Winn-Dixie Stores in 2005 (A): Cleanup on Aisle 11

2017 ◽  
pp. 1-21
Author(s):  
James B. Shein ◽  
Evan Meagher
Keyword(s):  
Supply Chain ◽  
Capital Structure ◽  
Economies Of Scale ◽  
Low Cost ◽  
Grocery Store ◽  
Administrative Costs ◽  
Structure Treatment ◽  
Short And Long Term ◽  
Expected Benefits

Grocery store chain Winn-Dixie had rapidly expanded in an effort to become a national retailer, and by 1999 it had more than 1,000 stores. The company began manufacturing its own products, reasoning that by owning more of the supply chain, it could offer the customer less expensive options. With its new geographic focus and manufacturing facilities, Winn-Dixie attempted to secure a position as a low-cost provider with a national presence. Instead of improving the company's position in the market, however, this strategy crippled both the short- and long-term prospects for Winn-Dixie. The company paid a high premium to expand and increased its leverage without ever realizing the purposed synergies. In fact, there were dis-economies of scale because the distribution, marketing, and administrative costs had risen along with the increased revenue. The expansion and inefficient manufacturing added complexity to its distribution network, and with a greater debt load and less cash, the company was unable to reposition itself in the market when its low-cost provider strategy failed. Not only was the company unable to pursue other opportunities but it also did not have the cash to properly maintain many of its existing stores, which quickly became run down. Winn-Dixie was stuck as a general grocer with few options at a time when the industry was rapidly evolving. Following faulty strategies of expansion, supply chain changes, and increased debt, Winn-Dixie declared bankruptcy. Students will take the view that Paul “Flip” Huffard, lead consultant from Blackstone LP, had in determining the valuation and new capital structure of the company. These decisions would be critical, as they affected what each creditor class would receive and whether Winn-Dixie could emerge from bankruptcy.Students will: 1. Assess the importance and negative financial impact of past strategic moves, and suggest possible future strategic directions and the expected benefits of such changes. 2. Learn quantitative valuation methods for a company in Chapter 11 and their effects on stakeholders. 3. Learn the elements of a plan of reorganization, including the capital structure, treatment of multiple creditor groups, and management compensation. 4. Discuss sources and uses of capital during a Chapter 11 turnaround.

Winn-Dixie Stores in 2005 (B): Cleanup on Aisle 11

2017 ◽  
pp. 1-7
Author(s):  
James Shein ◽  
Evan Meagher
Keyword(s):  
Supply Chain ◽  
Capital Structure ◽  
Economies Of Scale ◽  
Low Cost ◽  
Grocery Store ◽  
Administrative Costs ◽  
Structure Treatment ◽  
Short And Long Term ◽  
Expected Benefits

Grocery store chain Winn-Dixie had rapidly expanded in an effort to become a national retailer, and by 1999 it had more than 1,000 stores. The company began manufacturing its own products, reasoning that by owning more of the supply chain, it could offer the customer less expensive options. With its new geographic focus and manufacturing facilities, Winn-Dixie attempted to secure a position as a low-cost provider with a national presence. Instead of improving the company's position in the market, however, this strategy crippled both the short- and long-term prospects for Winn-Dixie. The company paid a high premium to expand and increased its leverage without ever realizing the purposed synergies. In fact, there were dis-economies of scale because the distribution, marketing, and administrative costs had risen along with the increased revenue. The expansion and inefficient manufacturing added complexity to its distribution network, and with a greater debt load and less cash, the company was unable to reposition itself in the market when its low-cost provider strategy failed. Not only was the company unable to pursue other opportunities but it also did not have the cash to properly maintain many of its existing stores, which quickly became run down. Winn-Dixie was stuck as a general grocer with few options at a time when the industry was rapidly evolving. Following faulty strategies of expansion, supply chain changes, and increased debt, Winn-Dixie declared bankruptcy. Students will take the view that Paul “Flip” Huffard, lead consultant from Blackstone LP, had in determining the valuation and new capital structure of the company. These decisions would be critical, as they affected what each creditor class would receive and whether Winn-Dixie could emerge from bankruptcy.Students will: 1. Assess the importance and negative financial impact of past strategic moves, and suggest possible future strategic directions and the expected benefits of such changes. 2. Learn quantitative valuation methods for a company in Chapter 11 and their effects on stakeholders. 3. Learn the elements of a plan of reorganization, including the capital structure, treatment of multiple creditor groups, and management compensation. 4. Discuss sources and uses of capital during a Chapter 11 turnaround.

scholarly journals Efficiency and Determinants of Capital Structure in the Greek Pharmaceutical, Cosmetic and Detergent Industries

2021 ◽  
Vol 14 (12) ◽  
pp. 579
Author(s):  
Ioannis E. Tsolas
Keyword(s):  
Capital Structure ◽  
Low Cost ◽  
Negative Relationship ◽  
Ordinary Least Squares ◽  
Short Term ◽  
Firm Efficiency ◽  
Tangible Assets ◽  
Significant Negative Relationship ◽  
Short And Long Term

The purpose of this paper is to investigate the relationship between a firm’s capital structure (i.e., leverage) and its operating environment, taking into account firm (i.e., efficiency, asset structure, profitability, size, age and risk) and industry effects. For a sample of Greek pharmaceutical, cosmetic and detergent (PCD) enterprises, firm efficiency was estimated using bootstrapped data envelopment analysis (DEA), and a leverage model was produced using ordinary least squares (OLS) regression. The findings confirm the significance of firm efficiency (i.e., the franchise-value hypothesis over the efficiency-risk hypothesis) and asset structure on leverage. Efficiency and overall and short-term leverage have a significant negative relationship, indicating that more efficient firms tend to choose a relatively low debt ratio. Pharma firms are more affected since they are less efficient than cosmetics and detergents firms. Furthermore, asset structure and short- and long- term leverage have a significant negative and positive relationship, respectively, indicating that the firms with more tangible assets have less short-term debt and more long-term debt in their capital structure. Cosmetic and detergent firms, which have slightly more tangible assets than pharma firms, appear to be able to substitute high-cost, short-term debt with the low-cost, long-term debt by using such assets as collateral.

Capital Structure Following Chapter 11 Reorganizations

2004 ◽  
Author(s):  
Randall A. Heron ◽  
Kimberly Rodgers Cornaggia ◽  
Erik Lie
Keyword(s):  
Capital Structure

scholarly journals Let Them Eat Chaya: Cultural Revitalization through Culinary Offerings in Belize

Heritage ◽  
2021 ◽  
Vol 4 (3) ◽  
pp. 1511-1525
Author(s):  
Lauren Griffith ◽  
Cameron Griffith
Keyword(s):  
Supply Chain ◽  
Low Cost ◽  
Full Potential ◽  
Cultural Revitalization ◽  
Dramatic Shift

The Belizean culinary landscape has experienced a dramatic shift in recent years, with an abundance of “fresh” and “local” dishes (i.e., salads) appearing on restaurant menus. While many tourists appreciate the option of ordering salad, there is a truly local green that might be equally or better suited to the tourist market given what we know about tourists’ interests in both authenticity and healthful eating. This paper explores both host and guest attitudes towards chaya, a leafy green that is high in protein and may have anti-diabetic properties. We argue that tourists enjoy eating chaya but restauranteurs are not taking advantage of its potential as a sustainable, low-cost dish that could also help preserve traditional foodways. Though restauranteurs are apt to cite supply chain issues as one of the reasons they are reluctant to make chaya a menu mainstay, we also believe that when a food occupies an ambiguous place in the local foodscape—as chaya does—local hosts may be unable to leverage it to is full potential.

Economies of scale in European life insurance

2018 ◽  
Vol 19 (2) ◽  
pp. 190-207 ◽  
Author(s):  
Udo Klotzki ◽  
Alexander Bohnert ◽  
Nadine Gatzert ◽  
Ulrike Vogelgesang
Keyword(s):  
Life Insurance ◽  
Fixed Effects ◽  
Economies Of Scale ◽  
Insurance Markets ◽  
Fixed Effects Model ◽  
Content Type ◽  
Administrative Costs ◽  
Life Insurers ◽  
Acquisition Costs ◽  
The Uk

Purpose Due to the continuing low interest rate environment as well as the increase in acquisition costs, price transparency, cost transparency and competition with banks, the cost of life insurance becomes increasingly important for customers, insurers and shareholders. Against this background, the purpose of this paper is to study the development of insurers’ economies of scale in regard to administrative costs for four of the largest European life insurance markets. Design/methodology/approach The analysis on economies of scale is based on a comprehensive set of 477 life insurers in Germany, Italy, Spain and the UK, yearly data between 2000 and 2014, and regression calculations that are based on 4,855 observations. Findings The results show that economies of scale exist for all considered markets and for most of the considered years. However, the extent of economies of scale varies considerably across countries. Originality/value Overall, the existing academic literature on costs and corresponding economies of scale in life insurance primarily deals with analyses of total costs instead of administrative costs, a single year or a single market. This paper contributes to the existing literature by conducting an analysis of recent market dynamics and economies of scale in regard to administrative costs for the period from 2000 and 2014 for four of the largest European life insurance markets for which the respective data were available (Germany, Italy, Spain and the UK) and 477 life insurers in total. This is done by means of a log-log transformation of premiums and costs and a fixed effects model based on these transformed figures for 4,855 observations. In addition, for each market, the authors analyze the development of administrative costs for a total of 477 insurers.

scholarly journals When Amazon ate Whole Foods: big changes for Big Food

2017 ◽  
Vol 20 (5) ◽  
pp. 615-622 ◽  
Author(s):  
Kate Phillips-Connolly ◽  
Aidan J. Connolly
Keyword(s):  
Supply Chain ◽  
Value Chain ◽  
Food Supply ◽  
Food Preferences ◽  
Grocery Store ◽  
Grocery Stores ◽  
Processed Food ◽  
Food Supply Chain ◽  
Social Media Platforms ◽  
Food Value

The grocery store is ground zero in the tsunami of change facing Big Food. Consumers are changing how they relate to grocery stores, increasingly circling the perimeter, focusing on produce and preferentially choosing fresh, local, and new, even unknown, brands while spending less time in the processed food aisles in the center. The next generation, the millenials, are increasingly shunning traditional outlets when buying food. Traditional leading brands of processed food, backed by traditional marketing strategies (heavy advertising on traditional media, coupons, brand extensions, etc.) are failing to hold on to their customers. The challenges can be found throughout the food value chain, from new competitors for grocery providers to new delivery mechanisms, from changes in generational food preferences with social media platforms to express their preferences to farmers who increasingly can and want to communicate directly with the end-users who actually eat the food that they produce. This access to more information opens more options (and opportunities) to buyers and suppliers all along the food value chain. Barely 100 years old, the grocery store model is becoming obsolete, and with it the organization of the food value chain must be re-written. So what does that mean for Big Food and the food supply chain? What directions can the industry take to adjust to the new competitive realities? This paper offers direction and guidance for Big Food and other producers in the food supply chain.

scholarly journals Short- and long-term results of low cost trauma training in a low-income resource-poor country

MedEdPublish ◽  
2018 ◽  
Vol 7 (3) ◽  
Author(s):  
Ninos Oussi ◽  
Mitra Sadeghi ◽  
Javeria S. Qureshi ◽  
Charles Mabedi ◽  
Peter Elbe ◽  
...  
Keyword(s):  
Low Income ◽  
Poor Country ◽  
Low Cost ◽  
Long Term Results ◽  
Trauma Training ◽  
Resource Poor Country ◽  
Resource Poor ◽  
Short And Long Term
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