Section F

Assignment 1

Sakshi Jain
Namita Aggarwal
Naitik Shah
Vikas Tiwari
Pramod Nammi

Drivers of Industry financial

structure
Company

Reason

On-Line Retailer

Supermarket

Hotel

Low inventory and

accounts receivable; sales
through credit cards.
High inventory
management

higher markup and higher

expenses

high goodwill
low inventory

Airline

Consumer Products

high unearned revenue

due to pre-booked tickets
accounts payable is
moderately high (flyer
miles programs and other
offers)
low R&D
high inventory turnover

Pharmaceuticals

high margins
high R&D

Electronic Communication

low profit margin

high R&D

Warehouse Club

Temporary Staffing Agency

low accounts receivable

high inventory turnover
no R&D
No inventory
Low net plant and
equipment costs

Section F

Assignment 1

Software

Sakshi Jain
Namita Aggarwal
Naitik Shah
Vikas Tiwari
Pramod Nammi

High R&D
High gross margin
Very low inventory