comparative culture

Problems of rite help
After we examined the financial reports and operational activities, we concluded that communion cares problem might result from its scrappy expanding activities and its grand amount of the overhead costs. The reasons for us to have the proof will be examined below.
Aggressive Expanding Activities
On June 4, 2007, Rite Aid acquired all of the membership interests of JCG (PJC) USA, LLC (Jean Coutu USA), which is the holding caller for the Brooks Eckerd drugstore chain (Brooks Eckerd), from Jean Coutu free radical (PJC) Inc., pursuant to the full terms of the Stock Purchase Agreement date August 23, 2006
For this transaction, Rite Aid paid $2.3 billion and issued 250 jillion shares of Rite Aid common stock. To finance the cash fee of this transaction, Rite Aid established a new term loan facility by issuing senior notes and acceptation through their existing revolving credit facility.
The integration of the Brooks Eckerd stores was effected during Fiscal 2009. The integration did make Rite Aid the largest drugstore retailer in the Eastern United States. It also increase the footprint and operation scale of their business.
This kind of expanding activity is unremarkably taken by companies which are convinced that the economy is sledding to grow.



It makes companies have a better stance when in a growing economy.
However, doing such an expanding activity when the economy is in recess will be a risky move. After Rite Aid acquired Brooks Eckerd and increased the amount of its retail stores in 2007, the economy went recession at 2008.
During the recession, the increase of Rite Aids sales did not meet the management police squads expectation. Its sales did increase 40%, from 17 one million million in 2007 to 24 million in 2008. Its cost of goods exchange raise 39% simultaneously, from 12.7 million in 2007 to 17.6 million in 2008. Moreover, the overhead costs also increased a huge amount due to the increasing amount of its retail stores. The expenses of Selling, general...If you take to get a full essay, order it on our website: Orderessay



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