...Heidi Heckel Prof. Boschen International Finance: Emerson Electric Company Case Write up September 14, 2015 Emerson Electric does the majority of its business in the United States, however foreign sales are growing as a direct result of a new strategy that focuses on offshore production rather than export. It increased its offshore plants from 50 in 1981 to 82 1986 and has seven subsidiaries in Switzerland and one in New Zealand. Emerson’s total foreign assets almost doubled since 1984 and net assets have risen 70%. It also has 200 million in Eurodollar notes outstanding, while concurrently, the dollar started to weaken against other world currencies. Emerson did partially hedge against the exposure created by it’s 7.875 Eurodollar note due in 1998 by acquiring other currencies that, grouped together, had an interest rate of 5.86%. This helped to offset their cost of debt. Emerson needs to raise capital and therefore plans on issuing 65 million in new debt in the spring of 1987. Emerson has three potential opportunities to consider and it must choose wisely. The three possibilities are issuing a domestic bond, a Swiss Eurobond or a New Zealand Eurobond. The economies of these three countries are very different. As stated earlier, it is anticipated that the US dollar will loose some of its value compared to other foreign currencies. If we also look at analyzing the US Treasury Bill against the inflation rate, we can see that the difference is hovering in a positive position...
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...Skil Corporation The acquiring company Emerson had a strategy of producing low cost and high quality products. It started on a program of acquisitions to meets its aggressive goals of growing sales 15% annually. It had acquired only financially successful companies. But in 1979, it acquired Skil Corporation, a financially mediocre and low performing company for $58 million. Skil was a leading manufacturer of portable power tools serving the professional and consumer markets, the circular saw being the strongest and best seller amongst those tools, which it also invented, and was amongst the top three in power tools market share holdings in U.S. Other power tools that Skil manufactured included mid-priced drills and roto hammers. Skil manufactured multiple different models for different countries, depending upon the local needs of the market. Under increasing competitive pressure, Skil’s financial results had not been high and attractive, although reported profitability had improved in recent years. It sold through all distribution channels but was well established in hardware stores and had a strong position in circular saws in contractor supply channels. Its sales force serviced all distributors except the mass merchandisers. Skil seldom advertised and relied more on product publicity. It sold tools on a worldwide basis, with its greatest international strength in Europe. Emerson has a task at hand to improve the market share of Skil Corporation given that the industry is saturated...
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...Skil Case Analysis Introduction Skil Corporation is a portable power tools manufacturer that was acquired by Emerson Electric Company in 1979. When Skil was first acquired, it had mediocre financial performance. Its main competitors in the portable power tool industry were Black & Decker, Sears, and some Japanese manufacturers. In 1979, the electric power tools were making up the majority of the portable power tool industry. Practical Applications The Competitive Environment - The main competitive force for Skil was rivalry among present competitors. Skil and Black & Decker were two competing companies that were the first in the industry to begin using high-strength plastic in their tools, which had lead to great reduction in cost. In 1979, the electric power tool market in the United States made up 37% of the worldwide market ($868 million out of $2,350 million). In the United States during 1979, mass merchandisers such as Montgomery Ward, and J.C. Penney were the primary sellers of Black & Decker and Skil portable electric power tools. Home centers were a steadily growing channel for professional and consumer power tools, and both professionals and consumers shopped at them. Home centers were growing competition for mass merchandisers, with sales of $83 million in 1979 and growing at 13% annually. In terms of global electric power tool market share, Black & Decker, Makita, Bosche, Hitachi, and Skil ranked the highest in order of share percentage. Black & Decker...
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...skil was one of the leading manufacturers of portable power tools serving both the professional and consumer markets, the circular saw being the strongest and best seller amongst those tools, which it also invented. Other power tools that Skil manufactured included mid-priced drills and roto hammers. Skil manufactured multiple different models for different countries, depending upon the local needs of the market. Majority of Skil's sales were to Hardware stores and Home centers, which served consumers and professionals alike, followed by Contractor supply and Mill supply. Skil Corporation was acquired by Emerson Electric company in 1979 as part of the latter's growth strategy which is now faced with the challenge of increasing market share in an industry where growth is saturated and market share dominated by players such as Black & Decker and Sears. The Portable Power Tool Industry: Attractive or not? Black & Decker was the leader in this industry with 75% of its sales coming from power tools. Overall, the industry is experiencing a growth rate of 2 - 3 % per year. In 1979, Black & Decker had close to 45% market share as compared to Skil with 12%. So purely from a growth perspective, the industry doesn't look very attractive. Moreover, the consumer segment demands low cost, high quality products and is brand-name sensitive, which seems to favor the industry leaders. Critical skills required Over the years, the traditional gap between professional buyers...
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...Chapter 10 Strategy and the Master Budget Cases 10-1 Emerson Electric Company © Joseph San Miguel, reprinted with permission. 10-2 LetsGo Travel Trailers (Source: “LetsGo Travel Trailers: A Case for Incorporating the New Model of the Organization into the Teaching of Budgeting,” by Sally Wright, Cases from Management Accounting Practice, Vol. 14, Montvale, NJ: Institute of Management Accountants, 1998). Note that part 2 of this case requires the use of Excel. 10-3 Building Processes for a Solid Foundation: The Case of Community Health Initiatives (Source: Sandra Richtermeyer, Strategic Finance, August 2007, pp. 52-57. Note: this case was the case used as the 2008 IMA Student Case Competition. The Student Case Competition is sponsored annually by the IMA to provide an opportunity for students to interpret, analyze, evaluate, synthesize, and communicate a solution to a management accounting problem.) 10-4 Academic Advising at Bay State (Source: Janice E. Bell and Shahid L. Ansari, Strategic Finance, September 2008, pp. 44-51. Note: this case was the case used as the 2009 IMA Student Case Competition. The Student Case Competition is sponsored annually by the IMA to provide an opportunity for students to interpret, analyze, evaluate, synthesize, and communicate a solution to a management accounting problem.) Readings 10-1: “How to Set Up a Budgeting and Planning System” by Robert N. West and Amy M. Snyder, Management Accounting (January 1997)...
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...Professional Presence Daniel Charlong Professional Presence CS204 September 16th, 2014 After doing my research, I came across a company called Rosemont who merged with Emerson Company back in 1976. It has locations all across the globe and is in almost every county that that we have. The culture here is the most mixed that I have ever seen or even heard of. Every race from African American, Chinese, Caucasian, Japanese, Somali and quite a bit more across the board. Rosemount Engineering Company was founded in 1956 as a supplier of precision products for the aerospace industry. The company quickly grew with the success and expansion of the U.S. space program and continued to apply the same rigid standards that aided NASA’s success to the development of breakthrough products for the process industries. After reading about it, I tried to picture what it would look like to work there and I stepped outside of myself and looked into the roof of the building and saw what looked like an ant farm. Hundreds of people that have a hard time understanding each other's words, but work together marvelously. Their commitment to the culture is reflected in a dedication to their work environment and company values. As for culture, they strive to provide every employee with the kind of work environment that will allow them to thrive and be very successful. The way that they do this is using mutual respect...
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...Evangeline Klingbeil 262608 WGU C200 Task 1 Emerson is a global technology and engineering solutions company that has been providing diversified and innovative solutions to customers for the last 125 years , as of 2015, employ more than 111,000 people . They are solution providers for industrial, commercial and consumer markets through its 5 business units. Those business units are: Emerson Process Management Companies are under constant pressure to cut cost, increase output all with fewer and less experienced workers. Emerson Process Management is relied upon by companies across the globe to aid in solving their process problems. Emerson is experienced in taking their customers toughest challenges and bringing predictable success. Emerson Industrial Automation There is a power in optimizing every facet of operations, greater energy efficiency, lower design costs and improved quality, to name a few. Emerson Industrial Automation helps speed your time to market, wherever you are located and whatever your line of business, from automotive to solar and wind, with reliable industrial automation solutions. Emerson Network Power Emerson Network Power is a hardware, software and service solutions technology business unit of Emerson. They are there to help protect and optimize the infrastructure for companies voice, data or multimedia content and applications. Emerson Climate Technologies Emerson Climate Technologies have trusted products in the heating...
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...Skil Corporation On March 23, 1979, Emerson Electric Company acquired Skil Corporation, a manufacturer of portable power tools, for $58 million. With sales of $2.6 billion in 1979, Emerson Electric produced a broad range of electrical and electronic products and systems. Emerson Electric Company Emerson Electric, originally a manufacturer of electric motors and fans, had gradually expanded into a broad range of consumer and industrial products. It classified its businesses into commercial and industrial components and systems; consumer goods (including portable electric tools); and government and defense products (see Table A). Emerson’s business units manufactured products principally in electrical and electronic fields, such as electric motors, controls, drives, and heating, ventilating, and air conditioning equipment. The company also manufactured power chain saws, gas cutting and welding equipment, vacuum cleaners, bench power tools (which it sold to Sears), and other consumer goods. With a stated goal of being the so-called best-cost producer in as many of its markets as possible, Emerson stressed cost reduction. Emerson defined best cost as Table A millions) Sales and Pretax Income of Emerson Electric by Business Segments ($ 1978 Sales Commercial and industrial Consumer Government and defense Intercompany sales $1,380 698 176 (20) Pretax Income $201 123 21 Sales $1,570 865 199 (20) 1979 Pretax Income $232 141 24 Source Company annual reports 2 the lowest-cost producer...
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...developed to now and is one of the most popular music. Its root is 1940s and 1950s rock and role while its development was highly influenced by the country music, rhythms and blues, jazz and blues and folks. The sound of rock music is based on electric guitar where its modern form emerged in 1950s, the period when rock and roll was popularized. The electric guitar’s sound was supported by percussion originating from the drum kits and electric bass guitar, whose origin was in jazz music. The instruments used in rock include synthesizers, Hammond organ, and piano. A group of musicians who perform rock music are referred to as a rock band. One of the rock bands that I enjoy its music is the Coldplay. Coldplay was formed in 1996 as an alternative rock band. The group came up with numerous songs with Viva la Vida being one of the best songs. The song, viva la vida is a Spanish word that means long live life. It was released in 2008 on parlophone. The major themes are war, death and life. The style of this song is based on repeating string section with a percussion background which clearly indicates that it is an alternative rock, a sub genre of rock genre. The string section is accompanied by bass guitar, steady bass drum beat and minimal use of the electric guitar. The song Viva la vida is played at a tempo of 137 beats per minute whereas the key is A♭ major. Although the song is viewed as an alternative rock, in my personal view, the historic elements and classic composition place the song...
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...He peeks, 5...4...3...2…”HEY, MAN!” his roommate Hank burst into the door just as the clock hits zero. James completely ignores him and rushes to the computer screen and begins to move his eyes frantically looking for his name. “HEY! HEY! HEY! LOOK AT ME!” Hank pops in from shoulder to shoulder trying to make his roommate turn his head so he can see what he is holding in his hands. Yates, James…...88. James sits there for a second then…”WHOO!” He passed. James hops up from his seat and begins to bang on the walls and yells “SCREW YOU MR.THOMLEY!” at the top of his lungs. Hank figures why not? And joins him frantically shouting and screaming. “I passed, buddy! I passed!” Hank smiles real big and then says “Great now you can really enjoy my...
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...How the Civil War Changed American Literature The 1860’s was a time of numerous talented writers: Whitman, Emerson, Hawthorne, and Melville. Major writers experienced the civil war in their day to day lives and this began to change what they believed and subsequently changed what they wrote. The abolitionists Thomas Wentworth Higginson studied Ralph Waldo Emerson, whose essays he explained as “starry with statements of absolute truth.” Emerson’s antislavery ideals helped influence positive war ideals. Emerson had spent decades writing about moral and cultural change and he viewed the war as necessary. However, not every writer was confident about the war like Emerson. For example, Nathaniel Hawthorne admitted in a letter the month after Fort Sumter that “I don’t quite understand what we are fighting for, or what definite result can be expected” (Eiselein 30). This uncertainty about the war was transferred into his writing. He traveled to Washington to write an article for The Atlantic and eventually published the essay “Chiefly about War-Matters,” in which he critiqued everything while also satirizing The Atlantic’s pro-war views (Eiselein 33). Besides Hawthorne, most of the northern writers of the nineteenth century supported the war at the beginning. However, the writer’s attitude towards the war began to shift after the battle of Shiloh and the succeeding horrific battles. The harsh realities of the war began to trouble the writers. For example, while reading Emerson’s...
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...teach until 1841, when he turned to journalism as a full-time career. He founded a weekly newspaper, Long-Islander, and later edited a number of Brooklyn and New York papers. In 1848, Whitman left the Brooklyn Daily Eagle to become editor of the New Orleans Crescent. It was in New Orleans that he experienced at first hand the viciousness of slavery in the slave markets of that city. On his return to Brooklyn in the fall of 1848, he founded a "free soil" newspaper, the Brooklyn Freeman, and continued to develop the unique style of poetry that later so astonished Ralph Waldo Emerson. In 1855, Whitman took out a copyright on the first edition of Leaves of Grass (self-published), which consisted of twelve untitled poems and a preface. He published the volume himself, and sent a copy to Emerson in July of 1855. Whitman released a second edition of the book in 1856, containing thirty-three poems, a letter from Emerson praising the first edition, and a long open letter by Whitman in response. During his subsequent career, Whitman continued to refine the volume, publishing several more editions of the book. Noted Whitman scholar, M. Jimmie Killingsworth writes that "the 'merge,'...
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...appened in between 1800-1850 in England? 1800: Jan First soup kitchens to relieve hungry poor in London Autumn Robert owen begins philanthropic reform for workers employed in his mills at New Lanark Maria Edgeworth publishes Castle Rackrent, one of the earliest historical novels 1801 Steam carriae of Richard Trevithick carries road passengers at Camborne, Cornwall 1802 June 22 Health and Morals of Apprentices Act, first protective factory legislation, no children under 9 in mills,maximum 12-hour day for children Madame Tussaud mounts the first waxwork exhibition in Lyceum Hall, London Chalotte Dundas, a wooden ship with a single paddle-wheel, covers 20 miles of the Forth and clyde Canal, the world's first steam vessel. 1805 October 21 Battle of Trafalgar, Nelso defeats Franco-Spanish fleet, but is mortally wounded. 1807 Mar 25 Slave Trade abolished in all British possessions June 4 Federick Winsor illuminates part of pall Mall with gas lighting. 1811 Regency Act in favour of Prince of Wales because of George III's insanity. Mar organised machine-breaking (Luddism) in Nottingham Jane Austen publishes Sense and Sensibility Fashionable women reject tight corsets and petticoats 1812 Mar Publication of first 2 cantos of Byron's Childe Harold's Pilgrimage causes sensation: "I woke one morning and found myself famous" autumn Countess Lieven, wife of russian ambasador, introduces waltz to London 1813 Jane Austen publishes Pride and Prejudice Smooth-wheeled...
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...Doris Kearns Goodwin is an American historian, political commentator, and biographer. Among Team of Rivals, she has also written about several other US Presidents. Some of these presidents include John F Kennedy, and Lyndon Johnson to name a few. This New Yorker who now lives in Concord, attended Colby College in Maine, to later earn a PhD from Harvard University. A woman of many firsts, she earned the Lincoln Prize for her book Team of Rivals, she has even met Maine’s own Stephen King, and was the first female journalist to enter the Boston Red Sox locker room to approach Ken Burns for a baseball documentary (Since she was personally an enthusiastic baseball fan). Goodwin later had three boys with her husband Richard. Kearns takes time away from her writing to spend days with Richard, Michael, and Joseph; her children at several baseball games. One of Doris Kearns Goodwin's most popular book, and was later a Stephen Spielberg film, Team of Rivals is not just about Abraham Lincoln's struggles and successes throughout his political journey, and life, but the men around him and how he worked with them. Goodwin not only speaks about Lincoln, but about his political running mates, turned coworkers in the cabinet, and eventual close friends throughout his presidency. William Seward, Salmon P. Chase, and Edward Bates are of the main focus in Goodwin’s novel along with not surprisingly, Abraham Lincoln. Doris Kearns’s main idea of the plot of the book Team of Rivals was to illustrate...
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...Walt Whitman Through the history of the United States there have been a countless numbers of poets. With them came an equal number of writing styles. Certainly one of the most unique poets to write life’s story through his own view of the world and with the ambition to do it was Walter Whitman. Greatly criticized by many readers of his work, Whitman was not a man to be deterred. Soon he would show the world that he had a voice, and that it spoke with a poet’s words. Afoot and lighthearted I take to the open road, Healthy, free, the world before me, the long brown path before me leading wherever I choose. Thus Whitman began his “Song of the Open Road”. This paper will attempt to describe his life and poetry in a way that does justice to the path he chose. He was a man who grew up impoverished, who wrote from his experiences, and who tried to lift his fellow men above life’s trivialities. These are the points to be discussed on these pages. To know the essence of Walter Whitman, you would have to understand the heart of his writing. For he is in his pen. Walter Whitman was born in West Hills, Long Island, New York, on May 31, 1819 . He did not have much opportunity for education in his early life. His parents were mostly poor and illiterate- his father a laborer, while his mother was a devout Quaker. Whitman was one of nine children and little is known about his youth except that two of his siblings were imbeciles. No wonder he demonstrated such an insight for life in his poems...
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