...Recommendation Name: Course; Institution: Instructor: Introduction Guillermo Navallez has for many years operated from Sonara, a city in Mexico making furniture. One of the main reasons for maintaining his operations in this location has been the good supply of quality timber. However, a new competitor entered the market offering the same quality products at a fraction of the price Guillermo was charging. This was possible because of the heavy reliance on high-tech mechanization that the new supplier employed. To further complicate things for Guillermo was the entry into the city of a large retailer, a sudden explosion of workers resulting in a substantial increase in the cost of labor. All things had a negative effect on Guillermo’s bottom line. Discussion: The essence of any business operation is to maximize profits. This is only achieved when the business is able to meet its recurring costs and have a surplus available for reinvestment or payment as dividends to the owners. Guillermo’s case requires a critical investigation into the business operations to determine available to him. Given the current situation, Guillermo has three very viable options to consider. He could either maintain the present business model and continue operations as currently constituted, or adopt a new business model by embracing high technology and thus investing in highly automated machines similar to what the competitor is using or change his operations and instead become a...
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...Analysis of different alternatives available to Guillermo Analysis of different alternatives available to Guillermo Guillermo's Furniture Store Scenario provides the expedient case study for studying the concept of financial principle in the competitive economic environment. The current paper discusses the approach of financial management with correct application of ideas to create value and economic efficiency through analysis of financial transactions to establish the position of Guillermo in market. Current Project, High-Tech Project and the Broker Project are three alternatives available to the company to invest in right project. Financial principles, financial markets, and business ethics form a foundation for the financial decisions that managers routinely make. Guillermo’s case study shows that the arrival of new competitor from oversees have put unexpected challenges on the financial condition of the company. Guillermo has three alternatives to approach the business with new insight and action. Incremental costs and benefits are the basis for choices among alternatives where transactions have at least two sides, with each party considering their self-interest. Concept of an opportunity cost can be applied to differentiate between the value of one action and the value of the best alternative. He can invest in new technology and make furniture automatically, accurately and with almost no labor costs. So, developing expertise can create value. Other option is...
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...flows for each alternative. Analysis of Different Alternatives The company faces three possible alternatives to remain in business. The First alternative would be to distribute the furniture he sells at rock bottom prices against his new competition, while developing and marketing the patented process for creating a coating for his furniture. The invention of the flame retardant spray could take off if he attempts to market it globally; the distribution side can keep steady income coming in for him while he tries to make bigger profits of his “invention.” Guillermo would need to initiate the patent process to creating a coating for his furniture. Current, IRR is 6.9% where as the cost of capital is 9.17%, Second alternative is the Hi-Tech system that could decrease labor by using robots instead of live operators to perform the precise movement to furniture assembly at a faster and smoothly operation on a 24 hour shift to offset by reducing the cost in labor. Cost of capital is a required return on Guillermo existing operations, which the current cost of capital of $195,564 of net income before taxes can replicate the total risk of the entire business existing assets, but the new...
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...The Guillermo Furniture Store has been struggling to remain profitable. Guillermo Navallez needs to make some changes to turn things around. One of his options is to go through a merger or acquisition but Navallez does not prefer this option. An alternative option is for the company to invest in a high-tech solution which will greatly reduce production costs (University of Phoenix, 2011). Lastly, Navallez has the option of becoming a representative for another furniture manufacturer and moving his company from primarily manufacturing to primarily distribution (University of Phoenix, 2011). This paper will analyze the various alternatives, while looking at the optimal weighted average cost of capital (WACC), net present value (NPV), and reviewing a sensitivity analysis and valuation techniques. Weighted Average Cost of Capital (WACC) The Guillermo Furniture Store should choose the option that will give it the best competitive advantage. The company needs to determine the WACC in order to determine the minimum return needed on an investment. WACC is the, “weighted average cost of the components of any financing package that will allow the project to be undertaken,” (Emery, Finnerty, & Stowe, 2007, p. 197). For example, if the WACC is 5% a company should not invest in any projects that will provide a return lower than 5%. The WACC of the Guillermo Furniture Store is calculated as follows: Capital: Bank loans: $936,628 + $29,238 = $965,866 at 7.5% = 80.4% of Capital and 6.03%...
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...Leininger's Culture Care Theory jennifer davis PURDUE Leininger's Culture Care Theory Madeleine Leininger’s Theory of Culture Care Madeleine Leininger viewed by many as the founder of transcultural nursing. Leininger’s theory addressed the similarities and differences across human culture. She believed that transcultural nursing care could provide meaningful, therapeutic health and healing outcomes (Parker & Smith, 2010, 318). In her theory she hoped for the nurse to provide care within cultural measures, beliefs, and values of the patient. In the 1960’ s she devised the phased “culturally congruent care”. Leininger’s vision to provide “culturally congruent care” manifested thru the intertwinement of the nurse-patient relationship. The relationship had to identify, plan, implement, and evaluate each caring mode for holistic healthcare. In summary, nurses who understand and value the practice of culturally competent care are able to effect positive changes in healthcare practices for clients of designated cultures (Sitzman & Eichelberger, 2011, 46). In providing an example relative to everyday practice, I am reminded of the varying cultures and backgrounds we service at my current employer. We are surrounded in a melting pot community of different races and ethnicities. To the southeast we service primarily African American’s. To the west we primarily service White’s and Asian’s, and to the north primarily Hispanic’s. We also are directly across the street from...
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...Curriculum and Learning Styles Educ512 04/14/2014 There are many types of learning styles different from student to student, and respecting the learning styles is another way of respecting diversity. The world contains a wide variety of cultures, and it also contains a broad spectrum of learning styles. The traditional education model works well for students used to sit at desks, eat during the breaks at scheduled times, students who learn best by listening, doing worksheets, reading. Studies show that these students are actually in minority; the majority-those that have different learning styles- learn best within alternative structures. Some of them learn to adapt, but others become labeled as behavioral problems, lazy, learning disabled. The main challenge for teachers is finding the time, resources and tools necessary to differentiate instructions in ways that will engage the multiple learning styles and preferences of students. While some students have an individual educational plan (IEP) already in place that specify the adaptations, modifications, and supports that teaches must provide as part as the classroom instruction. Unfortunately not every student has an IEP. Students without an IEP can “fall through the cracks” of the educational system because although they may need different learning experiences on a regular basis. An individualized curriculum is impossible to be put in place; however a teacher should use different instructional methods in order to...
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...1. What are the overall pros and cons for the three funds? Pros Cons Emergence Capital Partners Knowledgeable and experienced GPs Less investment from GPs – Less skin in the game Less VC competition for target companies 1 million minimum More crowded investor pool Less personalized Early hit in the form of Salesforce.com Proof of concept of investment thesis Narrow focus Technology enabled services Uncertain GP dynamics None of the them have worked together before as GPs Valhalla Capital Partners $10 million minimum Fewer institutional investors More personalized Uncertainty around management fees Extensive VC and Entrepreneurial network Potentially limited number of target companies to go after 20 million investment by GPs More skin in the game More LPs committed to the fund More institutional buyin Less VC competition Underserved region focus More data available on GPs Easier to vet Orchid Partners Could have more influence as one of the first institutional investors They need us. Only seed round investment Higher failure risk 8% preferred dividend if the firm returns < 1.5X No experience in managing a VC fund Too many portfolio companies Uncertain GP dynamics None of the them have worked together before as GPs High probability of not raising the entire fund 5 GPs high expense proportion to fund 2. If you were O'Malley, which fund or combination of funds would you invest in. What is your rationale...
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...for his furniture. In addition, Guillermo handcrafts products are priced at a premium rate, which separates him from his competitors. Guillermo’s competition is increasing due to the inexpensive labor cost and location. After researching his competition, Guillermo has to determine the alternatives; he has available for his company. Based on the scenario, choices will include the high tech approach, or broker distributor. Team C chose the best approach to fit his need, and to represent what he has delivered for many years. Guillermo’s goal is to retire one day, and his best route to a safe, and fulfilling retirement is the hi-tech approach. High-tech Approach Guillermo’s largest competition has sparked uproar, in the communities of Sonora. Along with large retailer’s influence expanding, affordable housing, new establishments, and rock bottom pricing, he has to consider taking a different approach to stay aligned with his competition. Since the 90’s, two companies combined services, and manufacturing has created a dent in Guillermo’s business. Some of Guillermo’s foreign competitors use the high-tech approach, which provides exact specifications with lower cost. The influx in jobs raised the cost of labor, and while all this was occurring, Guillermo has watched profits shrink, and prices fall, while cost went up. If Guillermo decides to take...
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...Abstract Engineering vs. Tech-Ops Any airline operating in the United States must operate under the regulations handed down from the Federal Aviation Administration. While the regulations handed down to U.S carriers come in many forms and cover all areas related to aviation, our discussion is focused on one of the most common regulations related to aircraft maintenance, the AD (airworthiness directive). These ADs are mandatory, however, at times the FAA allows operators to develop their own method of compliance based on a particular companies resources as long as the original safety requirements are met. When they do this it’s called an AMOC (Alternate Method of Compliance). On August 11, 1999 The FAA issued AD: # APA 87-99 FAA, to order insulation replacement on select aircraft. While this directive applied to all U.S. operators we will look at implementation at Delta Airlines. As Delta began reviewing the requirements, the maintenance planning team officials decided to implement it in its own way. We will look at how communication worked and in some cases did not work in this process. When AD 87-99 was issued by the FAA in August 1999 to order the replacement of insulation certain aircraft Delta was hugely affected. In total the AD covered 699 aircraft, 247 of which were operated by Delta. The problem, according to the FAA, was the original insulation blankets were covered with metalized Mylar. Over time this metalized Mylar had become flammable and replacement was...
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...iPhone Throne COLUMN By MICHAEL S. MALONE, ABC News Jan. 1, 2010 Whether the marketplace is ready or not, the Big Guns in consumer electronics are about to make their move at the dawn of the New Year. Next Tuesday, Google is expected to announce its long-rumored Nexus One smartphone. It is undoubtedly designed to run the Google Android operating system for cellphones, which the search giant introduced more than a year ago. Android was envisioned as a major breakthrough in cellphones because it offered an "open" operating system i.e., one that other companies could use and design applications for. At the time, this strategy was compared to that of Microsoft Windows, which broke the market hegemony of Apple’s decidedly non-open OS in the mid-1980s and within a decade, turned Apple into a niche company. This time around, the new Android phones were supposed to break the hegemony of the Apple iPhone. So far, it hasn’t quite worked out that way with Android. A number of cell phone companies notably Motorola, HTC, and Samsung have adopted Android and seen impressive sales. However, this time around Apple, though still exhibiting much of its old "closed" and proprietary ways, has learned some important lessons over the last 20 years. For one thing, Apple understands, better perhaps than any company on the planet, the importance of being not only perpetually innovative but with a vast and loyal army of Apple fanatics behind it to...
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...►Samsung • Assessing the opportunity and the Situation - Understanding the situation ►What was Samsung’s financial situation like? Samsung was experiencing a steep financial setback ►Who was responsible for Samsung’s situation? China was able to put cheaper products on the market ►Describe Samsung’s ‘cost-driven competitive strategy’ until the mid-1990: Samsung produced technical components for firms with better-known brands Samsung sold me-too consumer products ►What did Samsung need to do? Samsung needed to change its business model - Assessing the Opportunity ►What is happening in the high-tech world in the mid 1990’? The uprising of the Digital Age ►Why is this an opportunity for Samsung? Samsung would focus on developing the core technologies of the Digital Age. While Sony and other rivals remained in the analog world ►What did Samsung know about the end user? The customer was ready to pay a premium for innovative and well designed products, offering unique benefits • The Marketing approach - The Samsung Marketing Approach ► Did Samsung re-branded itself as a high-quality brand? TRUE ► When going back to the drawing-board, product improvement was driven by: Technical innovation and R&D, New Product Development and Design ► To re-build the brand, communication insisted on: The new image of the brand or brand image, Developing awareness, Ensuring availability of the product, Developing client after-sale service - Describe Samsung’s Marketing Actions: ►The...
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...in the 1990s a competitor from overseas entered the furniture market causing a large decrease in business for Guillermo. Luckily, Guillermo has a few tools at his disposal to help make the tough decisions he is now faced with. Accounting budget and performance reports can be used in decision making in a variety of ways such as; estimating the expected revenue and expenditure of a business. These reports would be helpful in Guillermo's decision of which option will be best suited for his business. Guillermo must decide whether to purchase the high tech computer controlled laser lathe, represent and sell for a manufacturer in Norway, or continue selling his hand crafted coated furniture. Budget: With the use of an account budget Guillermo can project required labor hours, product cost, and expected return. This type of income information can provide comparative figures of expected profit for the different business options. In the case of the three business options available to Guillermo, he can assess the net revenue and return on investment to help him decide which option will be more profitable for the business. Performance Report: A performance report can also help Guillermo compare his business options by providing income information in relation to performance parameters. Performance reports can also provide comparative figures for the options that Guillermo faces by using the income information report the company has calculated which includes the expected net income before...
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...Case 1: Amanda Cloessner What personality traits do you think James Higa is high on? Open to experience: tendency to be original, have broad interests, be open to a wide range of stimuli, and be daring to take risk. Higa comes from a different part of the world, started off as a photographer for apple, then open up his own business. He wasn’t afraid to make a move and start something up different. Agreeableness: tendency to get along well with others. Higa had no problem working with steve jobs, then going an opening up his own tech business. He had a success career with employees. Extraversion: tendency to experience positive emotions and moods and feel good about oneself and the rest of the world. Higa kept his head up and made a mid to large sized startups with 50 or more employees. What terminal and instrumental values do you think might be especially important to him? Terminal: a lifelong goal or objective that an individual seeks to achieve. Higa wanted to create new jobs and begin to change how tech companies operate with in their neighborhoods. He also wanted to give out small grants to local causes. He wanted to create the next best thing that would benefit everyone. Instrumental Values: a mode of conduct that an individual seeks to follow. Higa looked up to Steve jobs. He worked close to him and tracking him. What moods and emotions do you think he is likely to experience? I feel that running your own business can become very emotional and make some...
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...In mid-April, Ray Soles, vice president of supply chain management at Sabor Inc., had become increasingly concerned about the potential shortage of supply of marconil, a new high-tech raw material for air filtration. Sabor Inc.’s three suppliers, during the last two weeks, had advised Ray Soles to sign long-term contracts and he was trying to assess the advisability of such commitments. SABOR INC. Sabor Inc. of Cleveland, Ohio, produced high-quality consumer and industrial air-conditioning and heating units. An extensive network of independent and companyowned installation and sales centers serviced customers throughout the North American market. Total company sales last year totaled $800 million. AIR FILTRATION AND MARCONIL Sabor Inc. for decades had sold air humidification and air filtration units along with its prime units in air heating and cooling. Until three years ago, air filtration had accounted for about 7 percent of total corporate sales and had been sold primarily as add-ons to a new air cooling/heating system. However, with the advent of marconil, air filtration had started to increase significantly as a percentage of total sales. Marconil, a new high-tech product developed as part of the U.S. space effort, had a range of unique properties of high interest to a variety of industries. In the case of air filtration, when processed by a Sabor Inc. developed and patented process, marconil could be transformed into a thin, very light, and extremely ...
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...DOLAT CAPITAL Indian IT Sector India Research Billion Dollar Dream...!!! Sr. Analyst: Rahul Jain Tel : +9122 4096 9754 E-mail: rahul@dolatcapital.com December 21, 2012 DOLAT CAPITAL December 21, 2012 Int en tio na lly Le ft B lan k 2 DOLAT CAPITAL ”A journey of a thousand miles starts with a single step” - Lao-tzu, the ancient Chinese philosopher Billion Dollar Dream The Indian IT Services sector, estimated at USD 90bn, has predominantly focused on the global markets which generate more than 75% of revenues. The industry has spread far and wide with over four thousand players comprising of global MNCs, Indian players, Captives and small scale set ups. As is natural for any sector, the top five have consolidated to garner a significant share of the revenues ( 37%) while the top ten have taken 41% share of the total revenues. This has primarily been driven by the ability to scale and offer multiple service capability. The smaller players have been either de rated by circumstances, and hence gone down the margin curve or ended up taking bets that have gone the wrong direction. This trend over the last few years has led to a significant divergence in the size and structure of the Indian IT services sector – there are players with size of USD 2-10 bn range competing with the global players, and then we have a set of relatively smaller service providers in the revenue size of sub USD 500 mn still around. And some of these now are emerging into credible...
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