Operational efficiency and marketing policy

Assignment Help Financial Management

Reference no: EM131525191

Whole Foods Market (WFM) has experienced disappointing profits over the past few years despite increasing its revenues during the same interval. While WFM’s total revenues increased by approximately 2% in 2016, and 8% in 2015, its net income (profit) declined by about 5% and 7% in 2016 and 2015 respectively, indicating higher costs of operating their businesses. The size of the WFM balance sheet has been growing larger; however, the WFM common stock experienced high volatility and posted a devastating loss to its value from a high of $65/share in October 2013 to about $31/share in December 2016. This performance was more distressing to WFM investors as the S&P 500 stock index experienced gains during the same interval. The decision to open the lower-cost 365 supermarkets has been made against this financial background, in addition to other concerns relating to the long-term healthiness and growth of its core upscale supermarket business.

Calculate the annualized stock price return of WFM over the last 3, 5, and 10 years. How does it compare to the return of the competitors you selected in question 3 and the S&P 500 index over the same time periods? What kind of steps can the company take regarding management strategy, operational efficiency and marketing policy to improve the disappointing performance of this company going forward?

Reference no: EM131525191

Questions Cloud

Human capital and value to organisations : The ‘hard' and ‘soft' view of human resource management are different in the way they view human capital and its value to organisations.

What is the speculative premium on the warrant : How many shares will each right permit its owner to purchase? What is the intrinsic value of the warrant? What is the speculative premium on the warrant?

Explain the origins and development of modern anti-semitism : Explain the origins and development of modern anti-Semitism. Explain the development of the Nuremberg Laws and German anti-Jewish policies from 1933-39.

Complete and current job description play in hrm : What role does a complete and current job description play in HRM? Describe at least three important uses of complete and current job descriptions.

Operational efficiency and marketing policy : Operational efficiency and marketing policy to improve the disappointing performance of this company going forward?

What will new equilibrium level of aggregate expenditure be : Given an MPC of .8, if the equilibrium level of aggregate expenditure is 80 billion. What will the new equilibrium level of aggregate expenditure be?

Create a scenario that would fall under the strain theory : Create a scenario that would fall under the strain theory. How would the person in the scenario react with criminal behavior

Prepare your recommendation on agarwal cast company : Prepare your recommendation on Agarwal Cast Company - he could quote for higher profits, if he were willing to wait until completion of the job for payment.

Candidates for the job of a senior manager : ABC, Inc. is looking at two candidates for the job of a senior manager to expand into a new market. An internal candidate, Mary, has been with ABC

User Account

All Pages