Case Analysi

In: Business and Management

Submitted By lambent
Words 2246
Pages 9
REVISED: 11/05/10

O NL IN E SI MU LA TIO N F OR EG R OU ND R E A D IN G

Finance: Capital Budgeting
Company and Industry Overview
The New Heritage Doll Company, based in Sacramento, California, was a privately held company
with 450 employees and approximately $245 million in fiscal 2009 revenues. This represented
approximately 8% of the $3.1 billion U.S. doll industry, which was projected to grow by 2% annually
to $3.4 billion in retail sales by 2013. In turn, the doll industry represented a 7.4% share of the total
$42 billion U.S. market for toys and games, which was dominated by global enterprises that enjoyed
economies of scale in design, production, and distribution. Revenues were highly seasonal; the
largest selling season in the United States coincided with the winter holiday period.
The doll category included large, soft, and mini dolls, as well as doll clothes and other accessories.
The phenomenon of “age compression”—the tendency of younger children to prefer dolls that had
traditionally been designed for older girls—reduced growth in the “baby-doll” sub-segment.
Competition among doll producers was vigorous, as a small number of large producers targeted
similar demographics and marketed their dolls through the same media. Lasting franchise value for
a branded line of dolls was rare; the enormous success of Barbie® dolls was an obvious exception.
More recently and on a much smaller scale, New Heritage also had created a durable franchise for its
line of heirloom dolls. However, the popularity of most doll lines waned after a few years.
New Heritage’s Production Division
New Heritage Doll Co. had three operating divisions: a doll and doll‐accessory production
division, a retailing division, and a licensing division. New Heritage’s doll production…...

Similar Documents

Case

... not initiate the investigation. Second, the court held that Crawford was not protected against retaliation because the investigation was an employer's internal investigation and a charge had not been filed with the Equal Employment Opportunity Commission. Crawford only filed with the EEOC after she had been terminated, as required by Title VII. Crawford appealed to the Supreme Court, who heard the case on October 8, 2008. The court ruled unanimously in her favor on January 26, 2009. ------------------------------------------------- Decision Writing for the majority, Justice Souter defines two activities Title VII protects, saying section 704(a) "makes it unlawful 'for an employer to discriminate against any... employe[e]' who (1) 'has opposed any practice made an unlawful employment practice by this subchapter' (opposition clause), or (2) 'has made a charge, testified, assisted, or participated in any manner in an investigation, proceeding, or hearing under this subchapter' (participation clause)." The Sixth Circuit held, when it heard the case, that the opposition clause demanded "active, consistent" opposing, which it did not find Crawford had done, as she did not initiate her own complaint before to the investigation. It also held that since the internal investigation was not conducted pursuant to a charge pending with the EEOC, Crawford was not protected by the participation clause. The court found that "oppose" is not defined by the statute, so a normal definition......

Words: 4929 - Pages: 20

Norstorm Hr Case Analysi

...| 1. What is the cause of the problems described in the case? How serious are these problems? The cause of Problem in Nordstrom is misaligned Compensation system. The Compensation is not vertically aligned with the Strategy of the company. Nordstrom depended on its sales employee for customer care and selling the products. However, the compensation structure was not adequately aligned to reward those behaviours which forced employees to work off-hours without getting Compensated for it. The problems were very serious as is evident from the case; the company came under a barrage of national class action suits which made a huge dent into the brand of the company. They had to make a $15 million fund which wasn’t enough. More importantly, it broke the numero Uno position and aura that Nordstrom was enjoying vis-à-vis their competitors. 2. Are Nordstrom employees pressured inappropriately by the sales-per-hour system? By management? Yes, Nordstrom employees are pressured quite inappropriately by the SHP ( Sales Hour Performance) system. In this system, employees were assigned a given SHP and if they go above the SHP , then they would be eligible for commission otherwise they will just get the base price. Now, the employees worked “off hours” for doing everything from writing Thank You letters to sales meetings etc. but if they add the “off hours” then the SHP will go below the stipulated figure and they will not eligible for commission and without the...

Words: 917 - Pages: 4

Case

... | | |6.40 |Decision Tree Construction and Solution |7 | | |6.41 |Constructing Payoff Tables, Maximax and Expected Value |7 | | | |Criterion | | | |6.42 |Game Theory |6 | | |6.43 |Decision Tree Construction and Solution |6 | | |6.44 |Constructing Payoff Tables, Expected Value Criterion |5 | | |6.45 |Decision Tree Construction and Solution, Bayesian Probability|9 |This is a long problem and could easily serve | | |Revision | |as a case study. | |6.46 |Constructing Payoff Tables, Minimax Regret and Expected Value|6 | | | |Criterion, EVPI | | ......

Words: 2679 - Pages: 11

Case

...CASE A CSX ACQUISITION OF CONSOLIDATED RAIL CORPORATION CSX has put up a bid of $8.3 B in order to horizontally integrate with Conrail in order to increase the combined profitability based on perceived improvement in Synergies. A) Lower Cost Structure: Railroad is capital intensive industry with very high fixed cost. CSX-Conrail merger will lower company’s cost-structure by creating increasing economies of scale. Operating ratio of Conrail is 87.63% and CSX’s operating ratio is 81.99% (Exhibit 1). According to American Investment research report (Exhibit 10), proposed merger will bring operating ratio to 65 % (an 18.75% decrease). Both CSX and Conrail have low ROA (2.33% and 4.11%) compared to Norfolk’s ROA of 5.06 % (Table 6). If CSX and Conrail will achieve its projected revenue growth and cost-savings, CSX-Conrail will become more efficient than Norfolk. B) Gain Market Power : Based on revenue data from 1995 (Exhibit 1), CSK control 38.5%, Conrail controls 29.4% and Norfolk controls 32.1% of Northeast rail freight market. The proposed merger will allow CSX to control major share (~70 %) of the lucrative North Eastern rail market and enable them to take advantage of synergies in the space. In addition, CSX – Conrail can further improve on its market position by limiting Norfolk’s access to long-haul routes either from south or Midwest. MECHANICS OF THE CSX – CONRAIL DEAL CSX has offered a two-tiered offer for the stocks of Conrail. For the first 40% of the...

Words: 1389 - Pages: 6

Case

...ogle is considered to be an industry leader in data center efficiency, in part because it builds its own custom data centers rather than rely on standard industry equipment and practices. However, although “going green” can be both financially and environmentally beneficial, companies that develop unique technology are given an incentive not to share them to gain a competitive advantage. For example, Google has proprietary virtualization technology that it won't share, and is secretive concerning the number of servers it operates. However, as demonstrated in this video, Google takes many other steps to share its energy efficient best practices with other firms and the public. Case Study Questions 1. What is PUE, and why is it an important place to start when considering how to reduce data center power consumption? What value of PUE should data center managers strive for? 2. Describe the five methods recommended by Google for reducing power consumption. 3. How much of the world’s global greenhouse gases are the result of computing? List several factors that will tend to retard or accelerate data center power consumption both globally and in the United States. 4. Where do you suspect that data center power consumption will be greatest: developing and emerging economies or already-developed economies? Why? 5. Imagine that a company has developed an advanced technology that allows it to reduce its data center requirements by an unprecedented amount, and creates......

Words: 318 - Pages: 2

Case

...Join now! Login Support Other Term Papers and Free Essays Browse Papers Business / Timbuk2 Case Study Timbuk2 Case Study Term Papers Timbuk2 Case Study and over other 20 000+ free term papers, essays and research papers examples are available on the website! Autor: santhanam.vikram 09 December 2013 Tags: Words: 723 | Pages: 3 Views: 86 Read Full Essay Join Now! CASE STUDY: TIMBUK2 1.) Consider the two categories of products that Timbuk2 makes and sells. For the custom messenger bag, what are the key competitive dimensions that are driving sales? Are their competitive priorities different for the new laptop bags sourced in China? Some of the competitive advantage which are the key factors of Timbuk2 bags are:-  Quality  Durable  Reliable  Not prone to defects  Custom made bags for each of the customers  The quick delivery of bags  The rave review which the company gets for its bags i.e. it basically carries a good name in the market  For its laptop bags, even though they are manufactured in china, the designing is done in San Francisco. so the exclusivity remains  Cost effective manufacture of laptop bags in china  Being able to adopt to changes in demand and fashion By manufacturing the bags in china the company saved the manufacturing cost but lost their niche of manufacturing and selling in America itself. The general perception of it being a Chinese product led to customers felling...

Words: 564 - Pages: 3

Business Analysi

... turn, agreed that Microsoft could use Apple technology in the Windows operating system. While Apple believed this agreement restricted Microsoft’s use of Mac technology to Windows 1.0, it actually gave Microsoft a royalty-free, perpetuating and non-terminating license to copy the Macintosh operating system. Although Apple claimed the agreement was violated by subsequent versions of Windows, it was unable to prove copyright infringement in its case against Microsoft in 1997. The Players (or) Send in the Clones Competition Intensifies Apple now faced competition from numerous companies using the Windows operating system. Companies like Dell, Hewlett Packard, Compaq and Gateway cloned IBM’s x86 system architecture and used lower-cost Intel chips and boards to flood the market with relatively inexpensive personal computers. Many of the computers lacked internal hard drives, but retailed at a fraction of their superior Mac counterparts, effectively taking command of the consumer market. Apple it seemed had nearly priced itself out of the market. For example, it charged $10000 for the Mac LX (nee the Lisa) and $5500 for its Mac II’s. A deluxe model Mac II shipped with 1mb of RAM and a 40mb hard drive (Goodell, 1996). Realizing Apple had nearly priced itself out of the market, competitors seized the opportunity to sell entry-level systems. In 1986, IBM introduced its 5140 Convertible pc, with an 4.77-MHz Intel chip, enclosed monitor, no...

Words: 3798 - Pages: 16

Job Analysi

...Industrial/Organizational Psychology Worksheet The purpose of this assignment is to examine the fundamental concepts of the field of industrial/organizational psychology. Using the textbook, the University Library, the Internet, and/or other resources, answer the following questions. Your responses to each question will vary but overall should be 700- to 1,050-words in length. 1. Describe the evolution of the field of industrial/organizational psychology. The roots of Industrial/Organization psychology was in the 1800s and early 1900’s, but did truly come around in the 20th Century. In the beginning it was experimental psychologist who were the first psychologist to apply new principles of psychology to organizations with problems. When first introduced the United States used these new psychology principles on performance of their job and the efficiency of the Organization. As Industrial/Organization psychology has grown it has brought around significant events in the United States such as the very first book of Industrial/Organizational textbook to be published in 1913, Hawthorne Studies which began in 1924, and Civil Rights Act passed in 1964 with many other events that happened. The first two psychologist to have founded Industrial/Organization Psychology was Hugo Munsterberg and Walter Dill Scott which were college professors and experimental psychologist. Hugo Munsterberg was a pioneer in the field of Industrial/Organizational psychology and...

Words: 2421 - Pages: 10

Case

...BRANNIGAN FOODS STRATEGIC MARKETING PLANNING CASE SOLUTION PDF Copyright © 2014. All Right Reserved BRANNIGAN FOODS STRATEGIC MARKETING PLANNING CASE SOLUTION PDF Download: BRANNIGAN FOODS STRATEGIC MARKETING PLANNING CASE SOLUTION PDF Are you trying to find Ebook Brannigan Foods Strategic Marketing Planning Case Solution PDF?. You will be happy to recognize that today Ebook Brannigan Foods Strategic Marketing Planning Case Solution PDF is offered on our on-line collection. With our on-line resources, you will certainly be able to locate Ebook Brannigan Foods Strategic Marketing Planning Case Solution PDF or practically any sort of sort of manual, for any kind of type of product. Best of all, they are completely complimentary to find, use as well as download and install, so there is no price or anxiety in any way. Ebook Brannigan Foods Strategic Marketing Planning Case Solution PDF may not make exciting reading, however Ebook Brannigan Foods Strategic Marketing Planning Case Solution PDF is stuffed with valuable guidelines, information and warnings. We have made it very easy for you to locate a user manual with no digging. And by having access to our manual online or by storing it on your computer system, you have hassle-free answers with Ebook Brannigan Foods Strategic Marketing Planning Case Solution PDF. To obtain begun locating Ebook Brannigan Foods Strategic Marketing Planning Case Solution PDF, you correct to locate our site which has a comprehensive collection of...

Words: 1371 - Pages: 6

Case

...Case 1 Overview Toyota is the most popular car manufacturer in the world. The reputation of its high-quality surpasses the largest car manufacture, General Motors. However, an accident due to uncontrolled acceleration occurred and it jeopardized drivers. Toyota had to recall about 10 million cars from the United States and Europe. It had to stop the production of its cars, including a new-model car until the car was repaired. The problem was that Toyota didn’t know why the uncontrolled acceleration accident happened. During 2009, its sales declined, while General Motors increased its growth. Even though Toyota’s sales declined at that time, it recovered its customer’s trust: up to 35 percent from 2009. Although the problem seemed to be getting better, Transportation Secretary Ray LaHood decided to collect money from the company as a fine. Payment of the fine was not an important problem for the company because it earned enough to cover it. The serious problem was its reputation. Toyota is considered not being honest about the problem of car function that caused the car accident. Since then, specialists from NASA and the National Academy of Science have taken action to solve the problem that caused the uncontrolled acceleration accident. Akiko Toyota, the Toyota president, said that listening carefully to customers is very important to get their trust back. Q1. What is your recommendation for how Toyota should approach this situation? My suggestion for Toyota is...

Words: 871 - Pages: 4

Case

...Case Study Below is a free excerpt of "Case Study" from Anti Essays, your source for free research papers, essays, and term paper examples. CASE STUDY | Management | Human Behavior in Organization | | | CASE 1. STATE UNIVERSITY BOARD OF REGENTS What I am Living for? The three personalities who are Dr. H.C. Agao, Mr. Francisco Bundoc and his wife, Mrs. Bundoc have made wrong actions. There is an attitude problem in them which stops them from doing the right thing. Mr. Bundoc should have stand for what is right and should not be affected for selfish reasons of others. Being appointed as a member of board of regents of a state university, Mr. Bundoc has a say in decisions made for it. Because of having a name for being a successful businessman and a respectable president in local chapter of a civic organization, he has the capability of convincing other members to support his good intentions for the university’s students. That’s why proposal of the university president, Dr. Agao, was rejected and made him to find away on how he can make Mr. Bundoc agree to his wishes. This shows that he is a type of person who gets what he wants by hook or by crook or who desires for power to have control on the situation just to be not defeated and be disgraced in front of other people. And so, Dr. Agao befriended Mrs. Bundoc and proposed an arrangement that gave her a lucrative income and put her trust to him. Indulged by the money she gets from the......

Words: 369 - Pages: 2

Case

... Case Analysis: “Retail Internationalization: Gaining Insights from the Wal-Mart Experience in South Korea Southern States University Mauricio Antunes Alvarenga Peggy Bilbruck 07/20/2014 The Case Analysis brought one of the most important business failures of the history, when the world’s giant retailer company faced a huge fail attempting to establish their own model business in South Korea. Wal-Mart simply applied their own and very well-known way of management in a foreign country, without paying attention on the local culture and costumes. A list of reason speculate the reason of this withdraw of Wal-Mart in South Korea. One of them was the Distribution, despite the fact that in America, Wal-Mart likes to be located a little away from the cities, probably they want costumers to think that to shop at Wal-Mart as a family program, where you spend the whole day shopping with your kids and relatives, but not South Koreans. They are accustomed to buy in places nearby and come back a couple times every week. The product mix was another; South Koreans like to see local products and local produces on the shelves. Pricing and promotion were the last reason for the failure, Wal-Mart tried to use the same sales strategies and low prices to seduce the South Koreans, but that was not enough. In the 21st century, I believe that any business can succeed globally, the company just have to respect the local culture, like McDonald’s, the giant fast-food chain have a different menu......

Words: 336 - Pages: 2

Case

...study Risk and Emergency Management Case Studies Textbook Development Project Prepared By: George Haddow and Damon Coppola Bullock & Haddow LLC 315 Boyd Ave. Takoma Park, MD 20912 301-270-5554 The purpose of this effort is to develop an Emergency and Risk Management Case Studies Textbook designed to provide a resource for practitioners and students in the crisis, disaster, and risk management disciplines that displays various best practices, lessons learned, and success stories, through in-depth case studies. The result of this effort will be the authorship of a college-level crisis, disaster, and risk management textbook containing numerous real-world case studies of disaster preparedness, mitigation, response, and recovery actions. The textbook will be developed in electronic format to support upper division undergraduate college and graduate-level emergency management classes within an emergency management major or certificate program to students who may someday enter an emergency management related profession. The planned book will include the following ten chapters: Chapter 1. Introduction to Crisis, Disaster, and Risk Management Concepts Chapter 2. Preparedness Chapter 3. Mitigation Chapter 4. Response Chapter 5. Recovery Chapter 6. Communications Chapter 7. Statutory Authority Chapter 8. Business Continuity Planning Chapter 9: International Disaster Management Chapter 10: Future Trends...

Words: 6981 - Pages: 28

Case

...A few tips from Bain & Company: • • • • • Don't get thrown by the interviewer's questions. The interviewer is your ally and uses questions to get a better understanding of your thought process--not to stump you. Be concise. If asked for the top two issues, confine your response to two items. Provide logical back-up for your answers. Be sure to explain what case facts led you to a conclusion, and how you reasoned from those facts to your conclusion. Don't be afraid to ask clarifying questions. If you don't understand the case facts, it will be tough to ace the interview. Relax and have fun. You should learn a lot about yourself through the case interview process. A few tips from Mercer Management: • • • • There is no "right" answer. We are not looking for a specific answer. We are trying to gain some insight on your thought process. Ask questions. We do not expect you to know anything about the industry presented in your case. We do expect you to ask good questions. Think out loud. The point of the case interview is to understand how you think. Structure your answer. We're looking for an organized pattern of thought to attack the problem, not a disparate set of ideas. Help us see how you order your thoughts and ideas, moving from one to the next in order to address the question. While use of a framework may be helpful in this area, be careful if you use one. We want to understand your thought process, not see that you've memorized someone else's framework. (And never use a......

Words: 382 - Pages: 2

Case Analysi

...  division  needed  to  be  carefully  coordinated  with  those  in  other  divisions  if  the  company  was  to  successfully  leverage  its doll character brands across all divisions.   The Capital Budgeting Process at New Heritage  The annual investment process at New Heritage began with personnel in each division proposing  projects for investment that were aligned with the company’s multi‐year strategy plans.  As the company grew, deliberate steps were taken to decentralize some of the project approval process and increase spending authority at the division level. However, large and/or strategic spending proposals were reviewed at the corporate level by a capital budgeting committee consisting of the CEO, CFO, COO, the controller, and the division presidents.   Each project proposal presented to the committee included the following information:  brief  description of the project and the strategic rationale; overview base case financials (five‐year  operating and cash flow forecasts); spending requirements by asset category, personnel requirements,   key project financial performance measures (NPV, IRR, payback period, profitability index); and  project risks and milestones.  Proposed projects ran the gamut from relatively minor, tactical projects  (the replacement of obsolete assembly equipment) to major strategic projects that would significantly  alter the company’s market position (an acquisition, for example).   Some projects were  HARVARD BUSINESS...

Words: 2246 - Pages: 9