Unique Marketing Model of Aldi Company Case Study - 135

Unique Marketing Model of Aldi Company - Case Study Example The international expansion of Aldi stores made a large impact on leading global retailers (Steen & Lane1). Giving customers first priority by owing them respect played a major role in the competitive environment. Production of superior and new brands than the competitors would play a significant role in sustaining the competitive advantage to Aldi. International expansion of the stores would also play a major role in sustaining competitive advantage (Tichy & DeRose Web). Lowering the prices and increasing the quality level of production to customers. Provision of unique and superior brands created loyalty to most of the suppliers of Aldi for long period of time and some customers believed that the products were national brands from a foreign country (Tichy & DeRose Web). Lowering the prices brings in more customers since all can purchase their choices with the little they own. Further, since the majority are always after quality products, more customers would come in to enjoy their respective preferences. Aldi greatly believed that quality is affordable to meet the growing demand by successfully entering new markets in Houston, Florida and New York and introducing of new product such as organic foods. Aldi’s financials are average. The company does not seem to get more revenues from other competitions such as Walmart. The company’s financial position is however very strong. The company generally has healthy financial statements with ever increasing in revenue collected almost on a yearly basis. According to the Aldi and Walmart data of (2012), the global revenue of Aldi ranges at $66 billion compared to that of Walmart that ranges from $444 billion.(Steen & Lane10) This is a clear indication that Aldi level is low compared to Walmart. Walmart also had the number of stores in the U.S compared to Aldi each owning 1,188 and 3211 respectively.  

Time Value of Money Calculations Assignment Example | Topics and Well Written Essays - 750 words

Time Value of Money Calculations - Assignment Example Capital budgeting decisions are based on an evaluation of the cash flows expected from investing in a specific project (Emery et al 2007). Projects are evaluated using methods such as: net present value (NPV), internal rate of return (IRR), payback period (described as simple payback) and discounted payback period. These methods can assist management in deciding which project among a set of options yields the best return or whether a particular project should be undertaken. The NPV is the net balance of the initial investment after deducting future cash flows at present values. The implication of a negative NPV indicates the failure of the project to generate enough funds to pay up the initial investments as well as to facilitate some returns to shareholders. Information contained in the Appendix indicates that the project has a positive NPV of $16,692. This implies that the project would be beneficial to the organization The IRR is the discount rate that equates the present value of a project’s cash flows with the cost of the project (Brigham and Ehrhardt 2005). This occurs when NPV is equal to Zero (0). If used appropriately it is a valuable tool in the selection of projects (Hazen 2003). The IRR of the Server Update project is 10.13 per cent. This is 2.13 per cent above the organization’s cost of capital and therefore offers a positive return to shareholders. See Appendix 1 for the solution. According to Brigham and Ehrhardt (2005) the simple payback period indicates the time period over which the project recovers the initial investment. In performing the calculations the annual cash flows are set off against the initial outflow until there is a positive balance. Investments with long payback periods are considered to be risky compared to those with relatively short payback periods and so this method has a bias for short term projects. Additionally, the simple payback method does not take into account the time value of money since it