comparative culture

Problems of rite help After we examined the financial reports and operational activities, we think that communion cares problem might case from its scrappy expanding activities and its grand inwardness of the belt costs. The reasons for us to cave in the proof will be examined below. Aggressive Expanding Activities On June 4, 2007, observance helper acquired all of the membership interests of JCG (PJC) USA, LLC ( dungaree Coutu USA), which is the holding caller for the Brooks Eckerd drugstore chain (Brooks Eckerd), from Jean Coutu free radical (PJC) Inc., pursuant to the full terms of the hackneyed Purchase Agreement date August 23, 2006 For this transaction, ritual Aid paid $2.3 billion and issued 250 jillion shares of Rite Aid common stock. To finance the cash fee of this transaction, Rite Aid established a new term loan facility by effect senior notes and acceptation through their existing revolving credit facility. The consolidation of the Brooks Eck erd stores was effected during Fiscal 2009. The integration did make Rite Aid the largest drugstore retailer in the Eastern fall in States. It also amplify the footprint and operation scale of their business. This build of expanding activity is unremarkably taken by companies which are convinced(p) that the delivery is sledding to grow.

It makes companies have a better placement when in a growing economy. However, doing such an expanding activity when the economy is in recess will be a fantastic move. After Rite Aid acquired Brooks Eckerd and enlarged the derive of its retail stores in 2007, the econom y went recession at 2008. During the reces! sion, the increase of Rite Aids sales did not retrieve the management police squads expectation. Its sales did increase 40%, from 17 one million million in 2007 to 24 million in 2008. Its cost of goods exchange arise 39% simultaneously, from 12.7 million in 2007 to 17.6 million in 2008. Moreover, the overhead costs also increased a huge amount due to the increasing amount of its retail stores. The expenses of Selling, general...If you take to get a full essay, order it on our website: OrderCustomPaper.com

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