Evaluation of Corporate Performance Assignment Example | Topics and Well Written Essays - 2000 words - 1

Evaluation of Corporate Performance - Assignment Example The decorative product segments manufacture various architectural products such as door window, primers, waterproof products, specialty paint products and other hardware products. The cabinets and related products are concerned with easy to assemble kitchen appliances, kitchen countertops and home entertainment appliances. Lastly, the installation and other services segment deals with the installation of building products such as gutters, roofing products, after paint products and fire and insulation accessories. Fastenal Company has a rich history in financial performance in the manufacturing sector. Over the past three decades, the company has had a growth in their economic performance as well as their market share in the region. Its performance has been mostly above industrial average implying the company has had an upper hand over its competitors. The company has penetrated through new markets internationally such as Brazil, China and most countries in Africa. This has seen the company increase its revenue over the years leading to sustained growth of the company (www.fastenal.com). In a bid to evaluate Fastenal Company’s performance, it is essential to review its financial statements and make comparison with the ones it had in previous financial periods. This review of financial statement will entail the evaluation of the previous period balance sheet and income statement, and its comparison of those of 2013 and 2012. The pro forma balance sheet and income statements only consist of the vital items that are necessary for the evaluation of Fastenal Company performance. The total assets of the company in the financial period 2014 are higher that of periods ending 2013 and 2012. This shows that the capital base of the company has increased in comparison with some of the previous periods. The capital base might have increased due to the

Accounting assignment Example | Topics and Well Written Essays - 1000 words

Accounting - Assignment Example any can achieve this strategy by charging Priority, Team, and Shop different prices and at the same time, these respective customers selling to different purchasers. A business that sells to different places with different cost differentiating their products from their competitors through use of trademarks or advertising. This will allow customers to be associate of distribution in different packaging is capable to monopolize the market. This promotes brand loyalty among your customers. Brand loyalty is a significant asset as it upholds a company against the threat of competitors. Price differentiation will also encourages innovation, it is very important for Duncan Shirt Company to set itself apart from the rivals through a transformational innovation to explore the market further and come up with a new product. This will also focuses on improving the existing products. Innovation gives benefits to both stakeholders and customers by reinvigorating goods, improving fabrication processes will offer promising economies of scale. Differentiation will create a barrier to entry for new investors in the market because the customers will have associated the existing product. A company who also offer a distinct product would be doing advertising to make it popular in the public eye, thus making it very difficult for new entries companies by restricting them since they lack capital to advertise effectively. However, this cost should be reflected on the products through charging high profit margins. Moreover tastes of customers do change with time and competitors are o ut to copy and imitate flourishing differentiators. For this reason, product differentiation should offer something which the customer value for long term sustainment. Generally, an extreme usage of materials is the main cause of unfavorable direct materials quantity variance. Form the data give positive (annex) which is very favorable to the company. This may be due to substandard quality of materials,  or