Supply chain management at world co. ltd. assignment


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

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.

We offer the best custom writing services. We have done this question before; we can also do it for you…

Place your order
(550 words)

Approximate price: $22

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
The price is based on these factors:
Academic level
Number of pages
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more