tASTASASTASASTASOpportunities1. Increasing differentiation of the products0.1040.4040.4040.402. Increasing demand of the products0.1540.6040.6040.603. Increasing area of tobacco growth0.1040.4040.4040.40Threats1. Tobacco control0.1520.3020.3010.152. Possible stock of the product0.1010.1010.1010.103. Unstable partners0.0510.05--10.054. New unknown market0.1020.20--10.105. Low value of the dollar0.1010.1010.1040.406. New unfamiliar for customers product0.15--20.30--1.00Strengths1. Profit rose 10%0.1540.6040.6040.602. New divisions0.1040.4040.4040.403. New product0.154-40.6040.604.Increasing Capacity utilization0.1040.40--30.305. Attracting new customers0.1540.6040.6040.40Weaknesses1. The company is slow in globalization0.15----10.152. Increasing taxes0.1010.1010.1010.103.Increasing number of workers0.1010.1020.2010.10Sum Total Attractiveness Score1.004.354.74.87AS= attractiveness Score; TAS= Total Attractiveness scoreAttractiveness Score: 1=not acceptable;2=possibly acceptable; 3=probably acceptable;4=most acceptable The most attractive strategies for the UST are product development and joint venture.8. A Pro Forma Income Statement and Balance Sheet for the UST Inc.Pro Forma Income StatementPrior Year 1997Projected Year 1998RemarksSales1,401,7181,611,97615% increase Cost of Goods Sold265,193312,92718% increaseCross margin1,136,5251,299,049 Selling And administrative expenses398,468483,59230% of sales, Earnings before interest and taxes738,057815,456 Interest7,4517,451Earnings before taxes703,857808,005 Taxes264,71916160120% rateNet income439,138646,404 Retained earnings528,518646,404Pro Forma Balance sheetAssets Cash6,92710,390Incr.100% Accounts Receivable67,702135404 Inventory319,666560,000Prepaid expenses and other current assets31,75345,965 Total Current Assets426,048751,759 Property, plant and equipment net 326,709300,709Add 2new plant $20 million eachTotal Assets826,7141,052,468Liabilities Shot-term obliga...
