Premium Essay

Pinnacle Manufacturing Case Study

Submitted By
Words 439
Pages 2
While having the above calculations will provide GMT with a quantitative evaluation of the investments, GMT should also take into account other non-financial factors which will provide a qualitative evaluation of the investment.
Combining both quantitative and qualitative evaluations will allow for a more holistic appraisal of investments.
Here are some examples of non-financial factors that should be taken into consideration.
State of economy
Depending on the jurisdiction where the plant will be operating, the state of the economy will vary. Aside from the current state, GMT should also consider the project economic status for the expected lifetime of the project.
Regulatory environment
Given that the projects involve purchasing a new plant, …show more content…
How much training and time will it take for ground level staff to learn how to operate the new plant? How long more will the staff be expected to be productive after the training? This is based on the assumption that the new technology that comes with the plant requires some manual operation by humans. On the reverse side, does the plant bring in new technology that will render any employees redundant? If so, what is the plan for these employees? Depending on the jurisdiction, GMT will have to consider applicable employment law, monetary compensation (i.e. severance) and the cost of their public image should they should to choose terminate the group employees that were made redundant as a result of the new plant. While it is important to measure the immediate profitability of an investment based purely on calculations, it is equally as important to take into the account the non-financial aspects. As illustrated in the examples above, these factors are not immediately tangible but can potentially become a tangible issue and affecting the overall profitability of an investment. By evaluating an investment holistically, GMT will then able to get a better picture of the cost versus benefit of an

Similar Documents

Premium Essay

Case Application Pinnacle Manufacturing

...Pinnacle Manufacturing Solution Manual If you are looking for a ebook Pinnacle manufacturing solution manual gxukzaf in pdf format then you've come to the right website. We presented the full version of this ebook in pdf and epub formats. You can read Pinnacle manufacturing solution manual online gxukzaf or download to your computer. In addition to this ebook, on our site you can read the instructions and other art books online, or download them as well. We want to draw your attention that our site does not store the book itself, but we give link to the site where you can download or read online. So if you need to download Pinnacle manufacturing solution manual pdf gxukzaf then you've come to the right website. We have Pinnacle manufacturing solution manual epub, pdf and kindle formats. We will be happy if you come back to us again. Auditing pinnacle case answers - free eBooks Auditing pinnacle case answers download on Caa2011-2.org free books and manuals search Banbury Impex Case Study http://www.caa2011-2.org/auditing-pinnacle-case-answers/ Pinnacle manufacturing auditing case solution Pinnacle manufacturing auditing case solution download on iubmb-2013-3.org free books and manuals search - CHAPTER 8 8 40 PINNACLE MANUFACTURING SOLUTION http://www.iubmb-2013-3.org/pinnacle-manufacturing-auditing-case-solution/ Pinnacle manufacturing case solution - free Pinnacle manufacturing case solution download on iubmb-2013-3.org free books and manuals search - TIVO HARVARD CASE SOLUTION...

Words: 940 - Pages: 4

Premium Essay

Integrated Case Application Part 2

...Pinnacle Manufacturing: A Case Study Auditing 444 Course Project Professor Ranauto August 4, 2013 Pinnacle Manufacturing: A Case Study Part 2. Section A. External users’ reliance on financial statements. * Situation 6.: Raising debt to finance a manufacturing plant for Solar-Electro. * Situation 11.: An intercompany loan to Solar-Electro from Welburn skews the financial statements. Likelihood of financial difficulties. * Situation 1.: Solar-Electro may not have the experience, knowledge, and regulations necessary to succeed in their industry. * Situation 5.; Auto-Electro comprises a significant portion of Pinnacle’s accounts receivable and have not recently made payments. * Situation 6.: Raising debt for construction may strain Solar-Electro’s cash flows, as well as Pinnacle’s. * Situation 9.: Pinnacle is required to keep its current ratio above 2.0, but it is only at 1.75 and has been declining over the last three years. * Situation 10.: Pinnacle has a dispute with the IRS. Management integrity. * Situation 7.: A Pinnacle vice president owns Todd-Machinery who provides services to Pinnacle. * Situation 8.: Increased turnover amongst higher-level auditing staff. * Situation 10.: Pinnacle’s dispute with the IRS. * Situation 11.: The intercompany loan to Solar-Electro from Welburn. Section B. Pinnacle’s acceptable audit risk is medium. The main reason for giving this audit risk a medium is because of the...

Words: 336 - Pages: 2

Free Essay

Case Study of Pinnacle Machine Tool .Co

...Case for critical analysis: Pinnacle Machine Tool Co. Introduction Pinnacle Machine Tool Co., it is a small, publicly held Indiana-based machine tool Company, it was founded in 1976. This company specializes in manufacturing all kind of machine centres. They too have excellent experiences in Technology, Quality and Service (Pinnacle Machine Tool Co. Ltd.). Problem Statement How is Pinnacle going to avoid its company to fall off the market? Is entering a new market the only solution to defend itself from rival companies to take over the market or company? Don Anglos mentions in the case that the current situation of the Pinnacle shows that it is facing an increasing amount of rivalry with foreign manufacturers. Anglos managed to slightly increase Pinnacle’s revenue growth and market share however it came with a price which is a drop in profitability. This issue can lead to the loss of the business, this is causing Anglos to make a change as there is a credible rumour of Pinnacle’s chief competitor’s plan to take over the company Porter’s Five Forces Analysis: Economies of Scale Brand Identity Proprietary Product Access to Distribution Economies of Scale Brand Identity Proprietary Product Access to Distribution Diversity of competitors Industry Growth Brand Identity Product & service Differences Exit Barriers Diversity of competitors Industry Growth Brand Identity Product & service Differences Exit Barriers Buyers might tend to...

Words: 1741 - Pages: 7

Premium Essay

Integrated Case Application

...Parts III, V, and VI of this case study dealt with obtaining an understanding of internal control and assessing control risk for transactions affecting accounts payable of Pinnacle Manufacturing. In Part VII, you will design analytical procedures and design and perform tests of details of balances for accounts payable. Assume that your understanding of internal controls over acquisitions and cash disbursements and the related tests of controls and substantive tests of transactions support an assessment of a low control risk. The listing of the 519 accounts making up the accounts payable balance of $12,969,686 at December 31, 2011 is included under the Pinnacle link on the textbook Web site. Required a. List those relationships, ratios, and trends that you believe will provide useful information about the overall reasonableness of accounts payable. You should consider income statement accounts that affect accounts payable in selecting the analytical procedures. b. Study Table 19-5 (p. 647) containing balance-related audit objectives and tests of details of balances for accounts payable to be sure you understand each procedure and its purpose. Prepare an audit program for accounts payable in a performance format, using the audit procedures in Table 19-5. The format of the audit program should be similar to Table 16-5 (p. 541). Be sure to include a sample size for each procedure. c. Assume for requirement b that (1) assessed control risk had been high rather than low for...

Words: 551 - Pages: 3

Premium Essay

Harley Davidson

...Harley-Davidson maintains a large margin in its dominance in the U.S. Heavyweight Motorcycle market as compared to its major competitors. While the United States is HOG's most important market, the company sells motorcycles in many other markets worldwide. Harley-Davidson owns one of the strongest brands in the world, which helps it attract and retain a loyal customer base. The company established a strong brand image with its motorcycles achieving iconic status and being ranked among the world’s most valuable brands. Harley-Davidson’s motorcycles are known for their traditional styling, design simplicity, durability and quality which are why customers deem HD’s premium price to be “acceptable or reasonable”. The Harley-Davidson brand has significantly contributed to the success of the company by building strong market recognition and a loyal customer base. * Long Term Risk Overall Harley Davidson is a strong company with excellent margins and constantly growing revenues. The main concern for Harley is whether or not they can sustain their growth in the face of improvements in their competitors’ products and a maturing market. One major trend facing Harley Davidson is that average age of a Harley Davidson is getting higher, meaning the company is not as successful now as it has been in the past at attracting new and younger riders. This is also evidenced by the slightly weaker sales in less powerful entry level bikes. Many of HD’s competitors are more diversified...

Words: 1367 - Pages: 6

Premium Essay

Boeing

...Case Study: Boeing 42 The long list of Boeing's woes seems to have reached its pinnacle in late 2003 with the scandal surrounding the Pentagon deal that alleged inappropriate behavior and the loss of documents by Boeing officials. After his seven-year reign at the head of the organization, December 2003 saw the eventual resignation of Phil Condit. Many breathed a sigh of relief at the news. The problems at Boeing were reportedly endless. From a stock price that had decreased by 6.5 percent while the company was under his leadership to increasing competitive pressures, the future for Boeing was in doubt and changes were needed. For many years Boeing graced American corporate news for their prowess as the leading manufacturer of aircraft. However, in 1994 Airbus—their main rival—booked more orders. This shocked the management executives and began a series of changes that were implemented to overcome the bureaucratic structure, outdated technological systems, and unnecessary processes in a company that had reportedly changed little since World War II. THE BEGINNING OF CHANGE AT BOEING In 1997 market demand increased dramatically and Boeing attempted to meet this surplus of orders by doubling their production capabilities instantaneously. A manufacturing crisis ensued and Boeing's reputation took a dramatic turn for the worse when they were required to halt production of the 747 aircraft for 20 days. The company had “stubbed its toe,” according to the then-president of the Commercial...

Words: 1159 - Pages: 5

Premium Essay

Marketing and Value : Havaianas and Dukky

...ASSESSED WORKING PROJECT HAVAIANAS & DUKKY(Chick-Fil-A) Marketing and Value 2010 Marketing Action 1: Havaianas Campaign History The history of Havaianas started in the earliest 20's, when Scotsman Robert Fraser arrived in Brazil and began manufacturing flip flops based on the traditional zori sandals, a Japanese product. At that time, sandals were very different. It was only in 1958 that Havaianas that we know today were designed with rubber. That was the birth of the trademark Havaianas (1962) In the 1960s, Havaianas were sold at small, neighbourhood stores for a low price, displayed between house cleaning products and were purchased exclusively by the lower classes. That kind of product exposition and public turned Havaianas known as “chinelos de pobre” (poor man’s flip flops). The style of the product wasn’t elaborated. The model was basic and it was available only in a limited range of colours (4 colours), even though the products were strong, durable, comfortable and cheap. And that was what made Havaianas so popular in Brazil. Indeed, one year after had been launched more than 13,000 pairs were produced every day The success made raise the interest of other companies and imitations of Havaianas began to appear in the 70’s. To respond to this movement, the company launched a campaign called “Havaianas: As Legítimas” (Havaianas: the Legitimate Ones) embodied by a famous Brazilian humorist, Chico Anysio. It was in 1988 that sales started to decline, going...

Words: 2910 - Pages: 12

Free Essay

Elites – the Gen Y Transformers

...ELITES – THE GEN Y TRANSFORMERS Nature abhors vacuum, and so do homo-sapiens. The latter, in its unrelenting quest, goes a step further and evolves to improvise, adapt and overcome. Given the nature of how non-conformist descended from the same ancestor, we’re all the same; and yet we’re so different. At the very outset, the elite, since time immemorial, has enjoyed a stellar reputation by virtue of their elevated status, which was, is and continues to be shaped by their social status; political background; cultural hegemony and/or economical might. There is no doubt in mentioning that the elite has toiled hard, slogged painstakingly and worked tirelessly to mount on the pinnacle in every walk of life. However, the existential question still looms large; to what extent the ‘elite’ has contributed and is contributing in the national and global discourse. The answer may well be fraught with complications, and full of labyrinth cross-questions, but this is what this essay seeks to do. I live in India, a developing economy whose population is over 1.2 billion. Though it is the seventh largest country in terms of area it houses the maximum number of people second to China. If we are optimistic, then in one way we have the second largest manpower in the world and we can use it to do wonders. Infact the steady progress which India has been doing in the past has made the developed nations be wary and cautious of India’s achievements. But, on the contrary, if we look at the real...

Words: 1722 - Pages: 7

Premium Essay

Justin

...Solectron Supply Chain Management Best Practice Background Solectron was founded in 1977 as the as the “Solar Energy Company”, and originally produced solar energy products. Today it is a worldwide provider of electronics manufacturing services to original equipment manufacturers (OEM’s). The company provides customized, integrated manufacturing services that span all three stages of the product life cycle, including pre-manufacturing, manufacturing, and post-manufacturing (see Table 1). These servies are now integrated to the point where Solectron is now responsible for all supply chain processes associated with sourcing parts, building, and distribution of electronics and systems for almost every major OEM customer in the industry. A list of primary OEM customers is shown in Table 2, which spans the telecommunication, networking, computer systems, peripherals, semiconductors, consumer electronics, industrial equipment, medical electronics, avionics, and automotive electronics industries. These industries are in different stages of maturity, with network manufacturers fairly new, and computer systems fairly mature. The diversity of major customers in this list is testimony to their success. In 1991, Solectron won the Malcolm Baldrige National Quality Award, reflecting the high level of performance achieved within this company. The company has also been honored with more than 100 recognition awards, 25 of which were received this year (see Table 3). The...

Words: 3634 - Pages: 15

Premium Essay

Selection Case Paper

...Solectron Supply Chain Management Best Practice Background Solectron was founded in 1977 as the as the “Solar Energy Company”, and originally produced solar energy products. Today it is a worldwide provider of electronics manufacturing services to original equipment manufacturers (OEM’s). The company provides customized, integrated manufacturing services that span all three stages of the product life cycle, including pre-manufacturing, manufacturing, and post-manufacturing (see Table 1). These servies are now integrated to the point where Solectron is now responsible for all supply chain processes associated with sourcing parts, building, and distribution of electronics and systems for almost every major OEM customer in the industry. A list of primary OEM customers is shown in Table 2, which spans the telecommunication, networking, computer systems, peripherals, semiconductors, consumer electronics, industrial equipment, medical electronics, avionics, and automotive electronics industries. These industries are in different stages of maturity, with network manufacturers fairly new, and computer systems fairly mature. The diversity of major customers in this list is testimony to their success. In 1991, Solectron won the Malcolm Baldrige National Quality Award, reflecting the high level of performance achieved within this company. The company has also been honored with more than 100 recognition awards, 25 of which were received this year (see Table 3). The...

Words: 3634 - Pages: 15

Premium Essay

Information Technology Term Paper

... Table of Contents Business System Planning (Week 1) Introduction 4 Identify how the following critical success factors will be addressed by case study 5 Governance 5 Business plan alignment 6 Process improvement 6 Resource optimization 6 Operating excellence 7 Identify how the following critical success factors will be addressed by case study 7 Business management issues 7 Strategic and competitive issues 7 Planning and implementation concerns 8 Operational items 8 Identify how the variables defined by Strassmann's Model will be measured 8 Efficiency 8 Effectiveness 8 Competitivness 8 Profitability 8 Strategic Information Systems Assessment (Week 2) Create an analysis of strengths, weaknesses, opportunities and threats for case study 9 Case study continued 9 SWOT analysis of case study 10 SWOT analysis continued 11 12 13 Create an assessment of the forces that are presently governing competition for case study 14 Using Wiseman’s Framework of Strategy Development define the strategic thrusts and advantages 15 Information Systems Business Case (Week 3) Critical success factors for IT Manager 16 Continued. 17 General stratgy for IT goals and objectives of the case study. 18 General strategy on how IT department will support the goals and objectives of the case study 19 Information Technology Strategy Statement (Week 4) Business aspects 20 Technical issues 21 Organizational concerns. 21 Financial Matters...

Words: 6788 - Pages: 28

Premium Essay

Coca Cola Case Study Analysis

...Coca-Cola Company Case Study GB 518 Financial Accounting Principles and Analysis Kaplan University SUMMARY Accounting is an important aspect of business because it is the foundation that offers support to management for planning, and controlling activities as well as decisions. When an organization is doing business they need a way to keep score of operational financial activities. The purpose of my research paper is to discuss the details of my interview with an accountant at Coca-Cola Company, Atlanta headquarters. Mr. Joe Angus has worked with the company for twelve years and sat down with me for a 25 minutes interview in his office to eagerly share the accounting practices of the company, and the operating activities within the business that generates revenue and move the business forward. Company Overview The Coca-Cola Company is the largest beverage company in the world that provides consumers with more than 500 sparkling and still brands of refreshing drinks. While Coca-Cola is the most valued brand in the company’s portfolio, it features 15 billion dollar brands including Diet Coke, Fanta, Sprite, Coca-Cola Zero, vitamin water, PowerAde, Minute Maid, Simply, Georgia and Del Valle. Globally, Coca-Cola Company is the number one provider of sparkling beverages, ready-to-drink coffees, juices, and juice drinks. Throughout the world’s largest beverage distribution system, consumers in more than 200 countries enjoy Coca-Cola Company beverages at a rate of more...

Words: 1791 - Pages: 8

Premium Essay

Apple, World's Most Valuable Company

...Apple has toppled Google as the world's most valuable brand Marketing Management – Assignment Case Study Report  CONTENTS CASE DESCRIPTION ...................................................................................................................................... - 3 INTRODUCTION ............................................................................................................................................. - 4 HISTORY .......................................................................................................................................................... - 5 CREDIBILITY CHECK .................................................................................................................................... - 6 HOW APPLE ACHIEVED IT? ......................................................................................................................... - 7 Constantly Improving Products ..................................................................................................................... - 7 Creating New Products .................................................................................................................................. - 7 High Margins ................................................................................................................................................. - 8 Distribution .....................................................................................................

Words: 3428 - Pages: 14

Premium Essay

Mis of Hero Motocorp

...MIS IMPLEMENTATION IN HERO MOTOCORP. MIS IMPLEMENTATION IN HERO MOTOCORP. Introduction to Company Hero Motocorp Ltd., erstwhile known as Hero Honda Motors Ltd., is a two wheeler manufacturing firm based in New Delhi, India. In terms of sales volume, it moved to the top position as the largest manufacturer of two wheeler in the world in the year 2001. The company has successfully managed to maintain this position ever since. Forbes magazine, in 2006, has placed the company in 108th position in the list of 200 Most Respected companies. The company was incorporated as Hero Honda Motors Ltd. in the year 1984, as a joint venture between Hero Cycles Ltd. of India and Honda Motor Co., Ltd. of Japan. The Munjal brothers led Hero Group and Honda Motor Co. Ltd. each owned a stake of 26% in the company. Honda moved out of the venture in 2010 and shares held by it were bought by Hero Group. In July, 2011, the company was rechristened as Hero MotoCorp and it embraced a new logo. 18 months after the split with Honda Motors, the company approved the proposal of merging the investment arm of its parent company, Hero Investment Pvt. Ltd. Glimpse to the past: The 1980s saw the introduction of Hero Honda Motorcycles in the country that gained widespread acceptance with the average Indian motorcycle rider due to the low cost and fuel efficiency of the motorcycles. The company grew in double digits in terms of sales ever since its formation and occupied the top slot of two wheeler manufacturer...

Words: 3405 - Pages: 14

Premium Essay

Major Obstacles to India’s Growth

...________ 5 ~ Q1 - Infrastructure Shortages effects ~ __________________ 6 ~ Key Initiatives / Information ~ _________________________ 6 ~ Q-2 - Large Fiscal Deficit ~ ___________________________ 10 ~ The Indian scenario ~ _______________________________ 12 ~ Bibliography ~ _____________________________________ 16 3 ~Objectives of this project~ India s economy has grown very rapidly in recent years. Since 1991 it has been among the top 10% of the world s countries in terms of economic growth. The primary challenge for India is to sustain this growth while spreading its benefits more widely. This requires continuous effort as international experience shows that growth slows down unless reforms are pushed through when growth is high. To study major obstacles to India s growth are: 1. 2. 3. 4. Infrastructure Shortages Large Fiscal Deficit Restrictive Labor Regulations Unreformed Financial Sector 4 Brief detail about factor effecting India s growth We will concentrate and explain first two major factor or points and...

Words: 3086 - Pages: 13