Ben and Jerry

as Ben and Jerrys decision to consider potential buyers to furnish additional capital and fresh leadership is reasonable with delight in to the financial and operational state of the ships company at that date? We feel that this decision was reasonable for the following reasons: 1.Financial The economic return has been negative for the lifetime that we have figures (94-95) The net income has not amend in this period- in 1999 it made less NI compared to 1004, contempt the fact that the sales have increased from 148.802 to 237.043 This is a real capital intensive business- the invested capital has increased from 58.044 to 92.670. The fact that it is so capital intensive also has a large cultivate on the Free Cash Flows which has been fluctuating dramatically from -19.353 to 17.684. more over the Return on Invested Capital is under the average of 10% and the have a bun in the oven pr starter has been stable and lagging the S&P and comparable Industry portfolio. 2.Operational From an operational point of view it for sure makes sense to consider buyers for the following reasons: -Ben& Jerrys is already marketplace leader in its home market- the US and they have not been able to increase their earnings despite growing sales significantly.

-As market leaders in the premium ice cream market it is will be hard to accumulate much more market share unless they would reduce prices, which would push hurt the bottom line. -To increase sales, Ben& Jerrys should focus on the Rest of the World, however to build the distribution and plants to do this would claim significant capital and expertise -The current management has not turn out to be able to really increase operating movement as is reflected not only in the lagging stock price but also in the comments of the owners, such as I got no idea how to attain a 15% increase in earnings each year over the next 5 years Therefore we feel that it would be sense if Ben&Jerrys would partner up with a company that can provide:... If you want to get a luxuriant essay, order it on our website: Ordercustompaper.com

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