Goodyear Financial Analysis Writing Assignment: Financial Analysis Assume you are a savvy financial analyst researching companies in which to invest. Select a U.S. publically-traded company you think might be a good investment and perform a financial analysis. FIN 534: Financial Management - Quarter (Winter 2013) Professor: March 12, 2013 Goodyear Financial Analysis Company Overview The Goodyear Tire & Rubber Company a leading manufacturer of tires is one of the best in the world and one of the most recognizable brand names in the world (Edgar). Goodyear has operations in most regions of the world with 52 manufacturing facilities in 22 countries, including the United States (Edgar). …show more content…
Also In 2012, Goodyear exceeded its $1.0 billion cost savings goal. In 2012 Goodyear realized approximately $346 million of cost savings, bringing the total cost savings for 2010 to 2012 to approximately $1.1 billion (Edgar). Another positive in 2012 Goodyear completed the transition to its new manufacturing facility in Pulandian, China adding to continued improvements in working capital efficiency, measured as a percent of sales (Edgar). In order to address the uncertain economic environment and the challenges described above, Goodyear remains focused on the following key strategies: • Consumer-driven product development focus(Edgar); • Identify and select the most profitable markets, taking advantage segments where Goodyear has competitive advantages(Edgar); • further improving customer service, improving manufacturing efficiency and creating an advantaged supply chain focused on optimizing inventory levels(Edgar); • To investment in future growth by Focusing on cash flow to provide funding(Edgar); • Build top talent and teams (Edgar). A profit improvement plan is underway and actions are planned to address continued economic weakness in Europe and the significant challenges that Goodyear faces in EMEA (Edgar). Goodyear has announced the exit of the farm tire business in
• To achieve operational efficiencies in the supply chain by reducing product and inventory costs;
Monitoring item levels and creating a report based on customer needs, by upgrading this allows the company to keep track of low inventory which would be accessed by the customers via their smart phones. Efficient and confident inventory control is a major factor that would help increate revenue and sustain it.
2. Redirect their efforts and change to a more focused and heightened manufacturing and distribution strategy that answers the demand of the current marketplace and promises real hope of growth and profit in the short term and in the future.
was able to reduce the lead time between the company and large retailers. In addition in house manufacturing made it possible to flexible with prices, meet customer demands and allow small retailers to order small quantities.
A goal is to replace inventory with frequent communication and sophisticated information systems to provide visibility and coordination. In this way, merchandise can be replenished quickly in small lot size and arrive where and when it is needed. Quick, frequent and accurate information transfer among members of the supply chain can counteract the distortion of information (known as the bullwhip effect) as it passes up the supply chain from the end customer. A supply chain can reduce overall inventory while maximizing customer service by efficiently redistributing stock within the supply chain using effective postponement and speculation.
In the past, companies focused primarily on manufacturing and quality improvements within their four walls; now their efforts extend beyond those walls to influence the entire supply chain including customers, customers’ customers, suppliers, and
Bridgestone Americas Holding, Inc, hereinafter, will be referred to as Bridgestone. Bridgestone is a well-established corporation in the business of selling varied tire and rubber products to markets all over the world. In this marketing plan, we are focusing on mostly the tire part of the business, which accounts for the majority of Bridgestone’s sales revenues and the effect of customer service centers.
* To cut expenses in production and supply chain and making these processes more efficient
3.) Service Level – As defined as the percent of retailer orders filled from distributors’ inventory.
To allow replenishment orders to be processed more quickly and cheaply, automatically stocking product more closely to consumer demand.
The Bridgestone Group is the world's biggest manufacturer of tire and rubber merchandise, established in the year 1931. Bridgestone has 144,303 total employees and having business existence in almost 150 countries.
3. Highly refines supply chain that can cater to high demand of orders: The efficient coordination of the suppliers of
It helps to enhance the process that improves the entire supply chain process, and increases the transparency across the organization.
The organisation is committing to improving the logistics system to make delivery more efficient; even though the precise figures are not known yet, the intention is there nevertheless. While the logistics in the organisation plays a very important role for product movement to different manufacturing sectors (within the organisation) and to customers
To provide effective customer service in supermarkets by rising the efficiency of total supply chain through quick billing of products.