Economic Value Added

The article, “Creating the System: Railroads and the Modern Corporation”, informs us all about the development of the transcontinental railroad and how it helped drive the nation west and also transformed western North America into a economy that had many opportunities. The railroads have always interested me when it comes to this period of time. What I learned from the reading that I didn’t know before was that the Western railroads were primary carriers of grain, other agricultural produce, livestock, coal, lumber and minerals. Also seeing the prices that the farmers shipped their products for, and what they paid for the freights rates was very interesting. Overall, if the railroads wouldn’t have been built in a time when there was so little

This memo is in regard to the recent proposal of leasing or buying the bi-level and tri-level Auto Rack equipment for Burlington Northern Railroad Company. As indicated before, this equipment is a great investment for our company as it exceeds our company’s 20% hurdle rate and therefore investing in them would be a great decision for the company. Hence this memo will seek to explain the optimal way to finance this investment; in other words, this memo will try and

Q: How is the freight and passenger pool working?
W.V.: Very satisfactorily. I don’t like that expression “pool,” how- ever, that’s a common construction applied by the people to a combi- nation which the leading roads have entered into to keep rates at a point where they will pay dividends to the stockholders. The railroads are not run for the benefit of the “dear public”—that cry is all nonsense—they are built by men who

Knowing this stock companies started investing in the railway to eventually make eventually make more

Intermodal. Intermodal is the form of moving freight utilizing multiple modes of transportation. One of the most common is rail and truck. Typically, a trucking company will pick up a trailer or a container at a customer’s facility, take the product to a railroad intermodal yard to normally be shipped several hundred miles away (although shorter hauls are becoming more common) to arrive at another railroad intermodal yard to be unloaded and picked up by a trucking company to take the goods to the final destination. The nation’s railroads have focused on this segment of business in the last several years due to a sharp decline in hauling coal. Coal has always been one of CSX’s main sources of revenue. “Railroads wrung efficiencies out of their costs, and discovered that if you make even a little money on a lot of volume, you're soon talking big bucks.” (Frailey, 2011, p. 1) CSX has utilized their own trucking brand to deliver trailers from or to intermodal yards cutting out the additional company in many instances. In this segment of the business strategy, CSX was behind its competitors. The main competitor is Norfolk Southern which operates in the eastern United States just as CSX does. The reason that this information is important is due to investments in infrastructure. Many people do not know that generally the railroad have to fund most of their track maintenance and improvements out of their

According to study of Hill and Jones (2013), value creation frontier refers to the maximum amount of value that the products of different companies within an industry can provide to customers at any one time using the different business models. To reach the value creation frontier, the company must pursue one or more of the four building blocks of competitive advantage, which are innovation, quality, customer responsiveness and efficiency. The concept provide four basic ways to

In his article ‘Making Trains Run on Time’ (Time Magazine, 10 April, 2017, pp. 32-34), Josh Sanburn tells us about the problem of congested train traffic in Chicago. Sanburn says that costly delays have been seen elsewhere because of the problems in Chicago, as any trains travelling from coast to coast have to go through the city. Six of the seven biggest railroad companies use these railroads, with one thousand and three hundred trains traveling through the city a day.

Utilizing models from industrial organization can help a business settle on the best evaluating and yield level for its business. These models are a monetary depiction of the organizations in an industry, including their ideal generation decisions. Initially, They wanted to make breathable articles of clothing for football players but after further analyst, the Plank and his group soon understood that they could influence their dampness wicking manufactured creations into different markets (As You Sow, 2010). In the wake of screening markets, UA applied the industrial organization model to see where this asset could be presented most successfully. UA officials added many new factors to expand there above average returns one brain in particular were their first line of dampness wicking running shoes. No other sports ware company had ever explored that ventured. So while giving bits of knowledge on the rate of the development of the firm, the resource-based approach gives worth added hypothetical clarification to the organizations achievement. This maybe the greatest battle Under Armor confronts the test of keeping up separated item from their competition to keep a competitive

Franklin Electronics has a simple understanding of earned value management. They understand how to calculate cost and schedule variance, but they don’t know how to analyze the data that they gave to Spokane Industries. If they understood how to analyze these metrics in depth, they would have understood why the vice president was calling the emergency meeting and would have been

With the existence of inaccurate information and unobservable factors, intrinsic values are too hard to measure in practice. While blue line has invisible feature, it is human nature to desire to measure things, to rely on what is tangible and real. Therefore, many entities set quantifiable goals, or key performance indicators (KPIs) for comfort. For example, the share price is widely used to evaluate entity performance. Unfortunately, this strategy tends to have the opposite effect. Price is the negotiated amount for transferring an asset. It stands for market peoples’ general estimate of the value. Although these estimates can be reasonable sometime, it can never be used to substitute the true intrinsic value. Besides, when an observable indicator is set as the criteria, executives are allured to manage the indicator at the expense of destroying value, falling into the curse of the red line. However, this does not mean that KPIs are worthless. A blue line company uses KPIs as

Management accounting researchers (Otley, 1999; Norreklit, 2000) have criticized depending exclusively on financial measures. As referred by Cumby and Conrod (2001), sustainable shareholder value and competitiveness advantages are actually driven by non-financial factors such as employee satisfaction, customer loyalty, internal processes and innovation. As a result, companies started to include non-financial measurements within their PAMs to gain better knowledge about the overall company situation (Ittner and Larcker, 2001; Speckbacher et al, 2003).

According to Dr. Erik A. Mooi (2015), the value delivery system is assessing from three different dimensions.

Adding value is provided by improving opportunities to achieve organizational objectives identifying operational improvement reducing risk through exposure through both assurance and consulting.

Essay n°=1: Describe the methods used to calculate value added. How does value added contribute towards understanding the connections between the business and its product markets? Use relevant examples to illustrate points.

The overall goal of this ranking was to help corporate analysts decide which of their business units to fund, and how much; and which units to sell. Managers were supposed to gain perspective from this analysis that allowed them to plan with confidence to use money generated by the cash cows to fund the stars and, possibly, the question marks. As the