Domestic and Global Operations of the Company - Essay Example

Under publishing, the company's activities include the production of magazines, regional newspapers, educational resources, and management books (Transcontinental, Inc 2008). As for printing, the company's range of activities ranges from the printing of flyers and inserts; catalogs, books, and financials; to its printing plant in North America, as well as key accounts such as SFC, the New York Times, G&M, Metro and others (Transcontinental, Inc 2008). Transcontinental, Inc. offers marketing products and services that range from direct marketing, website development, database analytics, and fulfillment mailing (Transcontinental, Inc 2008).

The company has been founded by Remi Marcoux in 1976, and the Marcoux family retains 82% of the Class-B control shares for Transcontinental, Inc.

II.     Describe its domestic and global operations, including sales or revenue generated in each geographic area and the corresponding percentage generated in each geographic area (e.g., by country, region, economic community, etc.)
In 2008, Transcontinental, Inc. reported revenues amounting to $2,429.3 million (Transcontinental, Inc 2008). Of this, $2051.8 million, or 84.86% represents the company's operations in Canada. 75.61% of these sales, or $1,836.8 million are sales within Canada, while 8.85% represent exports. The remaining 15.54% represents sales in the United States and Mexico (Transcontinental, Inc 2008).

 III.  Refer to Bloomberg (GTF) and based on your company’s business area(s), list the revenue from each business area(s) or product segmentation over the past three years
Transcontinental, Inc. has three strategic business units—marketing services, publishing, and printing. According to the company's annual report, in 2008, the company's marketing services reaped an amount of $1,252.2 million in sales; the publishing has $647.5 million; and $624 million for printing (Transcontinental, Inc 2008). In 2007, the company's sales from its marketing services strategic business unit amounts to $1150.1 million, with $634.7 million in printing and $633.5 million in publishing (Transcontinental, Inc 2008). Transcontinental, Inc. has posted $2,282.3 million in its revenues in 2006; where its marketing services amount to $1082.2 million, its printing has earned $714.7 million, and its publishing business unit has reaped $579.8 million.

 IV.   State the company’s net profit/loss over the past three years
In 2006, the company earned a net income of $135.8 million (Transcontinental, Inc 2007). In 2007, this figure has gone down to $120.6 million (Transcontinental, Inc 2007). 2008 has been a low year for the company, in which, despite having a level of sales and operating costs at relatively the same level during the previous two years, having a huge impairment of assets and restructuring costs which amount to $219.5 million has brought down the company's net income for the year to only $7.9 million (Transcontinental, Inc 2008).