Techmall Case Analysis

1.3. In order to estimate the peso discount rate, assume that the International Fisher Effect (IFE) holds. Groupe Ariel's Euro hurdle rate for a project of this type was 8%. Assume that inflation rates are expected to be 7% in Mexico and 3% in France.

Nuware Inc. is being analyzed in this situation because a large institutional client of the research firm Wyburn Malone is looking to enter an equity position in Nuware Inc. In making their decision, Wyburn Malone has been asked to restate the statements of Nuware Inc. Due to the apparent earnings growth displayed by the company, even in a period of difficult business, Nuware has become a strong investment opportunity. As with all Wyburn Malone’s research projects, the focus of this analysis centres on determining whether Nuware management has utilized over aggressive or too conservative accounting practices, resulting in earnings that are not real in nature.

On average, subscribers purchased 19.9 CDs annually, mostly through Sonik’s website. Annual subscriber retention rate was 90 percent. Sonik accumulated CDs from various suppliers and fulfilled its own orders. Annual fixed costs of fulfillment were $400,000; shipments averaged 3.7 CDs per package. Annual marketing expenses were $230,000; Sonik spent 90 percent on acquiring new subscribers and 5 percent on subscriber retention. Sonik’s cost of capital was 12 percent. It was considering three growth options: a. Continue the Niche Strategy: Sonik believed it could acquire 20,000-30,000 new customers per annum for the next several years without major new investment. Sonik also believed that spending $0.5 million per annum would increase customer retention to 95 percent. b. Mass-Market Strategy: Abandon the subscription model, add many other music genres, and build a mass-market brand.

5. An analysis of the individual customer accounts suggest that TFC’s current pricing model is ineffective. They are undercharging an alarming number of their customers thereby reducing their overall profitability. Based on this information, managers will hopefully elect to implement the services based pricing model so that customers are charged based on the services they are actually consuming. Ideally, changing the current pricing model will resolve the issue of customers reducing profit by 140% and 60% (Exhibit 8, numbers 3 and 4). If there are still profit draining customers, management should revisit and assess accordingly, either further increasing fees to those customers so their contribution is positive, or perhaps dropping these customers to increase overall profitability.

Mr. Gillespie is a 21 year old male who presented to the ED after an intentional overdose on 20 600mg of Gabapentin. Per documentation from ED staff Mr. Gillespie reported he became angry at his grandmother tonight and tried to "prove a point." Mr. Gillespe reported to staff threatened to overdose on his on pills, however dumped them in the toilet. He expressed after making threats to overdose on his prescribed Celexa did not phase his grandmother, he proceeded to take her Gabapentin. Per documentation Mr. Gillespe has been living with grandmother for 2 weeks and before that was living with his mother in Cary. At the time of the assessment Mr. Gillespie was calm and cooperative. He denies current suicidal ideation, homicidal ideation, and symptoms of psychosis. He appears guarded during the assessment. He reports tonight his grandmother and he got into an argument over him getting a job. He reports his grandmother informed him he has to be out by Friday. Mr. Gillespe denies history of self harm. He

In our second assumption, instead of using the cost of goods per cases in 1986, we try to use the percentage it counts in the total expenses which is 50.4% and to find the sales needed to break-even. The detail of the calculation is shown in the answer for questions d. The result is that 95,635, a little bit higher than the estimated sales of 90,000.

1) How have Cisco’s channels evolved in the last 10-15 years? Why have they evolved that way?

Hartley Electronics Ltd is a well-established company that has been trading since 1977. It has a good technical, financial and marketing section, but its human resources have been neglected, which has led to some problems within the company.

In the past, the booming economy had allowed for year to year increase in their sales because people had larger discretionary incomes. But due to the recession, smaller independent retailers had to markdown their items in order to stay in business because designer outlet stores are getting more traffic; so will Harry Rosen follow in suit? Or in order to maintain the integrity of the quality products they offer, will they continue their higher pricing and settle for a lower market share?

Complete the exercise for each segment and total to determine the average annual revenue per customer. Romanian Market | Revenue per Cardholder | | Romanian Market | Revenue per Cardholder | Segment | Annual Income € | % of Potential Cardholders | Potential Cardholders (MM) | Interest Revenue € | Other Revenue € | Annual Revenue €| | (Table A) | (Exhibit 5) | (Case Text: Page 4 @ 18.6M) | (Table A) | (Table A) | (Table A) | Middle Class | 3,000-4,500 | 18.2 | 3.39M | 37.13 | 23.50 | 60.63 | Affluent | 4,500-6,000 | 15.0 | 2.79M | 86.63 | 36.75 | 123.38 | Most Affluent | 6,000+ | 12.9 | 2.40M | 148.50 | 61.25 | 209.75 | Annual Revenue per Cardholder (all customers) | €122.78 | Annual Revenue per Cardholder (Affluent + Most Affluent) | €163.31 | ACQUISITION COSTS Table B provides the basic data necessary to calculate the relative strength and reach of the several acquisition tools available to Alpen Bank to acquire credit card customers. Recreate this table to establish the parameters for implementing marketing communication plans to acquire customers. TOOLS | Unit Cost (€) | Prospects Reached | Response Rate | Qualification Rate | Direct Mail | 0.50 | 2,500,000 | 3.0% | 60.0% | Take One | 0.10 | 2,000,000 | 2.5% | 30.0% | FSIs | 0.05 | 3,500,000 | 1.5% | 30.0% | Direct Sales | 3000/rep | 60,000 | 25.0% | 60.0% | Branch Cross-Sell | 1.00 | 50,000 | 50.0% |

Can this business be profitable? If not, why not? If yes, what needs to be done to achieve profitability?

Dealers want to make money on selling Techsonic's products. The projected margin for dealers needs to be 15% to ensure profits.

Tait Communications ltd is a global company with some millions of people around the globe depending on tait products to keep their lights on cites flowing and communities safe. The core business operation of tait is to manufacture radio equipment for emergency services departments. Other wing of tait is to provide communication solutions to its clients. The company clients are spread across the globe but its key clients are from North America, United Kingdom, South Africa, Australia and New Zealand. It has more than 40 years of excellence track record in engineering.

70% of Tweeter customers are in the Quality/Service Type but only represented 10% of total market in New England. By having most of customer base in smallest market segment Tweeter needs to create a marketing strategy to satisfy its current customer base in order to become 100% loyal. Value proposition and differentiation will be key drivers in order to keep current customers satisfied. 20% of tweeter customers are price-biters, so these customers could be potentially lost to lower-cost perceived retailers. With APP introduction Tweeter could overcome price competition by offering current customers the peace of mind that they will pay the lowest price without the need of lowering retail prices and continue to offer great customer service. This strategy works perfectly because customers will not see cheap retail prices which could trade down Tweeter’s image of being a high-end quality retailer to a low cost cheap retailer.

The strategy of implementation of an established dot com company, struggling to leverage current advertising methods with business objectives.