...strategies. Siegel (2014, p. 17) defines it as a typical method of funding, which does not necessarily require active management[1] (Siegel 2014, p. 17). Thus, it is a progressed measure that helps investors determine returns, possible loss, and making wise investment decisions. Evidence supporting the use of smart beta Various firms are incorporating smart beta strategies in the investment of capitalization of assets, and stock. Holton (2002) contrast this move by arguing that capital investment in stocks should be keenly evaluated with the possible risks to help determine a smart alpha investment strategy. According to him, a well performing firm uses smart alpha as its investment strategy, bearing in mind its long run profitability as compared to smart beta strategies. For instance, the smart alpha strategy analyses the risks prone to certain capitalization investment and develops a strategy that would conform to such risk and benefit at the same time. Positive outcome relating to these forms of strategic investments is only determined by keen analysis of market inefficiencies and making use of the vulnerability to gain. This makes Stanyer (2014) to argue that although most investors have been using smart beta to measure their investment portfolios, it is more risk averse than smart alpha. He justifies this using the recent use of smart alpha by most firms to realize and analyse smart beta for their successful investment gains (Stanyer 2014). Superior performance of smart...
Words: 930 - Pages: 4
...Taunton Construction Inc.'s capital situation is described as follows: Debt: The firm issued 10,000 25-year bonds10 years ago at their par value of $1,000. The bonds carry a coupon rate of 14% and are now selling to yield 10%. Preferred Stock: 30,000 shares of preferred stock were sold six years ago at a par value of $50. The shares pay a dividend of $6 per year. Similar preferred issues are now yielding 9%. Equity: Taunton was initially financed by selling 2 million shares of common stock at $12. Accumulated retained earnings are now $5 million. The stock is currently selling at $13.25. Taunton's Target Capital Structure is as follows: Debt 30.0% Preferred Stock 5.0% Common Equity 65.0% 100.0% Other information: * Taunton's marginal tax rate (state and federal) is 40%. * Flotation costs average 12% for common and preferred stock. * Short-term treasury bills currently yield 7.5%. * The market is returning 12.5%. * Taunton's beta is 1.2. * The firm is expected to grow at 6% indefinitely. * The last annual dividend paid was $1.00 per share. * Taunton expects to earn $5 million next year. * The firm can borrow an additional $2 million at rates similar to the market return on its old debt. Beyond that lenders are expected to demand returns in the neighborhood of 14%. * Taunton has the following capital budgeting projects under consideration in the coming year. These represent its investment...
Words: 2526 - Pages: 11
...INTROCUCTION Cashing in on the increasing demand for quality healthcare, Kolkata-based BP Poddar Group having interests in real estate, textiles, mining, technical education and media is setting up a 200-bed mutlispeciality hospital in the southern part of the city. To be set up at a cost of Rs 50 crores, the hospital will be completed in three phases. The first phase is likely to become operational without the oncology department within the next couple of months. Said Debashish Poddar, managing director, BP Poddar Hospital & Medical Research Limited, "It will not be a so called state-of-the-art hospital but a hospital, which will ensure healthcare deliver of international standards within the affordable limits of the common man. The hospital is the culmination of the dream of Arun Poddar, Chairman of the Group and his family to perpetuate the memory of his father Late BP Poddar, he added. Despite being a multispeciality unit, the focus area of the hospital will be oncology. All possible imaging facilities will be provided at the hospital. The management has applied for necessary regulatory clearances from Bhaba Atomic Research Centre (BARC) to start radiation therapy for treatment of cancer. According to Dr Subrata Das, medical director, BP Poddar Hospital & Medical Research Limited, "With a few dedicated hospitals in the region dedicated to oncology, the proposed hospital will take care of all the needs of the cancer patients. We are in the process of installing the...
Words: 5447 - Pages: 22
...ABSTRACT In this paper “The real strategies in shoe manufacturing” we take a look at the reality of a Mexican industry dedicated to shoe manufacturing, with the intention of showing the lack of professional techniques that take place not only in the company studied, which affect the efficiency of the business. THE REAL STRATEGIES IN SHOE MANUFACTURING Nowadays there are many different approaches and methodologies that can be used for industrial systems’ optimization and analysis. Among these techniques are the ones for production and inventory management and industrial plant distribution, which are mainly used for reducing the company’s cost. According to APICS Dictionary, production management consists of “planning, scheduling, executing and controlling the process of converting inputs into finished goods.” In addition APICS Dictionary defines inventory as “those stocks or items used to support production (raw materials and work-in-process items), supporting activities (maintenance, repair, and operating supplies), and customer service (finished goods and spare parts).” (2) For many businesses it is very important to maintain certain number of goods in inventory because their capacity it is not enough to fulfill clients’ orders. Each product in inventory represents money, an investment tied up until finished products are delivered to clients. It is important to select the best techniques depending on the type of industry and the goals of the company. ZEBRA...
Words: 1794 - Pages: 8
...Starbucks’ core competencies are found, and on elaborated. Those competencies are researched in the competitive set with the main competitors of Starbucks’ as well, via basic benchmarking there has been determined where Starbucks is within the market. Table of Contents Introduction 4 Core competencies 5 Key competitors 9 Competitive advantages 11 Communication within organization 12 Competency - strategy matrix 13 Conclusion and recommendations 14 Bibliography 15 Appendices 19 Appendix 1: Value chain analysis 19 Appendix 2: SWOT analysis 22 Appendix 3: Functional analysis 25 Appendix 4: VRIO analysis 26 Introduction The purpose of this paper is to analyze both Starbucks’ strategies and core competencies, and use this analysis to assess the degree of synergy between the two. First, the core competencies of Starbucks, specified to the US, are identified and presented with the use of a value chain analysis, SWOT analysis and functional analysis. Secondly, its competitive set will be presented. Key competitors will be identified using basic benchmarking, and Starbucks’ place in the competitive set is described. Next will be described how the core competencies provide a competitive advantage, using the VRIO...
Words: 6083 - Pages: 25
...world’s biggest beef exporters and has relied heavily on Indonesian demand, but the tightening of quotas by what was its largest live cattle market in 2012 and 2013 hurt the industry. Indonesia cut its 2012 import quotas for live cattle more than a third and for beef nearly two-thirds, while 2013 quotas were cut another 30 percent for cattle and 6 percent for beef, as Jakarta sought to promote its domestic beef market. Australian beef cattle prices have recovered slightly in the past week, with the Eastern Young Cattle Indicator, a benchmark, rising 2 cents Monday to 2.96 Australian dollars, or $2.86, per kilogram, or 2.2 pounds, although prices remain 20 percent lower than a year ago. ―Today’s decision means that those farmers that have stock available — there is an opportunity to get them on the boat,‖ said Alison Penfold, chief executive of Australia’s Live Export Council. Indonesia’s quotas on beef imports are aimed at building up its domestic beef industry, but the policy has created shortages and rising prices. ―These measures are taken to stabilize beef price in the domestic market so that people can afford beef for...
Words: 1969 - Pages: 8
...TRX Inc. (Home Assignment). The Financial Analysts Melissa Gottschall, Jillian Marchand, Scott Duggan, Cary Konopka, Blair MacLaughlin, Jake Baker 1) In general, what attributes make a company a good candidate for an IPO? - Good Business History and Background: Investors will forecast future earnings off of the historical background of the company. It will also show that your company is stable. Many investors will be looking to hold the stock long-term, so if investors trust the background of the company, more people will be willing to invest. - Experienced Management: Good management can ensure that the company will make decisions that are best for the company and to ensure profitability. Also, good management is the basis for growth and performance. Strong management will creates a good public image. - Profitability: A profitable company tells investors that they will actually get a return on their investment. It also shows potential for growth, which can lead to dividends for investors. - Growing Industry: A company can’t grow in a shrinking industry. In a growing industry, the company has better potential to capture a larger portion of market share. - Growing Company: More is better. Investors will reach their maximum utility with a growing company. The objective is to maximize shareholder wealth. A growing company has the best chance of reaching this goal. 2) How does TRX compare on these dimensions? - Good Business History and Background: This...
Words: 1627 - Pages: 7
...Strategic Analysis Name I. Introduction A) History Anadarko Petroleum Corporation is an American based organization, which is recorded as the world largest natural gas and oil exploration and Production Company. The industry was formed in 1959 as a pipeline company and continued to flourish in business until it became an oil production company in 1986. It continuously followed the trend of success up to date. It operates in southern United States, Rocky Mountains region, and Appalachian basin. Further, it is a premier deepwater producer in Mexico, and production in Algeria, Ghana, Alaska, West Africa and some parts of east Africa. According to the 2012 financial report, Anadarko delivered sales of 268 million BOE, which was an increase of 8% from 2011. By the end of 2012, the company had a reserve of 2.56 billion barrels of oil. The company is committed to safe production energy in a way that protects the environment, public health and the communities (Anadarko Petroleum Corporation, 2013). Anadarko was created in 1959 as a wholly owned subsidiary of Panhandle Eastern Pipe Line Company after the discovery of large amounts of natural gas in the Anadarko Basin, thus the company's name. Anadarko spun off from Panhandle Eastern as an independent corporation in 1986 and now has activities in more than a dozen countries. Anadarko’s NAICS code is 211111 and SIC code is 131101. Their stock symbol is...
Words: 1536 - Pages: 7
...Background In 1989, Sebastian Spering Kresge opened Kmart, a five-and-dime store in Detroit. The low prices appealed to shoppers and he was able to open 85 more stores in 1912. By 1927, the Kresge Company started opening locations that sold items for $1 or less. Ten years later, he opened a store in a shopping center in Kansas City, Missouri (Sears Holdings, History). In 1968, Kmart begin to air television commercials to entice shoppers to the stores. Harry B. Cunningham became president in 1959, and developed a new strategy for the organization. While Cunningham was president, Kmart opened their first discount department store in 1962 in Garden City, Michigan; that same year seventeen more stores were opened. In 1976, Kmart made history by opening 271 stores in one year. In 1977, the company changed its name to Kmart Corporation. In order to fully focus on discount merchandising, Kmart sold the remaining Kresge stores (Sears Holdings, History). In 1990, Kmart took on a new logo and a new plan. As part of the plan, Kmart opened the first Kmart Supercenter in Medina, Ohio in 1991. Kmart was totally redesigned in 1996 and became known as Big Kmart. In 1999, Kmart launched a Internet presence, BlueLight.com; it offered free internet services (Sears Holdings, History). In 2002, the company filed Chapter 11 in the US Bankruptcy Court. Julian Day was promoted to CEO in January of 2003. Under his leadership, the company emerged from the Chapter 11 reorganization process (Sears...
Words: 7396 - Pages: 30
...|Managing Information Technology | |Pak ‘n’ save as a company focuses on “cut-prices” and mainly competes on Cost Leadership. They have a large variety of products available in wide | |range of brands and prices. It has also been rated as the cheapest supermarkets in surveys in most parts of New Zealand including Auckland. Their | |unique marketing strategies give them an edge over the other competitors. Going forward we will give a detailed insight on the core competencies of | |the company that helps them to stay ahead from the competitors and also the areas to be improved using Michael Porter’s Five Forces Model | |Pak ‘n’ save as a company focuses on “cut-prices” and mainly competes on Cost Leadership. They have a large variety of products available in wide | |range of brands and prices. It has also been rated as the cheapest supermarkets in surveys in most parts of New Zealand including Auckland. Their | |unique marketing strategies give them an edge over the other competitors. Going forward we will give a detailed insight on the core competencies of | |the company that helps them to stay ahead from the competitors and also the areas to be improved using Michael Porter’s Five Forces Model. | |Prepared by: ...
Words: 4195 - Pages: 17
...Started: January 2016 Date completed: Objective of the Study The general objective of the study is to develop a computerized inventory system that will make the owners inventory system easier and comfortable for the benefits of the company. And to identify a minimum stock level to keep detailed records with a good inventory system. Scope and Limitation The Computerized Inventory System provides a good quality system that can organize the food inventory system easier than manual of the system. The Inventory keeper of the company can handle the security of their inventory using the system provides. The system we provided is limited because it only keeps or stores the inventory record. Easily deletes the data in the system. The other limitation is that an employee might enter data incorrectly, introducing inaccurate information that can compromise decision-making. Output of the study A computerized inventory system can manage the stocks of their inventory if it is low count or a big count of food supply. The system can be also use for keeping the previous data of the food inventory. Stores the food stocks and manage inadequate and volume of the supply. Keep track of how often you sell your inventory in its entirety, or its financial equivalent. The program is offline. Computerized Inventory System Submitted by: Bautista,Jan Royette L. Calim,Michelle Lumbang,Matt...
Words: 4399 - Pages: 18
...Introduction: The company Fantastic furniture is Australian operated company which is the branch for the Fantastic holding limited established with a motto to provide every Australian household and the offices with the furniture that suits different budget levels. Module 1 Q. Identify the mission and the major goals of the company. Fantastic furniture being the part of the fantastic holding limited (FHL) and serving people with the cheap deals and offering the low prices over the furniture range is renowned for its best value of money furniture in Australia. The company aims to provide its customers with the variation in the range of sofas, entertainment, bedroom, storage, dining and many more range of the office furniture at daily affordable prices. The company is given a name phrase of “the package deal king”. The company offers the consumers with the different furniture packages to suit a range of different budgets and styles. The organization convey a mission that make each day phenomenal, with furniture to suit each financial plan and style its simple to make a home you adore. The company is claimed as the Australia’s best value furniture and bedding with its extensive range available (FHL and Fantastic Furniture websites). Q. Who is the CEO of the company? Evaluate the CEO’s leadership capabilities. On 1st August 2014, Ms. Debra Singh was placed as the new CEO of Fantastic furniture under the fantastic holding limited (FHL 2014). She is the former...
Words: 3258 - Pages: 14
...British Journal of Management, Vol. 9, 91-114 (1998) Attributes of Successful and Unsuccessful Acquisitions of US Firms^ Michael Hitt,* Jeffrey Harrison,^ R. Duane Ireland* arid Aleta Best§ *Lowry Mays College of Business Administration, Texas A&M University, College Station, TX 77843-4221, •College of Business Administration, University of Central Florida, Orlando, FL 32816, 'Hankamer School of Business, Baylor University, Waco, TX 76798-8004, and ^College of Business and Industry, University of Massachusetts Dartmouth, North Dartmouth, MA 02747, USA Acquisitive growth strategies continue to be popular, in spite of increasing evidence that they often do not enhance the financial performance of acquiring firms and may adversely affect innovation. However, some acquisitions are associated with both increases in financial performance and a strengthened commitment to R&D while others experience decreases in both. Multiple theories have been offered to explain acquisitions and their outcomes, but few have received strong empirical support. This paper describes a multiple rater, multiple-case study of acquisitions that had highly favourable outcomes and others that experienced highly unfavourable outcomes. All twelve of the high performing acquisitions studied were found to exhibit the dual characteristics offiriendlinessduring acquisition negotiations and resource complementarities between the two firms. Additionally, debt played an important role in the success (low...
Words: 16389 - Pages: 66
...Sprint Performance Management System Douglas Tennyson Excelsior College Abstract Every company needs to have a performance management system in place to build employees into what the company desires from them, to help them retain the best employees and to assist with active communication. Sprint seems to have a performance management system today that is much better than it was previously and this paper will explore the current performance management system and compare it to the old one and also make recommendations as to what Sprint can do to improve their current system. Sprint is a telecommunications company that specializes in mobile devices and mobile service. They currently hold fourth place in the mobile provider market being overtaken by T-mobile in 2015 according to a report on RCwireless.com with Verizon and AT&T maintaining a firm grip at the top of the market share. "The report found that "no major shifts in market share among the major four carriers" between now and 2020" (Kinney, S. (2015). One of Sprint's bigger problems was their employee turnover rate; they were losing employees faster than they were getting new ones. This would be a problem for any company, but especially for a company that is in the cutthroat business of cell phones and service. Trying to grow and take more of the market when you can't keep the trained employees created a problem for Sprint and they knew they needed to address this. "In July 2002, Towers Perrin released a...
Words: 2513 - Pages: 11
...Management, Control & Accountability for Financial Resources INTRODUCTION The purpose of this paper is to identify the information needs of the internal and external stakeholders in a manufacturing concern and how they can be met. All stakeholders of a firm require different types of information to help them in the decision making process. The top management which comprises of the Chief executive officer and the board of director require information pertaining to the finances of the firm, the key issues of the firm and the performance of the firm to formulate the strategic policies and strategies of the firm. The middle management consisting of the marketing manager, production manager etc will require information to effectively fulfill their job responsibilities and take actions accordingly. The external stakeholders such as the shareholders have invested their hard earned money in the business and would want to be informed about how well the firm is doing and the return that they will be getting for the money that they have invested. The shareholders are usually interested in the financial reports of the firm to see how profitable and liquid the firm is and will it be able to provide dividends to them. Financial reporting is necessary for management, control and accountability purposes. It helps to assess whether the resources of the firm are being utilized in the most efficient manner and the firm is meeting its objective of generating the maximum profit. Information...
Words: 3425 - Pages: 14
