...Rationale for Decision The cost saving associated with implementing the new drying equipment was influenced by tax policy, fuel cost, economic outlook, and demand. The management of Paperco had following alternatives with regard to tax policy. * Alternative1. No change in tax legislation * Alternative2. Buy the new equipment before rumored tax legislation was passed * Alternative3. Buy the new equipment after rumored tax legislation was passed In alternative1, Paperco would continue to use a 5 year ACRS depreciation model with higher depreciation expense, receive the investment tax credit and be subject to 46% tax rate. In alternative2, Paperco would also continue to use a 5 year ACRS depreciation model and receive the investment tax credit, but be subject to 34% tax rate. Finally, in alternative3, Paperco would have to use a 7 year MACRS model with lower depreciation expense. Furthermore, Paperco wouldn’t receive the investment tax credit but would be subject to 34% tax rate. Net Present Value (NPV) of above alternatives was as followings. | Alternative1 | Alternative2 | Alternative3 | NPV | (21,205) | 119,722 | (110,239) | Appendix (excel file) contains the detail Net Present Value financial review and incorporates multiple factors including cash flows, investment tax credit, cost saving, tax effect from depreciation and salvage value. The management of Paperco would choose alternative2 because NPV of alternative2 was greater than other alternatives...
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...Name : Tamer Abdel Fattah Soliman Eslasca A 44 Group Case 03: Creative Deviance: Apple Org Chart ! Problem Definition Traditional organization Hierarchy aim to attain the following point : * standardization * control * Channel to direct activities This type of hierarchy focus on threats rather than opportunities for development In last days , the competition required unique and innovation products or services , therefore the main companies find out to apply hierarchy that * Encourage creative and innovation * Given opportunity to all employees to create products / services despite their function level. * Laminate management hierarchy to accept or reject new ideas Justification Studying management style and organization hierarchy in a major companies that is core function depend on innovation and creative like Apple , HP , Samsung will help us to more understand for why companies looking for hierarchy that support creative and innovation : * Companies like Apple that applied top down creative process and founded sub teams responsible for finalize all creative ideas . * Brilliant ideas like electrostatic display , tap slitter and LED technology , all officially rejected by management hierarchy . Therefore , the essential steps should be taken by companies is create and set an organization hierarchy encourage creative deviance . Alternatives to solve issue * Alternative 1: Applying the Flat structure...
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...Current performance and strategy Overview of current strategy, structure and performance Coral Divers Resort, located in a small but quiet island, has been a safe and knowledgeable scuba diving resort with solid reputation over the past ten years. Its current strategy is to provide not only a wonderful place for diving, but an ideal beachfront location. For ten years’ operations, Coral Divers’ annual revenues are as high as $554,000. However, situations get worse reflected directly by continually declining revenues. Critical issues, key decisions, opportunities and challenges The biggest issue for Coral Divers is the lack of specialized features to distinguish itself from the competition. From Greywell’s perspective, Coral Divers has not provided any different services in aspect of diving or resort. Accordingly, Greywell has proposed three main choices to improve the current dilemma. As families are a growing market segment, engaging in family diving vacations would be a feasible solution, with the aid of Rascals in Parades; a travel company specialized in family diving vacations. Another potential strategy is to develop adventure diving. Although associated with threats that other resorts in the Bahamas also offer adventure-oriented dives, Coral Divers Resort enjoys natural underwater attractions such as Shark Wall and Shark Buoy, which are popular and close to Coral Divers. The final option is to leave New Province and relocate elsewhere. But he is still wondering whether...
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...Date and time received Executive Summary Tennant Company was founded in 1870 by George H. Tennant and initially produced wood products and flooring solutions. Tennant now produces floor-cleaning equipment and technologies, and prides itself on “creating a cleaner, safer, healthier world.” Tennant differentiates themselves from competitors by offering cleaner, safer and healthier products to their customers as well as through direct customer interaction. The Company drew popularity in the 1940s as a cleaning company that offered its services to the defense forces of nations especially those involved in war. The Tennant brand is strong and so is its positioning within the market. They currently hold approximately fifteen percent of the global market share, with sales growing faster than many of their competitors. Tennant’s focus was rare as they chose to deliver a sustainable value to their customers without compromising on price or performance. This strength is not imitable with new companies as it something that is built over time although many existing companies have built the same brand strength with their products. This strength has proved to be a sustainable competitive advantage for Tennant. They have exploited this strength and achieved organization. External Assessment This industry is most affected by growing and shifting consumer expectations demand. This demand is influenced politically (by emerging policy and regulation product standards) and societally...
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