Marketing & Financial Analysis
INTRODUCTION
This research provides a market
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This research provides a marketing analysis and a financial analysis for the production and marketing clock and timer products by the General Electric Company. The results of the analyses are presented with respect to (1) sales for the most recent full year, (2) profitability, (3) production and marketing costs, (4) breakeven analysis, and (5) strategy.The time frame of this case is the late1970s. Within this time context, the latest full year for which sales data are available is 1977. The size of the total market for clock and timer products in 1977 was 20.807 million product units, with a market value of $121.26 million. General Electric's share of this market was 4.608 million product units (22.1 percent), with a market value of $24.614 million (20.3 percent). Obviously, the average selling price of General Electric clock and timer products is lower than the market average, as the company's market value share is lower than its product unit market share. Fouryear market projections predict a total market size of 25.035 million product units by 1981 (a fouryear market growth of 20.3 percent), with a market value of $146.528 million (a fouryear market value growth of 20.8 percent). Thus, while most of the projected market growth is expected to result from increased product unit sales, approximately 2.4 percent of the market value growth is expected to be the result of increases in the average product un
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illions)[b][c] 9.443 9.723 + 3.0
Gross profit ($, millions) 15.171 25.804 + 70.1
Sales and administra tive costs ($, millions)[d] 8.200 9.500 + 25.7
Profit before federal tax ($, millions) 6.971 16.304 +133.9 ====== ======
Before tax profit as a percentage of sales
(%) 28.3 45.9 + 62.1
Notes:
[a] based on Ashland production
[b] product unit data for commercial clocks unreadable for 1977; number used to make product classifica
tion totals equal company product unit totals
[c] electronic timers and electronic programmable timers combined for 1981, because no variable cost
data provided for electronic programmable timers
[d] allocated overhead costs less fixed and variable overhead costs for Ashland, which are included in the cost of sales
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indicate, General Ele
. . .
Some common words found in the essay are:
SALES RECENT, Singapore Breakeven, Timer Products1977, STRATEGY CONSIDERATIONS, Singapore United, Packaging Transportation, COSTS Production, clock timer, Electric Company, MARGINS Profit, product unit, , market value, timer products, clock timer products, fouryear market, = =, market share, product unit sales, unit market, unit sales, product units, product unit market, market value share, unit market share,
Approximate Word count = 1377
Approximate Pages = 6 (250 words per page)
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