Skip to main content

Comparison between two retail companies picked are Walmart and Costco

The two retail companies picked are Walmart and Costco whose 2017 Financial statement links are provided below: WALMART https://www.nasdaq.com/symbol/ wmt/financials?query=income- statement COSTCO https://www.nasdaq.com/symbol/ cost/financials?query=income- statement Both organizations are well known brands and position themselves well with their customer base. Walmart’s value proposition is “We save people money so they can live better”. On the other hand, Costco’s value proposition is “All-in-one convenience and everyday affordability”. Both retailers focus on cost saving for their customers. Looking at their financial statements and by analyzing them a few key areas are evident when comparing the two organization. Looking at the current ratio and quick ratio we can determine the short-term solvency of each organization. The current ratio can be determined by dividing the assets by the liabilities. Walmart’s current ratio sits at 0.86 while Costco’s sits at 0.99. The quick ratio is c
1 comment

How important is the reputation of a business?



The reputation of the company is increasingly recognized as the most important strategic asset in terms of value creation. Scientists' interest in the reputation of the company has increased the number of scientific papers and studies published over the last decade (Barnett and al., 2016).

A reputation of a company is crucial for the survival of a company. Reputation is defined as the judgement people make about a company in terms of finance, performance, social and environmental impact. Reputation has a direct impact on its customers and helps to build relationship with the customers and target audience. A good business reputation facilitates growth in valuable relationships which builds the entire business entity.   

How important is CEO's reputation to the reputation of the business itself?

CEO reputation is very important for leadership. The employees build their trust based on the CEO reputation. If the employee trust is built, then their morale and productivity increases. Customer’s perception on quality is based on the CEO reputation. The growth and fall of an organization are purely based on the CEO reputation. The customer-company relationship increases based on the CEO reputation. Companies trade on the high profile reputed CEOs for acquisitions and mergers.

Is it better to have the reputation of being powerful or of being fair? For example, do you want to be insured by a company that always wins, or by an insurance company that is willing to allow the benefit of any doubt?

Personally speaking, it is important for an organization to have reputation of being fair rather than being powerful. This is because people always wanted to be treated with fair and just. If a company always wins with power, then there is a group of people who loses and hence they contribute more towards the negative growth of the company. Thus fairness is always good for the management.

Goodwill is the technical word for the asset of a company being worth more than the sum of its parts. How would you measure the Goodwill of a company in dollar figures?

Goodwill is the market value of a company. If a company is making a purchase of another business entity, then the goodwill of the business entity needs to be added to the fair market value of the business or its assets. Then liability needs to be subtracted from this total sum. Thus, goodwill can be got in dollar value if this concept is used.

“Assumed value of the attractive force that generates sales revenue in a business, and adds value to its assets. Goodwill is an intangible but saleable asset, almost indestructible except by indiscretion.” (BusinessDictionary, (n.d), para. 1).



Sources:

Aaron, R. (2017). CEO reputation vs. corporate reputation. Retrieved from: https://www.communication-director.com/issues/strategy-and-cco/ceo-reputation-vs-corporate-reputation#.W2lF6ygzY54

Alva Group. (2017).  CEO Reputation vs. Corporate Reputation. Retrieved from:  http://www.alva-group.com/en/case-study/what-is-the-relationship-between-ceo-profile-and-corporate-reputation/

Andrew, M. (2015). Why high-profile CEOs may produce better results. Retrieved from: https://www.managementtoday.co.uk/why-high-profile-ceos-may-produce-better-results/article/1360117

Business Goodwill definition: http://www.businessdictionary.com/definition/goodwill.html

Business Goodwill. ValuAdder. Retrieved from: http://www.valuadder.com/glossary/business-


James, B. (2012). Business Ethics. V.1. Retrieved from: http://2012books.lardbucket.org/books/business-ethics/index.html

Nathalie, M., Serban, T. (2012). The reputation of your company: is your most strategic asset in danger? Retrieved from: https://www.cirano.qc.ca/pdf/publication/2012RB-02.pdf

Porter, M. (2008) The Five Forces that Shape Strategy. Harvard Business Review. Retrieved from: https://mgmt4001winter2012.wikispaces.com/file/history/The+Five+Competitive+Forces+That+Shape+Strategy.pdf


Spender, J. & Kraaijenbrink, J. (2010). Why Competitive Strategy Succeeds—and with Whom. In: Huggins, R. and Izushi, H. (Eds.) ‘Competition, Competitive Advantage, and Clusters: The Ideas of Michael Porter’, Oxford University Press: New York.  Retrieved from: http://kraaijenbrink.com/wp-content/uploads/2012/06/Why-competitive-strategy-succeeds-Spender-Kraaijenbrink-15-12-2009.pdf

Comments

Post a Comment

Popular posts from this blog

TATA SKY OR TATA SQUEEZE!!

This is my debut article in the interest of Indian consumers. Just my humble contribution; to enlighten them about the product or service of famous TATA SKY. Amir Khan, the brand ambassador or Mr. Ratan Tata, the person at the helm of all TATA affairs, would be ashamed of TATA SKY, once they know instead of making the life “JINA LALA”; it is turning the life “JINA HARAM” with TATA SKY at times. With much expectation I switch over to TATA SKY from local cable operator in the month of May this year. Within six months twice I they have replaced their set top box. They went out of order and it is under warranty for one year. Every time I called their customer care, they receive they call as if your are naïve. They take no less than half an hour, to guide you to switch off and on , take out their digi-card and put it back, whether you are young or old caring a fig for that! Surprisingly their call centre’s number is not toll free! You are put on hold for ten minutes and another twenty m
23 comments
Read more

A trip to TAKI, West Bengal , India

                                   As Bangldesh looks on the bank of Ichamoti, from TAKI, West Bengal. Take a closed look, a cattle corpse i s floating on the river bed, near the Bangladeshi bank. Victim of transborder cattle smuggling. I am not sure how young generation would react to the name of yester year’s one of the most popular writer portraying the essence of rural Bengal, its pains and joys, prosperity and poverty and off course the thread of society; Bibhuti Bhusan Bandopadhyay. His simplicity was eminent in is writing; that was best projected by famous film director Satyojit Roy in his internationally acclaimed films like ‘Pother Panchali’, ‘Aparajito’ et el.  At the age of 9, I read ‘Pother Panchali’. Though I was not matured, enough to comprehend its intrinsic message of the content but the very story left a pugmark in my mind. I became more interested about the author later. The river ‘Ichamoti’ ; again and again surfaced in his rendition; so in my mind. I always cher
29 comments
Read more

If you were assigned to sell a product called “Sweet Treats” with the slogan, “so sweet, it will make you tweet,” but you thought the product tasted sour, and not at all sweet, what would you do?

Often, celebrities contract to endorse a product, but should they use the product regularly, or even like the product before they are allowed to claim that they “endorse” the product? If celebrity is lying, that is endorsing a product he/she does not use/consume then the ad should be pulled.  The Federal Trade Commission requirement that ads or sponsored social media posts indicate so - is not enough to inform consumers. (Robert, 2017) So, yes, a celebrity who endorses a product should at least appear in public using the product. Examples go in the opposite direction, instead of claiming to use a product but not doing so, which would be lying, the Kardashians post product endorsements across several social media platforms either without disclosing it is an ad or waiting until hours or days after the initial post to do so. According to the the organization Truth in Advertising (TINA.org) The delay allows avid followers to see the initial post as a testimonial instead of as an ad. (Kilke
Post a Comment
Read more