(10 points) |Score | | | 2. An online store that has been successfully growing on its initial angel investment and revenues wants to invest $5 million to expand the business. The bank is willing to lend the business this money at a 10 percent interest rate over an eight-year term. Calculate the monthly payment, and explain what the business must be able to do with this money in order for this to be a smart business decision. The monthly payment would be $53,084.34.
Following are the ratios of 4 years before and after IPO, which will show us how the net proceeds from IPO benefit company. | |2002 |2003 | We could see all the indicators up steadily since 2006 (IPO)till 2009.The significant factors contributing to the increases in sales were new restaurant openings and comparable restaurant sales increases, due to focus on customers, and an increase in the number of transactions. Both of two mainly reasons, new opening and comparable restaurant sales are financially support by net proceeds from IPO. ‘We believe that cash from operations, together with the net proceeds from the initial public offering will be enough to meet ongoing capital expenditures, working capital requirements and other cash needs over at least the next 24 months.’ ------from management Company stock price trend after IPO Following is the price monthly since Jan 25, 2006, a successful IPO, we could see the price up and up sharply, which maximums the interest of shareholders.
Livoria Sandwich Inc. is operating in a highly competitive and fast growing market. In 2011, the company had only 0.29% profit margin. In order to seek competitive advantage and gain market share, Livoria needs to cover its current cash shortage before going any further. In this memo, three strategic alternatives are evaluated; and recommendations and implementation plans will be given to cover Livoria’s short-term cash shortage, gain market share, and earn $1.1 million net income by 2014. Situational Analysis As shown in Appendix 1; in 2011, Livoria generated 53% contribution margin which is almost 10% higher than the industry average.
If you choose 40 random employees from the corporation, the standard error would equal 6/Square root of 40 = .95 days. The 12 days in this department corresponds to (12-8.2)/.95 = 4 standard errors above the corporation average of 8.2. This is much higher than two or three standard errors, and it appears to be beyond chance variation. Chapter 9 Exercise 3 The p- value tells you how likely it would be to get results at least as extreme as this if there was no difference in the taste and only chance variation was operating. In this problem, p-value of 0.02 means that, if there is no difference in taste, then there is only 2% chance that 70% or more people would declare one drink better than the
Through a thorough cost analysis and weightage of pros and cons of three alternatives, the team recommends to use an NVOCC (Non-Vessel operating common carrier) for small shipments which will lead to a lot lesser lead times and will help reduce costs as well. Along with this, the recommendation is also to increase packing efficiency for company’s already in use 20/40-feet containers. Currently the packing efficiency is 85%, and just by making it 95% the cost saving is $ 253,863.89 annually which will increase as total shipments are forecasted to grow by 15% for the next 5 years. Issues: The major issue identified in the case is to reduce the expenses on consolidated shipments from china overall increasing the supply chain efficiency. This issue is in fact more of an opportunity and the opportunity is to reduce the variable cost associated with the consolidated shipments as the estimated growth in shipments from China and Taiwan is 15% per year.
Food and snacks are normally sround $5-10, for example a Subway costs about $10.20 for a footlong sub. My Country … This year, Julia Gillard introduced ‘Carbon Tax’ something that would affect us and our finanial stability, as well as resource stability in the future. I don’t understand it fully, but I should probably look into it. My suburb is Rose Bay North, and to be honest, there isn’t much going on locally here, but the Carbon Tax is a huge issue for many Australians. Prices of houses in my area are around $2-3,000,000 for a house, and approximately $300-600,000 for an apartment
Marketing plan for kohler SWOT Analysis Strengths: (internal) * Brand recognition for 140 years, privately owned * Quality, high end products * Variety of products: kitchen and bath, global power, interiors and hospitality and real estate * International on 6 continents * High employee satisfaction (3.95/5 on indeed.com) * Crystal Vision Awards for giving back to the community * $5 Billion in revenue November 2012 * Kohler was named one of Fast Company magazine’s top 30 companies who “get it” when it comes to design in 2011 Weakness: (internal) * Product recalls tarnishing brand image (Marketline) * Kohler has to depend on money it generates instead of capital market funding due to it being a private company. Opportunities: (external) * Give back to community, volunteer, Habitat for Humanity * Developed a long term sustainability focuses on environmental footprint reduction * One of six companies in the world that makes toilets Threats: (external) * Lower quality made products * Real estate market fluctuation * Other competitors such as Masco are much larger, so they can absorb price changes in raw materials much easier. * Other competitors have a larger market share in small engines than Kohlers does which gives them a competitive advantage. Competitors: General Electric (Employees:305,000) Kenmore (Employees:293,000) Moen Gerber Plumbing Fixtures American Standard Masco (Kohler) Employees: 30,000 References Kohler Co. SWOT Analysis. (2012).
With these limited resources families must be smart when shopping. The average American spends $7 on food per day, while low income spend on average $4 per day.(DR. Drewnowski). The University of Washington did a study of where they compared the prices of high calorie energy dense food(junk food) and low-energy but nutritious foods. The finding was that on average energy dense food cost $1.76 per 1000 calories, while low energy nutritious food cost $18.16 per 1,000 calories.
Still, the company sells products in 200 different countries, so news of health risks linked to soft drinks might not reach some areas. Four of Coca-Cola’s brands remain in the top five beverages in terms of revenue, and it markets over 450 brands in total. Annual net operating revenue for 2011 was $46.54 billion, and the company recently moved up two spots to number 4 on Fortune magazine's Top 50 list of most admired companies, in spite of the social costs many associate with it. With so much working in its favor, it is hard for me to imagine that anything could touch this corporate giant. In the fall of 2011, Coca-Cola began a global marketing campaign*** for NESTEA which linked the product to personal exploration and adventure, a hot topic in marketing these days.
Per the data food service manager salaries are down by 8.9% from last year this time therefore to open a new pizza operation would be a good capitalize managerial decision at this time other cost factors remain the same. 3. Test the statistical significance of the variables and the regression equation indicating how it will impact your decision to open the pizza business. Per the data collected the independent variables price and wages are statistical significant of the dependent variable sales.