...Case Study 4.1 Background Ron Garcia, a management trainee at Mexicana Wire Winding, Inc. has been asked by the general manager to conduct an analysis seeking maximum profit under current production constraints. The company is seeking a banner year to obtain leverage for refinancing long-term debt (Render et al, 2012, p. 300). Using linear programming, we can assess the max profit potential while taking into account a series of identified constraints. Mexicana Wireworks Max Profit Analysis Overall production constraints are laid out in Fig 1.1 and include product max profit capability, April orders/Demand, key customer fills promised by the General Manager, labor requirements for each product, and maximum Hours capacity of the Plant (Render et al, 2012, p. 301). Product Profit was determined by subtracting overall costs (material, labor, overhead) from selling price. Average output per month is only 2400 units, 850 of which are rejected for winding errors, well below capacity to meet April’s customer demand. The focus in this analysis consists of the key customer demand promised by the GM and maximum profits under constraints of plant capacity. Max profit=34X1 + 30X2 + 60X3 + 25X4. After plugging numbers into the QM software, the results are: W0075C = 1100 units (>= 150) W0033C = 250 units W0005X = 0 units W0007X = 600 units (>=600) Optimum Profit = US $59900 Packaging hours become the limiting factor as far as plant capacity is concerned, wasting potential...
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...Haut du formulaire Bas du formulaire * Home Page » * Business and Management Case Study: Chase’s Strategy for Syndicating the Hong Kong Disneyland Loan (a) In: Business and Management Case Study: Chase’s Strategy for Syndicating the Hong Kong Disneyland Loan (a) Case Study: Chase’s Strategy for Syndicating the Hong Kong Disneyland Loan (A) Q1. How should Chase have bid in the first round competition to lead the HK$3.3 billion Disneyland financing? 1.Three ways to approach this deal 1) bid to win, 2) bid to lose and3) no bid. Chase chose to bid to lose on the first round, but just enough to make it to the short list. Also, since Chase is one of Disney's relationship banks, Chase would not want to ruin this relationship by not bidding on their project. If Chase wanted to lead the competition from the first round, they should have made a bid that was more aggressive and aimed to win. This bid would have been closer to the desires of Disney, making them more appealing and increasing their probabilities of leading the financing. However, they chose to bid to lose, with just enough terms to get into the second round to "protect their reputation", but not to lead. The deal started to become more attractive with the possibility of Disney awarding a sole lead arranger mandate and with the increased potential for a successful syndication. At this point, after Chase made it through the first round, they decided on a more aggressive final proposal where they...
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...Business and Financial markets “Case Study – J.P.Morgan Chase & Co.” Student Name: Gangadharan Renganthan Student Id : 1229047 Table of Contents Introduction: 2 History of J.P.Morgan Chase & Co.: 3 Key Moments in J.P.Morgan Chase & Co. History: 3 Current Problems: 4 Important of the Analysis: 6 Different Approaches to dealing with the problem: 7 A change in focus for banks: 7 A change in focus for regulators: 7 Financial Summary Indicators: 8 JPMorgan Chase & Co. (JPM)-NYSE: 8 Recommendation: 9 Conclusion: 10 Reference: 10 Introduction: J.P.Morgan Chase & Co. is a financial company which is an American multinational banking corporation of securities, investments, financial, and retail. It is in the top ranking and it is world’s second largest banking in the assets. The main job of this banking is that they provide financial services for the assets. They have the assets of nearly $2,509 Trillion. They have the one of the largest hedge fund unit in the United States. They formed this hedge fund in the year of 2000. The hedge fund unit was formed at the period of the Chase Manhattan Corporation was merged with the J.P.Morgan & Co. In United States of America J.P.Morgan is one of the largest banks in the top four lists. The other top banks are Citigroup, Bank of America and Wells Fargo. According to Bloomberg, J.P.Morgan Chase & Co. is as largest as the Bank of America while comparing with the assets them...
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...April 2, 1998 Chase Manhattan Corporation: The Making of America's Largest Bank * In mid-August 1995, Walter Shipley, chairman and CEO of Chemical Banking Corporation, was preparing to leave the bank’s Manhattan headquarters building after a long day. For the past four weeks he and other senior Chemical managers had been in intensive negotiations with their counterparts at Chase Manhattan Corporation, including that bank’s chairman and CEO Thomas Labrecque. At issue was whether the two banks would agree to merge in a friendly transaction. If completed, the merger would produce the largest commercial bank in the United States, and the fourth largest bank in the world, with total assets of nearly $300 billion and over 74,000 employees. Shipley believed the merger would create value in two ways. First, it would allow the banks to realize substantial savings in operating and overhead costs. The banks’ businesses overlapped in many areas, and they both maintained extensive retail branch networks in the Downstate New York area. In addition, both banks were headquartered in Manhattan, and maintained elaborate trading floors in both Manhattan and London. Cost savings of up to $1.5 billion were deemed possible, but this would require reducing the banks’ combined workforce by 12,000 employees and closing over 100 branches. The second benefit of the merger, in Shipley’s view, was that as a larger bank with significant product and market leadership positions, Chemical-Chase would enjoy significantly...
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...Case Study: Chase Manhattan Bank Chase Manhattan Bank The workload in many areas of bank operations has the characteristics of a nonuniform distribution with respect to time of day. For example, at Chase Manhattan Bank, the number of domestic money transfer requests received from customers, if plotted against time of day, would appear to have the shape of an inverted-U curve with the peak reached around 1 P.M. For efficient use of the resources, the manpower available should, therefore, also vary correspondingly. A variable capacity can effectively be achieved by employing part-time personnel. Since part-timers are not entitled to all fringe benefits, they are often more economical than full-time employees. However, other considerations may limit the extent to which part-time people can be hired in a given operating department. The problem is to find an optimum workforce schedule that would meet manpower requirements at any given time and also be economical. Some of the factors affecting personnel assignments can be listed 1. By corporate policy, part-time personnel hours are limited to a maximum of 40 percent of the day's total requirement. 2. Full-time employees work for eight hours (one hour for lunch included) per day. Thus, a full-timer's productive time is 35 hours per week. 3. Part-timers work for at least four hours but less than eight hours and are not allowed any lunch break. 4. Of the full-timers, 50 percent go out to lunch between 11 A.M. and 12...
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...MAKING ENTERPRISE RISK MANAGEMENT PAY OFF Thomas L. Barton William G. Shenkir Paul L. Walker Prentice Hall PTR One Lake Street Upper Saddle River, NJ 07458 www.phptr.com Editorial/Production Supervision: KATHLEEN M. CAREN Executive Editor: JIM BOYD Marketing Manager: BRYAN GAMBREL Manufacturing Manager: MAURA ZALDIVAR Cover Design: TALAR BOORUJY ©2002 Financial Executives Research Foundation, Inc. Published by Financial Times/Prentice Hall PTR Pearson Education, Inc. Upper Saddle River, NJ 07458 Prentice Hall books are widely used by corporations and government agencies for training, marketing, and resale. The publisher offers discounts on this book when ordered in bulk quantities. For more information, contact: Corporate Sales Department, Phone: 800-382-3419; Fax: 201-236-7141; E-mail: corpsales@prenhall.com; or write: Prentice Hall PTR, Corp. Sales Dept., One Lake Street, Upper Saddle River, NJ 07458. All rights reserved. No part of this book may be reproduced, in any form or by any means, without permission in writing from the publisher. Printed in the United States of America 10 9 8 7 6 5 4 3 2 1 ISBN 0-13-008754-8 Pearson Education LTD. Pearson Education Australia PTY, Limited Pearson Education Singapore, Pte. Ltd. Pearson Education North Asia Ltd. Pearson Education Canada, Ltd. Pearson Educación de Mexico, S.A. de C.V. Pearson Education—Japan Pearson Education Malaysia, Pte. Ltd. Pearson Education, Upper Saddle River, New Jersey A D V I S O R Y C O...
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...FACULTY OF ECONOMICS AND BUSINESS ADMINISTRATION MNEs, JVs, and M&As Osho Aquila Adeolu Student number: 2302887 Mergers and Acquisitions, Case Study: JP Morgan Chase &Co Oulu Business School 2013 1 Table of Contents 1 INTRODUCTION ............................................................................................................................... 2 2 HISTORY AND THE M&A PROCESS ............................................................................................. 3 2.1 History .......................................................................................................................................... 3 2.2 The M&A process ......................................................................................................................... 3 3 MOTIVES OF M&A ........................................................................................................................... 5 3.1 Challenges and human side during the merger process ................................................................ 6 3.2 Strategy used by JP Morgan Chase in solving some challenges ................................................... 7 3.3 The success factor of JP Morgan Chase Merger ........................................................................... 8 4 CONCLUSIONS................................................................................................................................ 10 References ................................
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...What is a business? Webster’s defines a business as: (a) a usually commercial or mercantile activity engaged in as a means of livelihood. (b) A commercial or sometimes industrial enterprise. This is true in either circumstance but in most cases today the first and not the latter is the standard to what a business is. Business doesn't just end with a simple definition there are many parameters and difficult work to make a idea a working business. This paper will provide a comprehensive analysis into one of the largest financial institutions in the United States JP Morgan Chase and Company. These topics include the following: 1. The History of the firm. 2. The Environment of the Business. 3. The Business operations tactics of the firm. 4. The Human Capital of the firm. 5. The Marketing and Pricing tactics of the firm. 6. The Distribution and Promotional tactics of the firm. 7. The Investor Relations of the firm. Business History Whether, it’s John D. Rockefeller and The Standard Oil Company, Andrew Carnegie and Pittsburgh steel industry, or the railroad tycoon Cornelius Vanderbilt. Most of us in business are truly fascinated by the accomplishments of individuals and the companies they founded that became such great American institutions of finance and industry. So we as spectators and future entrepreneurs always want to know the four W’s when inquiring about the origins of a great businesses such as the...
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...Case: Unequal-Equal Supervisors Questions 1. How have the inaccurate performance ratings created more problems? The inaccurate performance rating created an ethical dilemma for Hubert Johnson. Rating both employees the same even though one is more capable can lead him to making the wrong decision when retaining one supervisor for the job. This in turn can cause adverse consequences for the company. For instance, it’s quite clear that Neil will be the appropriate choice to help lead the company reach its goals. But since the company requires the person with most seniority receives priority, Hubert should retain Harriet, not Neil. The company at this point needs efficient leader like Neil to help gain sales back, but due to Hubert’s inaccurate decision regarding performance rating he might have to keep Harriet which might affect the productivity levels of the organization. 2. What HR and legal issues could be raised in this case? The documentation raises questions about the fairness of the evaluation system. As noted in the text, if any part of the appraisal process fails, better-performing employees may not receive larger pay increases, and the result in perceived inequity in compensation. Accurate evaluations can provide justification for actions such as, termination or demotion should they be necessary. Either employee can file a lawsuit against the company. 3. What course of action would you recommend that Hubert take? Explain your rationale for taking this...
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...different set of standards, yet they are always polarized into success or failure. Understanding of these standards is the basis for my perception of what failure is, and what success is. When applied to education, personal responsibility means that students accept the responsibility to study hard and to learn as much as they can in courses that press against the limits of their capacity. For most students, this aspect of personal responsibility means that they must take courses in college that prepare them for the workforce. Even in high school, hard work is a must because the single most accurate predictor of college performance is high school grade point average, because grades reflect both capacity and hard work. High school students who choose not to attend college must prepare for the world of life-long work, which also requires strenuous personal effort. Students who do not go to college should enroll in training courses after high school. Without job training, an apprenticeship, or a two-year or four-year degree, young people are destined to a life of employment and marginal income. When personal responsibility is thrown away or forgotten, individuals often cite greed, like in the case of Bernie Madoff formerly of Enron. On December 11, 2008, he was...
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...RISK MANAGEMENT IN BANKS The business of banking today is synonymous with active risk management than it was ever before. The success and failure of a banking institution heavily depends on the strength of the risk management system in the current environment. This is true as the very business of banking is risk-taking as an intermediary, i.e. interposing between savers (depositor) on one hand and the borrower on the other hand, thereby accepting the risks of intermediation. Risk Management: Meaning & Components A risk can be defined as an unplanned event with financial consequences resulting in loss or reduced earnings. Therefore, a risky proposition is one with potential profit or a looming loss. Risk stems from uncertainty or unpredictability of the future. In commercial and business risk generates profit or loss depending upon the way in which it is managed. Risk can be defined as the volatility of the potential outcome. Risk is the possibility of something adverse happening. Risk management is the process of assessing risk, taking steps to reduce risk to an acceptable level and maintaining that level of risk. The essential components of any risk management system are – * Risk Identification: i.e. the naming and defining of each type of risk associated with a transaction or type of product or service; * Risk Measurement: i.e. the estimation of the size, probability and timing of potential loss under various scenarios; * Risk Control: i.e....
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...BFF5130 BFF5130 Case Study 4 Chase-Disney -Syndicated loans Qiumin Liu 25388789 Case Study 4 Chase-Disney -Syndicated loans Qiumin Liu 25388789 Introduction Summary: In late 1999, the Walt Disney Co. and the Hong Kong government agreed to develop Hong Kong Disneyland, a theme park and resort complex worth HK$28 billion, which planned to open in late 2005. The selected underwriter, Chase Manhattan Bank, needed to raise HK$3.3 billion of non-recourse bank loans for construction and working capital of the project. Problem: The key concerns facing Chase were whether to bid at all, how to bid and how to structure the syndication to meet the borrower’s needs and its own profit objectives and the market’s expectation for an attractively priced credit. And also the participants of the syndicated loan must be identified. That is, whether to pursue a sub-underwriting and if so, whom to invited. Strategy Analysis: We need to analyze the three possible strategy options to determine which one is better. Please refer to Appendix 1 for option 1, Appendix 2 for option 2 and Appendix 3 for option3 to see the detailed calculation. Strategy | 1 | 2 | 3 | Mandate | Sole | Joint | Sole | Sub-Underwriting | Yes | No | No | No. of banks involved | 15 | 18 | 21 | Total income ($HK000) | $13,850 | $8,783 | $23,050 | Pool Income ($HK000) | $1,000 | $1,900 | $2,800 | Summarized through Appendix 1,2,3. * Strategy 1: Chase would be the sole mandated lead arranger...
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...The Great Gatsby—and especially after he revealed that he’d be doing it in 3-D—much digital ink has been spilled about the hideous sacrilege that was sure to follow. Nevermind that Luhrmann’s previous adaptation, William Shakespeare’s Romeo + Juliet, was quite true to both the language and the spirit of that legendary play; Gatsby, as David Denby puts it in The New Yorker this week, is “too intricate, too subtle, too tender for the movies,” and especially for such an unsubtle filmmaker as Luhrmann. So the argument goes, anyway. In fact, Fitzgerald’s novel, while great, is not, for the most part, terribly subtle. And though it has moments of real tenderness, it also has melodrama, murder, adultery, and, of course, wild parties. In any case, we can put aside, for the moment, the larger question of whether Luhrmann captured the spirit of Gatsby, which is very much open for debate. There’s a simpler question to address first: How faithful was the filmmaker to the letter of Fitzgerald’s book? Below is a breakdown of the ways in which the new film departs from the classic novel. The Frame Story Luhrmann’s chief departure from the novel arrives right at the beginning, with a frame story in which the narrator Nick Carraway (Tobey Maguire), some time after that summer spent with Gatsby & co., has checked into a sanitarium, diagnosed by a doctor of some sort as “morbidly alcoholic.” Fitzgerald’s Nick does refer to Gatsby as “the man who gives his name to this book” (emphasis...
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...Business Process Outsourcing Introduction Business process outsourcing (BPO) is a subset of outsourcing that involves the contracting of the operations and responsibilities of specific business functions (or processes) to a third-party service provider. Originally, this was associated with manufacturing firms, such as Coca Cola that outsourced large segments of its supply chain. BPO is typically categorized into back office outsourcing - which includes internal business functions such as human resources or finance and accounting, and front office outsourcing - which includes customer-related services such as contact center services. BPO that is contracted outside a company's country is called offshore outsourcing. BPO that is contracted to a company's neighboring (or nearby) country is called near shore outsourcing. Often the business processes are information technology-based, and are referred to as ITES-BPO, where ITES stands for Information Technology Enabled Service. Knowledge process outsourcing (KPO) and legal process outsourcing (LPO) are some of the sub-segments of business process outsourcing industry. In 2010, the Philippines surpassed India as the largest business process outsourcing industry in the world. After growing 20 per cent in 2012, the BPO industry of the Philippines is estimated to gross revenue of upwards to $25 billion by 2016. By these estimates, the Philippines' BPO industry will account for approximately 10 per cent of the nation's GDP. History...
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...Case Study Bernie Madoff’s Ponzi Scheme: Reliable Returns from a Trustworthy Financial Adviser By Denis Collins Denis Collins is a professor of management in the School of Business at Edgewood College in Madison, Wisconsin. His research interests include business ethics, management, and organizational change. Contact: dcollins@ edgewood.edu A [person] is incapable of comprehending any argument that interferes with his revenue. Rene Descartes Overview This case study is a chronology of the largest Ponzi scheme in history. Bernie Madoff began his brokerage firm in 1960 and grew it into one of the largest on Wall Street. While doing so, he began investing money as a favor to family and friends, though he was not licensed to do so. Over a period of fifty years, these side investments became an investment fund that mushroomed into a $50 billion Ponzi scheme. Bernie1 pled guilty without a trial on March 12, 2009, and was sentenced to 150 years in prison. Thousands of wealthy clients, philanthropic organizations, and middle-class people whose pension funds found their way into Bernie’s investment fund lost their life savings. What to Do? Bernie Madoff, at age 69, owned three very successful financial companies—a brokerage firm, a proprietary trading firm, and an investment advisory firm. On December 10, 2008, the brokerage and proprietary trading firms, managed by his brother and two sons, were performing as well as could be expected in the middle of a deep recession. His investment...
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