of earnings before interest, tax, depreciation and amortisation and the strength of the balance sheet. Interest rate risk The Groups policy aims to manage the interest cost of the Group within the constraints of the Business Plan and its financial covenants. The Groups borrowings are currently subject to floating rate and the Group will continue to monitor movements in the swap market. Foreign currency risk The Group has a significant transaction exposure with increasing, direct source purchases of its supplies from the Far East, with most of the trade being in US dollars. The Groups policy is to manage the foreign exchange transaction exposures of the business to ensure the actual costs do not exceed the budget costs by 10% (excluding increases in the base cost of the product). The Group does not hedge either economic exposure or the translation exposure arising from the profits, assets and liabilities of non-sterling businesses whilst they remain immaterial. During the 53 weeks to 3 April 2009, the foreign exchange management policy was to hedge between 75% and 80% of the material foreign exchange transaction exposures on a rolling 15-18 month basis. Hedging is performed through the use of foreign currency bank accounts, spot rates and forward foreign exchange contracts. Credit risk The Groups policy is to minimise the risk that foreign exchange and interest rate derivative counterparties, the holders of surplus cash and the providers of debt will be unable to fulfil their obligations and also, in the case of lenders, unwilling to extend the loan facilities when they expire. The Group ensured that such counterparties used for credit transactions held at least an A credit rating at the time of syndication (July 2006). Ancillary business, in the main, is directed to the eight banks within the syndicated group. The Treasurer is responsible for determining creditworthiness of each counterparty, based on the overall financial strength of the counterparty. The counterparty credit risk is reviewed in the Treasury report, which is forwarded to the Treasury Committee and the Treasurer reviews credit exposure on a daily basis. Conclusion: Depending on the financial data provided by the Halfords Company the current financial stability of the company is successfully analyzed. References Annual report: Halfords PLC https://www.halfordscompany.com/hal/ir/fininfo/reports/ https://www.valuadder.com/glossary/valuation-multiplier.html https://financial-dictionary.thefreedictionary.com https://www.investopedia.com/terms/c/costofcapital.asp https://www.lse.co.uk/shareprice.asp?shareprice=THTshare=thorntons_plc_ord_10p Word Count: 2078