...Marketing The slogan "More saving. More doing." was introduced by The Home Depot in the March 18, 2009 circular, replacing "You can do it. We can help." which had been used since 2003. Other slogans used in the past 25 years include "The Home Depot, Low prices are just the beginning" in the early 1990s and "When you're at the Home Depot, You'll feel right at home" in the late 1990s and "The Home Depot: First In Home Improvement!" from 1999-2003 RISK FACTORS BEHIND CORPORATE FAILURE 1 LACK OF BOARD EFFECTIVENESS Ineffective boards suffered from limitations on skills and competence, as well as on the nonexecutive directors’ (NED) ability to monitor and control senior executives effectively. For instance, the board director who was responsible for refining at BP at the time of the Texas City refinery explosion had no refining experience. Independent Insurance’s NEDs did not have insurance industry expertise. 2 BOARDS' RISK BLINDNESS This is characterised by a board’s failure to engage with important risks, such as risks to reputation and “licence to operate”, to the same degree that they engage with reward and opportunity. For example, Railtrack’s licence to operate depended on the UK government, but the company outsourced track maintenance, despite the fact that this was one of its core responsibilities to its customers. 3 POOR LEADERSHIP ON ETHOS AND CULTURE Double standards were perceived in cases such as Maclaren’s dealing with its US and UK push-chair (baby stroller)...
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...largest 100 companies in the world possess some of the most recognizable and distinctive logos around. These companies have built some of the foundations around which we live our lives: retail, automotive, financial services, telecommunications and energy, the staples of our daily lives. They employ millions of people around the globe and are used by millions every day. Whether we consciously acknowledge it or not, they continually build their brand through their advertisements and campaigns and reinforce the power of their logo on us as consumers. Gathered here are the logos of the top 100 largest companies and corporations in the world (using Fortune Magazine’s annual 500 ranking as a guideline). From the plain and simple logos like Berkshire Hathaway, Panasonic, and Sony, to the more colorful and playful logos of ArcelorMittal and Suez, they represent billions of dollars in annual revenues. You will notice the dominant use of reds, blues and oranges throughout their designs, aimed at reinforcing trust, excitement and energy in the minds of consumers. Since many of these companies are huge conglomerates with many subsidiaries in different industries, you may also notice that many have a more generic or broad appeal and are somewhat ambiguous in their nature. When dealing with multiple products that you wish to brand under one name, it allows flexibility and freedom when you do not put yourself in a corner with a logo design that conveys only one aspect of a company. Nearly every...
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...and the United States. As of June 29, 2014, the company had 3,630 locations in Canada and 866 in the United States Founded in 1964 and headquartered in Oakville, Canada Mkt Cap: $10.7 billion LTM EBITDA: $758.1 million EV: $12.0 billion LTM EV / Revenue: 3.9x LTM Revenue: $3.1 billion LTM EV / EBITDA: 15.8x Price: $11.5 billion Consideration: Cash & Stock JP Morgan and Wells Fargo In announcing their $11.5 billion merger, Burger King and Tim Hortons declared their intentions to become a truly global fast‐food empire whose offerings span from breakfast to dinner Under the terms of the deal, Burger King will pay 65.50 Canadian dollars in cash and 0.8025 of one of its shares for each Tim Hortons share. That amounts to $85.78 a share, based on Burger King’s closing price on Monday The combined company will be based in Canada, where its biggest market is. And Tim Hortons will still be run out of its home base in Oakville, Ontario. Burger King will be operated from Miami Shares in the new combined entity will be listed on the New York Stock Exchange and the Toronto Stock Exchange Berkshire Hathaway agreed to buy $3 billion worth of preferred stock, which carries an annual dividend of 9%, to help...
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...Dell delisting, and share valuation concerns MOHAN R. LAVI SHARE · COMMENT (1) · PRINT · T+ As with Dell, questions on the offer price have arisen in the case of Cadbury in India. The story of Dell represents the story of American enterprise. Started in a college dormitory room, and making products that the technology age devoured with passion, the company wasted no time in catapulting itself to a market capitalisation of more than $100 billion. For some time, it was also the darling of the stock market. In stark contrast, last week, Dell unveiled a buyout deal to take the company private. The $24.4-billion buyout would be financed with Michael Dell’s cash and equity, cash from Silver Lake, and a $2 billion credit line from Microsoft. Four major investment banks — Merrill Lynch, Barclays, Credit Suisse and RBC Capital Markets — are financing the debt. The primary intention behind the go-private move appears to be to escape the harsh glare of the markets with iffy quarterly results and to focus on strategy without being hounded by analysts. It could well be a combination of many factors, but the fact that cannot be denied is that Dell has been bleeding because of the shift in the market to smartphones and tablets and its inability to play catch-up. Further bleeding could have only hammered its stock price. While the buyout can help it avoid quarterly analysis and questions, delisting could also prevent Dell from building a war-chest for future acquisitions. ...
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...reactions to the bankruptcy of Lehman Brothers. It starts with the failure of Bear Stern, one of the biggest banks in American. Bear Stern found the bank having too many toxic assets and could not cover its liabilities. The United States implement their own economy in the history of the largest and deepest government intervention. In May of 2008, the Federal Reserve did sale support to the fail Bear Stern to JP Morgan. Something similar happened to Lehman Brothers in September 2008, Lehman was one of the American five original investment banks. The author discusses that because of bad investment in the subprime mortgage market, insolvency, and shattered investor confidence led to the inevitable downfall of Lehman. At the beginning, Lehman was looking for 30 to 50 billion dollars in financial support by Warren Buffett. Moreover, Lehman tried to seek the financial assistance of the Korea Development Bank. The bank also wanted the government to provide financial assistance. But the results have failed. On September 12, 2008, many different banks including bank of America, JP Morgan, Goldman Sachs, Merrill Lynch, and Barclays met at the Federal Reserve in New York to try to come up with a way to save Lehman Too Big to Fail chronicles the 2008 financial meltdown, focusing on the actions of U.S. Treasury Secretary Henry Paulson (William Hurt) to contain the problems during the period of August 2008 to October 3, 2008. Dick Fuld (James Woods), CEO of Lehman Brothers, is seeking external...
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...diversified into multiple different sectors. Amazon Prime costs $99 per year and gives customers overnight shipping as well as access to movies, music and TV shows that Amazon offers. In terms of hardware, Amazon launched the Kindle to compete with Apple’s iPad, the Fire Stick as a substitute for regular cable and the Echo to rival other home assistants such as Siri and Google Home. Amazon’s entertainment sector includes Amazon Studios, which has produced Oscar nominated films, and Twitch, a popular platform which rivals YouTube’s live streaming of video games. Amazon has also recently caused a stir in the health care sector by announcing its plan to become a low-cost health care provider, joining forces with large US companies Berkshire Hathaway and JP Morgan (NY Times, 2018). Finally, perhaps Amazon’s most ambitious venture has been into the grocery sector, beginning with Amazon Fresh, which delivers groceries to people in select locations throughout the US. More recently, Amazon acquired Whole Foods for $13.7 billion and has launched Amazon Go, its first brick and mortar store where customers are charged straight to their Prime account once they exit the store with groceries in their basket (LA Times, 2017). Amazon Go has defied the usual business model of moving toward online selling as Amazon added its first brick and mortar store to add to its vast e-commerce retail experience. Amazon has grown from an online bookstore to a household name where customers can have almost anything...
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...Running head Wells Fargo 1 Wells Fargo Deanna Hammond Professor McMullen Business 499 December 11, 2015 Running head Wells Fargo 2 Determine the impact of the company’s mission, vision, and primary stakeholders on its overall success. Wells Fargo’s vision “Our progress has not been perfect. The expectations of others, and the even higher expectations we have of ourselves, have not always been met. When we make mistakes, we admit them, we learn from them, and we keep moving forward with even more understanding and a deeper commitment to doing what’s right.” Wells Fargo wants to make sure the financial needs of its customers are met and to help them in anyway financially. Wells Fargo feels that if the customer does there homework and shops around and compares all the financial institutions it will be happy with the choice it makes to come or to stay with Wells Fargo. In the 1990’s Wells Fargo came out with a Vision and Values book but under Norwest Corporation at that time they were a small regional bank now Wells Fargo is a well known bank with a large global presence. Going back and keeping the traditions of each company they brought into make Wells Fargo what they are today is how the vision and values have all come about. Those beliefs are just as...
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...firm Payne Webber wrote in 2000, “We have come to view AIG as almost the equivalent of a sovereign corporate nation, with its own diplomatic ties, economy, and head of state.” The evidence of fraud—including recent revelations as well as information that has come to light over the past year—suggests that AIG arranged deals to manipulate financial figures, both its own and those of other companies. It is yet another indication of the vast extent of the fraud perpetrated by the highest levels of the American corporate and financial elite. AIG’s purchase and sale of “nontraditional insurance” The incident that led most directly to the current crisis involved a transaction in the fall of 2000 between AIG and General Re, a unit of Berkshire Hathaway, the investment group run by billionaire investor Warren Buffett....
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...Financial Institutions in the Stock Markets Running Head: Financial Institutions in the Stock Markets Financial Institutions in the Stock Markets: Market Capitalization, EPS Growth, and Investor Expectations Influence on Stock Prices Introduction Wild gyrations, extreme peaks and valleys, and fear and mania; this has been the epitome of the stock markets not just historically but over the last decade. Ten years ago, the NASDAQ was at an all time high exceeding 5,000 in March of 2000, the DOW was exceeding 11,000 and the general state of the economy was very favorable. Internet companies were being spawned by the hundreds and many of them turned once struggling entrepreneurs into instant millionaires. Internet IPO’s were the hottest thing since sliced bread and many thought there was no end to the rise of the new technology companies. Alas, right after the NASDAQ peaked in March 2000, a precipitous drop occurred and the markets plummeted. Just a year prior, the NASDAAQ returned nearly 90%, but one year later it plummeted 40% and continued dropping. The bear market of 2000-2002 erased all gains of the NASDAQ that to this day hasn’t even recovered half of its gains. The mood of investors and the American public quickly went from great to grim. The American and even global economy is strongly tied to the performance of our public companies. These public companies make up trillions of dollars in annual revenue. In fact, in the total market cap in 2008 of all...
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...August 25th, 2014, AnnouncemenT On a fine Monday morning, New York Stock Exchange (NYSE) starts its regular trading with a slow picks of shares in primary stocks. At 09.35, investors start buying Burger King and Tim Hortons stocks, surges to its best high price of $32.40(19.5% ) and $74.72 (18.9% ) per share. Behind this high drama in floor of NYSE, there was a one of the key announcement rocked. Burger King Worldwide Inc., an American based fast food chain and Tim Hortons Inc., Canadian based coffee and doughnut chain combined announced news of potential merger seeing both on the grounds of market strategic and largest food chain in global market. With approximately $23 billion in system sales, over 18,000 restaurants in 100 countries and two strong, thriving, independent brands, the new company will have an extensive international footprint and significant growth potential. The new global company will be based in Canada, the largest market of the combined company. Tim Hortons and Burger King each have strong franchisee networks and iconic brands that are loved by their guests. Following the closing of the transaction, each brand will be managed independently, while benefitting from global scale and reach and sharing of best practices that will come with common ownership by the new company. “By bringing together our two iconic companies under common ownership, we are creating a global QSR powerhouse. Our combined size, international footprint and industry-leading...
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...August 25th, 2014, AnnouncemenT On a fine Monday morning, New York Stock Exchange (NYSE) starts its regular trading with a slow picks of shares in primary stocks. At 09.35, investors start buying Burger King and Tim Hortons stocks, surges to its best high price of $32.40(19.5% ) and $74.72 (18.9% ) per share. Behind this high drama in floor of NYSE, there was a one of the key announcement rocked. Burger King Worldwide Inc., an American based fast food chain and Tim Hortons Inc., Canadian based coffee and doughnut chain combined announced news of potential merger seeing both on the grounds of market strategic and largest food chain in global market. With approximately $23 billion in system sales, over 18,000 restaurants in 100 countries and two strong, thriving, independent brands, the new company will have an extensive international footprint and significant growth potential. The new global company will be based in Canada, the largest market of the combined company. Tim Hortons and Burger King each have strong franchisee networks and iconic brands that are loved by their guests. Following the closing of the transaction, each brand will be managed independently, while benefitting from global scale and reach and sharing of best practices that will come with common ownership by the new company. “By bringing together our two iconic companies under common ownership, we are creating a global QSR powerhouse. Our combined size, international footprint and industry-leading...
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...robin blackburn THE SUBPRIME CRISIS I n the summer of 2007 many leading banks in the us and Europe were hit by a collapse in the value of mortgage-backed securities which they had themselves been responsible for packaging.* To the surprise of many, the poisonous securities turned out to constitute a major portion of their ultimate asset base. The defaults fostered a credit crunch as all financial institutions hoarded cash and required ever widening premiums before lending to one another. The Wall Street investment banks and brokerages haemorrhaged $175 billion of capital in the period July 2007 to March 2008, and Bear Stearns, the fifth largest, was ‘rescued’ in March, at a fire-sale price, by JP Morgan Chase with the help of $29 billion of guarantees from the Federal Reserve. Many of the rest only survived by selling huge chunks of preferred stock, with guaranteed premium rates of return, to a string of ‘sovereign funds’, owned by the governments of Abu Dhabi, Singapore, South Korea and China, among others. By the end of January 2008, $75 billion of new capital had been injected into the banks, but it was not enough. In the uk the sharply rising cost of liquidity destroyed the business model of a large mortgage house, leading to the first bank run in the uk for 150 years and obliging the British Chancellor first to extend nearly £60 billion in loans and guarantees to its depositors and then to take the concern, Northern Rock, into public ownership. In late January Société...
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...December preamble. The version of mid-May, 2009, will appear as the editorial of the June 2009 issue of the AJM, under the title “Anatomy of a Credit Crisis.” I include below the June preamble, in which I assay a framework for understanding the genesis of the crisis. December, 2008: IN ITS LEADER of October 13, 2008, the Financial Times characterized the western world’s banking system as suffering “the equivalent of a cardiac arrest.” The collapse of confidence in the system means that “it is now virtually impossible for any institution to finance itself in the markets longer than overnight.” This occurred less than a month after Lehman Brothers (LB) collapsed, without bailout. Six months earlier Bear Stearns (BS) had been bailed out after JP Morgan Chase (JPM Chase) had bought it for $10 a share, at the regulator’s urging. After LB fell, who would be next? And if LB, who was not at risk? Despite the earlier U.S. government bailouts of the erstwhile government mortgage originators (and still seen as government-sponsored enterprises, or GSEs), the Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac), and the later bailout of the world’s largest insurer, American International Group (AIG), everything changed with the demise of LB. The FT was describing the freezing of the interbank credit market. After LB’s fall, so-called counterparty risk was seen as prohibitive to prospective lenders, at any price. This was revealed in the...
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...The Quarterly Review of Economics and Finance 45 (2005) 48–64 Contagion effects of the world’s largest bankruptcy: the case of WorldCom Aigbe Akhigbea,∗ , Anna D. Martinb , Ann Marie Whytec a Department of Finance, College of Business Administration, University of Akron, Akron, OH 44325, USA b Department of Finance, Charles F. Dolan School of Business, Fairfield University, USA c Department of Finance, School of Business, University of Central Florida, USA Received 16 June 2003; received in revised form 23 December 2003; accepted 27 July 2004 Available online 26 November 2004 Abstract On July 19, 2002 WorldCom sought protection from its creditors when it filed for Chapter 11 bankruptcy, earning the distinction as the largest bankruptcy filing in U.S. history. The events surrounding this history-making occurrence provide an important opportunity to examine the repercussions for WorldCom’s stakeholders. We especially focus on the valuation effects of the WorldCom failure on exposed financial institutions for their important monitoring roles as institutional investors and creditors. Despite the heightened uncertainty facing investors during this period, we find that the market is remarkably efficient in distinguishing among the various types of stakeholders. In particular, institutional investors and creditors are largely unaffected by the events, which is expected based on the benefit of diversification. In contrast, large and key competitors are adversely affected by the events...
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...Corporate Bonds: Background Bonds may be registered (bondholder’s name is kept in a file) or held as bearer bonds (anyone possessing the bond may sell it or collect interest payments and face value). Each bond round of sales is called a “series.” So the company’s Series M bond issue might have occurred in 2003; and its Series N issue might have taken place in 2005. It might be that the total amount the company raised in its Series M equaled $600 million; and the amount raised (borrowed) in its Series N was $900 million. Each bond series has its own indenture (legal document stating the requirements, definitions and consequences of default). Moreover, all of the bonds issued from a series, say Series P, have bond certificates (like a stock certificate) which specifies the company (bond issuer) name, the bond face value (par value), the coupon rate (interest rate), the dates that interest will be paid, and the maturity date (when $1,000 is paid). Corporate Bonds: Interest Payments Corporate bonds might have a) fixed interest rate payments (“CoCo”, b) no interest rate payments (“NoNo”), or 3) floating-rate payments (“floaters”). The interest rate on a bond is stated as its “coupon rate.” If the company is issuing bonds that have a coupon rate of 6%; that means that the company is promising to make semiannual interest payments to the bondholder of $30 (every 6 months) until maturity—and they will pay the bondholder the face amount of $1,000 upon maturity. Most corporate...
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