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Questions: 1. 2. 3. 4. Opening a series of new supermarkets, such as 365, is a major capital budgeting project for the company. A
Questions: 1. 2. 3. 4. Opening a series of new supermarkets, such as 365, is a major capital budgeting project for the company. A project of this scale requires coordinated planning across all functions of a business (that you are studying in your Integrated Core classes). Describe and discuss the main items on the income statement and balance sheet that you think will be impacted by this new undertaking. Explain why you chose those particular balance sheet and income statement items. Please also explain how the financial decisions regarding opening the 365 supermarkets are related to management, marketing or operations decisions that the company must make (or has made) in light of the plans to open this new line of stores? Choose and calculate five ratios for this company for the last two years. Make sure to select ratios that you think would be impacted by the opening of the new 365 stores, and explain your reasoning. Identify two competitors of WFM and contrast the ratios. Explain why you selected those competitors. Describe how the decisions made by management, marketing and operations functions of the company can impact, and hopefully improve, these financial ratios. Calculate the annualized stock price return of WFM over the last 3, 5, and 10 years. How does it compare to the return of the competitors you selected in question 3 and the S&P 500 index over the same time periods? What kind of steps can be taken regarding management strategy, operational efficiency and marketing policy to improve the disappointing performance of this company going forward?
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