United Department Stores Inc Case

In: Business and Management

Submitted By maw001only
Words 446
Pages 2
You are currently engaged in the performance of the 2010 annual audit of United Department Stores Inc.(henceforth UDS) UDS is the second largest retail department store in the US with projected 2010 consolidated total assets of approximately 18 billion and projected consolidated sales of 7 billion. Consolidated Net income for the year ended January 31, 2010 is currently projected to be somewhere in the neighborhood of $ 150 million. You are currently performing pre-closing audit field work during the last week of January 2010. In the course of performing your field work you discover the following circumstance:

UDS proposes to suspend $28 million of 2009 depreciation charges applicable to its new discount department store chain, Details underlying this proposal are as follows:

UDS acquired all of the net assets of Worthless Stores Inc. on July 31, 2008 for $ 850 million. Worthless had been a moderately successful national retailer that owned and operated 60 relatively modern stores. These store facilities were located in major cities in 25 of the 50 States. Cost assigned to the 60 stores acquired was $ 425 million. Land acquired was valued at $ 40 million. From July 31, 2008 until March 30 2009 UDS wound down the operations of the Worthless Stores and sold-off most of the existing inventories. On March 31, 2009 UDS closed the Worthless Stores and began a program to re-decorate and re-equip them for a new Discount Retail Department Store Operation. This plan had been contemplated at the time the Worthless Stores were acquired. The newly outfitted stores were to carry the name: “GOLD SQUARE DEPARTMENT STORES” (henceforth GSDS). Redecorating and re-outfitting of the GSDS required exactly seven months. This activity began on April 1, 2009 and carried-on until September 30, 2009. During the month of September, new employees were hired and the stores were…...

Similar Documents

Norton's Department Store

...Norton’s Department Stores Case Table of Contents Executive Summary3 Introduction3 Case Findings4 Evaluations of Alternative Solutions5 Conclusion7 Recommended Plan of Action8 Evaluation of Recommended Solution9 References10 Appendices10 Executive Summary The Norton's chain of department stores has a long and tumultuous history, characterized by their early rise as an industry stalwart in the early twentieth century, to their current state on the brink of bankruptcy. The factors that coalesced to their fall from grace are numerous in nature. Yet one singular factor constantly resurfaces: the mismanagement of the firm stemming from the authority from birth-right exercised. Whatever course of action is taken; whether it is downsizing current locations, creating an e-commerce marketplace, or creating a new pricing strategy, one thing is clear: the main problem of management needs to be addressed first. Introduction Norton’s Department Stores was founded in 1869 by Thomas Norton, in a less than desirable area of Toronto. Since it humble inception, Norton’s have been instilled with certain characteristics conducive to success: “long hours, high quality, and friendly staff (Das, 2005)”. Norton’s has always been a private firm, run exclusively by the Norton family. In its early history, Norton’s experienced exponential growth and came to be known around Canada as a “dependable and customer-friendly merchandising empire (Das, 2005)”. At its height, the firm......

Words: 2741 - Pages: 11

Mcgregor's Ltd. Department Store

...McGregor’s Ltd. Department Store | To: | Staff members | From: | President James McGregor | Date: | 10/22/2012 | Re: | New discount program | Comments: | McGregor’s Ltd. Department Store in this year has increased in sales, and sales are above the average for retail stores; However, it has acquired the image of being old fashioned and traditional. I would like to change the image of the Store and to achieve higher efficiency and profitability by creating more business sense in the policies of the store. The outdated employee discount program is the place to start. Under the current employee’s discount program which is complex and in egalitarian, the size of the discount depends on the position of an employee, and there are six possible discounts existed. Some discounts are eating into profit margins such as major electrical appliances, calculators, cameras, and typewriters. In the other hand, salespeople, maintenance workers, and clerks are not getting a fair shake; therefore, new policy, which is more generous for most employees would encourage spending on high-profit-margin goods and increase the involvement of employees in the store and should lead to a significantly greater volume of sales. The new policy is based on simplicity, equality, and profitability. The discount would vary according to the goods purchased, not the status of the purchaser. There are three tiers in this program: 1. 10 percent discount would be given on low margin goods, such as large......

Words: 497 - Pages: 2

Hop-in Food Stores, Inc.

...Hop-In Food Stores, Inc. Strategic Analysis Mr. Merriman faces the difficult decision in setting the price of the initial public offering for the new equity issue for Hop-In Food Stores, Inc. First to address is the problem with regards to over- or under-pricing the stock. Both outcomes yield negative attitudes towards the company. When addressing the possibility of over-pricing, the underwriter must understand that the stock may not sell the full amount of shares at the desired price, resulting in negative outlooks towards the corporation, as well as lowered stock prices of the insiders of Virginia, whom have already invested in the company. In order to remedy this, shelf-registration can be employed in order to reduce the amount of shares distributed initially, lowering costs of a secondary equity issue in the future, and possibly capturing the market once the share price hits a balance point. Also with over-pricing, there is the winner’s curse dilemma, in which the bidder finds remorse for spending such a great amount for a stock that others have not obviously intended to pay. Now, with under-pricing, though the immediate effects are not seen towards the company, this greatly hurts the shareholders. In under-pricing, the stock price may close the day much higher than initially sold, in which case that volume of cash between the initial price and closing price multiplied by the number of shares could have originally been sent to the previous shareholders of the company.......

Words: 712 - Pages: 3

Memo of Macy's Department Stores Repositioning

...Memo of Macy’s Department store repositioning Case Synopsis The traditional department store was the dominant player in the American retail industry in the first half of the 20th century, which was designed to provide a unique shopping experience for consumers. However, only 50 years later, this mainstay of retail world was experiencing declining sales and serious questions were being raised as to whether its demise was imminent. Firstly, this case gives us a brief introduction of Macy’s, which is consolidated by 15 regional department stores with 810 store locations across the country. The company repositioned the consolidated Macy’s in the overall retail landscape in an attempt to differentiate the new company from its competitors. Secondly, the case provides a situation analysis of the factors Macy’s is facing, which includes the general economic environment, industry (product and services and segments), competition and consumers. Last but not the least, the case details not only Macy’s 2005-2006 consolidation and repositioning strategy but also Macy’s 2006-2011 post-consolidation. Questions 1. Complete a situation analysis of the traditional department store industry and of Macy’s as of 2005. Which factors in the external environment could (positively or negatively) affect the success of Macy’s new strategy? Which internal factors could affect the success of the company’s strategy? I think the following external environment factors could affect the......

Words: 568 - Pages: 3

Macy's Department Store Case Study

...External Analysis for Macy’s Departmental Stores Inc. Introduction Macy’s Department Stores Incorporated or Macy’s is an American based retail chain of departmental stores. It is currently operating under two brand names the Macy’s and Bloomingdale in over forty five states of America. The company specializes in the range of products including jewelry, furniture, house hold items, footwear, clothing and other related items.It also offers online shipping services to the clients in large numbers of countries. The company currently operates in four business segments including Macy’s, macy.com, Bloomingdale’s and Bloomingdales.com (one source, 2011). The company’s stocks are listed in the New York Stock Exchange under the symbol M (Macy’s Inc, 2011). The current market capital of the company is over thirteen billion US dollars and holds second position while Kohl’s Corporation has over sixteen billion US dollars market capital holding first position in the markets (NYSE:M, 2011). SWOT Analysis SWOT Matrix Strengths • Market position • Business operations • ecommerce Weaknesses • Legal issues • Geographic concentration Opportunities • Business expansion • Expanded product lines • mergers Threats • Competition • Regulations • Economic conditions Strengths Macy’s Inc. is among the largest retail outlets operating in the United States that deals in the diverse range of products like apparel, households, jewelry etc.......

Words: 2943 - Pages: 12

Wal-Mart Stores, Inc.

...Case 1-2, Wal-Mart Stores, Inc. Discussion Questions: 1-1. What is Wal-Mart’s strategy? Answer: The major wining strategy of Wal-Mart is selling branded products at low cost with large volume by improving their operation management system, utilize their buying power to lower the price from their vendors. The second strategy is to use “saturation” strategy for store expansion and further expansion to worldwide. The third strategy is Wal-Mart’s commitment to customers; always provide excellent service to their customers to make their customers always feel that Wal-Mart is very accountable and friendly. The fourth strategy is respect for the individuals, which Wal-Mart treads their employees well and push them to excel in what they do to increase employees’ loyalty and dedication. 1-2. What is the basis on which Wal-Mart builds its competitive advantage? Answer: The fundamental basis is lowering the cost as much as possible. Wal-Mart has implemented the world most effective operation management system to reduce its cost on operation management, such like: 1. Reducing warehouse storage cost by utilizing RFID technologies, just-in-time method. 2. Reducing products distributions cost by carefully select the distribution center locations and store locations, and building up self owned world largest tracking networks. 3. Increase the efficiency of communication and information sharing by building up satellite communication channels and real-time information system,......

Words: 483 - Pages: 2

Data Administrator for Department Stores

... DATABASE ADMINISTRATOR FOR DEPARTMENT STORE (TECHICAL PAPER) ANDREW L. PASSIE STUDENT Dr. HOSSEIN BESHARATIAN PROFESSOR CIS 515 STRAYER UNIVERSITY September 6, 2013 SUMMER Page 1 STRATEGY PLAN FOR DATABASE SYSTEMS ABSTRACT We are also going to discuss a Technical paper on Database Administrator for Department Store. We should know that a Database Administrator is the person who is responsible for planning, organizing, controlling, and monitoring the centralized and shared corporate database. The DBA is the general manager of the database administration department. We are also going to discuss the potential sales of the department store transaction within a database, evaluation of all relationships of the database solution using the Crow Foot notation, justifying that Big Data tools could be used for forecasting sales and inventory of the department store, the SQL functions to help sales predictions, implementing cloud-hosted solution for a database in the cost involved and pricing structure required, ranking the cloud services options of......

Words: 4277 - Pages: 18

Department Stores

...Department Stores are Struggling! Ashley Pearson FYS: History of Providence Professor Hughes December 17, 2012 In 2012 department stores in Providence are struggling. When one takes a drive through Providence the main retail stores are in the Providence Place Mall. From an outsider’s point of view it doesn’t look like these stores are struggling. After all, everyone in Providence knows where this tremendous mall is. What people do not know is that in reality they are headed downhill. These stores are department stores. A department store is a large retail store carrying a wide variety of merchandise and organized into various departments for sales and administrative purposes.[1] In the past, stores like The Outlet, Gladding and Shepards had trouble keeping up with modern times and eventually this led them to close down. If a department store cannot keep up with this modernization it is in danger of failing. Department stores overall, start to fail due to the social and economic problems that occur in Providence. This paper, therefore will investigate the rise and the fall of these three department store retailers as well as taking a look at why these more modern department stores are struggling to this day. The Outlet is a department store that was built in 1891. It was built under the two brothers Leon and Joseph Samuels and was located on Weybosset Street.[2] Immediately after being built, The Outlet......

Words: 1961 - Pages: 8

A Case Study on Wal-Mart Stores Inc.

...Wal-Mart: Staying on Top of the Fortune 500 A Case Study on Wal-Mart Stores Inc. This case study was produced for the Corporate Strategy and Public Affairs Lecture, The Graduate School of Political Management, George Washington University. April 2002, Washington DC Contributors to this Report: Patrick Hayden, Seung Lee, Kate McMahon, Mike Pereira The case study is an examination of how Wal-Mart's Corporate Strategy affects its Public Affairs and Government Relations Strategy  http://mike-pereira.com Executive Summary Wal-Mart Stores Inc. is the largest retail company in the United States and has been ranked number one on the Fortune 500 Index by Fortune Magazine. Wal-Mart has four parts to their corporate strategy. 1. Dominance in the Retail Market 2. Expansion in the U.S. and International Markets 3. Creation of Positive Brand and Company Recognition 4. Branch Out into New Sectors of Retail Wal-Mart’s public affairs strategy must work to make implementation of these policy goals happen. Its public affairs strategy enables the company to move into other sectors of the marketplace and expand into foreign countries. The public affairs strategy also involves gaining access to politicians who can help Wal-Mart achieve its goals. WalMart has a very active Political Action Committee that gives almost a quarter million dollars annually. While Wal-Mart’s public affairs strategy works well with its corporate strategy. W e feel that there are a few recommendations which......

Words: 10186 - Pages: 41

Denver Department Stores

...Denver Department Stores, a Colorado retail store chain, is an entity that was suffering from the effects of decreased sales volume. Jim Barton, the supervisor of four departments within the main location in Denver, was struggling with developing a process to improve the store’s sales. Barton identified with the notion that the decrease in sales volume was a simple matter of a slowdown in the economic landscape, and that the downturn would effect all stores in the retail business. However, Barton’s superior, Mr. Cornwall, the general merchandiser of Denver Department Stores, told Barton that some stores have experienced a 15% gain in recent sales. Cornwall made it clear that he expected Barton’s segments to have sales equal to the other departments within the company due to more aggressive salespeople. As a result, Cornwall proceeded to employ a tally card system that would keep track of each employee’s sales as a method of evaluation. It should be noted that Denver Department Stores employs part-time clerks, those responsible for the majority of sales within each department, and head clerks, the superiors to the part-time clerks. The head clerks are responsible for organizing the stock room, training part-time employees, and maintaining the positive appearance of the store. Cornwall concluded that the tally card system would allow the company to eliminate the weak salespeople and replace them with people that possess stronger sales skills. Ultimately, the tally card system......

Words: 3150 - Pages: 13

Financial Analysis of Ross Stores, Inc

...Financial Analysis Ross Stores, Inc. is an S&P 500, Fortune 500 and Nasdaq 100 Company that started as six Junior departments stores in the San Francisco Bay Area in August of 1982, that is now headquartered in Dublin, California and since June 1989 it has been reincorporated in Delaware. The company expanded rapidly and ended the 1986 fiscal year with total sales of $534 million and 121 stores in 16 states. Ross Dress for Less is now the largest off-price apparel and home fashion chain in the United States with 1,210 locations in 33 states, the District of Columbia and Guam in the fiscal 2014 year end. It offers first-quality, in-season, name brand and designer apparel, accessories, footwear and home fashions for the entire family at everyday savings of 20% to 60% off department and specialty store regular prices. The Company also operates 152 dd’s DISCOUNTS in ten states that feature a more moderately priced assortment of first- quality, in-season, name brand apparel, accessories, footwear and home fashions for the entire family at the same everyday savings. From 2009 to 2014 total sales has risen $3 billion and earnings per share has risen $2.11. Their financial data has just risen steadily each year. The ratios are also in good standings. | 2014 | 2013 | Current Ratio | | | 1867159/1393057 | 1.34:1 | | 2031427/1422582 | | 1.43:1 | Quick Ratio | | | 423168+12006+62612/1393057 | 0.36:1 | | 646761+1087+59617/1422582 | |......

Words: 324 - Pages: 2

Case #1-2 Wal-Mart Stores, Inc.

...MAKALAH KELOMPOK MANAGEMENT CONTROL SYSTEM CASE #1-2 WAL-MART STORES, INC. BAB I PENDAHULUAN A. Latar Belakang : Sejarah Perusahaan Wal-Mart Inc. Sejarah bisnis Wal-Mart Inc tidak lepas dari kejeniusan Sam Walton. Alumnus Universitas Missouri, Columbia, ini mendirikan toko pertamanya berada di Roger, Arkansas tahun 1962, dan penjualan mencapai $1 Miliar pada 17 tahun kemudian. Di akhir bulan Januari 2002, Toko Wal-Mart menjadi toko retail terbesar dengan penjualan $218 Miliar (Achtmeyer, 2002). Bermula dari pengalamannya bekerja di perusahaan ritel Sears Robuck dan JC Penney, Walton memulai langkah bisnisnya dengan membeli sebuah waralaba dan penyewaan di kawasan Pelabuhan Ben Franklin, Arkansas, yakni jaringan penjualan dari peritel lokal Butler Brother. Dalam kurun waktu 3 tahun, Walton mampu meningkatkan penjualan tahunan dari USD80.000 menjadi USD225.000. 5 tahun kemudian (1950) Walton mengembangkan bisnisnya dengan membeli pusat perbelanjaan milik peritel Luther E Harrison di kawasan Bentonville, Arkansas. Sejak itulah, Walton mulai menamai jaringan pusat perbelanjaannya dengan sebutan Walton’s 5&10. Pada 1962, Walton berhasil mendirikan 11 jejaring bisnis ritelnya dengan pembukaan toko diskon Walmart pertama di Rogers, Arkansas. Jumlah jejaring bisnisnya semakin bertambah pada 1967, yakni menjadi 24 pusat perbelanjaan di seluruh negara bagian Arkansas. Perluasan ini menyumbangkan tingkat penjualan tahunan Walton’s 5&10 menjadi USD12,6......

Words: 2548 - Pages: 11

Department Stores

...the business value using BizStats. –Valuation Rule for Sporting Goods Store at BizStats. These are the BizStats I found Profitable Sole Proprietorships | 51.40% | Non-Profitable Sole Proprietorships | 48.60% | Income Among Profitable Sole Proprietorships | 80.00% | Income Among Non-Profitable Sole Proprietorships | 20.00% | Average Net Profit | 11.50% | Valuation Rule of Thumb Industry | "Rule of Thumb" Valuation | Accounting Firms | 100–125% of annual revenues | Auto Dealers (New Cars) | 0–10% of annual sales + inventory | Book Stores | 15% of annual sales + inventory | Coffee Shops (Gourmet) | 40% of annual sales + inventory | Day Care Centers | 45–50% of annual sales incl. inventory | Dental Practices | 60–65% of annual revenues incl. inventory | Dry Cleaners | 70–80% of annual sales + Inventory | Engineering Services | 40–45% of annual revenues | Flower Shops | 30–35% of annual sales + inventory | Food Shops (Gourmet) | 30% of annual sales + inventory | Gas Stations (w/o C-Store) | 15–20% of annual sales + inventory | Gift/Card Shops | 35% of annual sales incl. inventory | Grocery Store (Supermarket) | 15% of annuals sales + inventory | Hardware Stores | 45% of annual sales incl. inventory | Insurance Agencies | 125–150% of annual revenues | Landscape Businesses | 45% of annual sales | Law Practices | 90–100% of annuals revenues | Liquor Stores | 40–45% of annuals sales + inventory | Restaurants......

Words: 607 - Pages: 3

Mcgregor's Department Store Case Analysis

...Mc Case DATE: April 19, 2016 TO: Staff and members FROM: James McGregor SUBJECT: Implementation of new policy INTRODUCTION / PROBLEM STATEMENT James McGregor is the president of McGregor. He was trying to improve sales above the average of the total retail stores for the coming years. However, the issue that he found out is about old fashioned and traditional goods. Those old fashioned goods which need to be change become fashioned affect sales keep staying. Moreover, the outdated discount policy is complex and unfair for whole employees, especially for lower level workers. More importantly, the policy stay in old fashioned idea so that it loss interested in young customers. To solve this problem, James McGregor come out new policy to make it simple and fair. The reason he think the new policy will work is it could attracts young customers and it also will help to decrease the remaining goods at inventory. FACTS AND ASSUMPTIONS 1. Goods that sold at our store is too old fashioned. There is not enough young customers and young employees willing to buy them. 2. Due to the old fashion products, it is difficult to recruit young employees or attract young staffs who already work at our store. 3. It is important to increase long term profits. 4. Lower level and maintenance staffs have not benefited from the previous policy, so that they may be stealing inventory while working. 5. It will improve the turnover of inventory. 6. The old...

Words: 399 - Pages: 2

Case Study Frazers Department Store

...Executive Summary Frazer’s Department Store’s Executive Vice President, Anne Fiske, had recently attended a conference where the key note speaker gave a presentation about communication. Inspired by the key note speaker, Fiske returned to Frazer’s Department Store interested in seeing how communications within their own business was being handled. Ms. Fiske wanted to know all of the communication channels that were currently being used to communicate between the various levels and departments of the organization. A direct report to Ms. Fiske was Vice President of Human Resource employee Sterling Stone. Ms. Fiske discussed her interest in finding out this information with Mr. Stone and he decided that this would be a perfect project for the recently recruited young woman by the name of Gloria Prentiss. Gloria Prentiss had been hired as the human resource employment supervisor. Mr. Stone felt that by researching and compiling this information, Ms. Prentiss would gather some good training and experience and therefore he assigned the task to her. Ms. Prentiss met with both Ms. Fiske and Mr. Stone to further discuss the details of the project and she was sent on her way to collect the information. Facts Five days later, Ms. Prentiss presented the completed report to Mr. Stone and asked for the opportunity to discuss the details with him after he had a chance to review it. Ms. Prentiss had presented detailed report outlining the various communication channels that......

Words: 490 - Pages: 2

James Buckley | Watch now! | Silsila Badalte Rishton Ka 16th October 2018 Written Update