Reference no: EM13841376
Forecasting case study: Carlson Department Store
Case Problem 1
The Carlson Department Store suffered heavy damage when a hurricane struck on August 31, 1996. The store was closed for four months (September 1996 through December 1996), and Carlson is now involved in a dispute with its insurance company concerning the amount of lost sales during the time the store was closed. Two key issues must be resolved: (1) the amount of sales Carlson would have made if the hurricane had not struck; and (2) whether Carlson is entitled to any compensation for excess sales from increased business activity after the storm. More than $8 billion in federal disaster relief and insurance money came into the county, resulting in increased sales at department stores and numerous other businesses.
Table 1 Sales for Carlson Department Store, September 1992 Through August 1996
Month 1992 1993 1994 1995 1996
January 1.45 2.31 2.31 2.56
February 1.80 1.89 1.99 2.28
March 2.03 2.02 2.42 2.69
April 1.99 2.23 2.45 2.48
May 2.32 2.39 2.57 2.73
June 2.20 2.14 2.42 2.37
July 2.13 2.27 2.40 2.31
August 2.43 2.21 2.50 2.23
September 1.71 1.90 1.89 2.09
October 1.90 2.13 2.29 2.54
November 2.74 2.56 2.83 2.97
December 4.20 4.16 4.04 4.35
Table 1 shows the sales data for the 48 months preceding the storm. The U.S. Department of Commerce also published total sales for the 48 months preceding the storm for all department stores in the county, as well as the total sales in the county for the four months the Carlson Department Store was closed. Table 2 shows these data. Management has asked you to analyze these data and develop estimates of the lost sales at the Carlson Department Store for the months of September through December 1996. Management also has asked you to determine whether a case can be made for excess storm-related sales during the same period. Carlson is entitled to compensation for excess sales it would have earned in addition to ordinary sales.
Table 2 Department Store Sales for the County, September 1992 Through August 1996
Month 1992 1993 1994 1995 1996
January 46.8 46.8 43.8 48.0
February 48.0 48.6 45.6 51.6
March 60.0 59.4 57.6 57.6
April 57.6 58.2 53.4 58.2
May 61.8 60.6 56.4 60.0
June 58.2 55.2 52.8 57.0
July 56.4 51.0 54.0 57.6
August 63.0 58.8 60.6 61.8
September 55.8 57.6 49.8 47.4 69.0
October 56.4 53.4 54.6 54.6 75.0
November 71.4 71.4 65.4 67.8 85.2
December 117.6 114.0 102.0 100.2 121.8
Managerial Report
Prepare a report for the management of the Carlson Department Store that summarizes your findings, forecasts,, and recommendations. Include the following:
1. An estimate of sales had there been no hurricane.
2. An estimate of countywide department store sales had there been no hurricane.
3. Use the countywide actual department stores sales for September through December 1996 and the estimate in part (2) to make a case for or against excess storm related sales.
4. An estimate of lost sales for the Carlson Department Store for September through December 1996.
|
First describe the mission of each organization
: First describe the mission of each organization, as found on their web site. Discuss how each organization has been targeted in the recent past for cyberattack(s), as reported in news or journal articles. Describe the suspected threat actors. Disc..
|
|
Benefits of obtaining a professional in human resources
: From the e-Activity, examine the benefits of obtaining a Professional in Human Resources (PHR) certification and / or a Senior Professional in Human Resources (SPHR) certification. Rate the importance of these certifications in regard to an HR employ..
|
|
Low-cost advantage in the supermarket industry
: Explain how Walmart has built its low-cost advantage in the supermarket industry and wh a low-cost provider strategy is well suited to the industry.
|
|
Strategic alliances or joint ventures
: Collaborative agreements with foreign companies in the form of strategic alliances or joint ventures are widely used as a means of entering foreign markets. They are also used as a means of acquiring resources and capalilities by learning from foreig..
|
|
Forecasting case study-carlson department store
: The Carlson Department Store suffered heavy damage when a hurricane struck on August 31, 1996. The store was closed for four months and Carlson is now involved in a dispute with its insurance company concerning the amount of lost sales during the tim..
|
|
Cash flow statement
: You've just been hired onto ABC Company as the corporate controller. ABC Company is a manufacturing firm that specializes in making cedar roofing and siding shingles. The company currently has annual sales of around $1.2 million, a 25% increase fr..
|
|
Characterize the companys corporate strategy
: How would you characterize the company's corporate strategy? Related diversification, unrelated diversification, or a combination related-unrelated diversification strategy? for the company Carrier
|
|
Divisional budgets to support new strategic initiatives
: Implementing and executing a new or different strategy call for new resource allocations. research a recent article on a company that has revised its pattern of resource allocation and divisional budgets to support new strategic initiatives.
|
|
Analysis of a recent ethics scandal
: Prepare a 250 word analysis of a recent ethics scandal. Report should discuss the conditions that five raise to unethical business strategies and behaviour
|