...Case A&D High Tech (A): Managing Projects for Success by Mark Jeffery, Derek Yung, Alex Gershbeyn Source: Kellogg School of Management 20 pages. Publication Date: 1월 01, 2006. Prod. #: KEL156-PDF-ENG The case is based on a real $25 million project at a major U.S.-based computer manufacturer. For confidentiality reasons the company has been disguised as A&D High Tech. The Web-based online ordering system project is required by sales and marketing for the fall holiday season. If the project misses this window, the firm will lose substantial market share to competitors. The A&D High Tech case examines how to create and analyze a project plan in Microsoft Project. Specifically, data is given to build the project plan step-by-step and then analyze the plan using the Microsoft project management tool. In order to make the case manageable for students we reduced the size of the project, and corresponding number of resources, to approximately $1 million, but retained all of the features of the original project. The project plan that students construct from the data given in the case is fraught with risks, and students must apply risk management techniques to diagnose the plan. Ultimately, students must answer the management question: Will the project be completed for the holiday shopping season? This case is the first in a series; the second is the case entitled "A&D High Tech (B): Managing Scope Change." The case can also be taught using other project...
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...Guillermo Furniture Store Analysis Corporate Finance Dylan Lukens April 30, 2012 Guillermo Furniture Store Analysis The furniture store owned by Guillermo in Sonora, Mexico has operated a successful business creating custom furniture. As time went on Guillermo began to realize that other companies in the area had become interested in making furniture. The competition has forced Guillermo to consider alternatives within the Furniture Store. There are three alternatives to consider, which include going the high-tech route, being a broker, or continuing with his current model. Considering these alternatives means that a thorough analysis must be done to ensure the correct decision is made. The following will include and discuss a sensitivity analysis that will determine the optimal weighted average cost of capital (WACC) as well as calculating the net present value (NPV) of future cash flows for each alternative. As a manager of the furniture store the use of a capital budgeting techniques will be crucial. This includes a simple payback period, a discounted payback period and the net present value or NPV. The simple payback period method is the expected number of years required to recover from Guillermo’s original investment. When analyzing the incoming and outgoing cash flow it is clear that this occurred during year three of Guillermo Furniture. “Capital budgeting is fundamental because a firm is essentially defined by its assets and the products and services...
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...KEL156 MARK JEFFERY A&D High Tech (A): Managing Projects for Success In his twelve years as a technology project manager at A&D High Tech, Chris Johnson had a strong track record of delivering projects on time and on budget. His techniques for project planning, estimating, and scheduling had become best practices at the St. Louis-based computer products company. He had just led a project team that successfully revamped the supply chain systems in less than eighteen months. He was especially proud since many observers had doubted that the project could be completed on time. As part of the strategic initiatives set forth by its CEO and founder, Ted Walter, A&D was to be second to none in utilizing technology to increase operational efficiency and reduce costs. The supply chain project therefore received notable attention in the boardroom and with its competitors. Time and again, Johnson was asked to tackle difficult assignments that were critical to the company’s growth and profits. He had already been mentioned as the successor to the vice president of e-business, Chuck Gagler, pending his retirement. (See Exhibit 1 for the A&D High Tech organizational chart.) In early May 2002 Johnson received an urgent message from the company’s CIO, Matt Webb. Webb asked Johnson to join him for a meeting with A&D’s senior managers to discuss taking over the company’s online store project. Johnson realized that up to that point the company’s top brass had virtually ignored the Internet...
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...discover, and then apply this knowledge to create products, processes and services that fill the needs of new and improved market. Assignment Task : In the last 10 years, the face of innovation and its management has changed. The main driver for this development is the changing role of Asian countries like India and China (e.g., Agarwal and Brem, 2012). Multinational companies (MNCs) used to rank emerging market economies primarily as low-cost locations for routine operations, while most of their research and new product and service development was carried out in the home country, as the creation of new technology was geographically sticky to a company’s headquarters (Patel and Pavitt, 1991). However, research and development (R&D) activities began to shift to developed countries outside of the home countries, producing a...
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...KEL156 MARK JEFFERY A&D High Tech (A): Managing Projects for Success In his twelve years as a technology project manager at A&D High Tech, Chris Johnson had a strong track record of delivering projects on time and on budget. His techniques for project planning, estimating, and scheduling had become best practices at the St. Louis-based computer products company. He had just led a project team that successfully revamped the supply chain systems in less than eighteen months. He was especially proud since many observers had doubted that the project could be completed on time. As part of the strategic initiatives set forth by its CEO and founder, Ted Walter, A&D was to be second to none in utilizing technology to increase operational efficiency and reduce costs. The supply chain project therefore received notable attention in the boardroom and with its competitors. Time and again, Johnson was asked to tackle difficult assignments that were critical to the company’s growth and profits. He had already been mentioned as the successor to the vice president of e-business, Chuck Gagler, pending his retirement. (See Exhibit 1 for the A&D High Tech organizational chart.) In early May 2003 Johnson received an urgent message from the company’s CIO, Matt Webb. Webb asked Johnson to join him for a meeting with A&D’s senior managers to discuss taking over the company’s online store project. Johnson realized that up to that point the company’s top brass had virtually ignored...
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...KEL156 MARK JEFFERY A&D High Tech (A): Managing Projects for Success In his twelve years as a technology project manager at A&D High Tech, Chris Johnson had a strong track record of delivering projects on time and on budget. His techniques for project planning, estimating, and scheduling had become best practices at the St. Louis-based computer products company. He had just led a project team that successfully revamped the supply chain systems in less than eighteen months. He was especially proud since many observers had doubted that the project could be completed on time. As part of the strategic initiatives set forth by its CEO and founder, Ted Walter, A&D was to be second to none in utilizing technology to increase operational efficiency and reduce costs. The supply chain project therefore received notable attention in the boardroom and with its competitors. Time and again, Johnson was asked to tackle difficult assignments that were critical to the company’s growth and profits. He had already been mentioned as the successor to the vice president of e-business, Chuck Gagler, pending his retirement. (See Exhibit 1 for the A&D High Tech organizational chart.) In early May 2003 Johnson received an urgent message from the company’s CIO, Matt Webb. Webb asked Johnson to join him for a meeting with A&D’s senior managers to discuss taking over the company’s online store project. Johnson realized that up to that point the company’s top brass had virtually ignored the Internet...
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...SDA BOCCONI -‐ GEMBA8 CLASS 2015 QUANTITATIVE METHODS PERSONAL ASSIGNMENT DATA ANALYSIS BY LORENZO CORONATI Prof. Maurizio Poli Via Bocconi 8 Office room: 517 (5th floor) E-‐Mail: maurizio.poli@sdabocconi.it 1 1. PRELIMINARY ANALYSIS The main scope of the work and the data analysis consist in developing a multiple linear regression model capable of demonstrate the function between ITC cost and the selected independent variables. All data in this work have been extrapolated from Dataset Eurostat Datawherehouse. The statistical units that have been studied are the 15 countries of the European Community as described in table 1. It has been utilized for the analysis...
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...Risk Management Plan for A&D High Tech Risk Management Plan Template Raiford Wallace Capella University TS5334-01u10a1 Date: June 13, 2016 Section 1 – Introduction • 1.1 Benefits of Risk Management Barkley says, “Risk is a tradeoff with benefits, opportunities, and payoff. In other words, risk is the reason for investment...” (2004, p. 5). One major requirement for the A&D High Tech Internet Store project is to complete this project and bring the store online before the Holiday season. In reading the case study, getting this Internet store online will determine the success of the project according to Webb, Walter, and Johnson the senior managers of A&D. The benefit of the project will potentially bring more profitability to the company growth and will tackle the lack of presents online to its competition. “In 2002, faced with tough competition and decreasing margins, A&D decided to explore new segments of the market for growth…with focus on sales via the Internet” (Jeffery, 2008, p.2.). • 1.2 Project Goals and Objectives The goals of the project are to increase revenue by allowing sales on a national level, while maintaining the friendly level of customer service that the company is so proud of and wanting to maintain that feel. The scope controlling the organization’s retail operations are “new orders, add-on orders, order amends, order status, and lead capture with the following capabilities”...
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...Determinants of exports CHAPTER I 1.1 INTRODUCTION There are theoretical literatures which predict the proportion of a firm's sales that is exported, i.e. a firm's export intensity. Mostly, exporting is merely regarded as an interim stage in the development of a company, preceding foreign direct investment or, in some cases, licensing and foreign direct investment. Consequently, theoretical contributions are primarily concerned with the relationship between exporting and foreign direct investment and the optimal timing for switching between these alternative market entry strategies. In contrast, there are a large number of empirical studies which investigate various determinants of export intensity. The majority of the past research, however, is recognized to be of an electic nature (Bilkey, 1978) and judged to suffer from methodological flaws (Reid, 1980). Exports have been growing much faster than GDP in most countries. For some developing countries, exports are indeed the main element of production, apart from some agricultural sector and from basic services. The aim of this paper is to explain the determinants of firms export and to combine them into a coherent econometric model. The parameters of this model are subsequently estimated for a sample of large scale Electronics companies. The Electronics Industry in India took off around 1965 with an orientation towards space and defense technologies. The period...
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...probabilities and associated outcomes. (For now, disregard the items at the bottom of the data; you will fill in the blanks later.) Returns on Alternative Investments Estimated Rate of Return State of the Economy Prob. T-Bills High Tech Collec- tions U.S. Rubber Market Portfolio 2-Stock Portfolio Recession 0.1 5.5% -27.0% 27.0% 6.0% a -17.0% 0.0% Below Avg. 0.2 5.5 -7.0 13.0 -14.0 -3.0 Average 0.4 5.5 15.0 0.0 3.0 10.0 7.5 Above Avg. 0.2 5.5 30.0 -11.0 41.0 25.0 Boom 0.1 5.5 45.0 -21.0 26.0 38.0 12.0 r-hat ( r ˆ ) 1.0% 9.8% 10.5% Std. dev. ( ) 0.0 13.2 18.8 15.2 3.4 Coeff. of Var. (CV) 13.2 1.9 1.4 0.5 beta (b) -0.87 0.88 a Note that the estimated returns of U.S. Rubber do not always move in the same direction as the overall economy. For example, when the economy is below average, consumers purchase fewer tires than they would if the economy were stronger. However, if the economy is in a flat-out recession, a large number of consumers who were planning to purchase a new car may choose to wait and instead purchase new tir es for the car they cu rrently own. Under these circumstances, we would expect U.S. Rubber’s stock price to be higher if there was a recession than if the economy was just below average. 2 Integrated Case Chapter 8: Risk and Rates of Return Merrill Finch’s economic fo recasting staff...
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...Example 2015 Annual Report Sensors, Inc.’s Mission Statement: The Mission of Sensors, Inc. is to provide high quality sensors to the electronic sensor industry for distribution world wide. Sensors will produce a variety of sensors in both the High and Low Tech markets using established market specific R&D methods and price them competitively within this highly competitive market. Sensors is committed to producing products that have excellent designs and quality attributes. Original Strategy: At the outset of incorporation, Sensors, Inc.’s management decided that it would concentrate on a strategy of being a Cost Leader with Product Lifecycle Focus. In this strategy, we will focus on keeping our R&D, production and material costs low and compete with the other companies in our industry on the basis of cost. We will introduce new products into the High Tech market every other year or so and allow them to move through the perceptual map into the Low Tech market and then eventually become obsolete. We will measure our performance in terms of Stock Price, ROE and ROS. Environmental Analysis: Electronic sensors are used in a wide variety of industries and applications and are in constant need of modifications to meet customer demands. The customers usually like to purchase smaller sensors with higher performance, especially so in the High Tech Market. In the Low Tech Market, larger, slower sensors are the customer’s choice. A sensor is a device that will sense a change, such...
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...furniture. One of the main reasons for maintaining his operations in this location has been the good supply of quality timber. However, a new competitor entered the market offering the same quality products at a fraction of the price Guillermo was charging. This was possible because of the heavy reliance on high-tech mechanization that the new supplier employed. To further complicate things for Guillermo was the entry into the city of a large retailer, a sudden explosion of workers resulting in a substantial increase in the cost of labor. All things had a negative effect on Guillermo’s bottom line. Discussion: The essence of any business operation is to maximize profits. This is only achieved when the business is able to meet its recurring costs and have a surplus available for reinvestment or payment as dividends to the owners. Guillermo’s case requires a critical investigation into the business operations to determine available to him. Given the current situation, Guillermo has three very viable options to consider. He could either maintain the present business model and continue operations as currently constituted, or adopt a new business model by embracing high technology and thus investing in highly automated machines similar to what the competitor is using or change his operations and instead become a broker to one of the big competitors who is looking for an entry point into the North American market. In business, a sensitivity analysis is a business interrogative...
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...Analysis of different alternatives available to Guillermo Analysis of different alternatives available to Guillermo Guillermo's Furniture Store Scenario provides the expedient case study for studying the concept of financial principle in the competitive economic environment. The current paper discusses the approach of financial management with correct application of ideas to create value and economic efficiency through analysis of financial transactions to establish the position of Guillermo in market. Current Project, High-Tech Project and the Broker Project are three alternatives available to the company to invest in right project. Financial principles, financial markets, and business ethics form a foundation for the financial decisions that managers routinely make. Guillermo’s case study shows that the arrival of new competitor from oversees have put unexpected challenges on the financial condition of the company. Guillermo has three alternatives to approach the business with new insight and action. Incremental costs and benefits are the basis for choices among alternatives where transactions have at least two sides, with each party considering their self-interest. Concept of an opportunity cost can be applied to differentiate between the value of one action and the value of the best alternative. He can invest in new technology and make furniture automatically, accurately and with almost no labor costs. So, developing expertise can create value. Other option is...
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...Example 2015 Annual Report Sensors, Inc.’s Mission Statement: The Mission of Sensors, Inc. is to provide high quality sensors to the electronic sensor industry for distribution world wide. Sensors will produce a variety of sensors in both the High and Low Tech markets using established market specific R&D methods and price them competitively within this highly competitive market. Sensors is committed to producing products that have excellent designs and quality attributes. Original Strategy: At the outset of incorporation, Sensors, Inc.’s management decided that it would concentrate on a strategy of being a Cost Leader with Product Lifecycle Focus. In this strategy, we will focus on keeping our R&D, production and material costs low and compete with the other companies in our industry on the basis of cost. We will introduce new products into the High Tech market every other year or so and allow them to move through the perceptual map into the Low Tech market and then eventually become obsolete. We will measure our performance in terms of Stock Price, ROE and ROS. Environmental Analysis: Electronic sensors are used in a wide variety of industries and applications and are in constant need of modifications to meet customer demands. The customers usually like to purchase smaller sensors with higher performance, especially so in the High Tech Market. In the Low Tech Market, larger, slower sensors are the customer’s choice. A sensor is a device that will sense a change, such...
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...previous cumulative of $300, 000 plus the first year for the cash flow of $500: -$300,000 + $42,573=-$257,427. In comparison the cumulative for the second year is the previous cumulative of -$257,427 plus the inflow of cash from the second year of $42,573, resulting in –$214,854. Therefore the calculations of payback occurred during the third year. If the $40,584 of inflows comes in evenly during the third year, then the exact payback period can be found as follows: Applying the same procedure to the other two alternatives (Project High-Tech and Broker) you are able to find the payback period for them in about one and one-half years and just less than six years respectively. Since these two alternatives are being scoped for possible alternatives, the project that includes technology would be accepted but current project would be rejected. If the projects were mutually exclusive, High-tech would be ranked over Broker and Current because High-Tech...
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