View
103
Download
1
Category
Preview:
Citation preview
Welcometo our
presentation
Presentation topic
Case Study On The Southland Corporation ©
Prepared By Group
Rawnak Parveen
Md. Sohel Rana
Md. Hasan Pathan
Shah Alam Asif Bhuiyan
Tazin Amin Bristi
Rawnak Parveen
ID: 142-401-033
The Southland corporation was the largestconvenience store chain in the world and thetwelfth largest retailer in the United States. Thesouthland Corporation has began as an icecompany formed by Joe C. Thomson, Sr., andseveral partners in 1927. In 1946, Southlandadopted for all its retail stores the name “7-Eleven”.Because it’s hours of operation, 7 a.m. to11 p.m. The first “7-eleven” store to open outsideof the Texas was in Florida, in 1954 soon after storewere opened in Virginia and California.
Introduction
Problem Statement
The main problem of southland corporationis huge debt. Because of this the southlandcorporation is moving closer to bankruptcy.
Md. Sohel Rana
ID: 142-401-055
Subjective analysis
Objective analysis
Analysis
Subjective analysis
Life cycle:
Now we analyze Southland Corporation (C) under life cycle.
Subjective analysis
Now we analysis Southland Corporation (C) under the BCG matrix.
Md. Hasan Pathan
ID: 132-401-136
Strength
Subjective analysis
SWOT Analysis
Opportunity
Weakness
Threat
0
20
40
60
80
100
120
140
160
180
1993 1994 1995 1996 1997 1998
Net Earning
Net Earning
0
0.2
0.4
0.6
0.8
1
1.2
1.4
1.6
1993 1994 1995 1996 1997 1998
Profit Margin
Profit Margin
Objective Analysis
$0.00
$0.20
$0.40
$0.60
$0.80
$1.00
$1.20
1991 1992 1993 1994 1995 1996 1997
Debt to Asset
Debt to Asset
$0.00
$0.20
$0.40
$0.60
$0.80
$1.00
$1.20
1991 1992 1993 1994 1995 1996 1997
Debt to Equity
Debt to Equity
Objective Analysis
0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
0.9
1
1991 1992 1993 1994 1995 1996 1997
Current Ratio Profile
Current Ratio Profile
Objective Analysis
Shah Alam Asif Bhuiyan
ID: 142-401-045
In this case we found that Southland Corporation (C) face financial crises. Because they financed the LBO tender offer.
Findings
To Reduce Southland's debt they reduce their advertisement cost.
They sold their 75% equity for $400 million to Japan's most largest & profitable company Ito Yokado & they gain additional capital.
Ito Yokado required Southland corporation to restructure its debt to approval from 95% of bondholders.
Southland failure to obtain bondholder approval for a restructuring plan further stressed for its cash flow & moving the company closer to bankruptcy.
Findings
Again the company with the approval of the Bondholders Committee and Ito Yokado, decided to attempt another exchange offer together with a request for approving a prepackaged bankruptcy filing.
Three conditions: 1) Feasibility 2) Approval 3) Liquidation
Tazin Amin Bristi
ID: 142-401-064
After analyzing both subjective and objective we find that the company has need for rising fund. 7-Eleven has to constantly think of people’s convenience and ways of convenient service to them.Use of integration information system in 7-eleven supply chain provides more effective retailing and improve customer service.
So we can say that they should obtain an infusion of new equity by selling control of the company to the Ito Yokado Group.
Conclusion
Recommended