7-Eleven in Thailand

CP 7-Eleven is a prominent retail chain in Thailand. The analysis of the financial statements for the year 2011 revealed that while the earnings per share increased, the return on equity (ROE) declined. The company had negative working capital. It exerted strong bargaining power over its suppliers and customers and had efficient inventory management. It had been accumulating cash and other liquid assets over the last few years and it expanded in a well-planned manner, with almost 500 new stores every year. However, the company was viewed as having a lot of “fat” on its balance sheet. It was necessary to trim the fat and enhance ROE. The company needed to focus on strategies for future growth.

Collection: Ivey Business School (Canada)
Ref: IVEY-9B13B021-E
Format: PDF
Number of pages: 11
Publication Date: Dec 9, 2013
Language: English
Review date: Dec 6, 2013

What material is included in this case:

Other supplements

Description

CP 7-Eleven is a prominent retail chain in Thailand. The analysis of the financial statements for the year 2011 revealed that while the earnings per share increased, the return on equity (ROE) declined. The company had negative working capital. It exerted strong bargaining power over its suppliers and customers and had efficient inventory management. It had been accumulating cash and other liquid assets over the last few years and it expanded in a well-planned manner, with almost 500 new stores every year. However, the company was viewed as having a lot of “fat” on its balance sheet. It was necessary to trim the fat and enhance ROE. The company needed to focus on strategies for future growth.
Read more
Year: 2011
Geographic Setting: Thailand
Industry Setting: Retail Trade;

Learning Objective

·Analyze retail business in the convenience store segment. ·Analyze the impact of investment in working capital, long-term assets and liquidity. ·Analyze the impact of excess liquidity on financial performance. ·Analyze the strategic options available for companies in the retail sector to deploy their liquid assets in emerging markets, such as Thailand, in a way that enhances ROE and company value.

7-Eleven in Thailand

Options of use
Number of copies
- +
As low as €8.20

Are you interested in this product?

Add it to your favourites so that your institution can purchase it.
You'll be able to order once your profile has been validated.
Add to wishlist

Leave your rating

"7-Eleven in Thailand"