Bausch and Lomb, Inc (a)

Increased marketing budget costs to launch the new product and provide incentives to “Maintenance users

The retailers had to estimate their customers’ demands well in advance of the selling season and place bulk orders for each season’s inventory. This involved high risk for the retailers as over-estimation would lead to unsold stock; whereas under-estimation led to stock outs and loss of potential sales.

* Increase in sales and decrease in promotional costs for the introduction of the new product

Risk: Direct material is more perishable and as main ingredients, quality is a key risk for business.

This debt ratio is concerning and hints that the brewery may have difficulty paying its

The company lost money almost every year since its leveraged buyout by Coniston Partners in 1989. The income generated was not sufficient to service the interest expenses of the company which stood at $2.62B in 1996. From Exhibit 1, we can say that interest coverage ratio computed as EBIT / Interest Expense was 1.31 in 1989 and has been decreasing over years and currently stands at 0.59. This raises a question of how the company can meet its interest payments without raising cash or selling assets.

* More savvy and demanding: as they have a lot of choices they turned to become more demanding because if a brand wont obey them another one will, so the customers know that they can get what they demand.

to have good strategic development. Since these purchases are the main source of their business products, risk will need to be minimal.

* Pricing: The low prices charged in the P-T segment adds to the perception of low quality brand among the P-T segment. Also, B&D faces problem of low profit margins in this segment compared to others.

Based on the Time Interest Earned Ratio Landry’s ability to pay interest bills from profit earned decreased. In 2002 Landry’s could pay their interest bill just over 13 times from earnings before interest tax. In 2003 Landry’s ability to pay interest bills was almost cut in-half to 7 times. We think that as a result of the decrease in ability to pay interest bills, creditors could be concerned about these findings.

Lastly, the value proposition that the company gets from its tertiary market is that; the organization is able to provide glasses to government employees, who may be suffering from presbyopia. As it is the case in the secondary market, Red River Optical uses an indirect distribution model in derivation of this value proposition.

More generally, the Internet is causing many 'bricks and mortar' companies to rethink their distribution strategies - if not their whole business models.

niche" it will be a lot less low risk. Also if they totally change the

• Wholesaler and retailers buy larger quantities of a product than a consumer (Bulk breaking)

* Lower than expected subscriber growth or higher than anticipated pressure on realisation rates could impact margins.