...brewer must prepare to vote on three issues coming before the board of directors the next day: (1) approval of the financial plan for 2001, (2) declaration of the quarterly dividend, and (3) adoption of an incentive compensation plan for the marketing manager. The student’s task is to evaluate the past and prospective financial performance of the company and to critique its liberal credit and inventory policies. The objectives of the case are to: • Introduce and exercise tools and concepts of financial-statement analysis (including financial ratios, break-even analysis, and cash-flow statements). • Explore possible definitions of the “financial health” of a company. • Illustrate the linkage between operating policies and financial performance. • Consider the interdependence among corporate objectives regarding growth, dividends, and debt financing. • Explore the linkage between compensation incentives and financial performance. In this case, the marketing manager is motivated to build sales volume, which he accomplishes with a dramatic build-up in receivables and inventory. • Illustrate some of the challenges of doing business in an emerging market. Suggested Questions for Advance Assignment to Students 1. What accounts for Deutsche Brauerei’s rapid growth in recent years? Specifically, what policy choices account for this success? 2. What is Deutsche Brauerei’s credit policy toward its distributors in Ukraine? Why is it different from the policy toward its other distributors...
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...on three issues coming before the board of directors the next day: (1) approval of the financial plan for 2001, (2) declaration of the quarterly dividend, and (3) adoption of an incentive compensation plan for the marketing manager. The student’s task is to evaluate the past and prospective financial performance of the company and to critique its liberal credit and inventory policies. The objectives of the case are to: • Introduce and exercise tools and concepts of financial-statement analysis (including financial ratios, break-even analysis, and cash-flow statements). • Explore possible definitions of the “financial health” of a company. • Illustrate the linkage between operating policies and financial performance. • Consider the interdependence among corporate objectives regarding growth, dividends, and debt financing. • Explore the linkage between compensation incentives and financial performance. In this case, the marketing manager is motivated to build sales volume, which he accomplishes with a dramatic build-up in receivables and inventory. • Illustrate some of the challenges of doing business in an emerging market. Suggested Questions for Advance Assignment to Students 1. What accounts for Deutsche Brauerei’s rapid growth in recent years? Specifically, what policy choices account for this success? 2. What is Deutsche Brauerei’s credit...
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...Tuesdays and by appointment. SBA 560C; email: sullyt@sba.pdx.edu Phone: 503 -725-3761 COURSE CATALOGUE DESCRIPTION AND PREREQUISITES: Study of the managerial functions and problems related to international business activity. The focus of this course is on the management of foreign trade, direct investments, and international operations. In addition, the political, economic, and cultural environments of international business are examined from the perspective of management. Comparative management is also treated through the study of other management systems. Prerequisite: BA 302. COURSE LEARNING OBJECTIVES: 1. To familiarize you with the major management issues organizations face when conducting business in the international arena. 2. To familiarize you with the major concepts concerning adapting management approaches to other institutional, economic and cultural environments. 3. To engage in research and learning that deepens your knowledge and understanding of other economies in the world and how to do business there. 4. To develop your ability to understand, analyze, and anticipate how international events may affect US based business organizations. REQUIRED TEXTS AND MATERIALS: International Management: Managing Across Borders and Cultures. 7th edition. Helen Deresky. Prentice Hall. Companion website for student resources (powerpoints and practice test questions): http://wps.prenhall.com/bp_deresky_im_7/ GRADING PROCEDURES: Students will be evaluated...
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...company’s international strategy and execution. Grolsch’s 60 years of history in foreign markets provides a rich backdrop to introduce a range of international strategy topics including: performance assessment, rationale for expansion, market selection, and choice of entry mode. Suggested Assignment Questions 1. Why did Grolsch globalize, and how well has it performed internationally? 2. What are the key elements and limitations of its emphasis on adaptation, in particular? 3. What lessons does Grolsch’s history afford about where to compete? What, specifically, do you think about the MABA process? 4. What lessons does Grolsch’s history suggest about how to compete in the markets targeted— particularly about modes of entry? 5. What other changes would you suggest to Grolsch's historical strategy? 6. Will the merger with SABMiller add value—or will it be a win-lose deal? Teaching Objectives This case is intended as an introductory lesson to illustrate how a company develops and executes its global strategy. It affords instructors the opportunity to raise the following questions and introduce students to relevant frameworks: 1. Why expand across borders? (ADDING Value scorecard) 2. Where should the company target its efforts? (CAGE Framework)...
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...Chapter 2 Mini Case 1 Cash Flows and Financial Statements at Sunset Boards Sunset Boards is a small company that manufactures and sells surfboards in Cape Town. Sipho, the founder of the company, is in charge of the design and sale of the surfboards, but his background is in surfing, not business. As a result, the company’s financial records are not well maintained. The initial investment in Sunset Boards was provided by Sipho and his friends and family. Since the initial investment was relatively small, and the company has only made surfboards for its own store, the investors haven’t required detailed financial statements from Sipho. But, thanks to word of mouth among professional surfers, sales have picked up recently, and Sipho is considering a major expansion. His plans include opening another surfboard shop in Knysna, as well as supplying other sellers. Sipho’s expansion plans require a significant investment, which he plans to finance with a combination of additional funds from outsiders plus some money borrowed from banks. Naturally, the new investors and lenders require more organized and detailed financial statements than Sipho has previously prepared. At the urging of his investors, Sipho has hired a financial analyst to evaluate the performance of the company over the past year. After rooting through old bank statements, sales receipts, tax returns and other records, the analyst has assembled the following information: | ...
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...PMI delivers programs to Power Sector companies at their locations in South Asia, Gulf and African countries. In the year 2014-15, PMI has trained 8,175 employees of NTPC and 1,190 employees of other power utilities. PMI got AICTE approval and recently launched an Executive MBA program for power professionals of the country. Given this background, an assessment of PMI through benchmarking can help in understanding its internal processes and adapting outstanding practices from other organizations considered to be best-in-class. This in turn can help in developing a framework. Goal of the Study: Evaluation of PMI through benchmarking with other Maharatna in-house training institutes. Objectives: Benchmarking PMI with respect to; 1. Infrastructure; 2. Faculty members; 3. Supporting staff; 4. Number of participants trained in the last year; 5. Course fees per participant per day and revenue thereby; 6. Future plan (expansion & diversification) Methodology: Data will be collected from secondary as well as primary sources. Secondary source data will be mainly related to the following aspects: * Permanent faculty profile of the institute; * Training programs; * Companies’ HRD initiatives; * Methodology related to benchmarking; and * Literature on different frameworks for development of training institutes. Primary source data will be collected through observation, informal discussion and case studies (if case leads are found)...
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...and business-like presentation. CHAPTER CASE CASH FLOWS AND FINANCIAL STATEMENTS AT SUNSET BOARDS, INC. Sunset Boards is a small company that manufactures and sells surfboards in Malibu. Tad Marks, the founder of the company, is in charge of the design and sale of the surfboards, but his background is in surfing, not business. As a result, the company’s financial records are not well maintained. The initial investment in Sunset Boards was provided by Tad and his friends and family. Because the initial investment was relatively small, and the company has made surfboards only for its own store, the investors haven’t required detailed financial statements from Tad. But thanks to word of mouth among professional surfers, sales have picked up recently, and Tad is considering a major expansion. His plans include opening another surfboard store in Hawaii, as well as supplying his “sticks” (surfer lingo for boards) to other sellers. Tad’s expansion plans require a significant investment, which he plans to finance with a combination of additional funds from outsiders plus some money borrowed from banks. Naturally, the new investors and creditors require more organized and detailed financial statements than Tad has previously prepared. At the urging of his investors, Tad has hired financial analyst Paula Wolfe to evaluate the performance of the company over the past year. After rooting through old bank statements, sales receipts, tax returns, and other records, Paula has assembled...
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...East India Company, also known as The Honorable East India Company, British East India Company, was a joint-stock company established by the British. On Dec. 31th, 1600, the company was chartered by the Queen Elizabeth as the Governor and Company of Merchants of London trading into the East Indies (Chaudhuri, 2006). The charter in fact gave East India Company a monopoly right for twelve years. During its rule in India, the company not only owned economic monopoly but also assisted the British to realize military expansion. There will first be a discussion about how East India Company assisted British to realize its military expansion in India. Following that, there will be a discussion on how East India Company works as an economic tool of colonial expansion for Britain. Finally, there will be a discussion on how East India Company finally led to the backwardness of the country as well as disaster of the local people. Military expansion The British colonization in India is actually a military expansion, which not only struck some other foreign colonial powers but also led to the elimination of local rulers (Nicholas, 1992). As a result, the colonization in fact had made a preparation for the later centralization of authority. The French army was defeated in the Seven Years’ War in India. As a result, the French no longer dear to expand its power in India, which also prevented the development of its industrial revolution. Robert, on behalf of the East India Company, defeated...
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...which shows that the company may have difficulty funding its proposed expansion program. Although management has outlined the available financing sources such as cash flows from operations, available cash on hand, and availability of credit facilities, these sources of financing, primarily the cash flows from operations, might be needed to pay the short term liabilities as they come due. Based on the company’s liquidity ratios, current assets are not sufficient in order to pay off current liabilities. Therefore, management needs to explore the additional financing options such as issuing long term debts and having additional equity. Even though, these options may have negative consequences. Seeing that the cost of borrowing may be comparatively higher as the interest coverage ratio is extremely low even if total debt are still less than half of total assets. Besides the additional borrowings could increase total debt’s percentage compared to total equity which could result to higher borrowing costs. The issuance of additional equity may not be approved by stockholders for this alternative could have a considerable impact on earnings per share, dividends per share and stock prices therefore if management fails to justify the expansion it will increase the shareholder wealth. In addition, the extra issuance of common stock for a financing source could possible is difficult at this time since the company issued new stocks in 2002. In simpler terms if the expansion takes place then...
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...shows that the company may have difficulty funding its proposed expansion program. Although management has outlined the available financing sources such as cash flows from operations, available cash on hand, and availability of credit facilities, these sources of financing, primarily the cash flows from operations, might be needed to pay the short term liabilities as they come due. Based on the company’s liquidity ratios, current assets are not sufficient in order to pay off current liabilities. Therefore, management needs to explore the additional financing options such as issuing long term debts and having additional equity. Even though, these options may have negative consequences. Seeing that the cost of borrowing may be comparatively higher as the interest coverage ratio is extremely low even if total debt are still less than half of total assets. Besides the additional borrowings could increase total debt’s percentage compared to total equity which could result to higher borrowing costs. The issuance of additional equity may not be approved by stockholders for this alternative could have a considerable impact on earnings per share, dividends per share and stock prices therefore if management fails to justify the expansion it will increase the shareholder wealth. In addition, the extra issuance of common stock for a financing source could possible is difficult at this time since the company issued new stocks in 2002. In simpler terms if the expansion takes place...
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...\ Table of Contents Introduction 3 Discussion of Chapter Readings and Theory 3 Chapter 5: International Trade Theories 3 Chapter 6: The Political Economy of International Trade 3 Chapter 7: Foreign Direct Investment 4 Chapter 11: Global Strategy 4 Chapter 12: Entering Foreign Markets 4 Introduction to the Case 5 Discussion of the Case 6 Definition of the Problem 6 Generation of Alternatives 6 Selection of Criteria 7 Choice of the Solution 7 Discussion of Implementation Plan 7 Strategy Implementation Assumptions 9 Strategy Directions Pursued By CRH 9 Corporate Parenting Roles Employed By CRH 9 CRH’s Acquisition Strategy and Its Contribution 10 How The Group’s Corporate Strategy Creates Value For CRH 10 Conclusion 10 References 13 Appendices 14 Appendix A 14 CRH plc: Dimensions of Successful Corporate Strategy Introduction Successful companies, these are companies that focus their efforts on strategic areas. To meet customer needs, the company must follow an overall organizational strategy. A good strategy helps to permanently preserve and strengthen the position of the target market, consistently meeting customer needs better than their competitors. The company's strategy, a way to focus on the target market segment, including that of their competitors. It is also an organization's plan, drawn up to gain a sustainable advantage over competitors. A strategy is a guide to concerted action that leads a company to success in the market due to superiority...
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...Foreign Direct Investment Learning objectives • Be familiar with current trends regarding FDI in the world economy. • Understand the different theories of foreign direct investment. • Appreciate how political ideology shapes a government’s attitudes towards FDI. • Understand the benefits and costs of FDI to home and host countries. • Be able to discuss the range of policy instruments that governments use to influence FDI. • Articulate the implications for management practice of theory and government policies associated with FDI. The focus of this chapter is foreign direct investment (FDI). The growth of foreign direct investment in the last 25 years has been phenomenal. FDI can take the form of a foreign firm buying a firm in a different country, or deciding to invest in a different country by building operations there. With FDI, a firm has a significant ownership in a foreign operation and the potential to affect managerial decisions of the operation. The goal of our coverage of FDI is to understand the pattern of FDI that occurs between countries, and why firms undertake FDI and become multinational in their operations as well as why firms undertake FDI rather than simply exporting products or licensing their know-how. The opening case describes the international growth of Starbucks. The closing case explores Cemex’s foreign investments. OUTLINE OF CHAPTER 7: FOREIGN DIRECT INVESTMENT Opening Case: Starbucks’...
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...i. EXECUTIVE SUMMARY Richter is planning global expansion in a fast changing market. Currently a leader in their market, they could easily lose their competitive advantage should their information system (IS) not effectively support the expansion plans. The current IS is not fully centralized and therefore could limit the pace at which they can expand, consequently losing their competitive edge. There is a greater demand for Information Technology (IT) support which is only due to increase as the organization expands; considering the IT strategic plan covers a one year period and the organization of IT staff is not centralized, current structure is not maximizing the overall efficiency and effectiveness of the organization and does not support global expansion. This study presents four options as potential actions to take to address the issues and create a system which will provide an environment to deliver an IT strategy aligned with Richter’s long term business strategy. The options include the following: Alternative #1 - Maintain the status quo Alternative #2 - Abandon the current SAP system and centralize IT with in-house built ERP to be used globally and outsource the IT support Alternative #3 - Decentralize IT Alternative #4 - Create a more centralized IT system with current SAP modules at all affiliates with 100% outsourced IT support Alternative #4 is the recommended option; creating a more centralized IT system with outsourced support will allow...
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...internationally, and the various factors that affect a firm’s choice of strategy. Subsequent chapters build on the framework established here to discuss a variety of topics including the design of organization structures and control systems for international businesses, strategies for entering foreign markets, the use and misuse of strategic alliances, strategies for exporting, and the various manufacturing, marketing, R&D, human resource, accounting, and financial strategies that international businesses pursue. OUTLINE OF CHAPTER 12: THE STRATEGY OF INTERNATIONAL BUSINESS Opening Case: MTV Networks Introduction Strategy and the Firm Value Creation Strategic Positioning Operations: The Firm as a Value Chain Global Expansion, Profitability and Growth Expanding the Market: Leveraging Products and Competencies Location Economies Experience Effects Leveraging Subsidiary Skills Summary Cost Pressures and Pressures for Local Responsiveness. Pressures for Cost Reductions Pressures for Local Responsiveness Choosing a Strategy Global Standardization Strategy...
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...Iggy’s Bread of the World Case Analysis Prepared by: Yendava Mounica of Section C 2013PGP457 Indian Institute of Management Indore March 2014 03rd March, 2014 Igor Ivanovic Chief Executive Officer Iggy’s Bread of the World Cambridge, United States Dear Mr. Ivanovic, This is with reference to our discussion about the current situation you are facing. We have thoroughly analyzed the situation as per our discussions on 17th and 25th of February, 2014. Based on a critical analysis of the options available, we have presented our recommendation. I hope you find the report to be satisfactory. You may contact me for further discussion and clarification on the same. Sincerely, Yendava Mounica p13yendavam@iimidr.ac.in Executive Summary Igor Ivanovic – founder of the Iggy’s Bread of the world decided to expand their business operations to meet the increasing demand from the clients. Mr. Ivanovic and his wife hired Matthew McRae as an onsite consultant to help them with the financial and administrative sides of the business. Matthew began to assemble his management team. Ivanovics worried that the changes were happening too quickly and that Matthew was not giving himself time to get accustomed to Iggy’s before hiring new people. The Ivanovics were also losing touch with the organization and there was growing discontent amongst the employees with Matthew management style. Matthew offered his resignation and took it back and asked for a pay raise. Possible...
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