7.2 International analysis. The following information is from Table 2.18, Heinz’s geographical information. To analyze the business, complete the table below and answer the associated questions.

*Operating income excludes restructuring related items and is before income tax.

†ROIA stands for Return on Identifiable Assets.

Domestic Foreign Total North America Europe Asia Other 1998 Sales $4874 $4335 $9209 $5331 $2453 $1016 $409 Operating income* 861 647 1508 906 409 139 54 Identifiable assets 4075 3948 8023 4522 2333 825 343 1997 Sales 5170 4187 9357 5587 2281 1130 359 Operating income* 705 613 1318 752 374 130 62 Identifiable assets 4475 3963 8438 4941 2241 996 260 1996 Sales 5236 3876 9112 5598 2134 1086 294 Operating income* 740 548 1288 801 337 114 36 Identifiable assets 4802 3822 8624 5100 2290 978 256 Annual growth rates Sales 1996–1997 1997–1998 CAGR (96–98)

Operating income*

1996–1997 1997–1998 CAGR (96–98)

Identifiable assets 1996–1997 1997–1998 CAGR (96–98)

DuPont analysis 1998 Margin Turnover ROIA†

1997 Margin Turnover ROIA†

1996 Margin Turnover ROIA†

A. Which is the fastest growing region with respect to sales? Operating income? Identifiable assets?
B. Which region showed the greatest improvement in asset utilization (turnover)?
C. Which region is the most profitable?