Enager Industries Essay

During our analysis of individual segments, exhibit 2, we found that the RONAs for the Retailing and Food were lagging behind that of the Drinks segment. Furthermore, the Drinks segment only has 26% of total net assets, yet it provides 46% of operating profits. Comparing this to the Retailing segment, which utilizes 40% of net assets while only contributing 24% of the total profits, shows a great disparity. The Food segment represents 34% of net assets and 30% of the total profits.

In the Super Project case, Crosby set out to argue that the current methodologies being utilized by General Foods Corporation to determine which capital investments to pursue did not always fit the bill. Crosby advocated using alternative methods for evaluation of Super including: 1) Incremental Basis, 2) Facilities Used Basis, and 3) Fully Allocated Basis. He provided the Corporate Budgets and Analysis management team with documentation that articulated each of the methods he used, the results obtained, discussion points, and ultimately his conclusions. As can be seen from the illustration below, each alternative provided vastly different outcomes, thus begging the question – which method should General Foods use?

Moreover, Robert Gates’ estimation of the price increase (2.0%) differs from the information provided in the case (1.7%). This overestimates revenue and thereby FCF. To make better projections for the firms’ FCF, Robert Gates would also have to consider the opportunity cost of alternative investments, the risk exposure throughout the project and operational risks after three years.

Next, the actual money that spent on this project is far exceed the budgeted amount. To date, it spent 12.55 million more than expected. However, this is not the end, there are still two testing remains incomplete which will cost company more to finish them. Regarding to each items, the item that results in the most unfavorable result is the software development that cost the company 12.90 million more to finish development. We should also notice that the items far behind the schedule are all related to the software. This tells us that the company is extremely not good at developing software. This may due to the sudden change from the medium segmentation focus to the high end products. I would initially recommend the company to have a joint venture with the other high end company to implement this project. However, as the project is almost done, the most important thing is how to promo this product that makes it profitable or at

The company is the corporation’s question mark performer and has the potential of becoming a star performer given the limited competition in the market. The company has the advantage of the parent corporation’s 25-year-old positive reputation as a local family owned business known for the quality of their products.

As the financial consultants of Catawba Industrial Company our aim is to determine the best course of action to pursue with respect to the introduction of the new proposed light weight compressor. This course of action must remain within the production capacity restrictions the company faces.

We continued to estimate a decline in NiMH sales, lowering our forecast to $21M which also mirrored the sales figure in 2012. However, we forecasted a sharp increase in Ultracapacitor sales with a 2013 sales estimate of $6.9M which is also the 2012 sales figure. (Break-through?) The price of the NiMH was lowered to $8.50 due to increasing market pressure, but we left the price of the Ultracapacitor the same. We kept our R&D investments in process improvement the same for both the NiMH and Ultracapacitor, but decreased our investment in NiMH energy density to $2M. The decision to decrease this investment was based on the decline in sales for this product.

Loblaw Companies Limited is the leader of Canada’s food and pharmacy, their independently-operated stores, food and household products as well as pharmacies can be found in every Canadian’s neighborhoods.

Nucor Steel is one of the major steel producers in the world and a market leader in America that is facing a threat of competitive pressures from potential international players.

Q1. Based on the 2004 statement of profit and loss data (Exhibits 1 and 2), do you agree with Water’s decision to keep product 103?

After analyzing the results from the previous quarter, it was determined that the prices set for each segment were not sufficient. Product sales priority were also not properly adjusted. With the R&D investments, sales priorities needed to be changed for the main focus to become the most profitable market segments. Prices were not competitive which in turned decreased revenue, market share, and profitability. To become more competitive we altered the prices in each market segment. The Workhorse product was the first to change, the price was lowered to $2500 in an attempt to increase sales; at this price Team 4 was still making a profit on this product, as well as making the price much more competitive. The Workhorse sales priority was also lowered to 3rd in Americas and 4th in APAC and EMEA. This product was not selling as well as we had hoped, and was no longer as profitable as it once was which led to this decision. Next, the Innovator product’s price was adjusted; this involved a price increase to $4100. This price was adjusted to include the new

One night in 1981, Jeff Munks, a police office in San Jose, CA responded to an urgent call and arrived at a residence where a Vietnamese immigrant who spoke no English was screaming and waving his arms agitatedly. Next to him, his son was having trouble breathing. After Jeff guessed what had been happening and immediately called for an ambulance, he kept thinking about emergency situations where danger is exacerbated because of a language barrier. This resulted in Telephone Interpretation being offered since that year. This service connects trained interpreters via telephone to Limited English Proficient (LEP) Individuals. Cyracom International is one of those companies that provide critical

In fully investigating all of our calculations we are fully invested in using the Net Present Value figures we calculated as a means of ranking the eight projects. In doing so we found reasons in which why the Net Present Value was our benchmark for ranking the projects and why we did not use the Payback Method. The Payback Method ignores the time value of money, requires and arbitrary cutoff point, ignores cash flows beyond the cutoff date, and is biased against long-term projects, such as research and development and new projects. When comparing the Average Accounting Return Method to the Net Present Value method we found that the Average Accounting Return Method is a worse option than using the Payback Method. The Average Accounting Return Method is not a true rate of return and the time value of money is ignored, it uses an arbitrary benchmark cutoff rate, and is based on accounting net income and book values, not cash flows and market values. Plain and simply put, the Net Present Value method is the best criterion to use when ranking these eight

only business activity is to sell pod racers imported from PD. ID pays a 20% import duty based on

Supply change management (SCM) is active in many organizations today. The purpose of SCM is to maximize the company value in order maintain a competitive advantage in the market place. As an Operational Managers (OM) it is essential to oversee the supply chain within an organization. The OM responsibility is to manage the supply chain flow, and to ensure the supply chain has a quality design in order to reduce cost and drive efficiency. (Reid & Sanders, 2010) An organization supply chain includes activities such as product development, sourcing, productions, logistics, material, and other information systems needed to coordinate the movement of goods from suppliers to manufactures, and to final customers.