After extensive review of the relevant facts in this dispute, it has come to my attention that the loss contingency is incorrectly booked for Solo Cup Company. To first understand the scope of the situation, below is a summary of key events for your reference. Timeline of Key Events 2/13/03 – Solo entered into a 15 year Equipment Lease Agreement and a 20 year Energy Services Agreement with Trigen Energy Services to construct a co-generation facility. 11/01/04 – Trigen issued a Letter of Substantial Completion to Solo and paid out $820,000, which represented the first year’s energy savings prepaid by Trigen. January 2005 – Solo notified Trigen of disputes after being dissatisfied that savings were not being realized.
Not only will the massive amounts oil produced from this area have an effect, it is estimated to create anywhere from 250,000-735,000 jobs. Just for a reference as to how much this will boost the economy, since 1977 the North Slope oil development has pumped 500 billion dollars back into the economy. This is now slowly running out of resources considering it reached its peak production in 1980; however to continue boosting the economy more exploration needs to be done. (source 2) Action needs to be taken immediately because from the date of approval to exploration it takes anywhere from 7-12 years until the first barrel of oil is recovered. (Source 1/3) The 16 billion barrels of oil that lie untapped there would be more than enough to replace the oil Americans would purchase from Iraq for over 58 years.
In the demand side, Methanex’s revenue was exposed to the fluctuation of the demand for methanol, since Methanex only produced methanol. This situation was more serious in the supply side, where the price the “raw material”, natural gas was subject to fluctuating prices, interruptions to supply lines and international policies and regulations governing imports and exports. In last decades, some plants in New Zealand and Egypt had to shut down temporally for fluctuating price of natural gas or political issues. The options for Methanex to solve/relieve these issues include: • Using derivatives on natural gas and methanol to hedge the risk from price fluctuation • Expanding the market in China to explore opportunities in both demand and supply sides • Exploring opportunities in areas where long-term contacts on demand (in methanol) or supply (in natural gas) instead of focusing only on the richness in natural gas reserve • Expanding new products lines to reduce the risk from strongly relying on a single product. It could also make use of the idle resources (plants, machines, etc.)
Table of Contents Executive Summary 3 Introduction 4 Analysis of Alternatives 5 Alternative 1: Introduce a new product 5 Alternative 2: Increase promotion 6 Alternative 3: Raise prices and cut costs 7 Recommendations 7 Appendix: Budgeted Income Statements & the Rate of Growth in Profits 9 Executive Summary Shepard Poles is a manufacturing company that has been providing specialized poles in the market for over ten years. Shepard Poles has about three different product lines: hiking poles, downhill ski poles, and cross-country ski poles. According to the calculation on current operating data, the company has incurred a operating loss of $ 165,000 this year. If any new strategic initiatives are not implemented next year, the unit sales and all costs are expected to rise about 7 percent and 2 percent respectively. However, this situation would make the company incur more loss next year, which is about negative $ 293,586.
On April 11, 1962, John F. Kennedy, who was the president during that time period, held a news conference regarding the spike in steel prices. He implies that raising steel companies' prices made a huge effect in the industry and they should lower their price in order to have a better economy. He achieved this goal by using three rhetorical strategies: pathos to address a pitiful emotion towards those people that had been affected in this circumstances, logos to give facts how much money steel company have spend through how many years and parallel structure to list negative results if the cost of everything in our industry is imitated by the cost of steel prices. John F. Kennedy begins his speech by asserting that steel company that raises their cost had a huge effect in the economy. He utilizes pathos-heavy words to describe what the people's experience will be during this event and that they were “confronted with grave crisis in Berlin and South East Asia” (7-8).
Those who are critical of Reagan’s policy speak of the explosion of the United States’ budget deficit during the 1980s. The deficit was $101b in 1981 and had risen to $236b by 1983. The national debt was significantly increased during this time period as well. Rising from $1,004b to $2,028b from 1981 to 5 1989, the massive debt ensured future generations would incur substantial repayment costs (Niskanen & Moore 1996). of Reagan’s tenure, the budget deficit was $141b.
As a result of gas station paying more for their gasoline, this will increase the amount the customer will have to pay for gasoline. According to the Federal Trade Commission, The storm “affected 19% of the United States oil production. Hurricanes Katrina (and a smaller previous Hurricane Rita) destroyed 113 offshore oil and gas platforms, damaged 457 oil and gas pipelines, and spilled nearly as much oil as the Exxon Valdez oil disaster”. This caused oil prices to increase by $3 a barrel, and gas prices to nearly reach $5 a gallon. Because of the devastation of hurricane Katrina many of the United States oil refineries were damaged, causing a decrease in gas supply.
There are two possible trading strategies. 1st: used by arbitrageurs who anticipate a continuous price rise in the period after the announcement. But simply irrational bull traders may cause the price rise. Arbitrageur shorts deletions (buy additions) on announcement and holds the position until one day prior to the change date and settles it as close as possible to this day market close. Also, he can
At this time people wanted to spend their money instead of save it for hard times. Society’s hourly pay rate nearly double and tripled during this era. War factories transitioned from making war materials to making civilian supplies, which lead to the boost in our economy at the time. Today, effects of the Baby Boom have many factors that come into play that affect our economy. According to National Academy of Social Insurance “social security faces a financial challenge from the impending retirement of the largest generation in American history, the 76 million persons born in the “baby boom” years, from 1946 through 1964.
In 1980, with the influx of North Sea oil, the pound appreciated strongly relative to currencies in which Massey sold its products. Lack of alignment between production sites and market also lead to currency losses. As engine production was heavily concentrated in the United Kingdom, strong British pound increased Massey’s cost of goods sold from U.S.$2381.8 millions in 1979 to U.S.$2568.5 millions in 1980 and hurt the profit margin. Another factor was high interest rate .From the income statement (Exhibit 2), it illustrated that the interest expense rose from U.S.$128.8 millions in 1979 to U.S.$229.9 millions in 1980 despite the improvement of net sales. The high interest rate of 1979 and 1980 had a negative impact on Massey’s sales performance.