...Final Case: Friendly Cards, Inc. FINAN 4210 Lutz Jonathan Matsen 05/01/2013 Problem Identification Wendy Beaumont, president of Friendly Cards, is currently faced with 3 time sensitive issues that need to me dealt with immediately. As a relatively small company in the fiercely competitive greeting card industry, Ms. Beaumont must make some quick yet intelligent decisions to ensure the continued success of her company. To be more specific, she must decide upon: The investment in equipment to enable the company to make rather than buy their own envelopes The acquisition of Creative Designs Inc., a small Midwestern manufacturer of studio cards The possibility of going to the market to raise additional equity capital in order to relieve pressure on its financial position Identification of Relevant Facts Friendly’s position in the industry As of early 1988, the main issues facing the greeting card industry were: Continued industry consolidation (a decline of 15% per decade since 1954) Cyclical revenues The presence of high fixed costs Threat of Industry Consolidation Since its inception in 1978, Friendly Cards reacted to the looming threat of industry consolidation by rapidly expanding internally and through various acquisitions. These acquisitions allowed Friendly to access new markets and demographics that would have been previously unavailable...
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...BUSINESS VALUATION Dt: March, 10, 2011 FACEBOOK Facebook Business Valuation Case Valuation Based on 5 year cash flow projections Facebook can be valued at 41.51 Billion dollars. Based on the analysis and the most likely scenario of projections the company can be fairly valued at 38.2 Billion Dollars but when superimposed on the dynamic pattern of internet businesses a valuation of 41.5 Billion dollars can be assumed a fair value. The company at present has a very strong impact and potential to grow in the near future but at the same time it faces a lot of risks that can put it out of business any time in the future. For Facebook to sustain it must diversify. In the light of new developments and information release regarding Facebook‘s business model, Goldman Sach‘s valuation of the company at 50 Billion dollars is opportunist. The reason for this discrepancy could be a conflict of interest as the company gets a priority while going public. This could also be because of the information limitation. Likelihood NPV (CF) NPV (TV) Facebook Valuation Optimistic Scenario 25% 50.31 10 Pessimistic Scenario 25% 27.68 2 Given the latest improvements and introduction of Facebook email and deals in April, 2011 and also potential talks of evolving it as a search engine with a one stop availability, the company can be valued up to 100 Billion dollars. Realistic Scenario 50% 33.02 5 41.51 *Values in Billion $s The scenarios...
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...valuable due to the increasing number of e-commerce businesses employing the Web as their main platform for exchanging goods for value. Moreover, online data has become a topic of interest for marketers, researches, advertisers and publishers trying to gather as much information as possible in order to improve target advertising and deliver tailored content to their clients. Hence the information of a single browsing user is highly demanded due to the fact that it can provide insights into different online behaviors and optimize online campaigns. In 2006, the EU calculated that the value of open data in Europe (i.e. releasing all government information for free) would be € 27 billion (Dekkers) that is € 55 per European citizen. With a valuation of around $ 100 billion, the value that Facebook holds in 2012 is roughly $ 120 (€ 90) per active member. (NY Times) Personal data online is tracked by cookies, which are small pieces of code placed on the browser that remember the user and its information with a unique identification. Legislation in a lot of countries is unclear on their privacy and cookie laws, leaving the user unaware of the ways their information is stored and also the value of their browsing data. A study by Princeton Survey Research Associates in 2009 that was using a random sample of 1,000 people found that 69 percent thought that the United States should adopt a law giving...
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...com) >> Business Case Studies (http://www.thecasesolutions.com/business-case-solutions) >> American Greetings ← Previous Post (http://www.thecasesolutions.com/simons-hostile-tender-for-taubman-22197) Next Post→ (http://www.thecasesolutions.com/yokohama-corp-ltd-a-22201) American Greetings Harvard Case Solution & Analysis AN INDUSTRY IN DECLINE Greeting card industry was faced massive changes as it had attained maturity and was now in decline. Overall greeting card sales had been contracting in the U.S. for some years and negative growth was expected in the next five years to 2015 (Exhibit 4). Hallmark was the largest card company in the U.S. that was privately owned by the Hall family with $4 billion of revenues. The organization had expanded its operations in more than hundred nations and thus it was well-diversified geographically. Overall, the U.S. card industry was contracting with 9% reduction in last six years and the trend was expected to continue with a minimum of 4% decline over next 4 years and 16% in a worst case scenario. Major cause and diver of this decline in demand was changing social interaction norms and advent of alternative forms of communications through social networking and digital imaging. Increase in use of these alternatives by the populace to express their love and keep in touch with their close ones was reducing the need to send paper based greeting cards. As a result, greeting card companies were increasingly moving to electronic card distribution through...
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...Table of Contents 1. Perspective analysis ………………………………………….2 2.1 Forecasting……………………………………………….2 2.2 Valuation …………………………………………………3 2.3 Sensitivity analysis……………………………………….4 2. Application……...…………………………………………….4 3.4 Challenges and opportunities…………………………..4 3.5 Recommendations……………………………………….5 Reference List…………………………………………………….6 Appendix………………………………………………………….7 1.Prospective Analysis Based on the reformatting financial statement, this report will use the forecasting template designed by Nissim and Penman (2001) to forecast the future financial performance of David Jones. The valuation of the firm is provided subsequently and the underlying key assumptions are considered for sensitivity analysis. 1.1 Forecast on Future Finance Performance This section explained the forecasting bases and detailed forecasts are illustrated in Table 1. * Sales Growth The sales revenue is expected to have an average growth of 3% in the forecasting years. Due to the overall macro-economic factors such as a decline in consumer confidence or an increase in household savings rates, DJS is unlikely to boost the sales growth rate. Although the company is reducing the price of the international stocks, as the company faces increased competition in online retailing, which has resulted in greater transparency of global pricing, there is a risk the price deductions will not be offset by higher volumes. (DJS Annual Report, 2013) However...
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...Investment Decisions Summary of Facts Friendly Cards, Inc. (first named Beaumont Greeting Card Co.) is a greeting card company started in 1978, in New York City by Wendy Beaumont. The company has experienced rapid growth, acquiring like companies and expanding its market base. The company became public through a stock offering at $3 per share. From an operational viewpoint, Friendly cards performed all production at its plant in Reading, Connecticut. Company sales include nearly 30% from Christmas sales, 25% from Valentines sales and about 45% from average every day and spring holiday sales. The company reports low returns expense, as packages sold to stores were not returnable. Overall operations are well monitored under a tiered organizational structure. Wendy Beaumont, the company’s president is looking to further expand and has asked the advice of friend and financial consultant, Amy McConville to review a potential acquisition or partnership. The prospects will elevate some of the president’s concerns for financing. In her own words, Ms. Beaumont expressed that the cost of financing growth right now was high and Friendly Card's projects 20% growth over the next year and even more in subsequent years. Further stating, the company had never been without financing problems and had always been capital intensive relying on strong relations with its banks and suppliers in realizing success. Still, Friendly’s bankers have begun to feel uneasy regarding the company’s...
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...DEVICES. . ABSTRACT 21st century is seen as a blooming period of technology information along with the big leap of technology invention on mobile devices, such as smart phone and tablets. It is Internet and its technical revolution driving a huge wave of change in marketing and doing business. The study takes Mercari – a customer-to-customer marketplace through the application on mobile device and tablet, as a case study of the success for doing e-commerce business. An introduction of Mercari business model along with how Mercari gain success in this area will be put into the study. Meanwhile, the study also brings the application of this business model to Vietnam’s context in order to offer a possible solution for current marketplace application deployed in Vietnam currently. TABLE OF CONTENT Acknowledgments 1 Abstract 2 Table of content 2 An overview about Mercari website 2-11 Mercari – Japan’s first start-up Unicorn with stock valuation over $1 billion 9-12 Vietnam’s E-commerce through the case study of Mercari 12-13 Conclusion 13 Reference 14 AN OVERVIEW ABOUT MERCARI WEBSITE What is Mercari? Technology innovation is paying a great contribution to drive all business transaction of the buyer and vendor that are processed through electronic transaction system. The information system is managed in a better way to solve the weakness of conventional business such as time effectiveness, scope of the business,...
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...entities? Q1.1 ANSWER Yes. Firms represent a combination of people, physical assets, and information (financial, technical, marketing, and so on). People directly involved include stockholders, managers, workers, suppliers, and customers. Businesses use scarce resources that would otherwise be available for other purposes, pay income and other taxes, provide employment opportunities, and are responsible for much of the material well-being of our society. Thus, all of society is indirectly involved in the firm's operation. Firms exist because they are useful in the process of allocating resources -- producing and distributing goods and services. As such, they are basically economic entities. Q1.2 Explain how the valuation model given in Equation 1.2 could be used to describe the integrated nature of managerial decision making across the functional areas of business. Q1.2 ANSWER As seen in the text, Equation 1.2 can be written: [pic] where TR is total revenue, TC is total cost, i is an appropriate (risk-adjusted) interest rate, and t indicates the relevant time period. Thus, the value of the firm is the discounted present value of the stream of expected future profits. Each of the functional areas of business plays an important role in managerial decision making since each area provides vital input into the value maximization process. The marketing department of a firm has a major responsibility for sales, the production...
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...entities? Q1.1 ANSWER Yes. Firms represent a combination of people, physical assets, and information (financial, technical, marketing, and so on). People directly involved include stockholders, managers, workers, suppliers, and customers. Businesses use scarce resources that would otherwise be available for other purposes, pay income and other taxes, provide employment opportunities, and are responsible for much of the material well-being of our society. Thus, all of society is indirectly involved in the firm's operation. Firms exist because they are useful in the process of allocating resources -- producing and distributing goods and services. As such, they are basically economic entities. Q1.2 Explain how the valuation model given in Equation 1.2 could be used to describe the integrated nature of managerial decision making across the functional areas of business. Q1.2 ANSWER As seen in the text, Equation 1.2 can be written: [pic] where TR is total revenue, TC is total cost, i is an appropriate (risk-adjusted) interest rate, and t indicates the relevant time period. Thus, the value of the firm is the discounted present value of the stream of expected future profits. Each of the functional areas of business plays an important role in managerial decision making since each area provides vital input into the value maximization process. The marketing department of a firm has a major responsibility for sales, the production...
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...Investment Banking in USA and Bangladesh Scope for Innovation Md. Shakhawat Hossain1 Abstract I discuss briefly the purposes and activities of Investment banking in USA and Bangladesh. The overall performance and structures of investment banks in USA and Bangladesh are shown in this report. Financial system of a country is always getting advanced and complex. Banking system in today’s world has evolved over long period of time. There have been lots of ups and downs or we can call financial crisis in this time period. One of the heavily regulated sectors in world economy is banking sector. This report focuses on how a bank performs in advanced economy and moderately advanced economic situation. There is a significant scope for Bangladeshi investment bank to compete in global market. Several studies have shown that investment banks play a major role along with government and in public finance. 1. East West University, Department of Business Administration. This project preparation is for academic and final year submission to project supervisor Quazi Sagota Samina. 1 The Evolution of Banking Banks are just one part of the world of financial institutions, standing alongside investment banks, insurance companies, finance companies, investment managers and other companies that profit from the creation and flow of money. As financial intermediaries, banks stand between depositors who supply capital and borrowers who demand capital. Given how much commerce...
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...Hi dear students: Feel free to contact us: ggsmtb@gmail.com , I have the Book Resources for the above textbook. all the Book Resources is in pdf or doc files. http://www.solutionsmanualtb.com click it ,it has the list ?Arriba! Comunicación y cultura 6e Eduardo Bacon Nibert Solutions manaual and test bank ¡Arriba!: Comunicación Y Cultura, Brief Edition, 6/E Eduardo Zayas-Bazán, Solutions Manual And Test Bank 2012 Individual Taxation 6e James W. Pratt, William N. Kulsrud Solutions manaual and test bank A Concise Introduction To Logic 11e Patrick Hurley solutions manual and test bank A friendly introduction to number theory 3rd by silverman( solutions manual) A History of Modern Psychology, 10th Duane P. Schultz, Sydney Ellen Schultz instructor manual with test bank Abnormal psychology - thomas f. Oltmanns (5th ed) solutions manual and test bank Abnormal psychology 14e butcher mineka hooley solutions manual and tet bank About Philosophy, 11/E Robert Paul Wolff, instructor manual with test bank Absolute C ++ 4e Walter Savitch Solutions manaual and test bank Absolute C++ 5/E Walter Savitch solutions manual and test bank Accounting 24e Carl Warren James M. Reeve Solutions manaual and test bank Accounting 9e Horngren Harrison Oliver Solutions manaual and test bank Accounting concepts and applications - steve albrecht (11th ed) solutions manual and test bank Accounting for governmental and nonprofit entities 16e by wilson & reck solutions manual and test...
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...MAHATMA GANDHI MISSION’S COLLEGE OF COMMERCE MGM EDUCATIONAL CAMPUS, SECTOR-18, KAMOTHE, NAVI MUMBAI - -410209 CERTIFICATE This is to certify that Mr. RAKESH TATYABA BHOSALE Of MGM’s College of Commerce has successfully completed the project work titled “STUDY OF FINANCIAL INSTITUTE (ICICI BANK LTD)” in partial fulfillment of requirement for the completion BMS as prescribed by the University of Mumbai. This project report is the record of authentic work carried out by him / her during the period from2nd APRIL 2012 TO 5TH JUNE 2012. He has worked under my guidance. Signature Name: Ms. SHIJA ABHILASH Project Guide (Internal) Date: ` Counter signed by Signature Name Principal: Dr. R.S.GHOSH ACKNOWLEDGEMENT I sincerely thank to the teaching faculty of the self financing department of MGM COLLEGE and also to the university of Mumbai to give us such big opportunity to work upon this project. I would particularly like to thank Ms. SHIJA ABHILASH for being my project guide and for giving his valuable advice, guidance, and suggestion on the subject. & also Thanks to friends for providing guidance, useful material and information on the subject. I also wish to thanks all of those who shared their views while acquiring some of the information and for all the support and help...
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...[pic] [pic] |Briefing | |Mergers & Acquisitions: An Introduction | |Prof. Ian Giddy, New York University | |[pic] | | | |INTRODUCTION | |This is an introduction to the subject of mergers, acquisitions, buyouts and divestitures as covered in my Mergers & Acquisitions course. The purpose is to delineate how and why a merger | |decision should be made. The course focuses on mergers and acquisitions in the context of private as well as publicly traded companies. Acquisitions...
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...OBJECTIVE OF PROJECT Developing the property risk scoring matrix for investors investing in investment grade commercial yield assets. INTRODUCTION At the point when a speculator is putting resources into any benefit, the sole choice is focused around the valuation report. However in valuation report the primary attention is given on deciding the estimation of an advantage. As the Valuer deals with all the danger included in the advantage for deciding the estimation of property yet the these danger are not legitimately imparted to customer for instance the amount of danger is included in useful obsolesce of the benefit. So our gathering is enthused about determining the danger scoring framework for customer that can all the more unequivocally...
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...of her company. This proposal will feature options that will efficiently accommodate these needs. New Accounting System There are six major components of an Accounting Information System (AIS). • Employees • Procedure and Instructions • Data • Software • Information Infrastructure • Internal Controls. Employees The new Accounting Information System will assist all departments to work in unison. Management can establish sales goals so staff will know how much inventory to order, inventory will notify accounting of the new payable and invoice customer, sales can enter the order, warehouse can package order and shipping department can ship it out. The customer service department can track shipping. The AIS is designed to be user friendly and meet all needs. Authorized personnel can access the same system and share the same information. Procedure and Instructions Processing data will be achieved by both manual input and automated in collecting, retrieving and storing data. Procedures and instructions must be followed consistently to be effective. Datastructured query language (SQL) is the choice of processing database. Data The new AIS solely depends on accurate and complete data. Having all this information in one place is important to the effectiveness of the system. Consist of the following: • Sales Orders and Reports • Billing and Purchases. • Invoices and Ledgers....
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