...Suggested Format for Case Analyses: 1. Executive Summary: brief 1 paragraph stating key problem(s) and your main recommendation(s)/decision(s). 2. Problem Identification: 1-2 page write-up of the key problem(s) you have identified within the case. This should not be a re-hash of the case itself. The Case Study questions should help you address the issues in this section. 3. Action Plan: 1-2 page write-up of your proposed solution to the problem(s) with detailed steps as to how to proceed with implementing your proposal. 4. Financial Analysis: 1-2 page write-up of the financial analysis that supports the recommendation(s) you have presented in the Executive Summary and Action Plan. Use an electronic spreadsheet to do the calculations and print out these figures as an attachment to your case analysis. Case Study Questions: Tiffany & Co.—1993: 1. Should Tiffany actively manage its yen-dollar exchange rate risk? Why or why not? 2. If Tiffany were to manage its exchange rate risk activity, then what should be the objectives of such a program (e.g., what specific purpose or theoretical rationale can justify a decision to hedge the yen-dollar risk)? 3. Assuming Tiffany wanted to hedge this risk, try to identify what exposures should be managed via such a hedging program (e.g., hedge sales, net income, cash flow, etc.). Also, try to quantify how much of these exposures should be covered and for how long. 4. Identify, in terms of cost, benefits...
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...Donna Dubinsky and Apple Computer Case questions 1. Why was Dubinsky initially so successful at Apple? * The organizational structure for apply and the distribution division was simply and clean * She claimed that having a good supervisor as mentor is precious, and guided her career path * With her ways of doing and managing phrased by her subordinates, Dubinsky was able to equip herself not only the position powers but also reputation and personal power * In terms of work evaluation, she maintained good relationships with all dealers, a critical factor in the industry. * Employees of distribution group took pride in their system’s efficiency and simplicity. It is very critical for the employees to agree and feel good about what they do. 2. Why did she respond the way she did to the JIT proposal? Two parts, emotional and rational * The distribution division was doing excellent, as they never caused a delay in product delivery, also maintain good relationships with dealers. All of a sudden, the top management suggested a proposal that was almost mandatory. * It is very offensive that other people step into her domain and try to break what her team has created. * The rationale behind the proposal was not in favor to apple’s good in a long term. As off the shelf business got to have inventory, and also room for faulty and returned product. 3. What do you think she should have done differently? Be specific. * Instead...
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...Case Questions for April 10, 2010 Discussion Questions for Birch Paper Company Answer each of the following questions independently. 1. Which bid should Norhern Division accept? 2. Should Thompson Division lower its price? If so, to what? 3. What should the Commercial V.P. do? Case 23-5, Berkshire Industries 1. Were Berkshire’s motivations for a new incentive system reasonable? If so, what were their main options for a new system? Was an economic profit-focused system a reasonable choice? 2. Use the data pertaining to the Snack Food Division, as shown in Exhibit TN- 1, to calculate: a. Economic profit for the division for 2000 and 2001. b. The economic profit target for the division for 2001. c. The division manager’s bonus payout (% of salary) for 2000 and 2001. (Assume that the slope of the payoff line for 2000 was arbitrarily set by Berskshire management to equal 1.0). 3. Assume the base salary of the manager of the Snack Foods Division was ₤120,000 in both 2000 and 2001. How much cash would the manager receive from his bonus payouts in 2000 and 2001? 4. Evaluate the Berkshire Industries’ new incentive plan. What changes would you recommend, if any? 5. Should Mr. Embleton make special adjustments of the economic profit figures or the bonus payouts for personnel in the Spirits Division in 2000 and 2001? Why or why not? Sub-Micron Devices (take-home graded case, not due on April 10) Anwer the questions provided in the...
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...2006 CASE QUESTIONS DR. KISS Please allow these questions to serve as a guide when you prepare your case write-up in accordance with the syllabus or other instructions. Table of Contents Page Case: Name and Number, Bruner 5e Note Number I. C12- Best Practices—WACC No Questions II. C2- Bill Miller & Value Trust 2 III. C5- Financial Detective, 2005 Contained in Case IV. C7- Body Shop Intl* Contained in Case, but see page 3 V. C6- Krispy Kreme Doughnuts, Inc. 4 VI. C17- The Investment Detective* Contained in Case VII. C28- Intro. to Debt Policy & Value* No Questions, but review M & M Theory on debt and value of the firm. VIII. HBS Case- “Leveraged Betas and the Cost of Equity No Questions IX. C16- The Boeing 7E 7* 5 X. C26- Jet Blue Airways, IPO Valuation* 6 XI.a C35- Merton Electronics 7 XI.b C36- Carefour S. A.* 8 XI.c C44- Palamon Capital Partners* 9 XII. GM Dividend Policy Negotiation (Information to be provided by Dr. Kiss) * Note: Excel Spreadsheets containing some of the exhibits from the case are available for this case at www.mhhe.com/bruner5e FIN 620, CASE QUESTIONS DR. KISS Please allow these questions to serve as a guide when you prepare your case write-up in accordance with the syllabus or other instructions Case 2- Bill Miller & Value Trust Suggested Questions for Your Preparation of the Case. ...
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...Case #1: Butler Lumber Company Questions 1. Why does Mr. Butler have to borrow so much money to support this profitable business? 2. Do you agree with his estimate of the company’s loan requirements? How much will he need to borrow to finance his expected expansion in sales (assume a 1991 sales volume of $3.6 million)? 3. As Mr. Butler’s financial advisor, would you urge him to go ahead with, or to reconsider, his anticipated expansion and his plans for additional debt financing? As the banker, would you approve Mr. Butler’s loan request, and, if so, what conditions would you put on the loan? 4. Has Butler Lumber Company created value for shareholders? Hint: It might help you to analyze the case if you conduct the following analyses: 1. 2. 3. 4. Construct a common-size (percentage) income statement. Construct a common-size (percentage) B/S Using information from 1&2 to find out the operating efficiency Assuming the same operating efficiency in 1990, forecast cash needs for the target growth Case #2: Ocean Carriers Questions Ocean Carriers uses a 9% discount rate. 1. Do you expect daily spot hire rates to increase or decrease next year? 2. What factors drive daily hire rates? 3. How would you characterize the long-term prospects of the capesize dry bulk industry? 4. Should Ms Linn purchase the $39M capesize? Make 2 different assumptions. First, assume that Ocean Carriers in a U.S. firm subject to 35% taxation. Second, assume that Ocean Carriers is located in Hong Kong, where...
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...52:620:530 D6 (Summer 2015) Arun Kumaraswamy Case preparation questions KTM – Ready to race (for general discussion in class) 1. Size up KTM (its strategy, resources/capabilities, organization and management) and its environment. How is it performing? 2. What growth options does it have? How does each growth option fit with its environment, strategy/resources/capabilities? How well can KTM deliver on each of these options? 3. What growth options should KTM pursue? Should it pursue organic growth (i.e., through internal development), merge/acquire (if yes, who) or use alliances? Newell Co: Corporate strategy (for general discussion in class) 1. Is Newell’s corporate strategy successful? Does the company add value to the businesses within its portfolio? 2. What are Newell’s distinctive resources and competencies? 3. What challenges does Newell face in the late 1990s? 4. Given this context, does the Calphalon acquisition make sense? Rubbermaid acquisition? Why (or why not)? Antitrust regulation in a global setting: The EU investigation of GE/Honeywell merger (for general discussion in class) 1. What markets are affected by the proposed GE/Honeywell merger? Who are the main competitors in these markets and how are these markets related to each other? 2. What would the combined market share of GE and Honeywell be in each of the markets you identified in Q1? How would these estimates change depending on how broad or narrowly you define these markets? 3. Which...
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...Questions to be discussed in class Case 18: Worldwide Paper Company 1. What are the yearly cash flows that are relevant for this investment decision? Do not forget the effect of taxes and the initial investment amount. 2. What discount rate should Worldwide Paper Company (WPC) use to analyze those cash flows? Be prepared to justify your recommended rate and the assumptions that you used to estimate it. 3. What is the net present value (NPV) and internal rate of return (IRR) for the investment? Case 24: Euroland Foods S.A. 1. Why does the company face the capital rationing? 2. Why do different types of projects have different hurdle rate (required rate of return) and maximum acceptable payback years? 3. Prepare to discuss the strengths and weaknesses of the various measures of investment attractiveness as used by Euroland Foods. Will all of the measures rank the projects identically? Why or why not? 4. Please rank the 11 proposals on the basis of purely economic considerations. Then rank them a second time based on any other considerations that you believe are important. Are the rankings identical? Why or why not? 5. Which set of projects should Wilhelmina Verdin recommend to the board of Euroland Foods for the capital budget for 2001? Role play Accompanying this assignment are the case and supplemental information on a role that you will be asked to represent. Please study the case and the role carefully, and prepare a preliminary...
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...Case Questions. A. Williams, 2002. 1. Evaluate the terms of the proposed $900 million financing from the perspective of both parties. How would you calculate the return to investors in this transaction? If you need more information, what information do you need? 2. What is the purpose of each of the terms of the proposed financing? 3. Conduct an analysis of Williams’ sources and uses of funds during the first half of 2002. How do you expect these numbers to evolve over the second half of 2002? What is the problem facing Williams? How did it get into this situation? How has it tried to address the problem it is facing? 4. Some might describe Williams as “financially distressed”. What evidence is there that Williams’ business may be compromised as a result of its previous financial decisions? 5. As the CEO of Williams, would you recommend accepting the proposed $900 million financing offer? If not, what alternatives would you pursue? B. Dividend Policy at Linear Technology. 1. Describe Linear Technology payout policy. 2. What are Linear’s financing needs? Should Linear return cash to its shareholders? What are the tax consequences of keeping cash inside the firm? 3. If Linear were to pay out its entire cash balance as a special dividend, what would be the effect on value? On the share price? On earnings? On earnings per share? What if Linear repurchased shares instead? Assume a 3% rate of interest. 4. What should...
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...For the Sears Auto Cases, when I first read it, I didn’t think the incident was that serious, since the most doubtable questions were the standard of the Sears Auto is different from what the BAR used, second, the methods of investigation used by BAR sounded not fair, they used high mileage, older vehicle model with severe repair problems and that needs only minor brake repair. Further, the BAR intentionally replaced the failed parts with new parts such that the new parts are being aged to look like it’s an old spare part. Was the method of investigation used by BAR fair enough and justifies the purported findings? Third, the incentive system of Sears auto, I did notice that, but I didn’t think about too much on that part, because this is a very common way which are used in many different industries such as what we discussed in the class, hospital, insurance, mortgage, sells… During the discussion in the class, I realized, although the incentive system itself is a good system for company to increase revenue, encourage employees to sell more, but in another hand, without an effective supervision system, people are easily focus on the quality and ignore the quantity and also because of more commission, some behaviors may cause ethics issues such as overselling, high pricing priority and so on. When it comes to the question that how could Brennan do for such incident, in the discussion, some advised Brennan should try do an out-of-Court agreement with BAR, some said Brennan...
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...1) What are the reasons consumers of music switched to digital? Streaming services pointed to the ability to discover new music, their free of charge tier of offerings and the ability to listen to music without needing to purchase individual songs. Majority of consumers who use pirate sites i.e. approximately 57% believe that there are good services available for legally accessing digital music. The significant factors which drive the popularity of downloads and streaming services. The first factor being Security and ‘ease of payment, the second being the guarantee that the service is legal and the third factor being the trust that the consumer has in the brand or company. 2) Can Spotify be profitable in the future? Yes, Spotify can be profitable in the future if * They pay less in royalties or perhaps pay less in record company advances * Watch the pennies very closely: If Spotify was dedicated or forced to pay its current royalty and distribution costs at the same level, then it is probably going to have to cut its spending elsewhere to become profitable. * Finally make free pay: Rather than cutting financial corners, it is most likely that Spotify will want to become a profitable company the hard way by raising its average revenue per user in future to the point that its large costs can’t hurt its bottom line. 3) Apple’s iTunes is the leading distribution of a copy of digital music which Spotify and Rhapsody are leaders in the streaming realm. Which distribution...
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...Industrie Pininfarina Q.1.How has the competitive environment for niche auto manufactures been changing over the past few years? What factors are affecting the competitiveness of niche manufactures such as Pininfarina with volume manufactures in Europe? Q.2. As Renato Bertrandi, what do you see as the most significant challenges facing Pininfarina over the next five years? What are Pininfarina’s options? Q.3.Should Bertrandi accept the Mitsubishi business? How should Pininfarina position itself to compete in the future? Fell – Fab Products Q.1.What are the factors for and against the possible expansion into services by Fell-Fab products? Q.2.If Fell-Fab Products were to proceed, what would implementation likely require? Q.3.As Glen Fell, what would you do? Why? How? Electrosteel Castings Q.1.What are the key success factors for Electrosteel? Is international expansion a good idea? Q.2.What is your evaluation of the opportunities to expand into either Vietnam or France? How do the alternatives compare (at a minimum, include operational, marketing and financial considerations)? Q.3.As Das, what is your recommendation going forward? How would you implement your plan? Unicon Concrete Q.1. As Mr.Li, would you pursue the blanket approval for slabs and facades? Why? Q.2.What changes do you foresee to Unicon’s operations if the blanket approval is accepted by the HKHA? Q.3.What steps would you take to increase production of slabs and facades? How would you implement your...
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...1) a) Father Daniel Mary has established a future direction for the Carmelite Monks of Wyoming shown by his vision creating. b) Vision of monastery • Increase size from 13 to 30 monks • Purchase 496 acre ranch • Build monastery with accommodations • Build a church • Build a convent for nuns and a hermitage c) Vision for Mystic Coffee • There is no true vision except to fund the Carmelite Monks d) Mission of Mystic Monks • Worship • Live out their life in monastery • Vows of obedience • Chastity and poverty • Sacrifices associated with living a cloistered religious life 2. a) It does not appear that Father Daniel Mary has set definite objectives and performance targets for achieving his vision however, some goals on wanting to obtain the 496 acre ranch or how to raise the money to buy it. 3. a) Father Prior’s strategy for achieving his vision is to use Mystic Monk Coffee profit to buy ranch for monastery. b) Its competitive advantage is the market niche of focusing on Catholics worldwide and to product more of the coffee. 4. a) Mystic Monk Coffee is a money-maker but used for monastery. c) Assessment of customer value is does have value because it sales to wholesalers or coffee clubs. d) Its profit formula is 11% of revenue. e) Free labor, non-profit with no taxes and roasting coffee in monastery creates and delivers value to customers. 5. Winning strategy • its strategy fits the company’s...
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...Strategic Management Case Analysis & Presentation Questions for the case memos: Case 1: The Chinese Fireworks Industry Discussion Questions: 1. If you were Jerry Yu, would you invest in a Liuyang fireworks factory? Why? 2. Is the fireworks industry a ‘sunset’ industry or an industry still worth being in for the long run? 3. If you were Jerry Yu, and you decided to make the investment, what would you do to win out in the competition? 4. If you were asked to provide advice to Liuyang Firecrackers and Fireworks Industry Department, as Jerry Yu, what would you say? Case 2: The Global Casino Industry Discussion Questions: 1. Examine the structure of the casino industry by using Porter’s five forces model. 2. What has been the effect of the changing industry structure on U.S. casinos? 3. What are the strategic groups in the casino industry? 4. Assuming your group as consultancy for the Macau government, provide some recommendations for the gaining industry in Macau. Case 3: McDonald’s Discussion Questions: 1. What situation did Easterbrook inherit when he became CEO? What are the current forces in the external environment that might affect the new CEO? 2. What source of competitive advantage does McDonald’s have, and is that position supported by its value chain and other internal resources? 3. What steps could Easterbrook take to fix the problems McDonald’s faced? 4. What other strategies did McDonald’s formulate to achieve a competitive advantage? Case 4: Apple Inc.: Taking...
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...ASSIGEMENT: NUCLEON CASE Each group (see below) need to prepare a short paper about the Nucleon case (no more than 10 pages). In the paper you need to answer at least below questions. The assignment need to be submitted on Thursday (23.10.2014) at the beginning of the class. QUESTIONS THAT NEED TO BE ANSWERED 1. What is this case about? 2. What options of vertical integration are available to Nucleon? Nucleon has two options how to produce product CRP-1. One option is to produce it in-house and other is that they would license manufacturing and marketing to outside partner. Therefore they need to invest in a full-scale manufacturing facility that which met the FDA guidelines. FDA required that Phase III trials should be supplied largely by the plant, which would be used to supple commercial market. With this option they will need approximate $21 million to invest. Regarding to Nucleon’s financial advisory, they would not have difficulties to raise fund after they would have approved success of Phase II. Second option is to license outsource their rights of manufacturing and marketing. Therefore they would not need to invest $21 millions, but they would receive less money from the sale if the product will succeed at phases of testing. 3. What are the advantages and what are the disadvantages of each option? Try to use theory. 4. Which choice would you recommendations to the company Nucleon based on net present value (NPV) calculation? For each...
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...Investments Fall 2014 Case Discussion Questions Instructor: Professor Edward H. Chow 周行一 Case study: financial bubble Case: Trouble with a bubble (9-808-067) 1. Why did Irving Fisher believe that stock prices had reached a permanently high plateau? 2. Why did the stock market crash in 1929? 3. Why did influential individuals like Fisher, Keynes and Rockefeller believe that the downturn would only be temporary? Case study: investment banking business and global financial crisis Case: Investment banking in 2008 (A): Rise and fall of the Bear (KEL378) 1. What role did Bear’s culture play in its positioning vis-à-vis its competitors, and what role might that culture have played in its demise? 2. How did Bear’s potential collapse differ from that of LTCM in the eyes of the Federal Reserve? 3. What would Bear have done differently to avoid its fate? A. - In the early 2000s? B. - During the summer of 2007? C. - During the week of March 10, 2008? 4. Who stood to benefit from Bear’s implosion? 5. Is market perception of liquidity more important for an investment bank than it is for an traditional manufacturing or distribution business? If so, why? 6. How could Bear have addressed perceptions of its liquidity? Could it have stopped the run on the bank, and if so, how? 7. Did Bear’s failure undermine the viability of so called “pure-play” investment banks? 8. What role should the Fed play in maintaining order in world securities markets? Case: Investment banking...
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