Premium Essay

Scm: a Survey

In: Business and Management

Submitted By Leecj123
Words 654
Pages 3
Strategic Capital
Management
Q2 & 3

What is the current stock market valuation of Creative Computers and of Ubid based on the stock prices as of December 9? Evaluate these valuations with respect to the assets associated with these firms.
09-Dec-1998

Creative Computers

Ubid

22.75

35.6875

10,238,703

9,146,883

Market Value ($)

232m

326.4m

Book Value

142m

6m

1.63

53.97

Stock price ($)

Shares
Outstanding

Book to Market ratio Creative computer
• Due to obtain 80% of Ubid shares six months after its IPO (3-Dec).
• 80% x $326.4m = $261m (which is less than the market value of the Creative
Computers)

Ubid
• 1.1m pre tax loss in Q3 1998

Cont…
Shows mispricing in the market.
Based on how the market prices Ubid, we can see that Creative Computers is mispriced and should go up in price.
Or the market is behaving irrationally, and Ubid is overpriced.

Which investment strategy involving Creative Computers and Ubid do these valuations suggest?
We think Elena should not purchase Ubid or Creative Computers. Due to the fundamental risk of arbitrage, we think that we should stay away from purchasing
Creative Computers and shorting Ubid, as the mispricing may exist or worsen longer than the hedge fund can remain solvent. We also wouldn’t want to purchase either stock, as Ubid’s stock is likely to crash when the mispricing corrects itself. In addition,
Ubid has still not proven positive earnings and could eventually default on their loans.
The fact that it “book-value-wise” has a negative stockholder’s equity value means that if Ubid does default, their equity holders would receive no compensation.
Creative Computers owns a significant portion of Ubid’s equity and holds a market capitalization that is actually lower than its market value investment in Ubid. This could cause solvency problems...

Similar Documents

Premium Essay

Retails

...Abstract Purpose – The purpose of this paper is to investigate the unique supply chain strategies employed by retailers. Design/methodology/approach – A mixed methods approach was employed involving analysis of depth interviews with 27 retail supply chain executives combined with a follow-up survey capturing over 200 responses. Findings – In light of uncertain economic conditions, retailers appear to be developing more agile/responsive supply chain management (SCM) strategies. Additionally, retailers are putting greater emphasis on maintaining a balance of cost versus service than the cost-centered focus found in a prior study. Research limitations/implications – This study focused on US retailers and therefore results should be cautiously extended to the retailing environment in other countries. Practical implications – Retailing is not a “one size fits all” business, and study results suggest the SCM strategies used by retailers depend greatly on the nature of each retailer’s model. However, the need to create agile SCM processes while controlling costs was an overarching theme described by retailers. Originality/value – Retailers operate some of the largest and most complex supply chains, yet SCM research has generally overlooked the retail sector. This study...

Words: 5824 - Pages: 24

Premium Essay

Computer Industry

...International Journal of Operations & Production Management Does ICT influence supply chain management and performance?: A review of surveybased research Xuan Zhang Dirk Pieter van Donk Taco van der Vaart Article information: To cite this document: Xuan Zhang Dirk Pieter van Donk Taco van der Vaart, (2011),"Does ICT influence supply chain management and performance?", International Journal of Operations & Production Management, Vol. 31 Iss 11 pp. 1215 - 1247 Permanent link to this document: http://dx.doi.org/10.1108/01443571111178501 Downloaded on: 17 March 2015, At: 16:56 (PT) References: this document contains references to 123 other documents. To copy this document: permissions@emeraldinsight.com The fulltext of this document has been downloaded 3145 times since 2011* Downloaded by AFRICA UNIVERSITY At 16:56 17 March 2015 (PT) Users who downloaded this article also downloaded: Pietro Evangelista, Edward Sweeney, (2006),"Technology usage in the supply chain: the case of small 3PLs", The International Journal of Logistics Management, Vol. 17 Iss 1 pp. 55-74 http:// dx.doi.org/10.1108/09574090610663437 Dirk Pieter van Donk, (2008),"Challenges in relating supply chain management and information and communication technology: An introduction", International Journal of Operations & Production Management, Vol. 28 Iss 4 pp. 308-312 http://dx.doi.org/10.1108/01443570810861534 Benita M. Beamon, (1999),"Measuring supply chain performance", International Journal of......

Words: 15971 - Pages: 64

Premium Essay

Supply Chain Management

...Definition: Supply Chain Management is the discipline related to the management of the planning, manufacturing and operations necessary to bring a product to the market place, from the sourcing of materials through to the delivery of the completed product.  The deciding factor in the success or failure of any given product is in the efficiency with which it can be brought to the market place. If the revenue derived from the sale of a product does not create a required profit margin over the cost of its production then that product is doomed to failure, and the health of the enterprise that manufactures the product will suffer.  supply chain management softwareWith that in mind it is clear that the most important factor in the life cycle of a product is the budget and time frame within which it is manufactured. The discipline of supply chain management and the ranges of software used to control it have been developed in order to make this cycle more efficient and cost effective. The field is led by the Council of Supply Chain Management Professionals (CSCMP)  Aspects of Supply Chain Management  Supply chain management is a complex field encompassing every process involved in manufacturing a product. Supply chain management software assists enterprises in controlling streamlining the process through several logistical areas.  Customer Service Management: Customer relations provide information to the manufacturer on the level of demand for the product, and also......

Words: 4202 - Pages: 17

Premium Essay

Swateer

...management. For this, this paper derives organization types for supply chain management according to the formalization and centralization level of an independent department responsible for supply chain management (SCM) activities, and hierarchical relationship in organizational position and operational responsibility between the SCM department and existing other functional departments. And then, this paper identifies organizational characteristics, which have significant influences on SCM performance by investigating the difference in performance across the proposed organization types. From the results of empirical test, this paper finds that even though too excessive formalization and centralization of the SCM department within a firm may interrupt complete SC integration and performance improvement, a certain range of control by the SCM department is inevitable to build the fundamentals of integrated supply chain management, and thus the temporary pursuit of intensive control focused organization type such as integrated line organization may be considered depending on firm characteristics and environmental change. However, the empirical results further indicate that in the long run, intermediate organization types such as Functional and Process Staff organization that the SCM department maintains an adequate level of balance and harmony with other functional departments while it controls,...

Words: 13751 - Pages: 56

Premium Essay

Fedex

...product variety have forced Indian firms to look beyond their four walls. They face issues related to choosing and working with the right supply chain partners (suppliers, customers and logistics service providers), fostering trust between them and designing the right system of gauging performance. In this paper, we present a snapshot picture of logistics and Supply Chain Management (SCM) practices in India. It is borne out of the felt need by managers, expert professionals and academicians to address logistics and supply chain practices at the national level. Our exploratory study is based on both field visits and secondary data. We capture facts, figures as well as qualitative responses about the logistics infrastructure and supply chain practices. We focus on supply chain collaboration and partnerships, supply chain structure, facilities network design, transportation and logistics and the role of Information and Communications Technologies (ICT). Field visits to at least one major facility of 25 firms were carried out during 2005. We analyze and assess existing logistics and SCM practices and discern emerging trends as well as areas of concern. The paper gives insights into how far the firms and their supply chains in India have come in dealing with major logistics and supply chain issues, the practices they focus on or need to focus on. We also highlight and address a few issues related to supply chain...

Words: 6875 - Pages: 28

Premium Essay

Customer-Facing Supply Chain Practices -- the Impact of Demand and Distribution Management on Supply Chain Success

...Citation: Rexhausen, Daniel, Richard Pibernik, and Gernot Kaiser. "Customer-Facing Supply Chain Practices -- The Impact of Demand and Distribution Management on Supply Chain Success." Journal of Operations Management 30.4 (2012): 269-81. Print. Research Classification: The authors of this research performed an empirical based study and outlined three objectives to their study: 1. …to provide empirical evidence of whether or not demand management (DeM) does indeed have such a substantial positive impact on supply chain performance; 2. …the simultaneous evaluation of the impact of customer-facing SCM practices related to both DeM and distribution management (DiM); 3. …the analysis of a potentially existing relationship between DeM and DiM, (p270 et al. 1-3). To meet the objectives of their study, the authors “identif[ied] relevant practices to DeM and DiM” through literature reviews and expert interviews, and from here, the authors created a conceptual model and utilized the partial least squares to test their hypothesis, (p269 -70). Statement of Problem: This journal article aims to examine the “relative impact of relative practices associated with demand and distribution management,” (p 269). Defined by the authors as “…the ability of a company to understand customer demand and requirements and balance them against the capabilities of the supply chain,” demand management (DeM) is becoming more and more popular in the operations management field; however, DeM has...

Words: 1399 - Pages: 6

Premium Essay

Research Methodologies in Supply Chain Management

...Research Methodologies in Supply Chain Management Herbert Kotzab ´ Stefan Seuring Martin Mçller ´ Gerald Reiner (Editors) Research Methodologies in Supply Chain Management In Collaboration with Magnus Westhaus With 71 Figures and 67 Tables Physica-Verlag A Springer Company Professor Dr. Herbert Kotzab Copenhagen Business School Department of Operations Management SCM-Group Solbjerg Plads 3 2000 Frederiksberg Denmark hk.om@cbs.dk PD Dr. Stefan Seuring PD Dr. Martin Mçller Supply Chain Management Center Institute of Business Administration Faculty of Business, Economics and Law Uhlhornsweg 26111 Oldenburg Germany stefan.seuring@uni-oldenburg.de martin.mueller@uni-oldenburg.de Dr. Gerald Reiner Vienna University of Economics and Business Administration Department of Production Management Nordbergstraûe 15 1090 Vienna Austria gerald.reiner@wu-wien.ac.at Cataloging-in-Publication Data Library of Congress Control Number: 2005924508 ISBN 3-7908-1583-7 Physica-Verlag Heidelberg New York This work is subject to copyright. All rights are reserved, whether the whole or part of the material is concerned, specifically the rights of translation, reprinting, reuse of illustrations, recitation, broadcasting, reproduction on microfilm or in any other way, and storage in data banks. Duplication of this publication or parts thereof is permitted only under the provisions of the German Copyright Law of September 9, 1965, in its current version, and permission for use must...

Words: 69166 - Pages: 277

Premium Essay

Strategic Management Accounting

...implementation of SMA or SMA techniques are reviewed. As well as assessing the extent of adoption of SMA and the reasons underlying an apparent low adoption rate, the role of accountants in adopting and implementing SMA is considered. Finally, the success or otherwise of SMA is discussed. Findings – SMA or SMA techniques have not been adopted widely, nor is the term SMA widely understood or used. However, aspects of SMA have had an impact, influencing the thinking and language of business, and the way in which we undertake various business processes. These issues cut across the wider domain of management, and are not just the province of management accountants. Research limitations/implications – There is limited value in conducting future surveys of the adoption and implementation of SMA or SMA techniques. Rather, the focus should be on how SMA-inspired techniques and processes diffuse into general practice within organizations. Originality/value – Twenty-five years after the term strategic management accounting was first introduced in the literature, this paper brings together disparate literature and provides a broad assessment of the “state-of-the-art” of strategic management accounting to inform researchers and practitioners. Keywords Strategic management, Accounting, Activity based...

Words: 13437 - Pages: 54

Premium Essay

Manufacturing Companies

...Thesis No. 1180, LiU-TEK-LIC 2005:35 Logistics Collaboration in Supply Chains – A Survey of Swedish Manufacturing Companies Erik Sandberg Logistics Management Department of Management and Economics Linköpings universitet, SE-581 83 Linköping © Erik Sandberg, 2005 LiU-Tek-Lic-2005:35, Thesis No. 1180 ISBN: 91-85299-80-4 ISSN: 0280-7971 ISSN: 1402-0793 Printed by: UniTryck, Linköping Distributed by: Linköpings universitet Department of Management and Economics SE-581 83 Linköping, Sweden Tel: +46 13 281000, fax: +46 13 281873 Abstract The purpose of this thesis is to describe logistics collaboration in supply chains. During the past two decades, a new trend towards integration and collaboration in supply chains has been recognised among researchers as well as among business practitioners. This philosophy is called supply chain management and has received enormous attention in logistics research. Collaboration based on supply chain management is expected to reduce total cost and improve service towards the supply chain’s end customers at the same time. The argumentation in existing literature is however seldom underpinned by more rigorous empirical material and becomes therefore conceptual and superficial. Furthermore, it is incongruous about what actually is done when companies collaborate and what more specific effects are achieved. Therefore more research, especially survey based, is needed in order to verify existing literature. In this thesis the......

Words: 54358 - Pages: 218

Premium Essay

Decision Sciences Research in China

...Decision Sciences Volume 38 Number 1 February 2007 Journal compilation C C 2007, The Author 2007, Decision Sciences Institute Decision Sciences Research in China: Current Status, Opportunities, and Propositions for Research in Supply Chain Management, Logistics, and Quality Management∗ Xiande Zhao Department of Decision Sciences and Managerial Economics, Chinese University of Hong Kong, Shantin, NT Hong Kong, e-mail: Xiande@baf.msmail.cuhk.edu.hk Barbara B. Flynn† Kelley School of Business, Indiana University, 801 W. Michigan St., BS 4010, Indianapolis, IN 46033, e-mail: bbflynn@iupui.edu Aleda V. Roth Department of Management, College of Business and Behavioral Sciences, Clemson University, 343A Sirrine Hall, Clemson, SC 29634, e-mail: aroth@clemson.edu ABSTRACT As China becomes increasingly important to the global economy, it is critical to conduct high-quality research on important decision sciences issues there. This article provides an extensive review and critique of the extant China-based literature on supply chain management, logistics, and quality management, based on the foundation established by Zhao, Flynn, and Roth (2006). In general, decision sciences research in China is in its infancy. Although there have been some very interesting and well-executed articles, the majority are descriptive and focus on status updates. We provide a set of propositions to guide future research in logistics, supply chain management, and quality management......

Words: 18592 - Pages: 75

Premium Essay

Bbbbbbbb

...Accepted: 31/01/2010 Appeared: 16/01/2010 ©HyperSciences.Publisher Abstract: Supply chain Management has assumed a significant role in firm's performance and has attracted serious research attention over the last few years. A literature review reveals a considerable spurt in research in theory and practice of SCM. Combining and informing on features of Supply Management and distribution Management. This integration has resulted in the concept of extended enterprise and the supply chain is now manifest as the collaborative supply chain across intercompany borders to maximize the value across the entire supply chain. A large number of research papers have been published in various journals in last two decades. In this paper an attempt is made to review the status of literature on Supply Chain Management. A literature classification scheme is proposed. A total of 588 articles from 13 refereed academic journals are classified into articles in five methodologies i.e. Exploratory, Normative, Methodology, Literature Review and Hypothesis testing. This literature review finds that exploratory type of research is mostly preferred it is expected that with the maturity of SCM the hypothesis testing method will pick up. The articles are further categorized in fifteen categories on the...

Words: 10460 - Pages: 42

Premium Essay

Unit Three Assignment – Report of Amazon.Com Scm System to Rf Executives

...Amazon.Com SCM system to RF Executives Robert M. Bolden, Sr. IT500: Critical Concepts and Competencies for the IT Professional Dr. Dawn Giannoni Kaplan University In this report, we will discuss the idea of a possible implementation of a supply chain management (SCM) system for the Rainforest Company. In this report, we’ll identify what SCM is, the difference it makes between real-time processing versus analytical processing. Then we will identify the benefits it will bring to the Rainforest Company and how to get an edge in the competitive global market. In order to understand SCM, we must first describe what it actually is. Supply Chain Management (SCM) is a system that includes planning, executing and controlling all activities involved in raw material sourcing and procurement, converting raw materials to finished products, and warehousing and delivering finished products to customers. (Stair and Reynolds, 2012, p. 389). In other words, it is a system that bridges the gap between the manufacturer and the consumer by supplying goods and services without the intervention of a retailer such as a department or grocery store. In an attempt to put this in perspective, we looked into the activity of Amazon.Com and how their process works from the supplier to finally reaching the consumer. When looking into the supply chain structure and strategies of Amazon.com’s website, we discovered that their methodology is much similar to most companies that exercise the SCM......

Words: 832 - Pages: 4

Premium Essay

Loyal Member

...` , Single-Author Thesis THE EFFECT OF SUPPLY CHAIN MANAGEMENT PROCESSES ON COMPETITIVE ADVANTAGE AND ORGANIZATIONAL PERFORMANCE THESIS Ronald M. Salazar, SMSgt, USAF AFIT-LSCM-ENS-12-16 DEPARTMENT OF THE AIR FORCE AIR UNIVERSITY AIR FORCE INSTITUTE OF TECHNOLOGY Wright-Patterson Air Force Base, Ohio DISTRIBUTION STATEMENT A: APPROVED FOR PUBLIC RELEASE; DISTRIBUTION UNLIMITED Sample 3. Disclaimer Statement The views expressed in this thesis are those of the author and do not reflect the official policy or position of the United States Air Force, Department of Defense, or the United States Government. AFIT-LSCM-ENS-12-16 THE EFFECT OF SUPPLY CHAIN MANAGEMENT PROCESSES ON COMPETITIVE ADVANTAGE AND ORGANIZATIONAL PERFORMANCE THESIS Presented to the Faculty Department of Systems and Engineering Management Graduate School of Engineering and Management Air Force Institute of Technology Air University Air Education and Training Command In Partial Fulfillment of the Requirements for the Degree of Master of Science in Engineering and Environmental Management Ronald M. Salazar, BS SMSgt, USAF March 2012 DISTRIBUTION STATEMENT A: APPROVED FOR PUBLIC RELEASE; DISTRIBUTION UNLIMITED. Sample 4. Thesis Title Page, Single Author AFIT-LSCM-ENS-12-16 THE EFFECT OF SUPPLY CHAIN MANAGEMENT PROCESSES ON COMPETITIVE ADVANTAGE AND ORGANIZATIONAL PERFORMANCE Ronald M. Salazar, BS SMSgt, USAF Approved: _____________//signed//______________ William......

Words: 17944 - Pages: 72

Premium Essay

Lngenieria de Operaciones

...EBS Business School, Department of Supply Chain Management & Information Systems, Konrad-Adenauer-Ring 15, 65187 Wiesbaden, Germany Julius-Maximilians University Würzburg, Chair of Logistics and Quantitative Methods, Sanderring 2, 97070 Würzburg, Germany c Zaragoza Logistics Center, C/ Bari 55, Edificio Náyade 5, 50197 Zaragoza, Spain d Technical University Darmstadt, Department of Law & Economics, Hochschulstraße 1, 64289 Darmstadt, Germany b a r t i c l e i n f o Article history: Received 13 December 2009 Received in revised form 23 January 2012 Accepted 1 February 2012 Available online 10 February 2012 Keywords: Supply chain performance Supply chain management practices Demand management Distribution management Survey research a b s t r a c t Traditionally, distribution has been viewed as the key (physical) link between a company’s internal supply chain activities and its customers. More recently, demand management has emerged as a new dimension at the customer interface. Although it has become increasing popular in industry, it has not yet been analyzed in depth with respect to its impact on supply chain performance. Both distribution management and demand management entail customer-facing processes and practices and that are interrelated and (may) jointly determine supply chain performance. In this paper we seek to extend the stream of research in supply chain management by systematically investigating the impact of customer-facing supply......

Words: 13222 - Pages: 53

Premium Essay

Scm in Food Industry

...Industry Sector in Tanzania Juma Makweba Ruteri (Corresponding author) & Qi Xu Glorious School of Business and Management, Donghua University PO box 474, 1882 West Yan an Rd Shanghai, China Tel: 86-21-6237-3965 Abstract The complexities of food supply chain impose enormous challenges to the processors. As compared to multinational food companies operating in Tanzania, local firms have been performing inefficiently or going out of the business because they could hardly withstand the competition. SCM in the food industry sector was studied in a qualitative survey covered 23 food processing firms in Tanzania, with the purposes of identifying the existing supply chain operation, knowledge of SCM concept and challenges facing the sector. The findings of this study suggest that a lot of efforts need to be addressed to ensure that food processors benefit from SCM concept. The understanding of SCM concept among the processors seems to be low, thus, hindering them from taping up the advantages that SCM concept offer. The sector still faces a number of factors which impede the firms to grow fast and compete in the global market. Such factors include technical know-how, research and development, capital, managerial and physical infrastructures. Keywords: Supply chain management, Inventory management, Customer perceived value, Food industry 1. Introduction Food industry is one of the largest branches of industries in Tanzania which is made up of micro, small, medium and large......

Words: 7627 - Pages: 31