exit strategy
BUS 456
Eazy Does It (Group E) – Exit Strategy
The financial health of Eazy Does it is good, but it is not great. We currently have an impeccable credit rating of an A+, which is great. Our earnings per share could be much better; they currently stand at $0.61. We hope to improve upon this at the end of Year 20. We also have a return on equity of 1.0%, which again, is not great. We also plan to improve this after Year 20. Our net revenues were $248 million, but we only turned a net profit of $7 million. We hope to drastically turn around our net profit in Year 20. We also have a tremendous amount of ending cash. Currently, the amount is $215 million. We feel that if the substantial amount of ending cash is allocated properly during this final year, Eazy Does It will be in a much better financial position. Last year’s goals included increasing market share by at least 5% in previous years in all of our markets. That goal was not fully accomplished, but we did do a lot better. By increasing our advertising, we were able to increase our market share. At the end of this year, we want to increase our advertising a lot more. By doing so, we feel that we will grab a lot more of the market share. We also would like to use all of our remaining excess ending cash. So, our advertising budget will skyrocket significantly. We will also be spending that cash on the corporate citizenship initiatives. This will also help us spend our cash, and increase our image rating, which is already very good. We will also be making substantial bids on athletes and celebrities to increase our marketing efforts. In Year 20, we will also be changing our efforts. Per Dr. Barrera’s advice, we will be lowering our S/Q ratings on our shoes. This will help reduce our costs. Basically, we will be going in the other company’s direction. Up to this point, we have been offering fewer models with high S/Q ratings. We hope to go in the opposite direction in Year 20. So, will all these efforts
Eazy Does It (Group E) – Exit Strategy
The financial health of Eazy Does it is good, but it is not great. We currently have an impeccable credit rating of an A+, which is great. Our earnings per share could be much better; they currently stand at $0.61. We hope to improve upon this at the end of Year 20. We also have a return on equity of 1.0%, which again, is not great. We also plan to improve this after Year 20. Our net revenues were $248 million, but we only turned a net profit of $7 million. We hope to drastically turn around our net profit in Year 20. We also have a tremendous amount of ending cash. Currently, the amount is $215 million. We feel that if the substantial amount of ending cash is allocated properly during this final year, Eazy Does It will be in a much better financial position. Last year’s goals included increasing market share by at least 5% in previous years in all of our markets. That goal was not fully accomplished, but we did do a lot better. By increasing our advertising, we were able to increase our market share. At the end of this year, we want to increase our advertising a lot more. By doing so, we feel that we will grab a lot more of the market share. We also would like to use all of our remaining excess ending cash. So, our advertising budget will skyrocket significantly. We will also be spending that cash on the corporate citizenship initiatives. This will also help us spend our cash, and increase our image rating, which is already very good. We will also be making substantial bids on athletes and celebrities to increase our marketing efforts. In Year 20, we will also be changing our efforts. Per Dr. Barrera’s advice, we will be lowering our S/Q ratings on our shoes. This will help reduce our costs. Basically, we will be going in the other company’s direction. Up to this point, we have been offering fewer models with high S/Q ratings. We hope to go in the opposite direction in Year 20. So, will all these efforts