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Daiso of Japan The Dollar Store Problem

Statement
The problem statement refer to the concise description of the issues that needs to be
addressed. It identi es the issues or gap between the current and desired type of the
organization, and thus requires to be stated in order for the management to look for
change. The main idea of the problem statement is to answer the 5 w’s that include the
answering who, what, where and why, to allow the organization resolve the problem, by
stating it in clearly in 2 to 3 lines.

In recent period, the problems statement  are widely used by the rms to allow the
management execute the improvement process or identify the loopholes that are
e ecting the overall performance or pro tability of the company. Moreover, the
problem statement allow the management to trim down the symptoms of the problem
an organization is facing and look on to the real problem that is causing the damage to
any speci c aspect of the company.

Basically, developing a Daiso of Japan The Dollar Store problem statement is an

extensive process and requires the proper brain storming of the teams in order to
identify the underlying loopholes or ine ciencies within the organization. Also, it o ers
the speci c insights to the management in understanding and looking at the factors that
have been hidden from the management sight, e ecting the performance slowly and
gradually.

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Apart from this, while developing the problem statement, it is important for the    
Problem statement to be clear and concise. Such is due to the fact, that it allows the
management, stakeholder to quickly understand the nding and also look on the main
problem, rather getting entangled in the symptoms of the problem. The conciseness of
the problem statement is the key, as it allows the reader to quickly understand the
issue.

Moreover, clarity of the Daiso of Japan The Dollar Store problem statement is important
to maintain, in order to avoid the misunderstanding between the shareholders and
stakeholders. The clear problem statement is developed by stating the factors and the
operations getting e ected and its overall impact on the organization speci c the areas,
such as Pro tability, sales or brand equity. Also, the purpose of the problem statement
is to describe the external environment and its e ect on the overall organization in
short and long-term. Moreover it also delineates the impact of such changing factors on
the users, and other stakeholders.

Many times, under the case analysis, the purpose of the problem statement is to
improvise the current state of the organization through pursuing innovation or other
changes. hence ins uh cases, the direct problem is no the ultimate organization factors
but the process implementation that is needed to e in lace, in order to bring change ,
avoiding the upcoming risk and hence sustaining the competitive edge in the
market (Spradlin, 2012).

Furthermore, the establishment of the problem statement, allows the organization and
the management teams to work in a speci ed direction. Such is important in order to
allow the organization move in a speci ed direction, reducing the chances of deviating
From the actual path. Also, it o ers the benchmark to match the desired condition of
the organization, hence putting the e orts of the team in the right direction.

Yet, it is important to note that, the good problem statement does not delineates the
solution or the symptoms of the problem, but it clearly states the gap that lies within the
organization. Moreover, it is also determined, that a clear problem statement is half of
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the solution, hence it is important To state the problem correctly.
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 In addition, the problem statement is a group process, and hence requires a detail
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understanding of the issues the organization may be facing, by all members in the team.
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This will allow the team to develop a better solution plan addressing all the factors and
considering all the risk associated with it.

Perhaps, stating the problem statement is not just writing the fact, it’s more about the
factors that are e ecting or may a ect the organization in long term, therefore, while
developing the problem statement, the factors such as human resource skills
innovation, technology, change resistance are considered, that have a direct e ect on
the organization or is hidden cause of the problem. It is important to note, that the
problem statement can cover tangible or intangible issue but it needs to have a clear
relationship with the organization end goal.

In addition, while stating the problem statement, the aim of the management is to see
the mission and vision of the company and then analyze the current state of the
organization, such also allow the right identi cation of the problem and the lead to the
development of concrete problem statement.

All in all, the problem statement gives a direction to the organization in understanding
the right solution path and also development of the solution sets in order to overcome
the current issues that are deteriorating the organizational performance or productivity.
Perhaps, while writ the problem statement, it is important to consider the small factors
that are often overlooked such as the intangible factors that e ects the productivity of
the organization in the long-term.

Daiso of Japan The Dollar Store SWOT

analysis
The acronym Daiso of Japan The Dollar Store SWOT stands for strength, weakness,
threats and opportunities. It is a useful tool that is widely used for strategic planning
and management in many organizations. It is e ectively used in building strategies for
the organization to maintain its competitiveness in the market. It is simple yet powerful
tool that help the organization in identifying its existing resources, capabilities,
de ciencies, the existing opportunities and threats prevailing in the market.

It is a strategic planning framework that is commonly used to evaluate the organization,

a plan, business or any other project. It helps in determine the organizational and
environmental factors that could a ect the decision to be made. It is carried out to
analyze the position of an organization in in the market compare to its competitors and
the major factors that are a ecting the competitiveness before crafting any business
strategy.

Daiso of Japan The Dollar Store SWOT analysis mainly have two dimensions internal and
external dimensions. Internal dimension includes all the factors that could a ect the
organization which is the strength and the weakness while the external factor includes
the environmental factors that is the opportunities and the threats.
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Components of SWOT analysis
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 Daiso of Japan The Dollar Store SWOT analysis is a process that include four areas that
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are further divided into two dimensions i.e. internal and external factors. In SWOT
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analysis the strong and weak aspect of an organization is determined by evaluating the
elements within the environment while the opportunities and threats of an organization
are determined by examining the element outside the environment. In this way SWOT
allows the comparison of organization’s resources and capabilities with the competitive
environment in which it is operating.

Structure of Daiso of Japan The Dollar Store SWOT analysis

In order to carry out the analysis it is important to understand each element of SWOT
i.e. strength, weakness, opportunities and threats.

Daiso of Japan The Dollar Store Strength

Strength is a characteristic that adds value to something by making it more special,
unique and advantageous when compared. In this element of SWOT the abilities and
the key properties of organization are discussed that gives an organization an
advantage over other organizations by making it more competitive. It de nes the
characteristics and situations of an organization which makes it more e ective and
e cient when compare with its competitors.

It de nes the areas in which the organization hold a command or is good at doing it and
that provides the organization and important capability. It can be a skill, a resource,
image, market leadership, relation with buyer or supplier or any other advantage
relative to its competitors that ful ll the needs of the market by providing the
organization with a comparative advantage.

Daiso of Japan The Dollar Store Weakness

Weakness refer to the situation in which the existing capabilities and the resources the
company holds are weaker or not su cient compared to others organizations in the
market. In other words it means the aspects in which the organization is less e cient
and needs to improve in order to align with the market trends. As these aspects
negatively a ect the overall performance of the organization by making it weaker
compared to its competitors.

These are the factors that an organization lacks and does poorly in comparison to the
organizations operating in the same market at the same level. It is a de ciency or
limitation of resources, capabilities, skills that majorly a ect the organizations e ective
performance. Management capabilities, Facilities, nancial resources, marketing skills
and the weak brand image can be the sources of weakness.

Daiso of Japan The Dollar Store Opportunities

Opportunity is an advantage and the driving force for an organization. It is the
convenient time or situation that is present in the environment and will help the
organization in achieving its goals. It is a factor that contribute positively towards the
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us It is a condition existing in the external environment that

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 allow the organization to take an advantage of the organizational strengths, and help in
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overcoming the weaknesses and to neutralize the threats present in the environment.
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Daiso of Japan The Dollar Store Threats
Daiso of Japan The Dollar Store Threats are the factors that prevent the organization
from the actualization of an activity. It is an unfavorable situation that exist in the
environment making it di cult for the organization to achieve its de ned goals. It is a
situation that arises as a result of the changes that took place in the immediate or
distant environment, preventing the organization from maintaining its existence and
superiority in the growing competition and are disadvantageous for the organization.

All the environmental factors are consider as a threat to an organization that could
a ect the e ciency and e ectiveness of the organization.

 
Limitations of Daiso of Japan The Dollar Store SWOT analysis
However there are certain limitation attached with it. The Daiso of Japan The Dollar
Store SWOT analysis is only a one stage of the business planning process and do not
provide the organization with an in-depth analysis or research that could lead to a rm
decisions. Apart from this it only cover the issues that are de nite and doesn’t priorities
them. In addition to this it does not provide any solution or alternatives decisions. As a
framework, SWOT does processes a value but it doesn’t provide the organization with
any speci c direction on how the key aspects can be identi ed.  It signi cantly rely on
the capabilities of the manager that how e ectively it can prioritize and determine the
most important element. Another limitation associated with SWOT analysis is that it
provide equal weight to each factor regardless of their impact or relevancy.

Daiso of Japan The Dollar Store Porter’s

Five Forces
Daiso of Japan The Dollar Store Porter ve forces re ects the competitive environment
of an industry. It is a strategic tool that is used to avoid or minimize the risk of losing the
competitive
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products in the long run. The company holds its vision closely as it allows them to
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 orientate its innovation in terms of choices regarding the investment and strategies.
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Within the industry the businesses pro tability is dependent upon the following forces:
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Competitive rivalry
Threats of new entrants
Threats of substitute
Bargaining power of suppliers
Bargaining power of customers

Structure of porter’s ve forces analysis

Daiso of Japan The Dollar Store Competitive rivalry
The competition among the rms help in identifying the lucrativeness of an industry
where companies are competing hard in order to maintain their power within the
industry. The Daiso of Japan The Dollar Store competition is moreover on basis of
diversity, the development within the sector and the barriers related to entrance in the
market. The competitive rivalry is the analysis of the brands and the product, its
strengths and weakness along with the strategies, competitors and the share in the
market.

Threat of new entrants

It is in the favor of the companies that exist in the market to create barriers for the new
entrants to prevent them from entering into the industry. The organizations could be
the new companies or the companies that are planning to diversify itself in the market.
The barriers can be both industrial and legal. Apart from this the size and the reputation
of the companies that are already operating in the market also play an important.
Furthermore the cost related to the entry, access to raw materials, barriers related to
culture and technical standards also play a major role and can a ect the decision of the
new entrants in the market.

Threat of Daiso of Japan The Dollar Store substitute products

The Daiso of Japan The Dollar Store substitute products are an alternatives that are
available in the market at comparatively better prices. Such products prevail due to the
technological and innovative advancement. Due to which the products being produced
by the companies that are already existing in the market and is using the same
technology are than replaced by the other company’s products that are comparatively
better in terms of price and quality and are being produced from sectors with signi cant
pro ts. The substitute products are dangerous as the companies are under constant
threat of being replaced.

High threat of substitute leads to low pro tability as it limits the industry pro ts by
placing a price ceiling due to the fear of being substituted by other product. Apart from
this it also a ect the growth potentials of the industry as a whole but reducing the
pro tability margins. 
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Bargaining power of suppliers Daiso of Japan The Dollar Store
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 Powerful suppliers possess Daiso of Japan The Dollar Store more power to capture
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signi cant value for themselves by demanding high prices while limiting the quality and
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the quantity of the product or services or by transferring the cost on the participant of
the industry. Many condition imposed by the suppliers generally include the increase in
price while compromising the quality and quantity.

A bargaining power of a supplier in the market is strong if:

It is more concentrated than the industry it is selling to.

It is not heavily relying on the industry for its pro ts
If the participants in the industry have to incur high cost for switching suppliers or the
rms are located adjacent to the suppliers manufacturing facilities.
The product being o ered by the suppliers are highly di erentiated.
And when there is no close substitute available for the products being supplied by the
suppliers.

Daiso of Japan The Dollar Store

Bargaining power of customers
The buyers having strong bargaining power can highly in uence the pro tability of the
suppliers operating in the market by imposing condition that are not much favorable for
the suppliers in terms of price, quality or service. Therefore choosing clients often
become crucial for the organizations as to avoid the situation of being highly depended
on the buyers. The level of interest and concentration of buyers toward the product
gives them more or less power.

Powerful buyers could ip the side of the powerful supplies by forcing the prices to
move downwards and by demanding high quality and services by creating a competition
between the participants in the industry on the basis of price and quantity. Customer
are deemed strong if they contain negotiating leverage speci cally if the industry is
sensitive to price, the buyers can pressure suppliers for further price reductions.

The customer are assumed to have strong buying power in case:

If the number of buyer are limited or each of the buyer purchases large quantity
relative to the size of the suppliers.
The products in the industry are standardized or are undi erentiated.
The cost of switching is comparatively low.

Limitations of Daiso of Japan The Dollar Store Porter’s ve forces

Though the model from a strategic point of view is an important tool but there are
certain limitation associated with the application of the porter ve forces model. The
framework use a classic perfect market and relatively a static structure of market i.e. it
only incorporates the aspects of the present day and only incorporate the events that
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took place within the short term period. Apart from the model only provide the
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 overview of the environment and does not de ne the industry clearly.  As it can be
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di cult to group the companies having similar business lines and to call it an industry.
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Therefore Porter framework due to its limitation is too inert to be depending upon
outside the short term to medium, term objectives.  It emphasizes more on external
factors and ignore the speci c factors that are more specially related with the rm. The
model doesn’t incorporate new business model and the changing dynamics of the
market and the impact of globalization. Moreover it does not consider non-market
forces.

Daiso of Japan The Dollar Store PESTLE

Analysis
Daiso of Japan The Dollar Store PESTLE analysis is one the signi cant and widely used
tool or framework mostly by organizationswith the intent of considering the market
environment before commencing the process of marketing. In fact, the analysis of the
environment needs to feed all planning aspects as well as it should be continuous. The
internal environment of an organization includes internal customers or sta , wages,
o ce technology and nance etc. whereas the micro environment includesthe external
customers of an organization, distributors or agents, competitors and suppliers.
Additionally, the macro environment includes legal and political factors, sociocultural
forces, economic forces and technological factors.

PESTLE Analysis

For the purpose of maximizing the bene ts of such analysis, it is important that it
should be used on regular basis so that an organization would be able to identify the
trends. The e ect of the particular external factors or forces might have extreme
consequences for the speci c department or divisions, also the analysis better helps
companies in clarifying the needed or required changes, thus identifying the potential
options (Norton, 2008).

The factors or forces are discussed below;

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Political forces:
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 These are the forces that tends to be altered by the in uence of government on the
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infrastructure of country. The political factors may involves environment regulations,
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employment laws, tari s, tax policy, trade restrictions, political stability and reforms. It is
noteworthy, that the charities needs to be included where a government are not willing
services and goods to be provided.

Economic factors:
The Daiso of Japan The Dollar Store economic factors or forces involves interest rates,
in ation, and growth of economy, cost of living, working hours, wage rate and exchange
rates. Combining these factors, it last greater and inevitable impact on organization.

Social factors:
The culture or social in uence on certain businesses vary from country to country. It is
signi cant to consider these factors. The social factors includes safety and health
consciousness, various demographics, population growth rates and cultural aspects.

Technological factors:
Notably, Daiso of Japan The Dollar Store technology is one of the most important way of
being competitive in the highly competitive market arena. Not only this, it drives
globalization, the factors includes environmental and ecological aspects, and available
services as well as products. An organization should innovate and be compatible with
the technologies.

Legal factors:
The Daiso of Japan The Dollar Store legal factors involves the certain laws and
regulations which might e ect on the business operations of an organization. It also
includes impending and current legislation that tends to impact on the industry in areas
including competition, employment, safety and health. An organization should consider
the in uence of the national and international laws where the organization would
originate the business operations.

Environmental factors:
The Daiso of Japan The Dollar Store environmental factors include all those factor
lasting impact or in uence, the surrounding environment most likely determine
environmental factors. The factors involves awareness of the seasonal or climate
change or terrain variation. The analysis of the environment including internal and
external elements is vital for organization since it impacts on the performance of an
organization.

Limitations of Daiso of Japan The Dollar Store PESTLE:

The limitations are discussed below;

1. The external factors are dynamic and can be change at a rapid pace. Overtime, the
changes might be occur in less than one day, therefore the companies should make it
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 tricky in order to predict how and why these forces might in uence the future or
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2. There are many occasions, in which the environmental changes have an adverse
in uence on the project that might not be noted in the initial stages of project,
indicating that the uncertainty sis still there even after the pestle analysis have carried
out. This in turn might defeating the prime reason of the pestle analysis.
3. The usual or common procedure for pestle analysis is presenting a simple list of the
environmental factors a ecting the project. Until& unless, the organization critically
examine the attributing factors, the analysis’s ndings does not seem to be of greater
value or consideration.
4. The analysis is supposed to be insu cient for the strategic planning objective, since it
likely scans the externa environmental, whereas avoiding the competitive scenarios and
internal environment. Nonetheless, the analysis needs to be conjunction with other
frameworks such as S-W-O-T analysis in order to get a more realistic picture.

Daiso of Japan The Dollar Store Conclusion

To conclude, PESTLE analysis is considered as an e ective tool of planning and it o ers
viable and e ective technique foranalyzing and scanning the operating environment of
an organization. The e ectiveness of the analysis highly depends on the accuracy of the
collected data, updates to accommodation changes in timely manner and other tools
trimming down the PESTLE limitation to some extent.

Daiso of Japan The Dollar Store VRIO

Analysis
The Daiso of Japan The Dollar Store VRIO analysis is basically the extension of the Daiso
of Japan The Dollar Store PESTEL analysis, which allows the oragnation to understand
the resources, competitive edge, value proposition and its value in the market. The Basic
idea of the Daiso of Japan The Dollar Store VRIO model is to analyze the factor that are
valuable for the organization. Such may include the supply chain e ciency, value chain
maintenance, technology or other factors, that o er value to the company and in return
allows the organization to o ers similar value to the customer.

In addition, it also analyze the factors that are Rare within the organization. Such
analysis of the compatibilities or capacities is important, as it allows the organization to
develop the sustainable competitive edge over it. The value factor analysis of the
organization gives an eye opening view to the management and also o ers the solution
on where the organization may build the market utilizing the area value creation factors

Moreover, it also determines the Imitable factors. These are the factors that are easily
imitable by the organization (other players) and thus needs to be considered. In
addition, the imitable factor also outlines the factors that are inimitable by the other
organization.
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us in-imitable factors allows the organization to developed the

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 sustained competitive edge in the market and hence enhances the chances of
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sustainability ion the long-term.
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Lastly, Organization factor includes the resources and functions that are o ering certain
value to the company. This determination of organization allow to the company to
understand what additional things or function is required to be in place, or needs to be
improvised in t=long term.

All in all, the advantage of using the VRIO analysis is to determine the sustained
competitive edge in the market. Such determination is important for the organization to
expand in the market and continue its operations with sound pro tability. In addition, it
o ers clear view what are the factors that are valuable and inimitable o can be easily
imitated in the long-term, thus preparing the organization to either use the valuable
factor to delight the customer and develop a sustained competitive edge, or enhance its
value and oragnation strengths to develop a strong competitive edge in the market,
which is important to develop and maintain in order for the organization  to remain
pro table and allow the maintenance of market share in the long-term (Hille, 2015).

Daiso of Japan The Dollar Store Financial

Analysis
Daiso of Japan The Dollar Store Financial analysis is the assessment of the stability,
viability as well as pro tability of a sub-business, business or project. It is the process
that is widely used for identifying the nancial weaknesses and strengths of the
corporations, this can be done by building the relationship between items of the pro t &
loss account and balance sheet. It can be used for examining the business operations
from the variety of perspective for determining the ways that can be used to strengthen
the business and understating the greater nancial condition or situation. The process
scan the nancial statement to evaluate the relationship the disclosed items. In other
words, the analysis keep focusing on the past performance evaluation in terms of
pro tability, liquidity, growth potentiality and operational e ciency. The analysis of the
nancial statement involves the methods use in interpreting and assessing the outcome
of the current and past nancial position or performance since they associate to
particular interest factors in investment decisions. Thus, the analysis of the nancial
statement is important mode of assessing the past performance as well as planning and
forecasting the future performance.

Elements Assessed By Financial Analysts:

The elements are listed below;

Pro tability:the nancial analyst generally assess pro tability of an organization since it
is the ability allow organization sustaining growth and earing income in both long term
and short term. A degree of pro tability of an organization highly depends on the
income statement reporting on the operations results of company.

Solvency:it is theusability of an organization paying o its liabilities or obligations to third

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parties or creditors in long term. The solvency depends upon the balance sheet of
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 company indicating the company’s nancial condition at a given period of time.
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Liquidity: case
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obligations,
maintaining positive cash ows and it most likely based on the balance sheet of
company depicting the nancial condition of organization.

Stability:the ability or an organization to remain in the business for the longerperiod of

time without sustaining signi cant losses while conducting the business operations. By
assessing the stability of the company needs use of balance sheet and income
statement as well as non- nancial and nancial indicators.

Users of Daiso of Japan The Dollar Store Financial Statement

Analysis
The users of the nancial statement are listed below;

1. Management:the controller of the company most likely prepares the ongoing analysis
of the nancial results of companyin relation to the unseen operational matrices by
outside entities.
2. Investors: both prospective and current investors tends to examine the
nancialstatements for leading the ability of company to continue generating cash
ows, issuing dividends and growing at historical rate.
3. Creditors:one who has landed funds to the organization likely show his interest in its
ability paying back the debt, thus keep focusing on measures of cash ows.

Types of Daiso of Japan The Dollar Store Financial Analysis

            Financial ratios:

Signi cantly, creating the nancial ratio add meanings to the accounting and nancial
data of the business. Therefore, being the use of the nancial ratios would provide
assistance thereby leading to the overloaded information. Theratios are sub-divided into
the major groups that tend to cover the nancial areas.

Sales:

The sales amount of an organization depicts the business size. The sales implications for
the selling and purchasing power, economies of scale and amount of market share. The
% change in sales invocates that how rapidly or quickly the sales has been growing over
the period of time, thus leading to answer the question regarding growth in relation in
competitors and general economy.

Pro tability:
It is signi cantlyimportant for companies measuring pro t in context, for example; if it is
stated that the company has generated 10% pro t returns and did not ensure the
provision of pro tability-oriented information but in case if the company had make a
10% gross pro t or return on equity, then the pro t term would give meaning. The
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ration lay underus
pro tability are discussed below;

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 Return on assets (ROA): it is one of the most commonly and widely used performance
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measure of an organization. The return on equity likely measures the pro t amount that
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had generated by assets. It is used with the intent of analyzing that how well an
organization have put their assets to work comparing to other competitors.

Return on equity (ROE): This performance measuring parameter measures the return
that the company has earned in relation on the owner funds. The matric can be
adjusted for thepurpose of re ecting the average equity amount being employed during
the span of year, giving the more accurate and realisticpicture of how the
organizationhas been performing throughout the year.

Gross pro t margin (GPM):it is also referred to operating pro t margin. It is most
common use with the objective of assessing the business model and nancial health of
company through revealing the remaining portion of money from revenues after
deducting cost of goods sold.

Operating return on total assets (ORTA): this matric most commonly provides better way
of looking at the ability of the organization to generate pro t returns from the principle
or core activities since it does not involves other expenses including interest expenses
not it includes marketable securities income, interest income or onetime extraordinary
transaction.

Asset Management – Daiso of Japan The Dollar Store

The ratios under asset management includes current asset turnover, day’s receivable,
days of inventory and inventory turnover.

            Asset turnover: this measure is widely used in order to measure the ability of the
company in generating sales from the xed assets. Not only this, it also indicates that an
organization has a lot unproductive assets for instance inventory, receivables,
equipment and plant for its current sales’ level.

Fixed assets turnover: it is supposed to be vulnerable to the asset valuation issue. It is

most important ratio in companies which are capital intensive. It is comparatively low
importance for the companies with minimum need for capitals such as leased retail
operations and wholesale distribution. In case an organizationis decreasing xed asset
turnover so it means that the production has been running at lower than capacity.

Current asset turnover:it measures the current asset level that is require for supporting
sales.

Day’s receivables: it is the measure of how long will it takes for an organization
collecting bills owing to it. The collection time is measured by days receivables on credit
sales.With increasing day’s receivable, the company would need more working capital.
The credit policy of an organization last greater impact on the day’s receivables. It is
important to note there that it also highlights the needs to beaware of keep
emphasizing on the company’s speci c concerns without appreciate secondary
in uence on other
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 Days of inventory: it is the indication of how the company e ciently managing
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inventory. The inventory amount can be monitored by analyzing day’s inventory ratio.
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Daiso of Japan The Dollar Store Financial Structure
Financial leverage multiplier: it is the connection between return on equity and return
on assets of an organization. It provides the way of looking at the relative equity and
debt amount that has been using by company in order to nance the assets.

Current debt to equity ratio: it is the mix if the debt of an organization. In case of high
current debt to equity ratio, it means that the company would be in problematic
situation while paying its bills.

Equity turnover: in case of high debt to equity ratio, it might because of the too little
equity or too much debt burden on an organization. In case of high equity turnover
ratio, indicating that the shareholders have e ciently used equity.

DuPont’s Daiso of Japan The Dollar Store Pro tability Model

It is considered as the best model as it does not reveal anything regarding the liquidity
of an organization. Also it likely reveals about the organization’s expense. One of the
unavoidable advantage of this model is thatit has begun establishing benchmarks –
across companies and over the period of time which can be used for agging the
potential issues areas where more than one ratios are re ecting the key problem or
issue.

Trend or Percentage Daiso of Japan The Dollar Store Analysis

The useful snap shot can be taken by analyzing the nancial condition of an
organization in a particular time period. Also, there are many questions that can be bets
answered by comparing the gures in percentages. For instance; which are the areas of
company getting stronger or weaker? Which areas are in need of immense attention?
Etc. for the purpose of answering these type of question, it is important for organization
recasting the nancial statement in to the percentage terms. The major advantage is
that it enables the signi cant comparison between time periods. There percentages are
most likely providing analysts or managers with the fast or rapid way for nding key
issues or problems. Additionally, the attention can be paid to certain weakness and
strengths through seeing the appropriate changes over the period of time.

After considering the major top problems, the business analysts or managers would
then be able maximizing the shareholder’s wealth.

Comparative Daiso of Japan The Dollar Store Analysis

The evaluation of the performance of company is often easier in case of having
benchmark or standard performance for the comparison. The suitable benchmark can
be found with some problems such as unique attributes problem and averages problem
etc. it is not appropriate setting an average as an objective. An upper performance
quantile can be the most appropriate performance standard (D’Aveni, 2007)
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Operational Daiso of Japan The Dollar Store analysis
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 The assessment of the operational e ciency in the initial stage as a whole for business
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or any of the business sub-division is likely performed through a percentage analysis of
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income statement. Individual expenses or cost items are associating to gross sales
revenue adjusted for all allowances and returns. The sales’ common base permitting a
ready comparison between key expenses from time to time against industry databases
and competitors in the market over longer stretches of time

Cost of goods sold and gross margin analysis: in operational analysis the most
commonly used ratios involves the calculation of the cost of sales as a percentage of
sales. The ratio depicts that the magnitude of the cost of services provided or cost of
good manufactured or purchased in relation to gross pro t or gross margin left over for
operating pro t and expenses. It is noteworthy that the gross margin re ect the
relationship of volume, price and cost. A change in the gross margin might derived from
the combination of the changes in the product’s selling price, manufacturing cost level
for the product and the variation in the business’s product mix.

Contribution analysis: this analysis is mainly used for the internal organization’s
management, even though it is increasingly applied in broader analysis of nancials, it
includes relating sales to the individual product group’sor total business contribution
margin. Such type of calculation needs very selective estimate or analysis of the
variables and xed cost or expenses of the company while taking into consideration the
operating leverage e ect.

Daiso of Japan The Dollar Store Market Indicators

There are two equally important ratios used as indicators of the values of stock market.

the simple relationship between current stock market price and expected or current
earnings per share is often quoted by both owners and management.  The earnings
multiplier ratiois considered as a broad indicator of how the earnings performance and
prospects of organization is judged by the stock market. The straightforward calculation
related the common share current market price to the most recent available EPS on the
yearly basis.

Relative movements in price: targeting for the purpose of creating the shareholder
value depends on the relative performance of price. The movement in price are likely
expressed in mentioned ratios and absolute dollar terms. While the typical investor
shows their greater interest in absolute change in shares value, the insights from the
stock performance to the appropriate average and to the market for some industries
are supposed to be helpful to assess the company’s particular trend (Rappaport, 2010).

Value drivers: in recent time, the approach that has been signi cantly gaining the
increased recognition is identifying the key elements standing out as vital in
shareholders value creation of the speci c organization. From the standpoint of owners,
the key value drivers may be the growth potential company’s key services and products,
key technology capabilities providing the competitive edge, superior process’s cost
e ectiveness
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well as the strategic di erentiated positioning. Combining all of these

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 lasting inevitable impact on the expectations of market regarding the cash ow
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Value of rm:this is the most common concept recognizing the components of capital
structure of an organization debt and equity are tends to be values separately in the
market. The formula for calculating the value of rm is showing value of the shares of
company is the function of the rm’s total value less debt value (Harms, 2015).

Conclusion
By having a closer look over the matrices used for nancial analysis, it is to say that the
nancial statements holds notable importance because it evaluates the management
performance, plans and corporate strategy for future.

In addition, the nancial analysis helps companies in making the more informed
decisions for the rm. The underlying objective of the nancial analysis is organizing the
nancial statement as well as other accounting data of an organization enabling the
comparisons with other companies, also enabling to accurately evaluate raw data. In
short, it provides the basis to company’s executive, analysts and manager of making the
company pro table in forthcoming years (Helfert, 2017).

Alternatives
The particular section deals with the di erent ways the problem can be resolved. In
particular section, the management/teams develops di erent options through which
the problem can be resolved. Many times these options are already in hand with the
management or re-developed from the scratch through strong brain storming.

In typical situation, there are three options that are developed in by the organization to
deal with the given problem. The options developed entails and includes the maximum
factor that the organization should analyze or achieve, thus o ering great value.

While developing The Alternative, the following factor are taken in account, in order to
develop the best alternative that may resolve the problem e ectively.

These factor includes the consideration of the following:

Cost
Reliability
Invulnerability
Merit
Simplicity
Compatibility
Reversibility
Robustness
Stability
Riskiness
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 Daiso of Japan The Dollar Store Cost:
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The cost case
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if the pleaseisplace
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ectiveorder ona the
or can be website.
orded easily by the
company without e ecting the overall pro tability and other operations of the
company. The consideration of cost is important in the alternative generation in order
to attain the maximum feasibility with overall business strategy and the budget
allocated.

Reliability
The reliability factor includes if the option developed is successful or has the successful
track record in the past or with the pats companies. Such is important to analyze or else
it would lead to failure.

Invulnerability
The Invulnerability of the option is also analyzed, in order to understand the
sustainability of the option if the one part factor is missing so to understand the
suitability of the option.

Merit
The merit factor, outlines if the option really resolving the issue or aligned with the given
situation.

Simplicity
The simplicity factor analyses if the option proposed is easy to implement. Because
adopting or proposing an alternative that is di cult to implement or takes a lot of
resources with no de nite outcomes is vain.

Compatibility
In addition, the compatibility of the option is also analyzed, in order to understand if the
given option is aligned and compatible with the procedures of the organization. Such
factor analysis is important in order to avoid any resistance implementation and also
save the resources and e orts.

Reversibility
Among the above factors, the reversibility factor carries high importance. It is due to the
fact that the organization needs to analyze exact factor in terms of its reversibility to
see, if the process can be reversed, if the option fails to o er the respective results.

Stability
The ability of the option is considered while the alternative generation process, so gauge
if the option will remains table, if the given situation and markets changes. And will it
make the organization sustained in the changing market situation.

Robustness
The robustness of the option also needs to be analyzed. It is due to the fact that such
analysis allow the
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 Apart from this while developing the option, it is important to consider the realistic
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nature of the option. The option has to be realistic and should have imperative results
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on the organization. The realistic and SMART nature of the option is important to be
considered and developed, so it o er maximum value and also resolves the problem
e ectively.

Lastly, while developing the options/alternatives, it is important to consider the

nonrealistic factors that may make the alternatives complicated, leading to poor
implementation, time consumption and other related issues. Hence, it is suggested, that
while developing the alternatives, it is important to consider the realistic and smart
nature of options along with the avoidance of developing  such issues that are not
o ering the right solution or the suggesting such options that are of no use to the
organization.

Daiso of Japan The Dollar Store

Evaluation of Alternatives
Alternative are the di erent ways of achieving a same end goal through two or more
di erent methods. It is not a close substitute of a rst de ne choice or other alternatives
or must provide the solution of the problem in a particular way. For instance, lower
price, special o er, and money back guarantee etc. are all the di erent ways for
achieving the same objective that increased sales. Alternatives are generally mutually
exclusive in a way that if we combine two or more alternatives together it will eventually
create a new alternative.

They are the technical and economically ways through which the project can be carried
out feasibly. It is encouraged to be consider especially for a projects that are large and
complex in nature

Under the evaluation of alternatives the pros and cons of the alternatives developed
above are gauged based on the bene ts they o er to the organization and also the
strengths the carry that may help the oragnation in overcoming the problem. In addition
to this, the disadvantages of the alternatives entails the costs that are associated with
implanting the option, and thus required to  be considered before the implementation
process, in order to avoid any mishap in future or during the implementation.

Under the Cost/bene t analysis of the alternatives, di erent factors such as cots,
competitive edge, market share, nancial feasibility and human resource required are
considered to be the major factors of implementation. In addition to this, the careful
and deep consideration is given to the political, economic, social and other porter 5
forces and pestel model so to understand the alignment of right alternative with
maximum value and weightage in resolving the problem.

Moreover, under the particular section, the decision criteria is also developed. The
particular decision criteria incorporates all the factors that the company aims to
archives. Such factors may include sales, pro tability competitive edge, market share
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and other. Once it is done, each alternate is compared against each other and with the
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 decision criteria develop, and are given di erent weigtage. These weigtage are given
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selected.

Also, during the evaluation process, the nancial feasibility of the organization is also
considered and the drawbacks/weaknesses of the organization. This is important as it
allows the organization in meeting the ultimate goals and addressing the problem
e ectively.

Lastly, while doing the evaluation of alternatives, it is important to quantify the options
through di erent techniques. Though in many cases, it is di cult to analyze the
feasibility of the options especially the intangible factor, however, quantifying the
maximum option is important, in order to develop a clear image and understanding of
option that will address the problem.

Also, while selecting a particular course of action/alternative, it is important to ask”

whether the option will resolve the problem directly, or will an additional e orts will be
required to address the problem. In Addition it is also needed to be considered, if the
given option or the alternatives have the right alignment with the organization and re
o ering value.

Perhaps, it is important to involve other members to take the active feedback on the
alternatives, in order to gauge the value of the alternatives and the value it may o er to
the organization in the long-term. The open discussion and review from past enables to
see more clear picture of the ultimate outcomes, leading to better implementation and
selection of the right alternative.

Daiso of Japan The Dollar Store –

Recommendation
Once the options are developed and evaluated, the recommendation is made, on the
basis of the best suited option that o ers the maximum value to the company and
address the problem succinctly. The recommendation is mad in away, that not only
o ers the solution the problem, but also depicts the implementation process and the
course of action that the organization needs to take in order to be successful.

A strong recommendation must cover the key areas as how the organization will
implement the alternatives, what bene ts will it receive if it implement the when
alternatives and what could be the cost, that he organization will need to overcome or
address, in order to e ectively implement the alternatives.

In addition to this, once the alternative is selected, the recommendation needs to entail
what change it will bring to the organization like the 20 % increase in the Daiso of Japan
The Dollar Store sales or pro ts or the sustainability or increases in market share. These
factors are important to be mentioned in the recommendation, in order to make itr
strong and rm and allow the stakeholders/reader to connect the problem and solution,
leadingMessage
to betterusunderstanding.

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 Moreover, the recommendation also needs to entail the plan B, that if for instance the
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incorporated in the plan, in order to allow the organization to quickly shift to the plan B,
in order to avoid the losses and sustain the presence of the company in the market.

Lastly, under the recommendation, it is important to incorporate the nding from the
past, so to make the given Solution more acceptable. A good Daiso of Japan The Dollar
Store recommendation is that, incorporates the ndings from the past. This is
important, as it allows the reader and stakeholders to understand the proven facts, and
the pasts results such recommendation has harvested, leading to more acceptability
and also the determination of the plan that may be in need to be  adopted so to avoid
the delays and resistance in the organization, while implementing the change.

Infact, the set of recommendation o ered should also have a contingency plan, and the
other course of action for plan A and B both. This makes recommendation more rma
and acceptable. Furthermore it allows the stakeholders to see the other options if the
given set of alternative does not work, thus saving the time, e ort and the working from
scratch, hence making it  cost e ective in nature.

All in all, the recommendation include, what, why, how and whom factors. Thus is
important as to allow the organization. Shareholders to clearly understand what is
required to done, how it is required to do, who are the key player and how it will be
implemented. In addition time required has to be mentioned. This allows the
stakeholder to understand and determine the time and resources required to
implement the plan e ectively (Turner, 2012).
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