TUSA REMIX 2.

0 TEAM

EFE MATRIX
Key Internal Factors Weight Raiting Weighted Score

Strengths - - -

1. Brand name recognition 0.09 4 0,36

2. Diversity of products 0.05 3 0,15

3. Strong partnerships 0.04 3 0,12

4. Own R&D, and external 0.04 3 0,12

5. Social responsibility 0.05 3 0,15

6. Environmental sustainability 0.05 3 0,15

7. Amusement park 0.06 4 0,24

8. Product innovation 0.06 4 0,24

9. Strong distribution network 0.04 3 0,12

10. Customer satisfaction 0.06 4 0,24

Weaknesses - - -

1. Downsizing 0,08 1 0,08

2. High long term-debt 0,10 1 0,10

3. Tumultuous relationship with 0,06 2 0,12

shareholders

4. Brand loyalty 0,05 2 0,10

5. Outsourcing to reduce costs 0,04 1 0,04

6. Innefective communication 0,04 1 0.04

7. A lot of inventory 0,03 1 0.03

8. Financial planning 0,04 2 0,08

9. High attraction rate in workforce 0,03 1 0,03

10. Selling proposition is not clearly 0,03 1 0,03

defined

TOTAL 1 2,54
Recommendations / Weaknesses

● When we look at the risks that ford faces, it can be seen that with regard to downsizing
that results in the reorganization or restructuring of companies, the concern within the
company is almost nil. living in a globalised world, it is vitally important that a company
remains at the forefront of innovation, organizational redesign and an alienated and
competitive workforce. if the company does not start to worry about this item could end
up having a setback that would result in financial losses
● In terms of long-term loans it can be observed that at a business level it is generally used
because of its predictability (budgeting the operational revenues needed to make
payments), if ford were to consider expanding its strategies in relation to this field, will
allow you to expand and diversify the company a little more.
●
Financial ratio Analysis

2013 2014

Current ratio 1,76 1.1608

Quick ratio 1.30 1.29

Debt- to- total-assets ratio 0.80 0.730

Debt- to- equity ratio 1.11 1.433

Long term-debt-to equity ratio 0.52 0.50

Times-Interest-Earned ratio 16.56 16.63

Inventory Turnover 5.86 5.10

Fixed assets turnover 3.40 3.44

Total assets turnover 1.33 1.31

Accounts receivable turnover 14.95 12.43

Average collection period 27 days 25 days

Gross profit margin 0.459 0.449

Operating profit margin 0.187 0.187

Net profit margin 0.114 0.114

Return on total assets 0.164 0.150

Return on stockholder’s 0.562 0.557

 equity

Earnings per share $3.61 $3.77

Price earnings ratio 27.3 25.33

How has each ratio changed over time?

We can see that in 2013 most of the ratios were higher, such as current ratio, quick ratio
and debt to total assets ratio. The debts have been growing in 2014 and the inventory
has been decreasing. But there are margins that have remained the same in those last
two years, such as the gross profit margin, the operating profit margin and the net profit
margin. Earnings per share have increased, but the price earnings ratio has decreased.

How does each ratio compare to industry norms?

In the grocery stores industry, in 2014 de inventory turnover ratio was 15.45. In
hershey’s the inventory turn over ratio was 5.10, it means that in the industry the
inventory turonver standars are very high compared to the inventory turnover of
hershey’s. It means that hershey’s is not changing a lot its inventory compared to the
industry.

How does each ratio compare with key competitors?

We are going to compare the net profit margin between Nestle and Hesheys. The net
profit margin ​is the ratio of net profits to ​revenues for a company. Net profit margins
show how much of each dollar collected by a company as revenue translates into profit.
T​he Net profit margin of Nestle (Competitor) in 2014 was 0.119. In hershey’s the net
profit margin was 0.114. We can see that they are very similar but, Nestle is a little bit
bigger. This means that in a 0,005 Nestle is better on how much of each dollar collected
translates into profit.