Question
BabiesRUs (BRU) is a popular global corporation, headquartered in New York, specialized in the manufacturing of several baby products, for medication, leisure and transportation. BRU
BabiesRUs (BRU) is a popular global corporation, headquartered in New York, specialized in the manufacturing of several baby products, for medication, leisure and transportation. BRU is particularly popular for its strollers, sold around the world.
In 2019, revenues were almost $ 100 million for the second year in a row, with a final positive profit of $ 1.1 million.
The following table summarized the main financial figures for the last 2 years:
Income statement (,000 $) | 2019 | 2018 |
Net sales from operations | $ 98,526 | $ 98,999 |
Other revenues and income | $ 120 | $ 390 |
Total revenues | $ 98,646 | $ 99,389 |
Purchases, services and other costs | $ (66,110) | $ (66,558) |
Payroll and related costs | $ (21,522) | $ (21,618) |
Gross operating profit (EBITDA) | $ 11,014 | $ 11,213 |
Depreciation, amortisation and impairment | $ (8,690) | $ (7,360) |
Operating result (EBIT) | $ 2,324 | $ 3,853 |
Net finance expense | $ (865) | $ (823) |
Net income (expense) from investments | $ (88) | $ (90) |
Result before income taxes | $ 1,371 | $ 2,940 |
Income taxes | $ (194) | $ (201) |
Net profit (loss) for the year | $ 1,177 | $ 2,739 |
Assets (,000$ | ||
Inventories (including contract assets) | $ 13,890 | $ 13,866 |
Trade Receivables | $ 26,440 | $ 24,110 |
Total assets | $ 110,677 | $ 120,590 |
Liabilities (million ) | ||
Trade payables | $ 26,740 | $ 25,710 |
Short Term Debt | $ 801 | $ 620 |
Long Term Debt | $ 26,462 | $ 29,291 |
Total Debt | $ 27,263 | $ 29,911 |
3) Evaluate the supply network strategy implemented by BRU for each component. Bumper Sourcing strategy: Single sourcing Multiple sourcing Dual sourcing Parallel sourcing Relationship strategy Traditional I Collaborative Location strategy Local suppliers Global suppliers Both local and global Wheels Sourcing strategy: Single sourcing Multiple sourcing Dual sourcing Parallel sourcing Relationship strategy Traditional Collaborative Location strategy Local suppliers a Global suppliers I Both Manual control Sourcing strategy: Single sourcing Multiple sourcing Dual sourcing Parallel sourcing Relationship strategy Traditional I Collaborative Location strategy Local suppliers Global suppliers I Both
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