Supply chain management at world co. ltd. assignment


Save Time On Research and Writing
Hire a Pro to Write You a 100% Plagiarism-Free Paper.
Get My Paper

Supply Chain Management at World Co. Ltd. Assignment

Read the World Co. case and develop written responses to the following questions.

  1. How does World Co. achieve the short response times described in the case? The lead time at U.S. department stores often exceeds six months while World Co.’s is two weeks.
  2. In the assigned reading, Hau L. Lee describes the best supply chains as agile, adaptable, and aligned. How does World Co. reflect the methods described by Lee to achieve agility, adaptability, and alignment?
  3. Why didn’t World Co.’s focus on supply chain management result in ROE comparable to U.S. stores? Consider both financial and operating factors.
  4. Based on your financial analysis (see below), identify World Co.’s strengths and weaknesses and the impact of its supply chain management practices on its financial performance.

You may wish to review the Financial Analysis Teaching Note (this material was part of an assignment in MGT 600 and is also available in the class resources) to refresh your understanding of financial ratios. Use the financial statements in Exhibit 2 of the case to prepare a dupont and ratio analysis (consider profitability, activity, solvency, and debt ratios) for 1999 and 2000. An Excel spreadsheet with the World Co. financial information is available to save you some data entry time. Use year-end balances in all calculations rather than averages, e.g., total assets rather than average total assets. Use the following information related to U.S. retail stores (summarized from the case) to benchmark World Co’s performance:

Gross margin (U.S. department stores): 34%
Gross margin (The Gap: 1997-99): 42%, 45%, 45%
Gross margin (The Limited: 1997-99): 34%, 35%, 37%
Inventory turnover (U.S. department stores): 2.55 x
Inventory turnover (The Gap: 1997-99): 5.8, 5.6, 5.1
Inventory turnover (The Limited: 1997-99): 6, 5.7, 5.6
ROE (The Gap: 1997-99): 34-52%
ROE (The Limited: 1997-99): 10-92%
SG&A expense % (U.S. department stores): 29.6%
Markdowns (U.S. women’s apparel stores): 31.8%
Net profit margin (U.S. department stores): 3.85%
Sales/total assets (U.S. department stores): 1.64
Markdowns (U.S. apparel): 31.8%
Total assets/shareholders’ equity (U.S. department stores): 2.78

Save Time On Research and Writing
Hire a Pro to Write You a 100% Plagiarism-Free Paper.
Get My Paper

Finally, compute the operating cycle and cash conversion cycle for 1999 and 2000. Note: Assume that accounts payable is 50% of the current liabilities in the balance sheet. What conclusions can you draw from these numbers about World Co.’s supply chain management? Assume that competitors’ have operating cycles of 145 – 160 days and cash conversion cycles of 40 – 45 days.

Calculate your order
Pages (275 words)
Standard price: $0.00
Client Reviews
Our Guarantees
100% Confidentiality
Information about customers is confidential and never disclosed to third parties.
Original Writing
We complete all papers from scratch. You can get a plagiarism report.
Timely Delivery
No missed deadlines – 97% of assignments are completed in time.
Money Back
If you're confident that a writer didn't follow your order details, ask for a refund.

Calculate the price of your order

You will get a personal manager and a discount.
We'll send you the first draft for approval by at
Total price:
Power up Your Academic Success with the
Team of Professionals. We’ve Got Your Back.
Power up Your Study Success with Experts We’ve Got Your Back.
Open chat
Order through WhatsApp!
You Can Now Place your Order through WhatsApp

Order your essay today and save 30% with the discount code ESSAYHELP2