...Case questions 1. What is their business strategy to grow profitably and compete over the long term? * Get customer data from whatever sources are available, loading it onto our systems and analyzing it * Put together products that will appeal to different types of people, by testing whether hypotheses are right, looking at the result of these tests, modifying the hypotheses and testing again, and so on * It is all centered around understanding and analyzing information * Capital One can address a much wider group of potential credit card customers, offering credit facilities to individuals who traditional card companies regard as high risk * To do so, it Aggregates as much data as possible on customers - from credit checking information to lists of people's hobbies 2. Describe how Capital One uses information to implement their strategy? What kinds of information do they use and where does it come from (sources)? * The slab of plastic is the key to an information machine—a machine fueled by data on who you are, what sort of people you live among, whether you’ll carry a balance or avoid finance charges at all costs. * This data machine may offer the closest thing ever invented to perpetual motion, because the more you use the card, the more data it produces. * The machine takes your bytes, combines them with transactions by millions of other cardholders—and before long, it can pinpoint what you’re likely to buy next, whether you’ll...
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...Case questions 1. What is their business strategy to grow profitably and compete over the long term? Capital One Success Factors Pilot Strategy (first stages) • Initially, they began with a pilot strategy at Signet Bank to test their customer targeting systems • Successful and profitable within a couple years – created Capital One Competitive Edge (risk analysis) (redemption offers) (customer loyalty) (targeted offers) • Recognized large customer base in high risk credit customers • Developed IS with data analytics that determined probability of receiving money from high risk customers • Targeted credit options through wide array of data (web streams, credit reports, club cards & memberships) *** • Successful in determining fraudsters and extremely high risk profiles • Allowed a credit building option to people who weren’t allowed credit elsewhere • Successfully expanded customer base through the internet by testing advertisements Customer Retention (customer service) (long term retention) • Real-time data available to customer service agents that showed available credit options to individual customers • Data analysis through SAS Institute and Brio to determine whether or not customers were lying about other offers in order to receive a lower APR • Capital One has lowest default rates among credit companies • Data analysis can eliminate fraudsters and help retain truthful customers Finding Profit with Risk • Advanced data analysis software...
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...LAWS7012 | Case Studies Topic 5 Case Study 1 Are the following self-education expenses deductible under section 8-1? Provide reasons for your answer. a. Barry, a trainee accountant, is studying commerce part-time at university. Barry enrolled after he started his employment with his firm. b. Brianna, a company director, was having difficulty coping with work due to stress brought about by difficulties with her family situation. She decided to attend a four-week course in stress management to help her deal with the situation. Brianna attended the course after hours and paid for it herself. c. Kieran, a computer salesman, takes six months leave without pay to undertake a business administration course at a private provider not registered as a higher education institution. He has an agreement with his employer that, upon successful completion of the course, he will be promoted to an assistant manager position with his current employer. d. After finishing her final year of school, Sarah enrols in a full-time fashion photography course at a TAFE college. She is supported by her parents during her studies and does not receive any government assistance. She works as a casual sales assistant on weekends. e. Stuart wants to be the manager of a hotel. He enrols in a hotel management course at a TAFE college, one semester of which involves an industry placement to gain work experience. Stuart is placed with a major hotel where he gains experience in all facets...
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...Capital Punishment Katrina Maxwell ITT Technical Institute Capital punishment has been described as an eye for an eye and a tooth for a tooth. Society is saying it is alright to use violence against violence and to use capital punishment as a means for retribution. Then questions come to mind of whether all the violence is necessary and whether it has the end results one claims it to have. In the 1960’s the appellate courts started applying the Bill of Rights to capital cases (G.R) Prohibition of cruel and unusual punishment and the requirements for due process and equal protection of the law was hugely expanded upon and the public demanded for the end of capital punishment. Today society has had the different tune of vengeance and retribution for violent criminals (Grant, 25). Robert Grant tells of different kinds of justices such as restoration and retributive. Restorative justice he explains as the elimination of violence from the community and heals the harm done to the extent possible. As best put by Martin Luther King Jr., returning violence for violence only multiplies violence, adding deeper darkness to a night already devoid of stars. Darkness cannot drive out hate; only love can do that. Restorative seeks to eliminate the culture of violence and replace it with a caring culture. Retributive justice is quite the opposite, calling for the criminal to pay for the crime, that will balance the scale of justice. The debates have been all made for and against capital...
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...Harvard Case Study Stryker Corporation: Capital Budgeting Term Paper Laini Tsang Golden Gate University MS Finance, FI 312 Summer 2013 Stryker’s Capital Budgeting Harvard Case Study Table of Content Case Background and Summary Pharmaceutical Industry’s Landscape Stryker’s New CERS and why it is “painful”? Propositions Conclusions 2 Stryker’s Capital Budgeting Harvard Case Study Case Background and Summary Founded in 1941 in Michigan, Stryker Corporation is a fast-paced company with continuously exceptional growth rates. Over the last 27 years, the company historically increased revenues by 20%. The company’s culture prides itself on service ethics, integrity, innovations, accountability, and customer relationships; it is one of the world’s leading medical technology companies with history of successful stories. Stryker’s products focus on implants for joint replacement, trauma, spinal surgical products, neurologic and endoscopic equipment. The company has well diversified product portfolios with solid fundamentals. Over the years, the company’s accretive mergers and acquisitions brought operational synergies and cost efficiency, strengthening the pipeline with increasing profitability. This paper examines Stryker’s capital budgeting process (CER – Capital Expense Request) and why this process, after its modifications in 2005, had slowed down the company’s internal capital project requests. From the company’s financials, we can see their capital...
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...The article that I am reviewing is “ The Public’s Conditional Response to Supreme Court Decisions” (Johnson & Martin 1998). This article specifically speaks to answer, whether the Court affects public attitudes when it makes decisions or initial rulings on a salient issue or subsequent decisions on the same issue. Johnson allows us to investigate the effect of the Supreme Court on public opinion, which offers the conditional response hypothesis based on the theory of Supreme Court legitimacy, and a micro-level social-psychological theory of attitude formation through his writing. To test this prediction Johnson analyzes public opinion data before and after the Supreme Court ruled in a highly visible abortion case (Roe v. Wade 1973), along with three key capital punishment rulings. (Furman v. Georgia 1972, Gregg v. Georgia 1976 & McCleskey v. Kemp 1987) When the Supreme Court made decisions, the public simply accepted them as legitimate. The reasoning behind this is simply because the Supreme Court is seen as the ultimate arbiter of the law. The model used by both Johnson and Martin (1998) is based upon two different theories. The first, since the public generally views the Court as a highly credible institution, individuals are more likely to clearly elaborate their attitudes toward an issue after a ruling. When the court makes its first major decision on a particular, the structure of public opinion changes in a manner consistent with the structural response hypothesis...
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...Royal University of Law and Economics Case Study 26 “JetBlue Airways IPO Valuation” Lecturer: Kou Lim Hong Prepared By: 1. Ms. Khoun Davy 2. Ms. Khoun Dalin 3. Ms. Chiem Sothana 4. Mr. Soksithika 5. Mr. Oag Sothearith 6. Mr. Mov Vandara MFM, Group 2 team 6 2011-2012 Outline of The Presentation I. II. Introduction of Case Study Main Problem III. Literature Review IV. Case analysis V. Conclusion Outline of The Presentation I. II. Introduction of Case Study Main Problem III. Literature Review IV. Case analysis V. Conclusion Introduction of Case Study JetBlue Airway Background JetBlue airways are a low cost airline established in July 1999 by David Neeleman. David Neeleman was experienced in the operations of airline and start up airlines. The airline was to provide new levels of service in the airline travel industry, concentrating on customer service and low fares. Introduction of Case Study JetBlue Airway Background David Neeleman plan was to commit to innovation in people, policies and technology to keep the companies planes full and thus the company profitable. To ensure this goal and the company’s future David Neeleman assembled and impressive management team and group of investors. JetBlue’s COO was to be David Barger ex-vice president of Continental Airlines. John Owen who was executive vice-president and treasurer of Southwest Airlines agreed to become JetBlue’s CFO. Introduction of Case Study JetBlue Airway Background David...
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...Introduction Capital punishment in the United States is largely viewed as retaliation and compensation against society's most malicious criminals. The federal government rarely imposes capital punishment for crimes. The majority of capital sanctions are imposed on the state level for murder. Currently, thirty-two states have death penalty statutes. Of those thirty-two, only seven states carried out executions in 2014 (Bureau of Justice Statistics 2015). Those executions total 35 (Bureau of Justice Statistics 2015). As a result of the low number of executions carried out, experts in the United States have examined the efficiency of the death penalty. To accurately assess the economic costs of the death penalty, the difference between the costs...
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...McGraw−Hill Primis ISBN: 0−390−42334−3 Text: Case Studies in Finance: Managing for Corporate Value Creation, 4/e Bruner This book was printed on recycled paper. MBA Program http://www.mhhe.com/primis/online/ Copyright ©2003 by The McGraw−Hill Companies, Inc. All rights reserved. Printed in the United States of America. Except as permitted under the United States Copyright Act of 1976, no part of this publication may be reproduced or distributed in any form or by any means, or stored in a database or retrieval system, without prior written permission of the publisher. This McGraw−Hill Primis text may include materials submitted to McGraw−Hill for publication by the instructor of this course. The instructor is solely responsible for the editorial content of such materials. 111 MBAP ISBN: 0−390−42334−3 MBA Program Contents Bruner • Case Studies in Finance: Managing for Corporate Value Creation, 4/e II. Financial Analysis and Forecasting 1 1 6 16 16 39 52 52 60 66 66 84 100 100 6. The Financial Detective, 1996 11. ServerVault: ‘‘Reliable, Secure, and Wicked Fast’’ III. Estimating the Cost of Capital 12. ‘‘Best Practices’’ in Estimating the Cost of Capital: Survey and Synthesis 15. Teletech Corporation, 1996 IV. Capital Budgeting and Resource Allocation 19. Diamond Chemicals PLC (A): The Merseyside Project 20. Diamond Chemicals PLC (B): Merseyside and Rotterdam Projects VI. Management of the Corporate Capital Structure 29. Structuring Corporate Financial...
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...The Death Penalty The death penalty is a just and proper punishment Today, one of the most debated issues in the criminal justice system is the issue of capital punishment or the death penalty. Capital punishment was legal until 1972, when the Supreme Court declared it unconstitutional in Furman v. Georgia stating that it violated the Eight and Fourteen Amendments citing cruel and unusual punishment. However, in 1976, the Supreme Court reversed itself with Gregg v. Georgia and reinstated the death penalty, but not all states have the death penalty. There are currently 35 states with the death penalty and 15 states that do not have it. When the word death penalty is used, it stirs up a lot of debates from both the people that agree versus the ones that do not. One side may say it acts as deterrence from others to not commit crimes, while the other side may say, but it may take the life of an innocent man. Federal, state, and local officials need to recognize that the death penalty saves lives. How capital punishment affects murder rates can be explained through general deterrence theory, which supposes that increasing the risk of apprehension and punishment for crime deters individuals from committing crime. Nobel laureate Gary S. Becker's seminal 1968 study of the economics of crime assumed that individuals respond to the costs and benefits of committing crime. According to deterrence theory, criminals are no different from law-abiding people. Criminals "rationally...
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...Johnson Delores Jones-Brown Mark Moore Ira Schwartz Linda Teplin Franklin Zimring November 2001 The findings and opinions contained herein are those of the National Policy Committee and do not necessarily reflect the official position or policies of the American Society of Criminology. Ronald Weitzer, Professor of Sociology, Dana Coleman, Research Assistant, and Sarah Benatar, Graduate Research Assistant at the Institute on Crime, Justice, and Corrections at George Washington University provided substantial assistance in the preparation of this document. Introduction Capital punishment is among the most hotly debated issues in American politics. Passions run high for both those who want the death penalty abolished and those who seek to preserve or expand its use. What follows is a summary of key issues in the death penalty debate, research findings on the application of capital punishment, and a discussion of policy considerations. The American Society of Criminology (ASC) is greatly concerned with the death penalty and its application in the United States. This year, ASC President Ronald Huff and the ASC Executive Board authorized the ASC’s National Policy Committee (NPC) to develop a policy paper that would focus on the death penalty issue. The ASC Board has emphasized that the NPC paper would not speak for the Society but to its membership. The recommendations contained in this report reflect a concern that the Society needs to set a research agenda that...
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...accordance with US GAAP, however differences between US GAAP and IFRS will be outlined and examined. The class will be taught using a combination of lectures, class discussions and real-world case studies. In order to maximize our time together, students are expected to read the assigned chapters and complete the case studies on time. Given the brevity of the course and lecture time, students are encouraged to email me directly with questions at any time. Required Materials Textbook: Financial Statement Analysis & Valuation, (3rd Edition), By Easton, McAnally, Sommers & Zhang, Cambridge Business Publishers, 2013. ISBN: 978-1-61853-009-7 Case studies will be provided on TLE. Grading Schedule Class Participation/Case Work: Individual Project: Mid-Term/Exam 1: Final Exam: 20% 30% 20% 30% Grading Expectations Class Participation/Case Work: Each student should be prepared to discuss the required readings. To satisfy the requirements of class participation, students will be required to answer direct questions from the instructor and must actively participate in group discussions. 1|Page Case Work assignments must be turned in by the due-dates listed below. Late assignments will not be accepted. Please bring two copies of the completed cases to class (one for discussion, one to turn in). Individual Project: The specific requirements for the individual project will be outlined in greater detail on TLE. Students must select a non-financial, non-biotechnology stock >$300...
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...McGraw−Hill Primis ISBN: 0−390−42334−3 Text: Case Studies in Finance: Managing for Corporate Value Creation, 4/e Bruner This book was printed on recycled paper. MBA Program http://www.mhhe.com/primis/online/ Copyright ©2003 by The McGraw−Hill Companies, Inc. All rights reserved. Printed in the United States of America. Except as permitted under the United States Copyright Act of 1976, no part of this publication may be reproduced or distributed in any form or by any means, or stored in a database or retrieval system, without prior written permission of the publisher. This McGraw−Hill Primis text may include materials submitted to McGraw−Hill for publication by the instructor of this course. The instructor is solely responsible for the editorial content of such materials. 111 MBAP ISBN: 0−390−42334−3 MBA Program Contents Bruner • Case Studies in Finance: Managing for Corporate Value Creation, 4/e II. Financial Analysis and Forecasting 1 1 6 16 16 39 52 52 60 66 66 84 100 100 6. The Financial Detective, 1996 11. ServerVault: ‘‘Reliable, Secure, and Wicked Fast’’ III. Estimating the Cost of Capital 12. ‘‘Best Practices’’ in Estimating the Cost of Capital: Survey and Synthesis 15. Teletech Corporation, 1996 IV. Capital Budgeting and Resource Allocation 19. Diamond Chemicals PLC (A): The Merseyside Project 20. Diamond Chemicals PLC (B): Merseyside and Rotterdam Projects VI. Management of the Corporate Capital Structure 29. Structuring Corporate Financial...
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... This case examines the question of financial leverage at California Pizza Kitchen (CPK) in July 2007. With a highly profitable business and an aversion to debt, CPK management is considering a debt-financed stock buyback program. The case is intended to provide an introduction to the Modigliani-Miller capital structure irrelevance propositions and the concept of debt tax shields. With the background of a pizza company, the case provides an engaging context to discuss the “pizza graphs” that are commonly used in corporate finance curriculum to illustrate the wealth effects of capital structure decisions. The case serves to motivate the following teaching objectives: • Introduce the Modigliani-Miller intuition of capital structure irrelevance; • Establish how the cost of equity is affected by capital structure decisions by defining financial risk and introducing the levered-beta capital asset pricing model (CAPM) equation; • Discuss interest tax deductibility and the valuation tax shields; • Explore the importance of debt capacity in a growing business. Suggestion for Advance Assignment to Students Students may consider the following study questions: 1. In what ways can Susan Collyns facilitate the success of CPK? 2. Using the scenarios in case Exhibit 9, what role does leverage play in affecting the return on equity (ROE) for CPK? What about the cost of capital? In assessing the effect of leverage on the cost of capital, you may...
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...LECTURE Review of Topics, Assignment Sheets, and Course Outline The Case Method - Rules for Classroom Discussion Instruction for the Formation of Study & Project Groups B. Professor/Student Introductions C. Readings from Course Packet: 1. Fin 394.4 Syllabus - Course Outline and Grading Policy 2. “Course Introduction” 3. Note to the Student: How to Study and Discuss Cases 4. “The Case Method” - Jeff Sandefer 5. “Classroom Discussion” - Jeff Sandefer 6. “Note on Study Groups” - Jeff Sandefer ASSIGNMENT: 1. PURCHASE THE COURSE PACKET 2. BRING YOUR RESUME TO THE NEXT CLASS 3. BROWSE THE CLASS BLACKBOARD SITE: (HTTP://COURSES.UTEXAS.EDU/) AND LOOK AT THE EXTERNAL LINKS AND COURSE DOCUMENTS POSTED. a. Case Exhibits b. Case Solutions c. Valuation Templates d. Valuation External Links e. Project Information ASSIGNMENT SHEET THURSDAY, JANUARY 19, 2012 CLASS 2 – WORK FOR MONEY OR MONEY WORK FOR YOU? A. Turn in Resume B. Form study groups (self-select 4-6 people with different education, concentration, work experience and cultural background). Send e-mail to the professor with team member’s names. Study teams members must be in same section of the class. C. If you plan to do a consulting project, then start...
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