Case Study – Extreme CCTV (all details discussed in this case study have been taken from the Extreme CCTV case study as presented in Cases of entrepreneurship: the venture creation process (Morse & Mitchell, 2005)) Student Name: Katrina Binotto Student Number: S3172726 Course: BUSM 2367 – Business Enterprise One 1. If you were Jack Gin, what would you do: acquire Derwent Systems, based in Newcastle, UK, to extend its reach into Europe, or focus on the IPO? When assessing if Jack Gin should acquire Derwent Systems or focus on IPO it is would be best suggested to undertake a review of the attractiveness and competitive position of the proposed acquisition. One method of doing this is through the use of the Boston …show more content…
Without reliable quality products Derwent would allow competitors access to their market, reducing their cash flows and product sales. • Substitutes o There are very few substitutes to CCTV. Any alternative products do not provide the same level of quality or access to the same features provided by Extreme (and Derwent) products, thus this factor is considered low. • New Entrants o The possibility of new entrants into the market is low due to the fact that a number of businesses are already participating in the market, and any new entrants would need a large capital, for research and development and product development. • Rivalry o It is possible that Pelco may merge with other competitors, such as Silent Witness, and their new competitive power would be unknown at this time. Therefore this would be considered a medium risk as neither the new market nor the strategic direction of any competitors is known. 5. Analyse the opportunity using the First Screening Guide INDUSTRY ANALYSIS • What is the industry that addresses this market? o CCTV equipment • Number of competitors Pelco Silent Witness • Relative size of competitors o No one competitors having a majority share in the market, which was highly fragmented. o Pelco – in Extreme CCTV’s market space, from Southern California o Silent Witness – Canadian public company, worldwide networks with good growths
Loss of control of the licensee manufacture and marketing operations and practices leading to loss of quality.
The threat of new entrants is moderate. It is relatively easy for a company to enter this market because there are not a lot of legal barriers. But a smaller company that has just entered the market would have a tougher time competing with some of the larger companies – an obvious reason being that larger companies can have larger inventories. Another reason is that larger companies can do things to weaken the smaller companies, such as offer discounts, sales promotions, and increase spending on advertising. Since most of the companies in this industry are competing on
Threat to new entrants: There is no barrier to entry in this industry but it might be difficult for newcomers to compete against existing well establishing companies.
Factors that can limit the threat of new entrants are known as barriers to entry. In this case barriers to entry are low because: there is no government intervention to prevent businesses from entering the industry, resources are abundant, and customers’ switching costs are low as well as fixed costs to start this type of business.
1. Assess Interco’s financial performance. Why is the company a target of a hostile takeover attempt?
Combat during World War 1 was a strange mix of brutal combat and boredom. WWI is mostly known for its trench warfare. Soldiers would dig trenches in the ground and fight from there. Trench warfare was extremely boring, and sometimes, the soldiers would act like they aren’t fighting a war at all. The movie, Gallipoli, showed men skinny dipping on a beach with the fighting taking place nearby. The movie showed men hanging out in the trenches, and some of them were even sleeping in small holes in the trenches. The area between opposing trenches was known as no-man’s land. Traversing this landscape was extremely dangerous and fatal. There was no cover, and the area was a kill zone with all the machine guns and enemy troops in the opposing trenches.
Barriers to Entry: The entry barriers in the market are relatively low, making it easy to access. However, as the market is saturated it could be unlikely for new companies to decide to start new enterprises in this field.
Mortensen’s cost of capital estimates are used for a variety of purposes at both the divisional and corporate levels. Examples include internal analyses such as financial accounting, performance assessment and capital budgeting, while others are used for strategic planning purposes such as merger and acquisition, as well as stock repurchase decisions (Luehrman and Heilprin, 2009, pg.1). When used at the divisional rather than corporate level, special consideration should be given to the fact that Midland’s divisions are not publicly traded entities, and therefore do not have individual Beta
1. Was Borg-Warner’s Industrial Products Group a good candidate for a leveraged buyout in 1987? Evaluate the price paid and the structure of the deal that closed in May 1987. Are you optimistic about BW/IP’s prospects?
Initial Capital Requirements: - Huge initial development period and very high investment costs, tooling costs, and WIP are necessary even before the company starts
The presented analysis, recommends in our opinion, the best course of action in the proposed acquisition of the Torrington Company:
1. Is the acquisition of Royal’s linerboard mill and box plants a sound strategic move? Consider the short- as well as long-term outlook for linerboard prices and the profitability of the linerboard industry. Furthermore, what basis, if any, is there for expecting AtlanticRoyal’s combined linerboard and box mill operations to do better/worse than the industry overall?
The problem of interpreting the Constitution and framer’s intent is a constantly permeating and troublesome question in the minds of Supreme Court Justices, judges, prominent politicians, and policy makers alike. It is a problem that has been pondered for years and years in the courtrooms and on paper with no real conclusion. One such essay arguing this dilemma is “How Not to Read the Constitution” by Laurence H. Tribe and Michael C. Dorf, who explore the questions “Is reading the text just a pretext for expressing the reader’s vision in the august, almost holy terms of constitutional law?” and “Is the Constitution simply a mirror in which one sees what one wants to see?” (Tribe,
It may be that you will only be competing directly against some of these because you will be targeting a particular segment of the market or offering services which are hard to find elsewhere”( Market Research- Estimating Demand, 2012).
Edgar Allan Poe is known as a famous American writer mainly due to his poetry and mysterious style of writing. Poe was not really like many other writers at the time. Poe lived a hard life surrounded by pain and misery. This could also be one of the main reasons why he tends to write about dark tales. There is three similar emotion that Mr. Poe emphasizes in multiple short stories. One of those emotions being remorse which are reflected in Edgar Allan Poe’s “The Tell-Tale Heart” (1843). Where a young man commits the act of murder on a loved one and is hit with a strong sense of remorse. A similar concept is found in Poe’s “ The Black Cat” (1843). Where a man gruesomely murders a cat. He later encounters another cat that somewhat haunts him. However, his wife is strongly attached to the cat. This forces the man to do the unthinkable things in order to get rid of all the guilt that he has been holding in. The last emotion is the act of realization, perfectly found in his short story “ William Wilson” (1839). This short story shows how the protagonist undergoes a type of competition against himself. Every time he is faced with a bad decision another character appears that shares similar features as William Wilson including his name. Eventually, he is fed up with this other character and decides to take action into his own hands and single-handedly gets rid of him.