1. With which of the international competitors listed in the case is it most interesting to compare Inditex’s financial results? Why? What do comparisons indicate about Inditex’s relative operating economics? Its relative capital efficiency?
GAP H&M Benetton Inditex
ROIC -0.15% 24.16% 11.20% 27.24%
Return on sales -0.06% 9.60% 7.05% 10.46%
COGS/sales 7
FOODSERVICE
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SERVING: FULL SERVICE RESTAURANTS, CAFETERIAS, MOVIE THEATERS, QUICKSERVICE RESTAURANTS, CONVENIENCE STORES
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operating system and service differentiation
- Each product management system: By raising the efficiency of inventory control and sales management, higher ratios of product rotation and less cost of sales management and operating cost
→ Higher competitiveness
C. Promotion strategy: Continuous leaflet advertisement, raising recognition, advertisement in the same sized format.
O
sales, on average, that represents profit. SK Energy’s profit margin in 2008 is 1.94%.
6) Fixed Asset Turnover Ratio
Fixed asset turnover ratio measures operating efficiency comparing sales volume with a company’s investment in fixed assets. SK Energy’s fixed asset turnover ratio is 2.39. In 2008, SK Energy was able to generate 2,390 won in revenue for each 1,000 won invested in asset.
Enterprise resource planning (ERP) system
a computer information system that integrates business functions in an organization`s value chain
ERP system offers the capacity to handle resources based on business functional integration, and makes operating processes efficient in order to produce sufficient performance in rapidly changing environment
Most literature on ERP implementation have focu
4) What should American Connector's management at the Sunnyvale plant do?
The problem of ACC
a lot of stock
A lots of Product defects
cost-effectiveness is not good
ACC Sunnyvale using DJC Kawasaki methods
products divided by region
Receives an order over a period while the production
invest in technology
what are the operations strategies of ACC and DJC?
Which competitive p
Operating Income Margin ratio than GAP. However the difference between both companies’ Operating Income Margin is decreased apparently in 2008.
(2) Additional Measures of Efficiency
Calculation
Sales / Long Term Assets
Abercrombie 2006 2007 2008
3,318,158 / 1,155,989 3,749,847 / 1,427,343 3,540,276 / 1,763,356
2.87040 2.62715 2.00769
GAP 2006 2007 2008
15,923 / 3,515 15,763
Paperless
-> Saving Labor cost/ Safety and Efficiency/ Sheer motivation
(Frequent & Efficient communication by e-mail -> Operational Performance
-> Keep fares low )
* The result
- 80% on-time record ( 74% for the 10 largest U.S airlines)
- 0.6% complaint per 100,000 passengers ( 2.99 % for major competitors)
- Dave Barger was confident of that the operational performance
English Summary
This story is about how the firm “Village Volvo” gained its competitive advantage compared to other companies. Unlike the other Volvo dealers, Village Volvo applied many service management factors that we could learn.
First, it divided its service time to reduce intricacy, and maximize efficiency. On the book, for example, they operate a specific time each week for custo
operator training or replacement of obsolete equipment.
Seventh, PM improves safety and quality of facilities conditions. If preventive maintenance program can't reduce costs, this PM program is regarded as not having cost efficiency.
(2) Preventive Maintenance can extend equipment life.
That is the most powerful reason to do preventive maintenance. PhD Jun-ha Kim said that Planned alternati