Day 1 - JRP

Question 1

Mission

Answer 1

A mission statement speaks to the present and should include the following three items:
1. Purpose (why does the Company exist?)
2. Target Market (for who does the Company exist?)
3. Value Proposition and Competitive Advantage (How does the Company deliver the purpose to
the target market).

Question 2

Vision

Answer 2

A vision statement speaks to the future and addresses what the entity wants to accomplish, when it wants to accomplish it, and how it will accomplish it.

Question 3

KSI

Answer 3

important element that must occur in order to accomplish the organization’s strategic goals

will be unique to the organization, its goals, and its plans

Question 4

operating profit margin

Answer 4

Operating Margin= OPERATING INCOME / rev
–> want a higher one
how much earnings from operations is generated from every $1 in sales after accounting for the direct costs involved in earning those revenues. Larger margins mean that more of every dollar in sales is kept as profit.

Question 5

Gross profit margin

Answer 5

Gross profit margin is calculated by taking total revenue and subtracting the cost of goods sold. The difference is divided by total revenue.

Question 6

Valuation

Answer 6

Normalize adjustments

Question 6

sales growth

Answer 6

Sales Growth = (Sales Increase / Total Sales from Previous) x 100

Question 7

Vision

Answer 7

To create a better everyday life for pet owners and their pets by providing the highest quality of healthy, innovative, fun, and safe products for cats and dogs in stores that are staffed by pet-loving and knowledgeable people.

Question 8

Mission

Answer 8

We are committed to meeting all the needs of pet owners and pets by providing superior products that will keep pets healthy and happy throughout their lives. We want to give our customers the most captivating shopping experience that will ensure life-long relationships and loyalty. We want to be relevant not only to pets and pet parents, but also to our communities by supporting local animal-related charities.

Question 9

Core values

Answer 9

1. Have a positive impact on our pet parents and create lasting relationships.
2. Sell only the highest-quality products that will foster healthy and happy pets.
3. Provide pet parents with knowledgeable advice on products to help them make the right decision for their pets.
4. Value, develop, and reward contributions, service, and skills of our employees.
5. Act always with the highest ethical standards, integrity, and honesty.
6. Care about, be involved in, and give back to our local communities.

Question 10

KSF

Answer 10

page 8

Question 11

Gross profit margin

Answer 11

(GM / REV)

Question 12

Pet services margin

Answer 12

(pet services rev – pet services COGS) / pet services rev

Question 13

profit margin

Answer 13

net income for the year / revenues

Question 14

optimal D:E ratio

Answer 14

the debt-to-equity ratio is less than 1.0, indicating that JRP has more equity that debt