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SMAC Case Examination Summary
    GR Hotels (Sample Case Examination)

Strategic Issues
Upgrade existing properties to attract more business travellers Purchase Calgary hotel Exercise option on land in Montreal and build conference centre or sell the land Providing additional in-room services 

Operational Issues
Budgeting and financing relating to upgrading the existing properties, buying the Calgary property, or building the conference centre Training related to improving services in upgraded hotels Various issues associated with Calgary hotel being considered for purchase Occupancy rates lower than benchmark hotels suggesting image management issues at existing properties Ethical and control issues within the current
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build a new Arena Service Problems: outsource options or in-house training Ethical Issue: Naming rights offer for new arena

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Parking and event room capacity Player management Hockey player salary cap Staff turnover Sale of alcohol at concessions

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    Delfa Printing Ltd (May 2009)

Acquire Ready and Able Printing Enter into contract with Northern Complete Ins for warehousing Enter into contract with General Printing Srvices for offset printing Expand warehousing capacity

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Financing requirements AR Operational inefficiencies (e.g., bottlenecks, backlogs, overtime, ISO certification, dockets, inventory mgmt, late deliveries, lack of printing capacity, managing capacity, lack of space for equipt) IT issues (software for job tracking, scheduling) Too few customers/narrow industry scope Internal control and ethical issues Risk mgmt issues: fuel costs, market pricies, growing interest in digital printing

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Ratio analysis NPV of improving or replacing arena Calculating capital gains Appropriate accounting for signing bonuses Decision and profitability analysis (relevant revenues, costs CM, cash flows) Uncertainty/sensitivity analysis (calc and comp incremental CM under to ticket pricing scenarios) Relevant costing Capacity Calc financing requiring Consideration and calculation of capacity constraints Financial ratios and trend analysis Bank constraint calculation (3:1) Calculate
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