...PART 1- An entity’s status as VIE/non-VIE has changed? ASC 810-10-35-4 identifies five specific types of events that lead to reconsideration of VIE status, and ASC 810-10-35-4 also provides guidance on the circumstances in which the entity has incurred operating losses since the initial determination date, stating, “A legal entity that previously was not subject to the Variable Interest Entities Subsections shall not become subject to them simply because of losses in excess of its expected losses that reduce the equity investment” (emphasis added). Consequently, if the amount of the equity investment at risk at the entity’s inception (or when a reporting entity first became involved with the entity) was determined to be sufficient, losses later incurred by that entity do not by themselves require a reporting entity to reconsider whether the entity has sufficient equity in accordance with ASC 810-10-15-14(a). A reporting entity must consider all pertinent facts and circumstances in assessing whether an event that meets the criteria in ASC 810-10-35-4(a) through 35-4(e) has occurred. Insignificant events do not always result in a reconsideration of an entity’s VIE status. An event’s significance depends on whether the event appears to have changed the sufficiency of equity investment at risk or on whether the characteristics of the holders of equity investment at risk have changed. (For guidance on isolating the impact of a change under ASC 810-10-35-4(a) through 35-4(e), see...
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...PART 1- An entity’s status as VIE/non-VIE has changed? ASC 810-10-35-4 identifies five specific types of events that lead to reconsideration of VIE status, and ASC 810-10-35-4 also provides guidance on the circumstances in which the entity has incurred operating losses since the initial determination date, stating, “A legal entity that previously was not subject to the Variable Interest Entities Subsections shall not become subject to them simply because of losses in excess of its expected losses that reduce the equity investment” (emphasis added). Consequently, if the amount of the equity investment at risk at the entity’s inception (or when a reporting entity first became involved with the entity) was determined to be sufficient, losses later incurred by that entity do not by themselves require a reporting entity to reconsider whether the entity has sufficient equity in accordance with ASC 810-10-15-14(a). A reporting entity must consider all pertinent facts and circumstances in assessing whether an event that meets the criteria in ASC 810-10-35-4(a) through 35-4(e) has occurred. Insignificant events do not always result in a reconsideration of an entity’s VIE status. An event’s significance depends on whether the event appears to have changed the sufficiency of equity investment at risk or on whether the characteristics of the holders of equity investment at risk have changed. (For guidance on isolating the impact of a change under ASC 810-10-35-4(a) through 35-4(e), see...
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...CASE ANALYSIS LINCOLN ELECTRIC: VENTURING ABROAD First of all, Indonesia has a huge population and its economy has been growing rapidly over the years with a great deal construction going on. And, the market for welding products is large, but unsophisticated. Generally, the consumers use hand held stick welders rather than the semiautomatic or fully automatic machines, but Lincoln electric could break this trend with its expansion all around the country. There could be variety of entry methods. Ownership of a manufacturing venture and establishing a joint venture are the leading ones. Ownership of a manufacturing venture seems to be problematical if you are entering a market which is quite different from your original culture. If you don’t have a local expertise and relationships with the key people in the business and the government, you will probably have difficult times while setting up your business. And, Lincoln Electric has failed before in the 90’s due to the ignorance of other cultures, so the company should not make the same mistake one more time. At this point, joint venture seems to be a great idea for entering Indonesian market. It would provide access to partner’s local expertise and strong relationships within the business and the government. These would be crucial during the process of constructing the factory and for operations and distribution. As it is given in the case possible joint venture partners are Lincoln’s two local distributors: Tira Austenite...
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...Zuora Inc. Venturing into Cloud Computing Executive Summary Zuora Inc is an industry leader in providing flexible, best in class billing software and platforms to Software-as-a-Service companies. Although only a year old, Zuora managed to outperform all its competitors and gain the leading market share, primarily on the strength of their corporate culture which lead to their aggressive marketing and sales team. However, an emerging trend in technology suggests that cloud computing may eclipse SaaS in the future. Economic downturn also threatens Zuora, as their funds are limited and the economy has caused valuations of companies to drop across the board. In order to suitably adapt to the changing marketplace, Zuora needs to make choices on how to grow and what areas to focus on, balancing the tradeoff given their limited resources. Zuora has three options available, choosing either to focus on just growing the SaaS slowly, expanding to the cloud computing market, or growing big to capture all subscription based businesses. Giving consideration the risk, cost, and strategic fit of these three options, the second one is the best choice for Zuora at this point in time. Zuora should expand into the cloud computing market while not neglecting the SaaS market. Current Situation Founded in December 2007, Zuora Inc was created to provide state of the art, low-cost billing systems for Software-as-a-Service. Zuora’s founding principle is that the world is moving from a manufacturing...
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...CHAPTER 1 Introduction Rationale of the Study One of the first decisions you will need to make in starting a business is choosing a form of ownership. This section will lead you through your options and present the advantages and disadvantages of each (Hatten, 2006). When entrepreneurs establish a business, they must decide on the form of business ownership. There are different types of business ownership, and the type that is chosen can affect the profitability, risk, and value of the firm (Madura, 2004). Sole proprietorship, as the simple and easy to form type of business, is a business that is owned by one person. The vast majority of small business starts out as sole proprietorships. Sole proprietors own all the assets of the business and the profits generated by it. Most small business owners prefer the proprietorship because it is simple to enter, operate, and terminate and provides for relative freedom of action and control (Megginson, et al., 2000). On the other hand, partnership is defined as a voluntary association of two or more persons to carry on as co-owners of a business for profit. Like proprietorships, the law does not distinguish the business and its owners. The partner should have a legal agreement that sets forth how decisions will be made, how profits will be shared, how disputes will be resolved, how future partners will be admitted to the partnership, how partners can be bought out, and what steps will be taken to dissolve the partnership when...
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...96 PART 1 Entrepreneurship: Who, What, Why? n everything you can to learn all that you can, whenever you can; the result will be an enhanced capacity to recognize opportunities. Steps you can take to increase your own knowledge base: (Hint: What courses or special training you should consider taking? Jobs that give you experience and knowledge you don’t now have? Describe these and other steps here.) n opportunities you receive on a regular basis, the more likely you are to recognize opportunities as they emerge. You can build your ability to recognize opportunities by holding jobs that put you on ‘‘the cutting edge’’ (e.g., jobs in research and development or marketing), by building a large social network, and by having rich and diverse job—and life—experiences. Steps you can take to increase your access to knowledge: (Hint: Can you increase the breadth of your social network? Read a wider range of magazines, including ones related to your field? Describe these and other steps here.) n Organize your knowledge. Knowledge that is organized is much more useful than knowledge that is not. As you acquire new information, you should actively seek to relate it to what you know so that connections between existing and new information come clearly into focus. Information that is connected and organized in this manner is easier to remember—and to use—than information that it is not. Steps you can take to organize the knowledge that you have more systematically and...
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...ENFB71-104 Entrepreneurship and Innovation Session 3: Entrepreneurial Strategy Baden U’Ren buren@bond.edu.au Level 4, Room 9 5595 2212 Overview Review of the readings Innovation and Entrepreneurship Entrepreneurship in a Corporate Context Entrepreneurial Strategy What is Innovation? Something NEW that creates VALUE What is Innovation? “Innovation is the specific tool of entrepreneurs, the means by which they exploit change as an opportunity for a different business or service. It is capable of being presented as a discipline, capable of being learned, capable of being practiced” - Peter Drucker Source: Schaper & Volery (2007) Entrepreneurship and Small Business 2nd Edition. Wiley. p.69 Creativity ideas, concepts & inventions Innovation the process of development and commercialisation Entrepreneurship couples opportunities and resources Innovation Exploit Incremental Explore Radical Kirzner The producer-entrepreneur •Alert and responsive to opportunities that exist •Exploits disorder (gaps) to move the market back to equilibrium Schumpeter The innovator-entrepreneur: •Creates products and processes to disturb market equilibrium •Creates opportunities Innovation & Performance Some ‘stylised facts’ about the relationships between innovation and performance: Relationships between R&D, patents, new products and performance are strongest at the industry level, weakest at the firm level Returns from...
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...Course Project General Electric (GE) Table of Contents Phase 1 Initial Survey and Engagement Development Pages 1-4 Phase 2 Planning Phase Pages 4-8 Phase 3 Work Program Phase Pages 8-12 Phase 4 Field Work Phase Pages 12-19 Phase 5 Findings and Recommendations Pages 19-20 General Electric (GE) seems to be a very high profited company which seems to be growing in profitability based on the way they do business and how they train their employees to be the best at what they do. Based on the articles I have read GE prides itself in training and leading its employees to grow and mature. The culture seems very open to smart and talented business professionals. “If businesses managed their money as carelessly as they manage their people, most would go bankrupt.& The authors believe that for a CEO it is in your and your company's best interest to know what your employees are capable of. This is done by having a file on each employee - not just the basic information, but having interviews with colleagues and superiors. An example is the CEO of General Electric's appliance wing, Larry Johnston. When he decided to quit, the heads of General Electric knew exactly who the candidates were to replace him. On the same day General Electric announced his resignation they also announced his replacement. This is done through what Conaty explains as General Electric's Operating System which has three main phases: people; strategy; and operations and budgets.” (2)...
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...HYGEIA INTERNATIONAL Point of View: Henry Livingston, Vice President of the Africa Middle East Region of Hygeia International Time Context: 1980 Statement of the Problem: To determine whether to venture into poultry production, retain current business position, or to use poultry production as a sales promotion tool to increase profit Statement of the Objectives: * To determine the number of human resources needed for the company to be ready in venturing into poultry production in Nigeria in four weeks time * To analyze risks involved in poultry production in Nigeria in four weeks time * To determine historical data of sales growth within the past five years to project return of investment in the next five years Areas of Consideration: INTERNAL 1. Marketing Hygeia International is already well established in Nigeria. However, marketing channels are poorly developed. Tv and radio still have to be improved so the marketing department of the company should implement marketing activities to easily reach the target market. 2. Finance The financial projection prepared by R. Akobo, the company’s agricultural manager , and checked by M. Suleman, the company’s financial manager was given to the president. The treasurer of the company also noted that estimated return is well over 30 percent hurdle-rate used for domestic investment. 3. Production Though Hygeia is not producing chickens or eggs commercially, the company has experts familiar with the technology...
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...Brochure More information from http://www.researchandmarkets.com/reports/2260817/ Globe Telecom, Inc. - Strategy and SWOT Report Description: Globe Telecom, Inc. - Strategy and SWOT Report, is a source of comprehensive company data and information. The report covers the company’s structure, operation, SWOT analysis, product and service offerings and corporate actions, providing a 360° view of the company. Features: - Detailed information on Globe Telecom, Inc. required for business and competitor intelligence needs - A study of the major internal and external factors affecting Globe Telecom, Inc. in the form of a SWOT analysis - An in-depth view of the business model of Globe Telecom, Inc. including a breakdown and examination of key business segments - Intelligence on Globe Telecom, Inc.’s mergers and acquisitions (M&A), strategic partnerships and alliances, capital raising, private equity transactions, and financial and legal advisors - News about Globe Telecom, Inc., such as business expansion, restructuring, and contract wins - Large number of easy-to-grasp charts and graphs that present important data and key trends Highlights: Globe Telecom, Inc. (Globe Telecom or “the company”) is a leading telecommunications service provider. The company offers a range of services, including mobile voice; mobile data and value-added services; fixed line voice; fixed line data; and broadband services. The company primarily operates in the Philippines where it is ...
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...Peter Demerjian 02/24/2013 ACT 563 Course Project General Electric (GE) Table of Contents Phase 1 Initial Survey and Engagement Development Pages 1-4 Phase 2 Planning Phase Pages 4-8 Phase 3 Work Program Phase Pages 8-12 Phase 4 Field Work Phase Pages 12-19 Phase 5 Findings and Recommendations Pages 19-20 General Electric (GE) seems to be a very high profited company which seems to be growing in profitability based on the way they do business and how they train their employees to be the best at what they do. Based on the articles I have read GE prides itself in training and leading its employees to grow and mature. The culture seems very open to smart and talented business professionals. “If businesses managed their money as carelessly as they manage their people, most would go bankrupt.& The authors believe that for a CEO it is in your and your company's best interest to know what your employees are capable of. This is done by having a file on each employee - not just the basic information, but having interviews with colleagues and superiors. An example is the CEO of General Electric's appliance wing, Larry Johnston. When he decided to quit, the heads of General Electric knew exactly who the candidates were to replace him. On the same day General Electric announced his resignation they also announced his replacement. This is done through what Conaty explains as General Electric's Operating System which has three main phases: people; strategy; and operations...
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...operating in. Being a multinational retailer, Topshop is step closer to becoming a global brand by opening its first store in Hong Kong recently. Mode of Entry In order to gain familiarity with the local environment and culture of the Chinese market, Topshop joint ventured with LAB Concept, the new retail subsidary of luxury department store Lane Crawford. This allowed Topshop to be more aware of culture sensitivity, in terms of its’ products and promotion in the Chinese market, and benefit from government support. Topshop manages the merchandising, while LAB Concept manages the operation. Findings Controllable Factors * Product Topshop is often seen to collaborate with local designers and celebrity to attract local customers, when venturing into the new market. An example would be Topshop in Brazil. Topshop collaborated with Greek designer, Mary Katrantzou, that generated a buzz of excitement among the brazillians. In the recent regular show at London Fashion Week, Topshop introduced the new “Unique” line that is offered in Hong Kong’s flagship store, which is also the first to be offered in Asia. Rather than a safe and repeated dull colours season after season, like Zara, such product line introduced a edgier and unique design to Topshop’s customers. Additionally, in an interview with Susan Li of Bloomberg TV, Sir Philip Green, CEO of Topshop, stated that they are not looking for low cost...
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...Yaanom Beyebi is a firm with the desire or intention of venturing into the manufacturing sector in Ghana. As we are told the market is promising and lucrative nevertheless very competitive. However, before anyone can enter into any business venture, it is very essential to study the market and have an in-depth understanding about how the industry operates. This is done by analyzing all the factors affecting the business internally and externally in order to know what strategy to adopt to stay competitive. SWOT is an acronym for Strengths, Weaknesses, Opportunities and Threats. It is commonly applied to a product, project or business to assess its position in the competitive market. Taking into account every detail of the project, marketers try to get a picture of how it would fare in the market against competitors. Strengths are internal factors that a firm may build on to develop a strategy. e.g. Access to a good distribution network, a well trained workforce, a creative and motivated workforce and good employee relations are strengths which can be instrumental in giving the business the needed competitive advantage. Weaknesses are internal factors that a firm may need to protect itself against such as: a poor product range and ineffective promotion, high levels of borrowing and low rates of return, inefficient equipment and poor quality, all these factors can have serious effect on the possibility of venturing into a new market. Opportunities are the external factors;...
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...Introduction to Corporate Entrepreneurship Executive Summary Entrepreneurship is the process or application that drives creation and development of creative and innovative ideas (Frederick and Kuratko 2010). It involves market changes through systematic process to assist in the identification and address of new business opportunities (Alizadeh 2012). Corporate entrepreneurship is about the total process whereby organisations act in an innovative, risk-taking and proactive (Bouchard 2010) ways to help organisations, similar to entrepreneurship of creative and innovative thinking, however, the keyword for corporate entrepreneurship is ‘Organisation’. The aim of this manual was to describe and give an overview of corporate entrepreneurship to senior management and provide the necessary information and updates for an organisation to implement entrepreneurial thinking with its’ internal resources within its organisation. The manual will provides insightful information through the principle types and various dimensions of corporate entrepreneurship. The manual also included the journey through the various generations of innovation process models from simple to full integration models. To promote corporate entrepreneurship within organisation, a framework serving as best practices was discussed in the manual to support smooth adoption and implementation of corporate entrepreneurship. The manual will put emphasis on the different focal areas of corporate entrepreneurship...
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...acquisition when a company is considering implementing horizontal integration or when they are pursuing vertical integration and the company is lacking the distinctive competencies to compete in an industry and uses capital to purchase a company that possesses those competencies to establish a quick presence and reputation. Acquisition allows a company to purchase quicker than it takes to establish its own company that is similar. Also, acquisitions are less risky because there is less commercial uncertainty and the company is able research the firm they are interested and they have an established reputation. Lastly, they are attractive because there are high barriers to entry. It would be better to enter a new business area by internal new venturing when a company possesses...
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