comparative culture

Problems of rite help After we examined the financial reports and operational activities, we cogitate that communion cares problem might dissolver from its scrappy expanding activities and its grand step of the belt costs. The reasons for us to pick out the proof will be examined below. Aggressive Expanding Activities On June 4, 2007, sacrament concern 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 entrepot Purchase Agreement date August 23, 2006 For this transaction, ordinance Aid paid $2.3 billion and issued 250 jillion shares of Rite Aid common stock. To pay the cash fee of this transaction, Rite Aid established a new term loan facility by consequence senior notes and acceptation through their existing revolving credit facility. The integrating of the Brooks Eckerd stores was effected during Fiscal 2009. The integration did make Rite Aid the largest drugstore retailer in the Eastern united States. It also summation the footprint and operation scale of their business. This sympathetic of expanding activity is unremarkably taken by companies which are convince that the rescue is sledding to grow.

It makes companies have a better stead when in a growing economy. However, doing such an expanding activity when the economy is in recess will be a savage move. After Rite Aid acquired Brooks Eckerd and incrementd the metre of its retail stores in 2007, the economy went recession at 2008. During the recess! ion, the increase of Rite Aids sales did not control 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 show 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 bum around a full essay, order it on our website: OrderCustomPaper.com

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