...September 18, 2012 Mr. Patrick Heck Deputy Chief Financial Officer Denver International Airport 201 West Colfax Avenue Denver, Colorado 80202 Re: The Westin Denver International Airport – Denver, Colorado Dear Mr. Heck: Pursuant to your request, we have conducted a study of the potential market demand and developed a statement of the estimated annual operating results for a proposed 519-room Westin hotel (the “Subject”) to be located at the south terminal of the Denver International Airport (“DIA”) in Denver, Colorado. Throughout this analysis, we formally refer to the Subject as The Westin Denver International Airport. The development of the Subject hotel is expected to be financed through the issuance of tax-exempt bonds coupled with some form of public subsidies/guarantees/loans. This report has been prepared for use by the Denver International Airport and its financial advisors in determining the estimated annual operating results of the proposed Subject. The conclusions set forth in this report are based on an analysis for supply and demand for the transient lodging market in the Denver-Aurora market area as of August 8, 2012, the completion date of our fieldwork and primary market research. As in all studies of this type, the estimated results assume competent and efficient marketing and operational management, and presume no significant change in the status of the competitive lodging industry from that as set forth in this report. The terms of this engagement are...
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...Skyview Manor The analysis of this case study is based on three different scenarios: 1) Regular Season, 2) Off Season, and 3) Raised Rates. To begin our analysis, Skyview Manor’s Contribution Margin Income Statement must be calculated to look for the cost behaviors. A cost behavior relates to the fluctuation of an activity. Next, we need to calculate the fixed cost. Luckily, the fixed cost will be unchanged during each scenario unless there is an added fixed value. The variable cost will be the challenge in each scenario because the variable cost changes in each activity. The variable cost per unit remains the same over activities that are relevant. Total variable cost will change directly proportional to each activity. After getting these calculations, we will be able to find each scenario’s Breakeven, Operating Income, and Degree of Leverage. Regular Season: To calculate for the regular season, we need to start with finding the total variable cost. In Exhibit 1, I have identified the variable cost to be in the cleaning supplies at $1,920; linen services at $13,920; and half of the miscellaneous expenses at $3657. Total variable cost will be $19,497. After getting the total variable cost, I can figure out the variable cost per unit. Total variable cost divided by the amount of days (120 days) times the price ($80) times average occupancy rate (80%). The variable cost per unit will be $2.54. Next, I will be able to calculate for the revenue per room. Total revenue ($160...
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...Assessment Shouldice Hospital has been devoted to repairing hernias for over half a century. Although the Shouldice system has led to great competitive positioning, the hospital is falling victim to its own success. Demand for Shouldice services is so much higher than its current capacity of 89 beds that it is in a constant state of operations backlog, which grows by 100 patients every 6 months. Thus, Shouldice needs to find a solution to its single most critical question – how to expand the hospital’s capacity while simultaneously maintaining quality control of service delivery. The analysis below is designed to assess the current operations at the hospital, in addition to explaining our recommendation that Shouldice should invest $4MM in a new unit, which will increase bed capacity by 50% and require its surgeons to perform Saturday surgeries. As the financial analysis shows, this change will allow Shouldice to capture unmet demand without compromising its unique system of patient and employee care. Lastly, our recommendation will be also juxtaposed to other options we evaluated as potential solutions, but that neither make financial sense nor solve the current dilemma for the hospital. Hospital Overview Shouldice Hospital is a “focused factory:” a hospital with a specific area of expertise that gives it competitive strength resulting in lower cost, higher quality service for its patients, and better pay for and loyalty from its employees. Specializing...
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...Patton-Fuller Analysis of Network Systems Christopher M. Haider CMGT/554 October 30, 2011 Professor Matt Mancani Abstract Patton-Fuller Community Hospital tasked its IT department with performing an analysis of its network architecture to provide a structure of physical devices and areas that require improvement to enhance and maintain a competitive edge in the health care market. The analysis revealed weaknesses in the way the Radiology department connects to a 1000 BaseF Ethernet fiber optic backbone (LAN) and the potential for enhanced use of its wireless network (WLAN). IT recommends the installation of a 24 port FO Hub for the Radiology department’s modalities and various device locations throughout the facility. The implementation will keep with the established policy used in the OR, ICU’s, and Wards. IT recommends installation of additional wireless access points to provide service to administrative and clinical practitioners who can use portable access devices like laptops, IPads, smart phones, and other devices for diagnosis and treatment of patients. Additional wireless access points will also provide Internet only access for patients and family members. Patton-Fuller Analysis of Network Systems Patton-Fuller tasked the IT department with conducting an analysis of the network systems at the hospital. According to Patton-Fuller current network architecture is built on a Bus topology with an Ethernet backbone (Apollo Group, Inc [APG], 2011, p. 1). The...
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... [pic] Shouldice Hospital has been devoted to repairing hernias for over half a century. Although the Shouldice system has led to great competitive positioning, the hospital is falling victim to its own success. Demand for Shouldice services is so much higher than its current capacity of 89 beds that it is in a constant state of operations backlog, which grows by 100 patients every 6 months. Thus, Shouldice needs to find a solution to its single most critical question – how to expand the hospital’s capacity while simultaneously maintaining quality control of service delivery. The analysis below is designed to assess the current operations at the hospital, in addition to explaining our recommendation that Shouldice should invest $4MM in a new unit, which will increase bed capacity by 50% and require its surgeons to perform Saturday surgeries. As the financial analysis shows, this change will allow Shouldice to capture unmet demand without compromising its unique system of patient and employee care. Lastly, our recommendation will be also juxtaposed to other options we evaluated as potential solutions, but that neither make financial sense nor solve the current dilemma for the hospital. Hospital Overview Shouldice Hospital is a “focused factory:” a hospital with a specific area of expertise that gives it competitive strength resulting in lower cost, higher quality service for its patients, and better pay for and loyalty from its employees. Specializing in...
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...Short name |Operating theatre performance | | |Detailed name |Efficiency of use of the operating theatre for elective and emergency surgery (inpatient| | |and outpatient). | |Short definition |Percent of usefully spend time (directly with patient) in operating theatre. | |Rationale |Justification | |(including justification, |The operating theatre (OPT) or operating room is a high cost department within | |strengths and limits) |hospitals. Considerable resources are wasted if operating room is not used effectively. | | |Effective management of operating room is paramount when operating room is a | | |“bottleneck”. By increasing use of operating room, patient flow improves and waiting | | |list can be reduced. | | | | | |Direct measure of optimal use of the capacity. Increasing surgical theatre use maybe | | |achieved by better work organization, such as better preparation by the team of | | ...
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...CHAPTER 7: COST-VOLUME-PROFIT ANALYSIS QUESTIONS 7-1 The underlying relationship in cost-volume-profit analysis is that costs, revenues, and profits all change in a predictable way as the volume of activity changes. 7-2 It is more practical to find the breakeven point in sales dollars for companies having thousands of individual items. Finding the breakeven point for each item would be laborious and meaningless. 7-3 The contribution margin ratio is: price - variable costs price The contribution margin ratio (CMR) represents the net contribution per sales dollar. The CMR tells us the change in profit associated with a given change in sales dollars. It is a useful measure of the relative contribution to profit of different products, divisions, or sales units. The use of this ratio can give a retail store a good approximation of the sales dollars necessary for the store to break even. A higher CMR is associated with higher risk. A higher CMR can have a more favorable impact on profit. However, if sales fall below breakeven, then a high CMR will yield a relatively more negative impact on profits. 7-4 The basic assumption of the CVP model is that the behavior of revenues and total costs is assumed to be linear over the relevant range of activity. Managers must be careful to remember that the calculations done within the context of a given CVP model cannot be interpreted safely outside of the relevant range of output for that particular...
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...Inventory Management ********************************************************* ACCT 434 Week 1 Quiz Activity Based Costing (Devry) FOR MORE CLASSES VISIT www.acct434tutors.com 1. Question : (TCO 1) The average cost data are for In-Sync Fixtures Company's (a retailer) only two product lines, Marblette and Italian Marble. Marblette Italian Marble Purchase volume 20,000 1,000 Purchase cost per unit $50 $250 Shipments received 12 12 Hours used per shipment * 5 3 * These data were accumulated after a careful activity analysis. Currently, In-Sync Fixtures uses a traditional costing system with indirect costs allocated using purchased cost of goods as a basis. In-Sync Fixtures is considering refining the allocation of its receiving costs of $40,000. It realizes that the Italian Marble is heavier and requires more care than the Marblette but that the Marblette comes in larger volume. Which statement can be made using the results of the activity analysis performed by In-Sync Fixtures? 2. Question : (TCO 1) The allocation of indirect costs in an activity-based costing system 3. Question : (TCO 1) Evaluating customer reaction of the trade-off of giving up some features of a product for a lower price would best fit which category of management decisions under activity-based management? 4. Question : (TCO 1) A company produces three products; if one product is overcosted then 5....
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...management of Shoudice is thinking to expand the hospital’s capacity to service unmet demand. There are two expansion options to consider, one is to add Saturday to the existing five day operation’s schedule to increase capacity by 20%; another is to increase the number of beds by 50% by adding another floor of rooms to the hospital. But another opinion within the hospital is that further expansion of capacity might make it hard to maintain current high quality of service delivered. By analyzing, calculating and comparing current situation and the proposed options, the recommendations are made as below: Add Saturday operation to existing five days schedule to increase 20% capacity in the short term. This method is simple to follow and will solve the need of increasing demand with very minimal impact on current quality of service. Within in the next five years, add additional 45 beds (increasing by 50%). This option will solve the issues with even more demand and bring considerable additional income. However, the management in the hospital needs to make proper arrangement to solve the schedule issue by either introducing night shift or adding the operating room, as well as maintain the quality of service and keep current employees’ relationship....
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...A- Revenue management is an important tool for hospitality managers, because it is the best strategy to increase room revenue and profit, its process is based on increasing the revenue by controlling the room sales, in another meaning, selling the right room to the right person at the right time for the right price. Revenue management provides the ability to forecast demand and control room availability and length of stay. Also includes strategies on controlling the labor, food and beverage and all expenses in order to meet the budget and make the profit. RevPAR or Revenue Per Available Room is a better measure of hotel's effectiveness than RevPOR (Revenue Per Occupied Room), because it is a function of both room rates and occupancy, it is also an important measurement of performance among hotel operators. Total RevPAR is the product of the occupancy and total RevPOR. When the RevPAR increases it means either the occupancy is improving or room rates are rising or both. B- Capitalizing current operating expenses on the financial statements, could be considered fraudulent, if you don't capitalize the right asset. If you capitalize current operating expense you will show a reduction in expenses, which will inflate the appearance of your net profit. It is important to capitalize a current operating expense to show in your financial statements the monthly expense. C- Profit flexing is basically a strategy that the hospitality manager uses when the revenue for the month fall behind...
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...Financial Analysis Techniques[1] Exhibit 7-9 Definitions of Commonly Used Activity Ratios |Activity Ratios |Numerator |Denominator | |Inventory turnover |Cost of goods sold |Average inventory | |Days of inventory on hand (DOH) |Number of days in period |Inventory turnover | |Receivables turnover |Revenue |Average receivables | |Days of sales outstanding (DSO) |Number of days in period |Receivables turnover | |Payables turnover |Purchases |Average trade payables | |Number of days of payables |Number of days in period |Payables turnover | |Working capital turnover |Revenue |Average working capital | |Fixed asset turnover |Revenue |Average net fixed assets | |Total asset turnover |Revenue |Average total assets ...
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...the goal of the company. My current employer is Memorial Hermann Hospital and my goal is to become a material management director of the operating room. In completing the career plan it identifies me exactly. The current job title that I hold is administrative assistant to the director of the operating room; this title carries high power in the department. As a high powered individual at Memorial Hermann Hospital the job is very demanding which is a good thing because it allows giving 101% of yourself. The hospital is a teaching organization and this atmosphere is adapted by employees. Each day staff learns new skills; this career demonstrates your skills. The salary is competitive with the rest of the hospitals in the medical center. In the operating room there is always room for advancement. Every competency is essential in becoming a director because of the support to employees, surgeons, and patients. The ethical aspect is strength because as a leader you set the stage of doing what is right. When a problem occurs leadership has to follow up with the individual is having the problem (closing the loop). Memorial Hermann Hospital is known nationwide by having breakthroughs every day, and customer values. A weakness would be the supportive competency in this category the overwhelming feeling of putting on many hats. The operating room has 13 departments within itself and has a total of 500 employees; the department has six directors, nine managers, 14 coordinators, and...
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...TextRESORT HOTEL AND GOLF COURSE MARKET ANALYSIS AND PRELIMINARY VALUE ESTIMATE COUGAR CANYON TRINIDAD, COLORADO PREPARED FOR: COLARELLI INTERNATIONAL RESORTS AND LIVING, LLC Economic & Market Research / Land & Development Planning Landscape Architecture / Community Planning & Design Golf Feasibility Analysis FINE RESORT HOTEL AND GOLF COURSE MARKET ANALYSIS AND PRELIMINARY VALUE ESTIMATE COUGAR CANYON TRINIDAD, COLORADO PREPARED FOR: COLARELLI INTERNATIONAL RESORTS AND FINE LIVING, LLC January 16, 2012 PREPARED BY: Economic & Market Research / Land & Development Planning Landscape Architecture / Community Planning & Design Golf Feasibility Analysis TABLE OF CONTENTS Page Executive Summary ............................................................................................................. i I. Introduction ............................................................................................................ 1 II. Cougar Canyon Site Description ................................................................................ 4 III. Hotel Market Analysis A. B. C. D. IV. National and Regional Trends ....................................................................... 26 Tourism and Visitation 1. General Visitation Trends. ........................................................................ 28 2. Visitor Expenditures. .......................................................................
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...Microsoft trying to forward its own product through its operating system, might change the figures in the future. Threat of Entry: Medium-high * New search providers might concentrate on localized search and succeed into getting a niche in that area, however when it comes to global search there is a high entry barrier due to the large scale of information and infrastructure already acquired by the biggest companies. Rivalry between Established Competitors: Medium * Currently the four biggest search engines are Google, Microsoft’s Bing, Yahoo, and AOL. However, Google has the largest piece of the market and seems to be ahead of the others with Bing being on the rise and the rest three very close to each other. Smaller ones such as Altavista, Lycos and Excite do not seem to pose a direct threat to any of the biggest four. Bargaining Power of Buyers: Low * Advertisers recognize that the biggest providers together concentrate the largest number of searches, around 95% of the total. Therefore there is no room for negotiating advertisement prices. Also, even if a few users change search engine, it is unlikely to have any effect. Bargaining power of Suppliers: Low * The essence behind the search engines is their computer infrastructure. The biggest companies have such wealth that they can keep acquiring as much infrastructure as they want. Sources http://valuationacademy.com/porters-five-forces-in-action-sample-analysis-of-coca-cola/ http://www.smartinsights.com/mar...
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...ScholarsArchive@JWU MBA Student Scholarship The Alan Shawn Feinstein Graduate School 2-9-2012 Analysis of the Real Estate Investment Trust (REIT) Industry Frederic Juillet Johnson & Wales University - Providence, fredjuillet@gmail.com Follow this and additional works at: http://scholarsarchive.jwu.edu/mba_student Part of the Accounting Commons, Business Administration, Management, and Operations Commons, Business and Corporate Communications Commons, Finance and Financial Management Commons, Marketing Commons, Real Estate Commons, and the Strategic Management Policy Commons Repository Citation Juillet, Frederic, "Analysis of the Real Estate Investment Trust (REIT) Industry" (2012). MBA Student Scholarship. Paper 6. http://scholarsarchive.jwu.edu/mba_student/6 This Research Paper is brought to you for free and open access by the The Alan Shawn Feinstein Graduate School at ScholarsArchive@JWU. It has been accepted for inclusion in MBA Student Scholarship by an authorized administrator of ScholarsArchive@JWU. For more information, please contact egearing@jwu.edu. G Feinstein Graduate School Analysis of the Real Estate Investment Trust (REIT) Industry An industry Analysis Submitted in Partial Fulfillment of the Requirements for the MBA Degree Course: MGMT 6800 Instructor, Gary Gray Ph.D Faculty Advisor, Martin Sivula, Ph.D. Frédéric Juillet February 9, 2012 INDUSTRY ANALYSIS Executive Summary In 2009, most REITs opted for the recapitalization of their balance...
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