StudentShare solutions

# Strategic management financial data - Essay Example

## Extract of sampleStrategic management financial data

Importantly it has an excellent reputation for its commitment to being an equal opportunities employer and to corporate philanthropy.

Whilst it does not have anywhere near McDonald's market share, over the last five years its stock has consistently outperformed McDonald's:

Figure 2: Yum v McDonald's 2002-2007
Source: Marketwatch.com

According to the CEO, David Novak, Yum! claims an annual return for investors of 24% between 2000-2005. Little wonder he refers to the company as "a demonstrated cash machine with a strong investment grade balance sheet". 2

Revenue Growth Last 5 Years3
I have presented both the raw figures, taken from the 2001-2005 Annual reports respectively and calculated the revenue growth rate using the formula:
Growth multiple: (current year/last year) = 1.344599
Growth % rate: Growth multiple - 1 x 100 =
Annualised Growth last 5 years
To work out the annualised growth rate between 2005 and 2000 I used the following formula:
Time = 5
Growth multiple = 1.344599
= 1.061008
Then subtract 1 and multiple by 100 = 6%
Operating Expenses as a % Revenue
I calculated this figure using the formula:
Operating expenses/revenue*100

Gross Profit Margin (GPM)
I found this information on the Income statement and used the following calculation:
To Calculate Gross Profit
Net Sales (NS)

minus Cost of Sales

=Gross Profit (GP)

GPM = GP/NS
Market Capitalization
I found 2 definitions for capitalization
Definition 1

The sum of a corporation's long-term debt, stock and retained earnings. Also called invested capital.
Definition 2

The market price of an entire company, calculated by multiplying the number of shares outstanding by the price per share. here also called market cap or market...
Importantly it has an excellent reputation for its commitment to being an equal opportunities employer and to corporate philanthropy.
According to the CEO, David Novak, Yum! claims an annual return for investors of 24% between 2000-2005. Little wonder he refers to the company as "a demonstrated cash machine with a strong investment grade balance sheet". 2
Figures 5-6: In the last 2 years Yum! has struggled to outperform the market. This is consistent with the difficulty in sustaining a competitive advantage. Markets trend toward competitive convergence as competitors copy operational efficiencies. However since October 2005 (Figure 5) Yum! has easily outperformed the Dow Jones US Restaurant & Bars index.
Figure 9 provides the contrast between Yum! and the Dow Jones US Restaurant & Bars index over the last 5 years. With the exception of a 'blip' in 2002-3 when Yum! was no better or worse than the Dow Jones US Restaurant & Bars index, Yum! has outperformed its sector overall in each of the last 5 years. ...Show more

## Summary

Globally the corporation owns over 34,000 restaurants, including 2,000 licensed restaurants, in more than 100 countries and territories. Four of the company's restaurant brands - KFC, Pizza Hut, Taco Bell and Long John Silver's - are the global leaders of the chicken, pizza, Mexican-style food and quick-service seafood categories respectively.
Author : wrodriguez
Save Your Time for More Important Things
Let us write or edit the essay on your topic
"Strategic management financial data"
with a personal 20% discount.
Grab the best paper

### Related Essays

Strategic Financial Management - Marks and Spencer
A study reflects a sound business performance of the company with satisfactory revenue through its sales and this status has been maintained inspite of several challenges and difficulties that the company had to face in the light of changing economic conditions in the business world. The company focuses on maintaining its position in the industry and develops its business with increasing the revenue more than before.
14 pages (3500 words) Essay
The understanding financial data, and developing and making judgements on proposals against strategic objectives
This paper is an international module providing a broad overview of financial values for all learners and a base for additional in depth study of finance and accounting. The report consists of International Financial Reporting, Interpretation of accounting information, Budgeting and Organisational Objectives and Investment appraisal Techniques.
15 pages (3750 words) Essay
Financial and Strategic Management of Projects
A project is a group of tasks or activities that requires effort to accomplish. Management is “systematic process of systematic process of planning, organizing, leading, and controlling” (Zee, 2002, p.18). Therefore, in project management, the group of tasks ate managed in a systematic way for successfully accomplishing.
3 pages (750 words) Essay
Data Requirements Strategic Supply Chain Management
To engage in business is to begin and carry on in a regular conduct of economic activities including transactions incidental thereto, by any person whether or not the person engaged therein is a nonstick, non profit, private organization. Products being manufactured by companies require the use of parts which are being assembled and structured through the use of manual work or machineries.
3 pages (750 words) Essay
Strategic Financial Management
The third part evaluates the findings of the second part and discusses the extent these materials impact on the body of theory in the first
12 pages (3000 words) Essay
Strategic Financial Management(business report)
It has its presence in several countries across the globe including, Americas, Central Asia, Africa and Europe. The Barclaycard UK, operates in tandem with other parts of the flagship company Barclays including UK retail banking,
8 pages (2000 words) Essay
Strategic financial management
That is, the NPV can be determined using the formula thus: The investment decision criteria under the NPV approach is to accept a project with a net present value that is
12 pages (3000 words) Essay
Strategic Financial Management(business report)
of competition but has had to dictate and shape organisations in terms of what consumers wants, how and when they want it and what they are prepared to pay for it (Hagan 1996:1). Kanter (1995:71) on his work of “Mastering Change” argues that success in the present day
10 pages (2500 words) Essay
Strategic financial management risk assessment decisions

The paper highlights certain troubles caused by the variation in perceptions of risk by different corporate houses. The importance of risk assessment is evaluated through a qualitative research, by putting forward some risk theories. Quantitative approach is also undertaken as the risks are quantified.

6 pages (1500 words) Essay
Financial and Strategic Management of Projects
Therefore, in project management, the group of tasks ate managed in a systematic way for successfully accomplishing. The financial aspect in a project management is one of the most critical areas that should be managed very carefully is systematic way.
3 pages (750 words) Essay
Get a custom paper written
by a pro under your requirements!
Win a special DISCOUNT!
Put in your e-mail and click the button with your lucky finger