...Study Case: Hampton Machine Tool Background. Hampton Machine Tool Company, a machine tool manufacturer, was founded in 1915. Hampton's customers are military aircraft and automobile manufacturers in the St. Louis area. Machine Tool Company felt the boom in the 1960`s with record setting profits in the mid- to late- 1960`s. The company slowed down in the 1970`s economic recession caused by Vietnam War and the oil embargo. Hampton stabilized by the late 1970`s and now has a “strong working capital position”. The company also didn`t have a debt during 10 years until December 1978. 1. Why can`t a profitable company like Hampton repay its Bank Loan on time and why does it need more bank financing? The excising $1 million loan was due September 30, 1979, but Mr. Cowins requested to renew it until the end of 1979. The main cause why Hampton can`t repay its Bank Loan on time is that the company made a stock repurchase, for which loan was taken. That was major cash expenditure for the company of $3 million ($1million of loan+ $2 million of excess cash) in December 1978; this was a main reason why company had a delay in repaying of the loan. The president of the company, Mr. Cowins wishes to borrow an additional $350,000 “for planned equipment purchases in October”, they didn`t buy or renew an equipment since the economic recession. He also mentioned this loan in total $1,350,000 will be repaid at the end of December 1979. 2. What...
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...Written Assignment: Hampton Machine Toll Company We did pro forma operating statement and pro forma balance sheet and cash budgets to use as our basis to forecast whether Mr. Corwin can pay his debt in December In the following passage are our methods and assumptions used as a basis to predict. Exhibits are all contained in spreadsheets. Based on our analysis, we estimated that the company will have a 1463000 ending balance cash in December so he should be able to pay off his loan in December. But we have considered that he might maintain cash flow at average level, so we recommended he discount some of the $2442000 account receivables. Operating Statement (Exhibit 3) Net Sale: We use Mr. Corwin’s prediction of sales Cost of Sales: In the passage, Mr. Corwin mentioned in his letter that the monthly outlay other than interest expense and raw material purchase is about 400,000 and he also that the raw material purchase is about 600,000 per month for the next 4 month in this year. So the total sum for the cost of goods sold and the Selling and Administrative expense would be 1,000,000 for the 4 months. Interest expense: In September and October numbers stay the same as history performance .In Nov，they pay interest on the new loan ,so they should pay extra interest based on 350,000*1.5%=5.25 Income tax : It’s mentioned in the case that the HMT company has a tax rate of 48%. Dividend：a 150000 dividend in Dec. is mentioned in the material. Balance...
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...I think in case 3-2, an adequate background is given on the significance of the 2008 Save-A-Landmark campaign generated by Hampton hotels. The only thing I found tough to understand was the extensive history and why and how Hampton decided to begin this massive, yet important campaign. The major reason for conducting this campaign was to help preserve national sites honoring important people and moments in American history so they could be properly celebrated. The program seemed to be very proactive in the way that they started in 2000 and have been conducting surveys to see what landmarks they should be focused on and also timing up their refurbishment of the National Civil rights Museum 40 years after Martin Luther King’s assassination....
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...Hampton Machine Tool Company, a profitable machine tool manufacturer, is trying to renew a 1 million dollar loan due September 30, 1979 until December 31, 1979. Through examination of the case, it is clear that Hampton will be unable to repay the loan; however, at first glance Hampton seems to be a profitable company that would be able to pain the loan on time and would not need more bank financing. Unfortunately, that is not the case. Hampton, by making a stock repurchase for which the loan was taken, forced a major cash expenditure onto the company a year prior- costing Hampton almost a 3 million dollar loss forcing Hampton to push back the date on the loan. Since a whole year went by with less cash on hand, it was nearly impossible for Hampton to be able to pay its loan on time. For example, in the period between November 1978 and August 1979, stock repurchase represented 58% of total expenditures for that period, while inventory purchases represented 42% of total expenditures. Furthermore, Hampton needs more bank financing ($350,00) because they had not been in contact with new equipment since the recession hit; it is important to the success of a company to be up to date on the newest equipment, especially dealing such important equipment. Moreover, Hampton needs more bank financing because of the vast amount of backorders and lack of current cash. Hampton claims the request is vital because it will improve the operational efficiency of the company, but cannot afford the...
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...rP os t 9-809-029 JULY 23, 2008 LYNDA M. APPLEGATE GABRIELE PICCOLI CHEKITAN DEV op yo Hilton Hotels: Brand Differentiation through Customer Relationship Management In early 2008, Hilton Hotels Corporation was poised for tremendous global growth—with an aggressive goal of opening 1,000 hotels in North America in five years and 1,000 hotels in the rest of the world in ten years. The company had just been taken private by the Blackstone Group1 for a reported $26 billion, a 32% premium over the $32.05 share price the day prior to the announcement. The takeover announcement by Blackstone clearly framed the road ahead: “Blackstone intends to invest in the Hilton properties and brands globally to enhance and grow the business for the benefit of owners, franchisees, and customers... This transaction is about building the premier global hospitality business.” tC But growth would not be easy in the highly competitive global lodging business. Challenges in this market historically included access to capital, high levels of employee turnover, and difficulty achieving standardization typical of service delivery operations. Improving service delivery and consistency across the family of Hilton brands had been the major focus of the Customers Really Matter (CRM) strategy that the firm launched in 2002. With five years invested in CRM, the Blackstone acquisition provided the opportunity to evaluate the results to date and to devise an action plan going...
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...7 Cities Do It Yourself Auto Repair Assignment 2Week 8: Marketing Plan Part B Roderick D Williams Strayer University Marketing Management Professor Caitlyn Worner 6/1/14 7 Cities Do It Yourself Auto Repair The concept of 7 Cities Do It Yourself Garage did not derive from the passion of an individual repairing their own automobiles, it derived from finding a money saving solution to small auto repairs. Many people do not change their own oil, which is a very inexpensive preventive maintenance cost. Once you get the feel for doing your own oil changes, it will lead to you learning more about vehicle repairs and the amount of money saved in the process. This knowledge will come in handy especially during difficult economic down times, like the economy in 2008. As you learn more about at home car repairs, some required tools and equipment are not available for use in the driveway or garage. Researching a few backyard mechanics you will find the same problems. In addition, many people that rent homes and apartments are not allowed to work on automobiles on the premise, of the rental property; in the city of Norfolk it is illegal and by owner discretion in others. Roderick Williams has been a vendor at a local flea market for over 10 years and through his consumer connections, he was often asked does he know of someone that can fix this or repair that. Another vendor sells stereo equipment, but there is no one to install the equipment, especially on rainy days...
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...Burdened with debt from Hampton Institute, Washington prioritized the necessity to obtain an employment. Through this ordeal, he realized that honest and respectful work eventually paid off. Upon his arrival at Hampton Institute, Washington became aware of the fact that he would be not be able to provide the necessary funds in order to maintain his status at the Institute. With this knowledge in mind, he managed to obtain a janitorial position at the college. Despite his prime occupation as an ordinary janitor, he hoped that his “services would be indispensable” (23), so that he could be vindicated from his debt. Later, he was informed by school officials that he would be “allowed the cost of [his] board in return for [his] work” (23). Acknowledging...
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...A Foray into the Right Brain: Thoughts on Tom Kelley’s The Art of Innovation “An accountant? Creative? I don’t think so.” That was a comment I made to a group of colleagues about twenty-five years ago when I was working with an international CPA firm. I can’t recall many specific conversations from so long ago, but I do remember this one. I think it stuck in my mind because the managing partner of my office overhead my comment and interrupted the conversation. He responded that he had seen plenty of instances in my work that demonstrated my creativity and he thought I was quite creative. That conversation was before the October 2001 Enron fiasco and at that time, accountants serving “sophisticated” clients were expected to sometimes be creative in their accounting practices. Not to say that I ever witnessed any “creativity” such as that shown at Enron. If, however, if a client wanted to record a transaction a certain way, for example, a good CPA would do his best to find a way to support his client’s accounting. A great CPA was nearly always successful. Since then, I have left public accounting (pre-Enron, not as a result) and have been on the client side for the last twenty or so years. I’ve witnessed that most people in business do not appear to be creative and, in fact, many seem to be stuck thinking “that’s just the way we do it.” Most companies have a couple of people who do most of the creative thinking and the rest of the people just react…or resist. Over...
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...A TEACHER’S GUIDE TO THE SIGNET CLASSIC EDITION OF BOOKER T. WASHINGTON’S UP FROM SLAVERY By VIRGINIA L. SHEPHARD, Ph.D., Florida State University S E R I E S E D I T O R S : W. GEIGER ELLIS, ED.D., ARTHEA J. S. REED, PH.D., UNIVERSITY OF GEORGIA, EMERITUS and UNIVERSITY OF NORTH CAROLINA, RETIRED A Teacher’s Guide to the Signet Classic Edition of Booker T. Washington’s Up from Slavery 2 INTRODUCTION Booker T. Washington’s commanding presence and oratory deeply moved his contemporaries. His writings continue to influence readers today. Although Washington claimed his autobiography was “a simple, straightforward story, with no attempt at embellishment,” readers for nearly a century have found it richly rewarding. Today, Up From Slavery appeals to a wide audience from early adolescence through adulthood. More important, however, is the inspiration his story of hard work and positive goals gives to all readers. His life is an example providing hope to all. The complexity and contradictions of his life make his autobiography intellectually intriguing for advanced readers. To some he was known as the Sage of Tuskegee or the Black Moses. One of his prominent biographers, Louis R. Harlan, called him the “Wizard of the Tuskegee Machine.” Others acknowledged him to be a complicated person and public figure. Students of American social and political history have come to see that Washington lived a double life. Publicly he appeased the white establishment...
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...Human Resource Case Study Question1. Does Hampton's new HR strategy fit with the hotel's business strategy? Answer: If you're not 100% satisfied, we don't expect you to pay. That's Hampton’s new HR strategy. This guarantee allows every Hampton Inn employee to do whatever it takes to satisfy guests- including giving them their money back. Furthermore, every employee would go through a three-day training program, they knew that the guarantee ”100% satisfaction” was something special. It became more and more apparent that the new Hampton Inn guarantee would affect all of their jobs, each team member owns this promise to every guest: friendly service, clean rooms, comfortable surroundings, every time. That’s their commitment and guarantee. The Hampton Inn believes that guests who go away impressed with the way that the company handled a problem will spread the word and generate additional business for the chain. As a result of this, the Hampton Inn has been making profits, this indicates that the strategies put in place Human resource strategies have been effective and have assisted the resorts in increasing their sales and turnover and eventually higher profits. Therefore, Hampton's new HR strategy perfectly fit with the hotel's business strategy. Question2. How does Hampton's new HR strategy allow the hotel to deal with environment threats more effectively? Answer: For many companies, improving quality standards and keeping customers...
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...1. How would you characterize the U.S. hotel industry in early 2005? In 2004, the hotel industry in the U.S. had $113.7 billion in revenue and $16.7 billion in pretax profit. As of the end of that year, the U.S. had approximately 4.4 million hotel rooms, two-thirds of which were affiliated with a brand (the remaining one-third were owned independently and not affiliated with a brand). The hotel industry in the U.S. is very fragmented; no one company or brand controls a majority of the hotel rooms. Overall, hotels compete on the basis of price, amenities, and service. Typically, full-service hotels will offer food and beverage outlets (like restaurants and lounges), meeting/banquet/convention facilities, a concierge, luggage service, and room service. Full-service hotels include luxury hotels (like Ritz-Carlton), upper upscale hotels (like Hilton), upscale hotels (like Radisson), and midscale with food and beverage hotels (like Holiday Inn). In 2004, full-service hotels accounted for approximately 1.6 million hotel rooms in the U.S. Limited-service hotels mostly focus on renting hotel rooms and do not offer amenities such as restaurants, lounges, and banquet rooms. Limited-service hotel brands include midscale without food and beverage hotels (like Fairfield Inn) and economy hotels (like Motel 6). In 2004, limited-service hotels accounted for approximately 1.4 million hotel rooms in the U.S. Since 2003, all hotel segments have shown improved performance...
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...Hampton Inn Case Study HAMPTON INN: THE Mary Bourland March 19, 2010 1. The philosophy behind the 100% Satisfaction Guarantee is to have the guests act as quality-assurance inspectors by identifying quality deficiencies and reporting them to hotel employees. I do think that this is a good way to improve service quality; however, I am not sure that it is the best way. While it may seem to consumers that employees will try harder to satisfy them, if employees are empowered to refund a customer's money, they do not have to answer to management, they can just do it. 2. The implications of the 100% Guarantee for (a) guests, (b) managers, (c) owners of the hotel buildings and (d) Promus are: a) Guests – that no matter what happens, even if the hotel really did nothing wrong, they can get their money back. b) Managers – that they have very little to no control over their property or employees. It seems like many important decisions have been taken away from Is this Essay helpful? o read more and access more than 350,000 just like it! managers, and they can not react in the best interest for the hotel chain because what's in the customer's best interest is usually not the same as the company's best interest. c) Owners of the Hotel Buildings – that they need to keep their facilities in tip top condition or else customers will be dissatisfied with their experience and demand their money back. d) Promus – that this is a program that can enhance the quality of...
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...HAMPTON INN: THE 100% SATISFACTION GUARANTEE 1. The philosophy behind the 100% Satisfaction Guarantee is to have the guests act as quality-assurance inspectors by identifying quality deficiencies and reporting them to hotel employees. I do think that this is a good way to improve service quality; however, I am not sure that it is the best way. While it may seem to consumers that employees will try harder to satisfy them, if employees are empowered to refund a customer’s money, they do not have to answer to management, they can just do it. 2. The implications of the 100% Guarantee for (a) guests, (b) managers, (c) owners of the hotel buildings and (d) Promus are: a) Guests – that no matter what happens, even if the hotel really did nothing wrong, they can get their money back. b) Managers – that they have very little to no control over their property or employees. It seems like many important decisions have been taken away from managers, and they can not react in the best interest for the hotel chain because what’s in the customer’s best interest is usually not the same as the company’s best interest. c) Owners of the Hotel Buildings – that they need to keep their facilities in tip top condition or else customers will be dissatisfied with their experience and demand their money back. d) Promus – that this is a program that can enhance the quality of their hotel system. 3. I think that since certain events are “uncontrollable” it would be more realistic...
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...product. Because of this, it cannot be pointed that there is only one supplier for the hotels. If one needs to focus on the competition between the hotels, price, amenities and service are the main areas that are considered by the consumers. Usually, the high price brings the higher quality of services and amenities. It can be stated that full-service hotels which account for 1.6 billion hotel rooms by 2005, are the most expensive hotels because of the restaurants, meeting facilities, room service etc. in their properties. Hence, hotels in the U.S are segmented as below; 1. Luxury Hotels (Four Seasons etc.) 2. Upper Upscale Hotels (Hilton etc.) 3. Midscale Hotels (Radisson etc.) 4. Midscale Hotels with Limited Service (Hampton Inn etc.) 5. Economy Hotels (Motel 6 etc.) The hotels in the first 3 segments are considered as “Food and Beverage Hotels” which are full-service hotels and have the facilities for food or drink supply. The hotels in the last 2 segments account for 1.4 billion hotel rooms in the U.S. and focus on renting the hotel rooms rather than quality of the service or amenities. These kind of hotels are “Limited Service Hotels” with no food or beverage facilities. The hotel performance are usually tracked by analyzing the operational statistics which are “Occupancy”, “Average Daily Rate (ADR)” and “Revenue per Available Room (PAR)”. It is projected that, the average occupancy rate was 65%, the ADR was $114 and the PAR was $77 across all hotel...
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