PACE analize LVMH and Costco Business Strategies Analysis

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Business Finance


  • Pick two publicly traded firms in the same industry — pick one that is a low margin/high volume type of firm (e.g., Honda) and one that is a high margin/low volume firm (e.g., BMW). Define the variables in PowerPoint file dupoint_analysis_application.pptx for the two firms using the accounting information in the firms’ financial statements in 10-K reports in SEC.gov or finance.yahoo.com;

Here we choose LVMH and Costco, the data in the attachment


  • Once you have the values of these variables, figure out what their generic strategies are. Then compare operating performance and explain their different strategies. Do you have an opinion on which is a better managed firm? Explain.

  • Using financial data for several years, explain the difference in their marketing strategies in terms of volume versus profit margin. Explain how the firms’ tactical actions are reflected in the firm’s actions. That is, explain how decisions that the firms have taken in the past and are taking currently affect the denominators or the numerators of the Dupont Ratios. This write-up should be about three pages; remember though, it’s not the length that’s important, but the content. Also, make sure you send me your Excel file.

  • Use more-or-less the same format as in the example file on Walmart and Tiffany.For the report itself, introduce the firms and the industry, explain why you chose them; then present the data with some analysis. Finally, present the firm’s strategies.