In 2015, fourth quarter, AutoZone’s gross profit, as a percentage of sales, was 52.5%, which was slightly greater than prior year (AutoZone, 2016). Why did they sales reflect an improvement? Primarily, the increase was due to higher merchandise margins. However, this increase was offset 37 basis points because of higher supply chain costs associated with current year inventory initiatives (AutoZone, 2016). Additionally, operating expense reflected an increase due to higher payroll of 21 basis points and the impact of their integrated marketing program of 16 basis points (AutoZone, 2016).
One area that AutoZone has been passionate about is providing their shareholders a profitable return. Therefore, under their share repurchase program, …show more content…
Notably, the strengths and weaknesses analyze the organization’s internal attributes, which may involve a gap analysis or value chain (Parnell, 2014). What is a gap analysis? Fundamentally, a gap analysis is used when the organization wants to determine the distance between the their current position and their desired position (Parnell, 2014). Additionally, the value chain analyzes activities the organization performs to determine if they are an added value to the service or product (Bethel, …show more content…
Further, Weakness-Threat alternative is defensive in nature and are developed to offset the potential weakness or threat (Bethel, 2016). Last, the Strength-Threat alternative can be offensive or defensive depending upon the nature of the threat (Parnell, 2014). Another to further break down potential alternatives is the strategy level-strategy complexity matrix. Namely, this matrix compares the suggested alternatives based upon the strategy level of corporate, business, or functional and the strategy complexity level (Parnell,
One area that AutoZone has been passionate about is providing their shareholders a profitable return. Therefore, under their share repurchase program, …show more content…
Notably, the strengths and weaknesses analyze the organization’s internal attributes, which may involve a gap analysis or value chain (Parnell, 2014). What is a gap analysis? Fundamentally, a gap analysis is used when the organization wants to determine the distance between the their current position and their desired position (Parnell, 2014). Additionally, the value chain analyzes activities the organization performs to determine if they are an added value to the service or product (Bethel, …show more content…
Further, Weakness-Threat alternative is defensive in nature and are developed to offset the potential weakness or threat (Bethel, 2016). Last, the Strength-Threat alternative can be offensive or defensive depending upon the nature of the threat (Parnell, 2014). Another to further break down potential alternatives is the strategy level-strategy complexity matrix. Namely, this matrix compares the suggested alternatives based upon the strategy level of corporate, business, or functional and the strategy complexity level (Parnell,